Sustainable growth initiative by Daimler

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Daimler will continue to rely on sustainable actions and in its “Mercedes-Benz 2020" growth strategy takes ecological as well as social aspects into account with the goal of long-term, sustainable growth. As part of the annual "Daimler Sustainability Dialogues” the company also draws upon the know-how of external experts.

Integrity as part of the corporate culture

Daimler is committed to the actions in and on behalf of the company being guided by values. However, conduct based on business ethics cannot be filled with life by decree, but rather solely on the basis of generally supported principles – both in dealing with one another and with customers and business partners. To achieve a common understanding of "proper business dealings", Daimler conducted a Group-wide integrity dialog across divisions and hierarchies in 2011 and 2012. The results of these dialogs have been integrated in the Daimler Integrity Code, which specifies a binding code of conduct and guidelines that govern everyday actions. Respect, openness, fairness, responsibility, compliance with laws and the respect for rights are key principles in this regard.

Dr. Christine Hohmann-Dennhardt, member of the Daimler Board of Management, Integrity and Legal Affairs: “Conduct based on business ethics is an essential success factor for companies striving for a sustained top position. We share this conviction and have sustainably anchored integrity as in inherent part of our corporate culture.”

Advisory Board for Integrity and Corporate Responsibility

Daimler also places great importance on the critical and constructive outside perspective: for this reason Daimler has established the Advisory Board for Integrity and Corporate Responsibility, which advises the company on questions regarding integrity. Its members are:

- Stefan Aust, journalist, publicist and author
- Professor Kai Bussmann, Head of Economy & Crime Research Center, Martin Luther University, Halle-Wittenberg
- Professor Helmut Holzapfel, Head of the Department for Integrated Traffic Planning and Mobility Development, University of Kassel
- Renate Hornung-Draus, Managing Director of the Confederation of German Employers’ Associations (BDA), Director European and International Affairs
- Professor Michael Kittner, former Professor of Business, Labor and Social Law, University of Kassel and legal advisor for IG Metall
- Professor Julian Nida-Rümelin, Professor for Philosophy, Ludwig Maximilian University, Munich
- Pierre Sané, Board Member, UN Global Compact
- Sylvia Schenk, attorney in Frankfurt, Board Member of Transparency International Germany and German Olympic Academy
- Prof. Ernst Ulrich von Weizsäcker, environmental scientist, climate expert and former Member of the Bundestag

The newest member is Louis Freeh, former director of the Federal Bureau of Investigation (FBI) and federal judge, who advised the company as compliance monitor until March 31, 2013 and will henceforth be part of this independent advisory committee.

“We are delighted that we were able to attract personalities with outstanding know-how in the area of conduct based on business ethics for our Advisory Board for Integrity and Corporate Responsibility. The exchange benefits both sides equally,” said Dr. Christine Hohmann-Dennhardt, member of the Daimler Board of Management, Integrity and Legal Affairs.

Market success by means of sustainable innovative strength

Daimler also demonstrates a strong commitment to sustainability with the ever-growing environmental compatibility of its products. From electric bicycles, passenger cars and vans to light-duty trucks and buses the company meets almost all mobility needs.

“We invest more than five billion euros each year in research and the development of our passenger car portfolio – about half of that in green technologies. That pays dividends. We were able to achieve sizeable CO2 savings in all vehicle segments,” said Prof. Dr. Thomas Weber, Member of the Daimler Board of Management, responsible for Group Research and Development Mercedes-Benz Cars as well as Chairman of the Daimler Sustainability Board.

The company’s portfolio today has more than 47 passenger car models with CO2 emissions of less than 120 grams per kilometer; among them 14 models that emit less than 100 grams of CO2 per kilometer. Thanks to the efficiency initiative, Mercedes-Benz Cars was thereby able to reduce the average CO2 emissions of its entire fleet of new passenger cars in Europe to 140g/km in 2012 – the equivalent of a mere 5.6 liters per 100 kilometers. The Stuttgart-based automaker repeatedly achieves a significant reduction in the CO2 emissions of its vehicle fleet and at the same time remains below the target values specified by the EU for 2012.

