DAI Daimler AG Common Stock

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of April 2010

Commission File Number 1-12356

DAIMLER AG

(Translation of registrant’s name into English)

MERCEDESSTRASSE 137, 70327 STUTTGART, GERMANY

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-            

This report on Form 6-K is hereby incorporated by reference in the registration statements on Form S-8 (Nos. 333-5074, 333-7082, 333-8998, 333-86934, 333-86936 and 333-134198) of Daimler AG

DAIMLER AG

FORM 6-K: TABLE OF CONTENTS

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Forward-looking statements in this document:

This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “should” and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including a lack of further improvement or a renewed deterioration of global economic conditions, in particular a renewed decline of consumer demand and investment activity in Western Europe or the United States, or a downturn in major Asian economies; a continuation or worsening of the tense situation in the credit and financial markets, which could result in a renewed increase in borrowing costs or limit our funding flexibility; changes in currency exchange rates or interest rates; the ability to continue to offer fuel-efficient and environmentally friendly products; a permanent shift in consumer preference towards smaller, lower margin vehicles; the introduction of competing, fuel-efficient products and the possible lack of acceptance of our products or services, which may limit our ability to adequately utilize our production capacities or raise prices; price increases in fuel, raw materials and precious metals; disruption of production due to shortages of materials, labor strikes, or supplier insolvencies; a further decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization programs at all of our segments, including the repositioning of our truck activities in the NAFTA region and in Asia; the business outlook of companies in which we hold an equity interest, most notably EADS; the successful implementation of the strategic cooperation with Renault, changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending governmental investigations and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading “Risk Report” in Daimler’s most recent Annual Report and under the headings “Risk Factors” and “Legal Proceedings” in Daimler’s most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. If any of these risks and uncertainties materialize, or if the assumptions underlying any of our forward-looking statements prove incorrect, then our actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.

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Interim Report Q1 2010

Contents

Cover photo:

With the new convertible, Mercedes-Benz has added a particularly attractive and emotive model to the E-Class family. This two-door convertible gives its occupants the pure open-top experience; customer deliveries started on March 27. True to the motto “Four seasons, four persons,” the whole year is convertible season with the new E-Class Cabriolet. Because while many convertibles disappear from the roads of Western Europe in the autumn, the Mercedes-Benz E-Class convertible with AIRCAP, AIRSCARF and Acoustic Soft-top guarantees driving pleasure and comfort whether open or closed. The electric soft-top opens and closes fully automatically within 20 seconds and can even be operated at speeds of up to 25 mph.

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Q1

Key Figures

(1)  Adjusted for the effects of currency translation, increase in revenue of 15%

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Management Report

Increased unit sales by all divisions

First-quarter revenue well above prior-year level at €21.2 billion

Group EBIT significantly positive at €1,190 million (Q1 2009: minus €1,426 million)

Net profit of €612 million (Q1 2009: net loss of €1,286 million)

Significant increases in unit sales and revenue anticipated for full-year 2010

EBIT from ongoing business of more than €4 billion expected for the Daimler Group

Business development

World economy on moderate recovery path

After last year’s deep recession, the world economy continued along its recovery path in the first quarter of 2010. But the speed of expansion in the industrialized countries seems to have slowed down slightly compared to the robust growth of the fourth quarter of 2009. However, strong growth impetus came once again from the rapidly expanding Asian economies — especially China and India, and the economies of South America also seem to have achieved significant growth. Financial markets were affected in the first quarter by concern about the possible consequences of public debt, which was the main reason for the latest weakness of the euro. With the continuation of high raw-material prices, year-on-year inflation rates in the industrialized countries were significantly higher than in previous quarters.

Developments in global automotive markets were very varied in the first quarter of 2010. Global demand for cars generally continued its recovery, mainly due to rapid growth in China. The US market stabilized and posted significant growth in the first quarter. State scrappage incentives were still affecting the major markets of Western Europe apart from Germany, so total unit sales in the region were higher than in the first quarter of 2009. In Germany, however, unit sales fell by a double-digit percentage. The Japanese car market continues to benefit from the state incentive program and expanded by about 25%. The major emerging markets — China, India and Brazil — are still profiting from state incentive programs and significantly surpassed their prior-year volumes. The Russian car market continued to stabilize at the beginning of the year. An incentive program for car buyers was introduced in Russia this March.

Worldwide demand for trucks was significantly stronger than a year earlier, primarily due to the high proportion accounted for by the Chinese market with its ongoing rapid growth. But overall demand was still rather restrained in Western Europe , the United States and Japan. The US market continued to stabilize and expanded slightly compared to the weak prior-year quarter. There were hardly any signs of stabilization in Western Europe , so unit sales remained substantially below the prior-year level. In Japan, however, demand increased slightly due to state incentives. While the Russian market stabilized, demand for trucks grew dynamically not only in China but also in India and Brazil, significantly surpassing the weak prior-year levels.

Unit sales up by 21% in the first quarter

In the first quarter of 2010, Daimler sold 402,700 cars and commercial vehicles worldwide, which was 21% more than in the same period of last year.

Mercedes-Benz Cars recorded a very positive business development in the first quarter of this year. Due in particular to strong growth in the E-Class and S-Class segments, sales increased compared to the prior-year quarter by 20% to 277,100 units (Q1 2009: 231,200). The car division is thus continuing its positive development of the fourth quarter of 2009. Daimler Trucks sold 70,600 vehicles in the first three months of this year (Q1 2009: 65,400). Lower unit sales in Germany, the Middle East and Japan were offset by higher volumes in Brazil, Indonesia and Eastern Europe . Mercedes-Benz Vans’ unit sales increased due to a slight market recovery to 46,700 vehicles (Q1 2009: 28,800). At Daimler Buses, unit sales grew by 23% to 8,400 units. Bus markets in the region of Latin America (excluding Mexico) showed a distinct recovery, primarily due to the positive development in Brazil. But demand in Western Europe was lower than in the prior-year quarter. Daimler Financial Services’ global contract volume increased compared to the end of 2009 by 3% to €59.9 billion; adjusted for exchange-rate effects, it decreased by 1%. Compared to the first quarter of last year, new business increased by 6% to €6.2 billion; adjusted for exchange-rate effects, there was growth of 5%.

The Daimler Group’s first-quarter revenue increased significantly from €18.7 billion to €21.2 billion; adjusted for exchange-rate effects, revenue grew by 15%.

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Profitability

EBIT by segment

The Daimler Group recorded EBIT of €1,190 million for the first quarter of 2010 (Q1 2009: minus €1,426 million).

The very positive development of earnings is a reflection of the ongoing upward trend in nearly all divisions. In particular, Mercedes-Benz Cars achieved significantly positive earnings in the first quarter of 2010 due to its increased unit sales in the full-size and luxury segments. Efficiency improvements and the package of measures agreed upon in the middle of last year to reduce labor costs also contributed to this earnings development.

The sale of Daimler’s shares in the Indian automotive group Tata Motors resulted in a gain of €265 million during the reporting period. However, there was a negative effect on Group EBIT of €269 million from Daimler’s investment in EADS, which is accounted for using the equity method; Daimler’s share in EADS’s loss was primarily the result of expenses related to the A400M military transport aircraft.

Lower charges relating to the compounding of non-current provisions (Q1 2010: €84 million; Q1 2009: €360 million) were offset by negative currency effects.

The programs for the repositioning of Daimler Trucks North America and Mitsubishi Fuso Truck and Bus Corporation led to expenses of €17 million in the first quarter of 2010 (Q1 2009: €45 million).

The special items shown in the following table affected EBIT in the first quarters of 2010 and 2009:

Special factors affecting EBIT

With first-quarter EBIT of €806 million, the Mercedes-Benz Cars division improved its earnings compared to the prior-year quarter by €1.9 billion. The return on sales was 7.0% (Q1 2009: minus 12.4%).

The main factors contributing to this distinct earnings improvement were the significant increase in unit sales, especially in the full-size and luxury segments, the related improvement in the product mix and improved pricing. The division increased its unit sales in particular in the United States and China. Currency effects had a negative impact on earnings, but were partially offset by efficiency gains and cost reductions.

EBIT of €130 million posted by the Daimler Trucks division was also significantly better than the prior-year result of minus €142 million. The return on sales was 2.7% (Q1 2009: minus 2.9%).

This earnings improvement is primarily due to the good business development in Latin America. Other positive effects resulted from the measures taken to reduce costs, especially from the repositioning of Daimler Trucks North America and Mitsubishi Fuso Truck and Bus Corporation. The cost of implementing these programs impacted EBIT by minus €17 million in the first quarter of this year (Q1 2009: minus €45 million).

The Mercedes-Benz Vans division achieved EBIT of €64 million in the first quarter of 2010 (Q1 2009: minus €91 million). The return on sales was 3.8%, compared to minus 7.0% in the first quarter of last year.

The positive development of earnings was mainly the result of higher unit sales compared to the prior-year quarter, especially in Western Europe. Charges from currency effects were largely offset by efficiency improvements and cost savings.

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The Daimler Buses division achieved EBIT of €41 million (Q1 2009: €65 million). As expected, earnings were lower than the high level of the prior-year quarter. The return on sales was 4.1% (Q1 2009: 7.2%).

The reduction in earnings is primarily the result of lower unit sales in Western Europe, which could not be fully offset by the positive business development in Latin America.

Daimler Financial Services posted EBIT of €119 million for the first quarter of 2010 (Q1 2009: minus €167 million).

The improvement in earnings was mainly caused by lower risk provisions and higher interest margins. On the other hand, the division recognized charges in particular from the valuation of held-for-sale non-automotive assets, which are subject to lease agreements (€46 million).

The reconciliation of the divisions’ EBIT to Group EBIT primarily reflects our proportionate share in the results of our equity-method investment in EADS as well as further gains or losses at the corporate level.

In the first quarter of 2010, Daimler’s proportionate share of the net result of EADS amounted to a loss of €269 million (Q1 2009: gain of €83 million). The substantial deterioration is primarily the result of additional provisions recognized by EADS in its 2009 consolidated financial statements relating to the A400M military transport aircraft.

On the other hand, the sale of the 5.3% equity interest in Tata Motors led to a pre-tax gain of €265 million, which is reflected in the reconciliation to Group EBIT.

In the prior-year period, a gain of €40 million was realized on the legal transfer of Chrysler’s international sales activities to Chrysler LLC and from the revaluation of Chrysler-related assets.

The reconciliation also includes income at the corporate level of €26 million (Q1 2009: expenses of €112 million) and income of €8 million from the elimination of internal transactions within the Group (Q1 2009: income of €21 million).

Net interest result comprises in addition to expected returns on pension plan assets and interest cost of pension benefit obligations other interest income and other interest expenses (further information is provided in Note 3 of the Notes to the Interim Consolidated Financial Statements). Net interest result for the first quarter of 2010 of €198 million was close to the figure for the prior-year quarter (Q1 2009: €205 million). Interest income decreased, primarily due to the lower level of interest rates (Q1 2010: €200 million; Q1 2009: €293 million). The lower level of interest rates was also the main reason why interest expenses decreased by €100 million to €398 million (Q1 2009: €498 million).

The first-quarter income-tax expense of €380 million (Q1 2009: income-tax benefit of €345 million) was the result of the Group’s pre-tax profit (Q1 2009: pre-tax loss).

The positive development of operating results led to a significant earnings improvement with a net profit of €612 million (Q1 2009: net loss of €1,286 million). Earnings per share amounted to €0.65 (Q1 2009: loss per share of €1.40).