Furthermore, the gasoline-powered models of the new Mercedes-Benz A- and B-Class today already meet Euro 6 emission standards that will only go into effect in September 2014. “As an automaker we want to safeguard mobility in individual and sustainable fashion. That’s why we put the bar much higher with regard to sustainability and continuously set ourselves new and most importantly ambitious goals. By 2016 we want to lower the emissions of our Mercedes-Benz Cars fleet to 125 g/km. To achieve this, we use all relevant control levers – from high-efficiency drive systems and intelligent energy management to perfect aerodynamics and consistent lightweight construction.”

Most extensive portfolio of electric vehicles in the industry

In order to meet strict future statutory CO2 emission limits, electric mobility will increasingly gain in significance. That is the reason why the company already has the most extensive portfolio of electric vehicles in the industry, now numbering nine models. This includes the smart ebike, the smart fortwo electric drive and its BRABUS version, the Mercedes-Benz A-Class E-CELL, B-Class F-CELL, the SLS AMG Coupe Electric Drive, the Vito E-CELL and the Citaro FuelCELL Hybrid bus. More electric vehicles are already in the starting blocks: the B-Class Electric Drive recently celebrated its world debut at the New York International Auto Show and the electric version of the next-generation smart car is planned both as a two- and four-seater model.

With the example of the smart fortwo electric drive Daimler also shows that emission-free electric mobility is not just feasible on a local scale, but also comprehensively: the energy required for operating all electric smart vehicles in Germany is supplied by a wind power station next to the A9 autobahn, with which Daimler supplies the grid additionally with electricity produced entirely from renewable resources. More than 1000 units of the smart fortwo electric drive have already been produced and delivered to customers; production output will be increased continuously in 2013 to meet the strong demand. With a market share of 20 percent of the entire German market for electric passenger cars, the smart fortwo electric drive is already today’s market leader among passenger cars with a purely battery-electric drive system.

Sustainability Report with A+ rating

The focus of the Daimler Sustainability Report this year was once again on the principles of “materiality” and the inclusion of stakeholders. The company bases its reporting about sustainability on the standards and requirements of the Global Reporting Initiative (GRI). The goal of the GRI is to create comparability between companies within the same industry. The current Daimler Sustainability Report again earned an “A+” rating.

Credits: Daimler AG

Copyright © 2013, mercedesgla. All rights reserved.

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REPORT: Mercedes-Benz reconsiders growth strategy amid the global economic crisis

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The economic downturn, which ones again seems to affect the entire world like it did beginning with the end of 2008, is proving to be hard contender to fight with in the automotive industry as well. The absence of liquidities and the inevitable inabilities to meet payment terms in some cases lead to the postponement or even cancellation of initial plans. The crisis does not take its toll on the standard, large automobile constructors only. Premium carmakers like Mercedes-Benz are also faced with problems in these difficult times.

No sooner than the end of September, two days before the Paris Motor Show officially opened its gates for public, Daimler executives have announced that the company was forced to lower the profit margin by 10 percent for the Mercedes-Benz Cars division in the prospect of 2013. The initial plans were disturbed by some market factors, which led to this decision. A cautios, yet necessary step, if you ask us, as it is always better to deal with reality than play with fantasy.

Even though chief Dr. Dieter Zetsche is fully aware Mercedes-Benz and smart will sell less units in the next years, he admits improving quality and efficiency will be the main targets to achieve in the next period in order to counteract and reduce the effects of the economic crisis. Most probably, the previously sketched 2020 growth plan may have suffered some important alterations.

According to Dr. Wolfgang Bernhard, member of the Board of Management of Daimler AG in charge with supervising the procurement and production activities at the company, is confident that Mercedes-Benz needs to focus on respecting four principal attributes that best describes the German entity: BRAND, TRADITION, HERITAGE and DESIGN. We are talking about an all new strategy which looks to substantially develop the core flagships of portfolio, such as the compact class models, the future C-Class, the new E-Class, the SUV range, the upcoming S-Class and the SL-Class, in order to achieve a sustainable, long-term performance. This means the officials might have already ditched plans on several versions that were rumored to be released in the next years. One example is the SLC AMG supercar rivaling the Porsche 911, which we have talked about frequently in the past. On the other hand, Mercedes-Benz will reportedly extend its crossover lineup by up to four new models in the coming years: the compact GLA, the rugged GLG - a modern interpretation of the G-Class in a compact size, the dynamic GLC - a compact Sports Utility Coupe with five doors, and the MLC (or GLS) - the M-Class Coupe, if you don't mind.