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Cash flows

Cash provided by operating activities amounted to €2.0 billion in the first quarter of 2010 (Q1 2009: €2.5 billion). The decrease compared to the prior-year period was the result of opposing developments. The positive business development of nearly all divisions led to a significant improvement in net profit, which had a positive impact on the cash flow from operating activities. There were negative effects from increased inventories and the development of new business in leasing and sales financing. Another factor is that small amounts of income tax had to be paid in the first quarter of 2010, whereas net tax refunds were received in the prior-year period. In addition, there were higher cash outflows for interest payments than in the first quarter of last year, due in particular to bonds issued in 2009. The effects from the higher trade receivables and payables, caused by the development of production and sales, nearly offset each other compared to the prior-year quarter.

Cash flows from investing activities in the first quarter resulted in a net cash outflow of €0.1 billion (Q1 2009: €3.4 billion). The reduced cash outflow compared to the prior-year quarter was primarily the result of acquisitions and sales of securities carried out in the context of liquidity management; this led to a net cash inflow of €0.7 billion in the first quarter of 2010, compared to a net cash outflow of €2.4 billion in the prior-year period. The reporting period was also affected by the proceeds from the sale of shares in Tata Motors (€0.3 billion). There was an opposing effect from the slightly higher cash outflow for investments in property, plant and equipment and intangible assets.

Cash flows from financing activities resulted in a net cash outflow of €2.5 billion in the period under review, almost all of which reflects the repayment of financing liabilities. The cash inflow in the prior-year period of €7.1 billion was primarily due to new financing liabilities and the capital increase from the issue of new shares (€1.95 billion).

Cash and cash equivalents with an original maturity of three months or less decreased compared to December 31, 2009 by €0.3 billion, after taking the effects of currency translation into account. Total liquidity, which also includes deposits and marketable securities with an original maturity of more than three months, decreased by €0.9 billion to €15.2 billion, mainly because of the cash outflows from financing activities. The high level of liquidity is likely to continue decreasing in the course of 2010, primarily due to the repayment of financing liabilities as they fall due.

The free cash flow of the industrial business , the parameter used by Daimler to measure the Group’s financing capability, was positive in the magnitude of €0.3 billion (Q1 2009: minus € 1.1 billion).

The main reason for the increase in the free cash flow was the increase in earnings of nearly all divisions , which more than compensated for the negative effects of inventory developments and higher payments for interest and taxes. The sale of shares in Tata Motors was an additional factor with a positive impact on the free cash flow.

Free cash flow of the industrial business

The net liquidity of the industrial business increased slightly by €0.1 billion to €7.4 billion.

Net liquidity of the industrial business

The increase in net liquidity was mainly caused by the positive free cash flow, with smaller opposing effects from currency translation.

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Net debt at Group level, which is primarily related to the refinancing of the leasing and sales-financing business, increased by €0.8 billion compared to December 31, 2009. The increase was primarily due to movements in currency exchange rates. There were opposing effects from the industrial business and a positive free cash flow in the financial services business; the latter was due to the development of new business and proceeds from the sale of assets which had previously been classified as held for sale.

Net debt of the Daimler Group

Financial position

Compared to December 31, 2009, the balance sheet total increased by €3.2 billion to €132.0 billion mainly as a result of exchange-rate effects. The financial services business accounted for €65.4 of the balance sheet total at the end of the first quarter (December 31, 2009: €65.1 billion), equivalent to 50% of the Daimler Group’s total assets (December 31, 2009: 51%).

Current assets amounted to 44% of the balance sheet total (December 31, 2009: 42%), of which both inventories and trade receivables increased. Current liabilities accounted for 37% of the balance sheet total, which is the same percentage as at December 31, 2009.

Intangible assets increased to €7.0 billion (December 31, 2009: €6.8 billion), primarily reflecting higher capitalized development costs.

Because capital expenditure was higher than depreciation and also due to exchange-rate effects, property, plant and equipment rose to €16.3 billion (December 31, 2009: €16.0 billion). The main areas of investment were advance expenditure for new vehicle models and drive systems at the Mercedes-Benz Cars division.

Equipment on operating leases and receivables from financial services increased by €1.7 billion to €58.7 billion (December 31, 2009: €57.0 billion). Adjusted for currency translation, there was a decrease of €0.5 billion. As a proportion of the balance sheet total, these items amounted to 44% (December 31, 2009: 44%).

Investments accounted for using the equity method of €4.0 billion mainly comprise the carrying amounts of our investments in EADS, Tognum and Kamaz. The decrease of €0.3 billion reflects Daimler’s proportionate share of the result of EADS, which was mainly influenced by expenses relating to the A400M military transport aircraft.

Inventories increased by €1.4 billion (+11%) to €14.2 billion, accounting for 11% of the balance sheet total. The increase is primarily attributable to cycles of production and sales during the year, which usually lead to an increase in inventories in the first quarter.

Trade receivables increased in line with unit sales by €1.6 billion to €6.9 billion.

Other financial assets (€9.8 billion ) mainly comprise securities, derivative financial instruments, loans and other receivables due from third parties. The decrease of €1.7 billion primarily reflects the reduction in the securities included in liquidity management and the sale of shares in Tata Motors (€0.3 billion).

Cash and cash equivalents decreased compared to December 31, 2009 by €0.3 billion to €9.5 billion.

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The assets held for sale from non-automotive leasing portfolios amounted to €0.2 billion (December 31, 2009: €0.3 billion). In the first quarter of 2010, assets of €0.2 billion were sold to third parties. There was an opposing effect from the first allocation of leasing portfolios (€0.1 billion).

Provisions accounted for 14% of the balance sheet total. Most of them relate to warranty, personnel and pension obligations and increased to €18.8 billion from €18.4 billion at December 31, 2009, mainly due to higher provisions for pensions.

Trade payables increased by €1.9 billion to €7.6 billion mainly due to the higher production volume.

Financing liabilities decreased by €1.0 billion to €57.3 billion. Adjusted for currency effects, the decrease amounted to €2.4 billion. Financing liabilities accounted for 43% of the balance sheet total (December 31, 2009: 45%) and primarily relate to the leasing and sales-financing business. The liabilities arising from customer deposits in Mercedes-Benz Bank’s direct banking business decreased by €1.5 billion to €11.1 billion.

Other financial liabilities rose by €0.9 billion to €10.6 billion. They primarily comprise liabilities from residual-value guarantees, derivative financial instruments and payrolls, as well as accrued interest on financing liabilities.

The Group’s equity increased compared to December 31, 2009 by €0.5 billion to €32.3 billion. Net profit of €0.6 billion and exchange-rate effects were partially offset by negative effects from the mark-to-market valuation of financial instruments. The equity ratio was 24.5% for the Group (December 31, 2009: 24.7%) and 41.0% for the industrial business (December 31, 2009: 42.6%).

Workforce

At the end of the first quarter of 2010, Daimler employed 254,779 people worldwide (March 31, 2009: 263,819). Of that total, 161,449 people were employed in Germany (March 31, 2009: 164,983). The adjustment of production volumes to the ongoing difficult market situation during the first quarter resulted in short-time work particularly at the commercial-vehicle plants. But due to the revival of demand, short-time work was suspended at our biggest car assembly plant in Sindelfingen as of January. Nearly all of our employees who are not on short-time work have temporarily had their working hours reduced by 8.75% with a corresponding reduction in salary until June 30, 2010, as agreed upon with the Group Labor Council. At the end of March 2010, approximately 18,000 employees were on short-time work and 96,000 employees were affected by the 8.75% reduction.

Changes in the Supervisory Board and the Board of Management

Effective January 5, 2010, Mr. Jörg Spiess was elected to the Supervisory Board as a representative of the employees and as successor to Mr. Helmut Lense.

On April 14, 2010, the Annual Meeting of Daimler AG elected Dr. Paul Achleitner to the Supervisory Board as successor to the departing member, Mr. Arnaud Lagardère. Mr. Achleitner, a member of the Board of Management of Allianz SE, has been elected as a member of Daimler’s Supervisory Board until the end of the Annual Meeting held in 2015.

Dr. Wolfgang Bernhard has been appointed as a member of the Board of Management of Daimler AG effective February 18, 2010. Mr. Bernhard is responsible for Production and Procurement Mercedes-Benz Cars and for the Mercedes-Benz Vans division.

Daimler plans to increase its interest in KAMAZ

Daimler AG has signed a memorandum of understanding with Troika Dialog, Russia’s leading investment bank, relating to the acquisition of 5% of KAMAZ shares held by Troika Dialog. In this way, Daimler is increasing its interest in the strategic partnership with the Russian truck manufacturer. It is planned that Daimler and the European Bank for Reconstruction and Development (EBRD) will jointly acquire the shares in KAMAZ. Daimler will at first increase its equity interest in KAMAZ by one percentage point to 11%, while the remaining 4% of KAMAZ shares will be held by the EBRD.

Daimler sells all of its shares in Tata Motors

In March 2010, Daimler AG sold all of its 5.34% equity interest in Tata Motors, an Indian automotive company, to various groups of investors through the capital market. Tata Motors’ share price has risen significantly, especially in 2009, with the result that Daimler AG achieved a cash inflow of €303 million from the sale. The transaction increased first-quarter EBIT by €265 million.

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Events after the interim balance sheet date

On April 1, 2010, Daimler AG reached a settlement with the US Securities and Exchange Commission (SEC) and the US Department of Justice (DOJ) on the termination of investigations into possible violations by Daimler of the US Foreign Corrupt Practices Act (FCPA). As part of this settlement, Daimler will pay a fine of US $93.6 million (approximately €70 million) and agrees to a profit disgorgement of US $91.4 million (approximately €68 million). Daimler has recognized sufficient provisions to cover these payments in recent years.

On April 7, 2010, Daimler AG and the Renault-Nissan Alliance agreed on wide-ranging strategic cooperation, which will result in early advantages for both groups from a series of specific projects and the shared use of best practices. On the basis of comprehensive and constructive discussions, specific projects have been agreed upon and will be implemented without delay. These projects include a new, common architecture for small cars, the shared use of fuel-efficient diesel and gasoline engines, and cooperation in the field of light commercial vehicles. A cross shareholding has also been agreed: The Renault-Nissan Alliance will receive a 3.1% equity interest in Daimler out of Daimler’s treasury shares while Daimler will receive a 3.1% interest in Renault and a 3.1% interest in Nissan.

Outlook

The statements made in the Outlook section of this Interim Report are based on the current assumptions of the Daimler management. In turn, those assumptions are based on the expectations for general economic developments described below, which are in line with appraisals made by renowned economic research institutes and the targets set by our divisions. Expectations for future business developments reflect the opportunities and risks arising from prevailing market conditions and competitive situations as the year progresses.

With regard to existing opportunities and risks, we refer to the statements made in our Annual Report 2009 and the notes on forward-looking statements at the end of this Management Report. In our assessment, market risks have decreased so far this year.

At the beginning of the second quarter, most available indicators suggest that the upturn of the world economy will continue. However, above all in the industrialized countries, it cannot yet be assumed with any degree of certainty that we are entering a self-sustaining upswing. Substantial stimulus is still being provided by special and one-time effects, whether in the form of fiscal programs or positive changes in inventory investment. So far, the economic revival has mainly relied on this stimulus and on rising exports, while domestic demand has barely risen. In particular on the investment side, a distinct improvement is required this year so that the world economy can develop a sustained dynamism. The prospects for private consumption in the industrialized countries remain rather modest in view of relatively high unemployment and little growth in incomes. While the extensive state stimulus programs that have been applied to combat recession will lose a lot of their impact in the coming quarters, the continuing recovery of world trade should provide additional growth momentum. This would above all benefit export-oriented economies such as Germany and Japan. The emerging markets will also contribute significantly to the expansion of the world economy. Growth will be the most dynamic in Asia, but significantly better growth rates than in 2009 are also expected for all other regions. In terms of incremental growth rates, the biggest impetus will come from Eastern Europe, where strong growth is now expected following the deep recession of last year. Most analysts and institutes assume that the world economy can expand by a good 3% this year. However, the global economic recovery is likely to remain very fragile in the coming months, and thus susceptible to external disturbances. The biggest sources of risk are still to be seen in renewed turbulence of financial and capital markets, the debate about high levels of public debt, raw-material prices and possible overheating of the Chinese economy.