Moreover, the development of new, state-of-the-art technologies in the domains of safety, telematics and powertrain solutions (mind the future tri-turbo diesel and petrol units and the I6 engines coming in the next 3-4 years, as well as the expansion of the electric and hybrid model portfolio) will certainly be a crucial engine for the growth of Daimler, which targets to be the summit in the premium automakers league by the end of this decade.

Read further articles on similar topics:

- Mercedes-Benz consistently implements its 2020 growth strategy
- Outlining the future of the automobile: The Mercedes-Benz 2015 model offensive
- Daimler's Dr. Z confirms the future S-Class lineup will total six different models
- J.D. Power Study 2012: Mercedes-Benz drivers are the most satisfied
- REPORT: Mercedes-Benz on the trail of becoming leader of the premium segment
- PREVIEW: 2014 Mercedes-Benz GLC
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- The new 2015 Mercedes-Benz SUV coupe previewed at the Tuscaloosa plantThe new 2015 Mercedes-Benz SUV coupe previewed at the Tuscaloosa plant
- REPORT: 2015 Mercedes-Benz SLC AMG launch delayed

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Sustainability drives growth at Daimler

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In order to secure its success also over the long term, Daimler has made the topic of sustainability into a key element of its growth strategy. “Sustainable growth is only possible on the basis of sustainable action,” stated Dr. Christine Hohmann-Dennhardt, Member of the Daimler Board of Management for Integrity and Legal Affairs, at the presentation of the company’s latest sustainability report. “That’s why growth, sustainability and responsibility constitute the triad of our entrepreneurial activity. And because we take this matter seriously, integrity will be firmly anchored in the individual target agreements for Board of Management remuneration as of this year.”

Since 2011, there has been a Group-wide integrity dialogue between executives and workforce across corporate hierarchies and sites. This is intended to secure a sustainably changed awareness among executives and members of the workforce. At the same time, Daimler continues to further develop its compliance program. For example, the company has further refined its analysis for the assessment of risks in business units and its procedure for reviewing business partners. The BPO whistleblower system has been revised and supplemented in Germany with an external contact person in the role of a neutral mediator, Prof. Winfried Hassemer.

In addition, all employees receive continual further training in compliance courses. And since May 2011, Daimler has regularly provided its employees with information on topics related to integrity and compliance in 19 languages in the context of the Group-wide “fairplay” campaign. As another expression of its sustainable action, Daimler was one of the first signatories of the UN Global Compact and it has also been a member of the Global Compact’s LEAD group since January 2011.

Market success due to sustained innovation

The Daimler Group’s strong commitment to sustainability is also clearly visible from its entire product range – from the smart to emotional sedans and sports cars to heavy trucks – with the addition of innovative mobility concepts such as car2go. Last year, Daimler invested €5.6 billion in research and development. One result of that investment was the number of 2,175 new patent applications in 2011 and numerous product innovations that help to secure the Group’s long-term market success.

Prof. Thomas Weber, Member of the Daimler Board of Management for Group Research & Development Mercedes-Benz Cars and Chairman of the Daimler Sustainability Board, explained, “For us as the inventor of the automobile, the priority is on responsible mobility. Examples of that include the smart electric drive and the world’s most economical full-size automobile, the E 300 BlueTEC HYBRID. Both models will be launched in the middle of this year. And our new Actros also sets standards for efficiency: It is the first long-haulage truck to meet the strict Euro VI emission standards already today, although they don’t come into force until 2014.”

Top rating for Daimler’s Sustainability Report

Once again this year, Daimler’s Sustainability Report focuses on the principles of materiality and stakeholder inclusiveness. With its reporting, Daimler fulfills the requirements of the Global Reporting Initiative (GRI). This year’s report has been given an A+ ranking once again.

Credits: Daimler AG

Copyright © 2012, mercedesgla. All rights reserved.

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Mercedes-Benz consistently implements its 2020 growth strategy

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Daimler AG sees Mercedes-Benz well on its way to achieving the goals of its 2020 growth strategy and reclaiming the number one position in the premium segment by the end of the decade.

Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, stated to investors and analysts at the opening of the new plant in Kecskemét, Hungary: “Mercedes-Benz is consistently implementing its growth strategy. We have a fighting spirit in the entire organization to become the leading manufacturer of premium automobiles once again also in terms of unit sales. We are aware of the challenges and we will master them.”

Following the successful year 2011, in which the division posted new records for unit sales, revenue and earnings, the year 2012 has also started well. Mercedes-Benz Cars is expected to report the best unit sales it has ever achieved in a first quarter.

With its Mercedes-Benz 2020 growth strategy, the Mercedes-Benz Cars division intends to occupy the number one position in the premium segment not only in terms of brand, products and profitability, but also of unit sales. Zetsche left no doubt that all efforts are being made to achieve those four goals, with the support of a large number of activities. 

With regards to the Mercedes-Benz brand, Daimler is further strengthening its core brand values of fascination, perfection and responsibility to broaden the customer base and address younger customers. This will be facilitated by the five new models of the new-generation compact car, and also by highly emotive vehicles such as the CLS Shooting Brake.

With products, the automobile portfolio is being rejuvenated and a third product offensive has been started with 10 new derivatives for which no predecessor models exist to be launched by the year 2015. For example, the luxury segment will be enlarged by expanding the S-Class range from three to six models with highly profitable derivatives.

The planned activities also include further reductions in fuel consumption and CO2 emissions. “We are convinced that ‘cool’ and ‘green’ can peacefully coexist in our garages,” said Zetsche. Mercedes-Benz Cars will be able to reduce the average CO2 emissions of its automobiles sold in the European Union from today’s 150 grams per kilometer to 125 g/km by the year 2016. The new A-Class will start with emissions of 99 g/km.

In order to further increase unit sales, the automobile portfolio will be successively expanded and geographical presence will be broadened by expanding sales structures and production capacities, especially in the NAFTA region and in China.

There will be a positive impact on the progress to the top of the premium segment from the fact that the automotive industry continues to be a growth industry. According to forecasts, worldwide car sales will increase from 60 million units in 2011 to 100 million units in 2020. China is already the world’s biggest market in terms of unit sales and will remain so in 2020, but the country’s car market will have doubled by then. China therefore remains a cornerstone of Mercedes-Benz Cars’ growth strategy. The second-most important sales market, the United States, is projected to have an annual average growth rate in the premium segment of 5.6%. And India will advance to become the world’s third-largest car market by 2020.

Irrespective of this development, a clear target has been set of “achieving above-average growth in those markets and of further improving our competitive position,” stated Zetsche. In this context, he affirmed the medium-term target for unit sales of Mercedes-Benz: sales of more than 1.5 million vehicles in 2014 and more than 1.6 million in 2015 (2011: 1,279,100). Zetsche pointed out that the emphasis was on the word “more.”

Mercedes-Benz Cars will further improve its profitability by means of project-related cooperation such as with Renault/Nissan, as well as through savings achieved from the module and platform strategies and improved efficiency in the value chain. At the same time, the enhanced flexibility of the international production network will make it possible to react faster to fluctuations in demand.

Due to savings from the module strategy and further efficiency actions, the division will be able to compensate for the cost burden anticipated in the automotive industry from rising raw-material prices and investments to reduce CO2 emissions, thus safeguarding its profitability targets. “At Mercedes-Benz Cars, we are approaching our targeted return on sales of 10 percent, which we want to achieve on a sustained basis as of 2013 – on the assumption that our business environment will remain stable,” emphasized Zetsche.

How the Mercedes-Benz 2020 growth strategy works in practice can first be seen in the compact-car segment. The new plant in Kecskemét is a state-of-the-art factory for Mercedes-Benz Cars; it will produce cars in conjunction with the plant in Rastatt and will make a key contribution to economy through volume flexibility.

Profitability in the compact-car segment will be additionally improved compared with the predecessor generation by producing a significantly higher volume of five different cars from the same architecture instead of two, and by spreading the production network over three plants (Rastatt, Kecskemét and Beijing).

On the occasion of the opening of the new plant for the production of the new B-Class, Daimler had invited investors and analysts to attend a division day in Kecskemét in Hungary.
Credits: Daimler AG

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