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From today’s perspective, markets for motor vehicles will continue to recover as the year progresses. Global demand for cars should grow by 3-4% this year following the declines of the past two years. The recovery of the US market for cars and so-called light trucks should strengthen as the year progresses. But in Western Europe, demand is likely to fall distinctly following the end or gradual discontinuation of state scrappage incentives, especially in the high-volume and small-car segments. Germany will probably have the sharpest decline of all the Western European volume markets, with a double-digit drop in total sales. However, demand should gradually improve from commercial customers, which account for approximately half of the market in normal years. The Japanese market should be larger than in 2009 thanks to the prolongation until September of the state incentive program. According to current assessments, demand for cars in China and India will continue to grow substantially this year. The Brazilian market is expected to weaken following the expiry of tax relief. The Russian market should recover moderately following last year’s demand slump, with support from a recently introduced scrappage program.

Worldwide demand for trucks should increase again this year following the distinct market decline in 2009. China remains the main source of growth due to its high share of the global market for commercial vehicles above six tons. Prospects for Western Europe, the United States and Japan are still rather modest, however. In the NAFTA region, only slight volume growth of about 10% from a low level is anticipated for the segment of medium and heavy-duty trucks. In view of the weak development in Western Europe, demand in the aggregate European truck market is likely to be only slightly higher than last year. The Japanese market is likely to expand from a low level by 20-30%. Demand in the major emerging markets is likely to grow significantly this year. Strong demand is anticipated not only in China, but also in India and Brazil. In Russia and Eastern Europe, at least a slight market recovery can be expected following the severe crisis in 2009.

We expect a small increase in demand for medium-sized and large vans in Western Europe this year, along with significant market growth in the segment of large vans in the United States.

Expectations for buses are for slightly lower demand for both city buses and coaches in Europe this year. On the other hand, market conditions for bus chassis in Latin America are still very positive. Demand in North America is likely to be lower than in 2009.

Based on the divisions’ planning, Daimler expects total unit sales to increase significantly in 2010 (2009: 1.6 million vehicles).

Mercedes-Benz Cars will profit this year from the full availability of the new E-Class models. Following the very successful market launches in 2009 of the E-Class sedan, coupe and station wagon, the new E-Class convertible was launched in the first quarter of 2010. Unit sales will also be boosted by the new super sports car Mercedes-Benz SLS AMG, and as of autumn 2010 by the new generations of the R-Class and the CL-Class. Furthermore, we are continually launching additional fuel-efficient and environmentally friendly versions of existing models. Starting in the third quarter of 2010, new and particularly efficient six- and eight-cylinder gasoline engines will become available. Our already extensive portfolio of BlueEFFICIENCY models will be expanded to 85 model versions by the end of 2010. For the smart brand, we anticipate an increase in demand following the launch of a new generation of the smart fortwo in the third quarter of 2010. On the basis of our attractive and competitive range of vehicles, we assume that we will be able to strengthen our market position in 2010 even with a continuation of difficult conditions, and that we will grow at about double the rate of the global car market.

We expect the Mercedes-Benz Cars division to achieve EBIT of €2.5 billion to €3 billion from its ongoing business in the year 2010. This should be facilitated on the one hand by higher volumes and on the other hand by improved profit margins. The projected range is dependent on market developments, exchange-rate volatilities and the macroeconomic situation. We will continue to invest substantial amounts in the development and production of new drive technologies and innovative safety systems in order to improve our competitive position in this difficult market environment.

Daimler Trucks anticipates a recovery of unit sales this year, starting from the low level of 2009. We expect growth impetus initially from some of the Latin American markets and — starting from a very low level — also from the NAFTA region. In Europe, however, we anticipate a slight revival of demand in the second half of 2010 at the earliest.

On this basis, we anticipate EBIT in 2010 from the ongoing business of €500 million to €700 million.

Against the backdrop of rising customer demand in the van sector and the stabilizing market situation, Mercedes-Benz Vans expects a significant increase in unit sales compared to the prior year. In combination with the positive effects from the measures taken to improve efficiency, we anticipate EBIT in 2010 in the region of €250 million.

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Daimler Buses assumes that it will increase its unit sales in 2010, mainly due to strong demand in Latin American markets. We expect significantly positive EBIT of approximately €180 million, as in the prior year.

The Daimler Financial Services division anticipates stable development of its worldwide contract volume in the automotive business. Daimler Financial Services assumes that credit-risk costs will decrease in full-year 2010. We also assume that the division will achieve further efficiency improvements. For the full year, Daimler Financial Services expects to achieve EBIT from its ongoing business of more than €500 million.

Following a distinct decline in 2009, we assume that the Daimler Group’s revenue will increase again in 2010, but will remain significantly below the level of 2008. All automotive divisions should contribute to this year’s growth.

We expect the Daimler Group to achieve EBIT from the ongoing business of more than €4 billion in 2010. The key factors for this expectation are the ongoing market revival, the improving economic environment and the market success of our products.

As a result of the upturn in demand, we assume that the size of our worldwide workforce will remain constant or increase slightly compared to the end of 2009.

Forward-looking statements:

This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “should” and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including a lack of further improvement or a renewed deterioration of global economic conditions, in particular a renewed decline of consumer demand and investment activity in Western Europe or the United States, or a downturn in major Asian economies; a continuation or worsening of the tense situation in the credit and financial markets, which could result in a renewed increase in borrowing costs or limit our funding flexibility; changes in currency exchange rates or interest rates; the ability to continue to offer fuel-efficient and environmentally friendly products; a permanent shift in consumer preference towards smaller, lower margin vehicles; the introduction of competing, fuel-efficient products and the possible lack of acceptance of our products or services, which may limit our ability to adequately utilize our production capacities or raise prices; price increases in fuel, raw materials and precious metals; disruption of production due to shortages of materials, labor strikes, or supplier insolvencies; a further decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization programs at all of our segments, including the repositioning of our truck activities in the NAFTA region and in Asia; the business outlook of companies in which we hold an equity interest, most notably EADS; the successful implementation of the strategic cooperation with Renault; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending governmental investigations and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading “Risk Report” in Daimler’s most recent Annual Report and under the headings “Risk Factors” and “Legal Proceedings” in Daimler’s most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. If any of these risks and uncertainties materialize, or if the assumptions underlying any of our forward-looking statements prove incorrect, then our actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.

12

Mercedes-Benz Cars

Unit sales up by 20% compared to Q1 2009

Market success for all model series

Continuation of model offensive

EBIT significantly positive at €806 million (Q1 2009: minus €1,123 million)

Significant improvements in unit sales, revenue and earnings

Mercedes-Benz Cars achieved a very positive business development in the first quarter of 2010. Due in particular to strong growth in the E-Class and S-Class segments, unit sales increased compared to the first quarter of last year by 20% to 277,100 vehicles (Q1 2009: 231,200). This year, therefore, the car division has continued its positive development of the fourth quarter of 2009. First-quarter revenue rose by 28% to €11.6 billion. As a result of this positive market development, Mercedes-Benz Cars improved its EBIT to €806 million (Q1 2009: minus €1,123 million).

Market success for all model series

Our model mix improved significantly following an excellent response to the new models in the full-size and luxury segments. Sales of 70,600 automobiles in the E-Class segment were more than double the number for the prior-year period (Q1 2009: 28,500). The E-Class sedan remains the market leader in its segment. Sales in the S-Class segment increased by 60% compared to the first quarter of last year, reaching 17,900 units (Q1 2009: 11,200). Primarily due to growth for the M- and GL-Class, Mercedes-Benz increased its unit sales also in the SUV segment — by 14% to 42,400 vehicles (Q1 2009: 37,300). In the C-Class segment, 75,500 units were sold in the first quarter (Q1 2009: 77,400). Sales of A- and B-Class models increased by 3% to 48,100 units (Q1 2009: 46,700).

In Western Europe , sales by Mercedes-Benz Cars of 135,100 units were slightly above the prior-year level (Q1 2009: 133,400). Within the region, Mercedes-Benz Cars gained market share in Germany. In the United States, sales increased by 28% to 56,100 units (Q1 2009: 43,900). Mercedes-Benz thus gained market share also in the USA and is the best-selling German premium brand in that market. In China, Mercedes-Benz Cars more than doubled its unit sales to 26,900 vehicles (Q1 2009: 11,200); Mercedes-Benz thus defended its position as the premium brand with the strongest growth in the Chinese market.

21,400 smart fortwo cars were delivered in the first quarter of this year (Q1 2009: 28,500). The new generation of the two-seater will be launched in the third quarter.

Mercedes-Benz continues its model offensive

With the launch of the new E-Class convertible, deliveries of which began at the end of March, Mercedes-Benz has now completed its model range in the E-Class segment. With its innovative AIRCAP® automatic wind deflector, the new E-Class convertible offers unique all-year-round comfort in the segment of open automobiles. We have already sold nearly the entire annual production for 2010 of the super sports car SLS AMG, which was also launched at the end of March. The SLS AMG has received some important awards in recent weeks, including the “Golden Steering Wheel,” “The Best Car” and the “Auto Trophy.” And at the New York Motor Show, Mercedes-Benz presented the new generation of the R-Class with a completely newly designed front. This model will be available as of August 2010. Mercedes-Benz made further progress also in the area of efficiency. The new C 220 CDI for example consumes only 4.4 liters of diesel fuel per 100 kilometers; its CO 2  emissions have thus been reduced from 127 to 117 g/km. And the E 250 CDI with the new 7-speed automatic transmission now consumes only 4.9 liters of diesel fuel per 100 kilometers (129 g/km CO 2 ). Both of these cars are equipped with start-stop automatic.

Production preparations for long-wheelbase E-Class in China

The E-Class coupe and the E-Class convertible are now produced in a flexible mix on one assembly line at the Mercedes-Benz plant in Bremen. And at our plant in Beijing, preparations are being made for the production startup of the new long-wheelbase E-Class, which has been developed exclusively for the Chinese market. We anticipate further positive unit-sales impetus from the market launch of the long-wheelbase E-Class, which is scheduled for July 2010.

13

Daimler Trucks

Unit sales above prior-year level at 70,600 trucks (Q1 2009: 65,400)

Daimler Trucks continues to focus on the BRIC markets

Fuso Canter Eco Hybrid successful also outside Japan

EBIT positive again at €130 million (Q1 2009: minus €142 million)

Significant earnings recovery

Daimler Trucks sold 70,600 vehicles in the first quarter of 2010 (Q1 2009: 65,400). Lower unit sales in Germany, the Middle East and Japan were more than offset above all by higher volumes in Latin America (+79%) and Southeast Asia (+48%) . Revenue of €4.9 billion was close to the level of the prior-year period. EBIT of €130 million was positive again (Q1 2009: minus €142 million).

Market recovery in America and Asia

Trucks Europe/Latin America (Mercedes-Benz) sold 25,600 vehicles in the first quarter of this year, representing an increase over the number of 23,100 units sold in the first quarter of 2009. Unit sales in Brazil developed particularly well at plus 81%, due to the economic recovery, tax relief and state support with the provision of favorable financing packages. In Western Europe , unit sales decreased once again to 8,600 vehicles, in line with the market trend (Q1 2009: 11,600). The sharpest drop in demand was in Germany (-31%).

Unit sales of 17,900 vehicles by Trucks NAFTA (Freightliner, Western Star, Thomas Built Buses) were above the prior-year level (+4%). While Trucks NAFTA achieved a slight increase in unit sales in the US market (+9%), unit sales decreased in Canada and Mexico.

Trucks Asia (Fuso) sold 27,100 vehicles in the first quarter, which is 8% more than in the prior-year period. The biggest increase was in Indonesia (+56%). Unit sales decreased, however, in Taiwan (-50%) and Japan (-23%). Overall demand in the regions outside Japan was 18% higher than in the first quarter of 2009.

Daimler Trucks intensifies alliance with Russian truck manufacturer

Daimler AG has signed a memorandum of understanding with Troika Dialog, Russia’s leading investment bank, on the acquisition of 5% of KAMAZ shares held by Troika Dialog. In this way, Daimler is increasing its interest in the strategic partnership with the Russian truck manufacturer. It is planned that Daimler and the European Bank for Reconstruction and Development (EBRD) will jointly acquire the shares in KAMAZ. Daimler will at first increase its equity interest in KAMAZ by one percentage point to 11%, while the remaining 4% of KAMAZ shares will be held by the EBRD. Daimler Trucks and KAMAZ have already implemented the first projects in the context of a strategic partnership and will soon begin with local truck production and sales of Daimler Truck vehicles.

Mercedes-Benz do Brasil expands production capacities

Due to the prevailing strong growth in demand for trucks and buses in Latin America, which is expected to continue, it was decided in the first quarter to significantly expand vehicle production in Brazil. Production capacity at the São Bernardo do Campo facility — Daimler’s biggest commercial-vehicle plant outside Europe — is to be expanded until 2012 by 15% to reach a level of 75,000 units per annum. In addition, as of 2011, commercial vehicles will also be produced at the car plant in Juiz de Fora in the federal state of Minas Gerais. By then, this plant is to be integrated into the Daimler Trucks production network.

Mitsubishi Fuso Truck and Bus Corporation (MFTBC) successful with the Fuso Canter Eco Hybrid

In February, MFTBC started selling its Fuso Canter Eco Hybrid in Hong Kong. Following Ireland and Australia, Hong Kong is now the third market for this light hybrid truck outside the Japanese domestic market.

Daimler Trucks North America (DTNA) at the biggest commercial vehicle show

DTNA was a prominent exhibitor at the Mid American Trucking Show in March with the brands Freightliner, Western Star and Detroit Diesel. The main focus was on fuel-efficient drive systems and the introduction as standard equipment of the tried-and-tested SCR technology in the US market to fulfill the new EPA 2010 emission regulations.

14

Mercedes-Benz Vans

Significant increase in unit sales to 46,700 vehicles (Q1 2009: 28,800)

Improved position in a difficult market environment

Prizes awarded to Mercedes-Benz Vans products

EBIT of €64 million (Q1 2009: minus €91 million)

Increased unit sales, revenue and EBIT after market recovery

Unit sales by Mercedes-Benz Vans increased to 46,700 vehicles in the first quarter of 2010 (Q1 2009: 28,800), following a slight market recovery. First-quarter revenue of €1.7 billion was also above the prior-year level (€1.3 billion), while EBIT amounted to €64 million (Q1 2009: minus €91 million).

Mercedes-Benz Vans improves its position in a difficult market environment

In an ongoing difficult market environment, Mercedes-Benz Vans achieved a 62% increase in unit sales compared to the weak first quarter of 2009, selling 46,700 vehicles. In Western Europe , the division’s most important market, unit sales in the first quarter of 2010 increased to 34,800 vehicles, representing an increase of nearly 60% compared to the prior-year quarter. Unit sales in Germany rose by 33% to 12,700 vans. The market in Eastern Europe recovered slightly, resulting in only moderate growth in sales in that region to 2,700 units.

Mercedes-Benz Vans achieved pleasing growth in unit sales also in the NAFTA region. Since the beginning of this year, the Sprinter has been sold in the United States and Canada through the Mercedes-Benz sales organization. Unit sales in the first quarter increased to 3,000 vans (Q1 2009: 500).

We sold 30,600 Sprinter vans in the first three months of this year, representing an increase of 67% compared to the prior-year quarter. Sales of the Vito and Viano also increased considerably to a total of 15,200 units worldwide (Q1 2009: 9,900).

Despite the continuation of the difficult market situation, Mercedes-Benz Vans was able to strengthen its market leadership for medium-sized and large vans in Western Europe , achieving a market share of 17.7% (Q1 2009: 16.7%).

Excellent products convince experts and customers

The popularity of vans from Mercedes-Benz with industry experts and customers was demonstrated once again in the first quarter of 2010 with the award of several prizes.

In the annual image ranking carried out by the specialist magazine ‘VerkehrsRundschau’ Mercedes-Benz Vans products took first place in the overall Vans category. In addition, Mercedes-Benz vans and trucks took the top positions in the new Environment category.

Mercedes-Benz Vans to put the first battery-powered van into series production

On the occasion of the Informal EU Competitiveness Council in San Sebastián in February 2010, Mercedes-Benz Vans presented the prototype of a battery-powered van based on the Mercedes-Benz Vito.

Before the end of 2010, more than 100 Mercedes-Benz Vito E-Cell vans will be delivered to 20 customers in Europe. These are mainly fleet customers and public-sector institutions that want to transport goods in environmentally sensitive zones quietly and completely without local emissions in the future.

15

Daimler Buses

Unit sales of 8,400 buses and chassis (Q1 2009: 6,800)

Presentation of new Setra TopClass for the United States

Further development of activities in India

EBIT of €41 million (Q1 2009: €65 million)

Weaker demand outside Latin America

Daimler Buses significantly increased its unit sales to 8,400 buses and bus chassis worldwide in the first quarter of 2010 (Q1 2009: 6,800). Revenue of €1,011 million was also higher than in the prior-year period (Q1 2009: €904 million), while EBIT amounted to €41 million (Q1 2009: €65 million).

Positive development of unit sales in Latin America

1,100 buses and chassis of the Mercedes-Benz and Setra brands were sold in Western Europe . Unit sales were 4% below the high level of the prior-year quarter, reflecting decreases in the previously stable city-bus business as well as in the coach segment. Sales of 400 units in Germany were at the prior-year level.

Sales in the NAFTA region decreased by 58% to 500 units (Q1 2009: 1,200). While the good level of unit sales of the prior-year period was maintained in the United States and Canada, there was a distinct drop in demand in Mexico.

Demand recovered significantly in the Latin America region (excluding Mexico), due in particular to the positive development in Brazil, the biggest market in the region. Daimler Buses sold 5,800 Mercedes-Benz bus chassis in the first quarter, representing an increase of 74% compared to the prior-year quarter.

Best in Class — new Setra TopClass for the United States

Following the comprehensive model upgrade of the Setra TopClass 400 in Europe, Daimler Buses presented the revised US version of the Setra TopClass 417 at the UMA Motorcoach Expo in Las Vegas. Equipped with Front Collision Guard and with improvements to all active safety features, the new coach represents a further step towards accident-free driving. In addition, this coach in the luxury segment fulfills the US EPA 2010 emission limits for nitrogen oxide and particulate matter. Since the successful launch of the Setra TopClass, more than 800 units have been sold in the United States, Canada and Mexico. This brings our market share in the premium segment to approximately 30%.

New product for the Indian market

Daimler Buses presented its new triple-axle luxury coach at the Auto Expo in New Delhi this January. This coach features a
Mercedes-Benz chassis and a superstructure from our Indian partner company, Sutlej Motors Ltd. Daimler Buses is expanding its activities in India with this new model and aims to gain market share in the Indian luxury-coach segment.

Major order for environmentally friendly buses from Sardinia

Also in the first quarter of 2010, Daimler Buses gained a major order for 239 buses from Sardinia. This order is for 217 Mercedes-Benz Citaro city buses and 22 Mercedes-Benz Sprinter City 65 minibuses for the public transport companies in Cagliari, Nuoro, Olbia and Sassari. The economical and low-emission buses use the environmentally friendly Mercedes-Benz BLUETEC SCR diesel technology and fulfill the Euro 5 and EEV (Enhanced Environmentally Friendly Vehicle) emission standards.

16

Daimler Financial Services

Contract volume below prior-year level

Further growth in the insurance business

Positive business development in Asia

EBIT of €119 million (Q1 2009: minus €167 million)

Lower decrease in contract volume

Daimler Financial Services’ worldwide contract volume amounted to €59.9 billion at the end of the first quarter of 2010, representing a year-on-year decrease of 3%. Compared with the end of the year 2009, contract volume increased by 3%; adjusted for exchange-rate effects, the portfolio decreased by 1% compared to year-end. New business increased compared with the first quarter of last year by 6% to €6.2 billion; adjusted for exchange-rate effects, there was an increase of 5%. EBIT amounted to €119 million (Q1 2009: minus €167 million).

Daimler Financial Services expanded its insurance business in the first quarter of this year, brokering 169,000 insurance policies worldwide. This represents an increase of 13% compared to the first quarter of 2009. Daimler Financial Services and the insurance company Allianz SE concluded a framework agreement on global cooperation in the field of automobile insurance in the first quarter. This agreement makes Allianz a strategic partner for Daimler in the international automobile insurance business.

Measures taken to minimize risks and improve efficiency in Europe

Contract volume of €28.1 billion in the Europe region was 2% below the figure for year-end 2009. In view of the difficult economic situation in Central and Eastern Europe, the focus in this region remains on taking measures to reduce credit risks . Collection management and remarketing processes were further intensified.

The contract volume of Mercedes-Benz Bank in Germany decreased compared to the end of 2009 by 3% to €15.7 billion. Mercedes-Benz Bank’s total deposit volume amounted to €11.1 billion at March 31, 2010, which is €1.5 billion below the level at the end of 2009, as planned.

We have merged the contract processing, risk management and administrative functions for the markets of the Netherlands, Belgium and Luxembourg; these functions are now based in the Netherlands. By taking this step, we intend to enhance the quality and speed of those processes and to increase their efficiency.

Mercedes-Benz Financial Services achieved first place in an independent survey of French car dealerships’ satisfaction with their providers of financial services. And in Germany, Mercedes-Benz CharterWay received the Image Award in the Rental/Leasing category from VerkehrsRundschau , a specialist transport magazine.

Additional services for smart-phone users in the United States

In the Americas region, contract volume increased compared to the end of 2009 by 6% to €24.2 billion; adjusted for exchange-rate effects, there was a decrease of 2%. The reduction in contract volume was primarily due to the sale of part of the non-automotive portfolio in the United States.

Mercedes-Benz Financial in the United States expanded its range of account-management functions for smart-phone users in the first quarter. This allows users of BlackBerry® and Droid® and other Internet-capable handsets to pay their leasing and financing installments conveniently and flexibly. With the start of a free iPhone® application in the autumn of 2009, Mercedes-Benz Financial was the first auto financer to provide its customers with mobile account-management functions. The iPhone® application has already been downloaded by customers more than 11,000 times since it was launched.

Further growth in the Africa & Asia/Pacific region

In the Africa & Asia/Pacific region, Daimler Financial Services further increased its contract volume by 12% to €7.6 billion at the end of the first quarter; adjusted for exchange-rate effects, there was an increase of 4%. Growth was particularly dynamic in China, where contract volume increased compared to the end of 2009 by 26% to €599 million. Despite signs of economic stabilization in the markets of Africa and Asia/Pacific, the optimization of credit risks by means of proactive risk management remains a strategic focus in that region.

17

Daimler AG and Subsidiaries

Unaudited Consolidated Statement of Income (Loss)

(1)  EBIT includes expenses from the compounding of provisions (2010: €84 million; 2009: €360 million).

The accompanying notes are an integral part of these Unaudited Interim Consolidated Financial Statements.

18

Daimler AG and Subsidiaries

Unaudited Consolidated Statement of Comprehensive Income (Loss)

The accompanying notes are an integral part of these Unaudited Interim Consolidated Financial Statements.

19

Daimler AG and Subsidiaries

Consolidated Statement of Financial Position