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Mercedes-Benz: A Greener Luxury Sedan Stephanie Dalquist Seward Matwick Bill Nickerson 13 May 2002

Mercedes-Benz Strategy:

Mercedes-Benz Strategy Manufacture world-class luxury cars Maintain industry leadership in technology and design Maximize profits, delivering consumer and environmental benefits “Resource management” value system Free market: get the prices right Earth as a closed system Technology is the answer: improved efficiency, recyclability

Motivations for Change:

Motivations for Change Maintain profitability Meet environmental mandates Recycling laws Fuel efficiency Balance the competing mandates while still achieving profitability

Impact on Design Goals :

Impact on Design Goals Profitability first A corporation, above all Deliberate material selection Aim to meet new EU mandates Improve fuel efficiency Provide return on perceived customer value EPS to confirm design choices

The New Mercedes-Benz: Materials:

The New Mercedes-Benz: Materials Aluminum Roof Steel QPI SMC QPO SMC Floor Production 50,000 BIW Cost $1996 81% recyclable 22.9 mpg

Advantages of the New Mercedes-Benz:

Advantages of the New Mercedes-Benz Increased profit margin, savings on BIW Meet EU recycling mandate Lighter total weight Greater fuel economy Lower emissions

Base Case Comparison:

Base Case Comparison New Model Change Cost $1996 -$353 Weight 2748 lbs -241.2 lbs Recyclability 81% +6.3% ELI 10324 -561.33 Fuel efficiency 22.8 MPG +1.3 MPG

Change in BIW Profit by Case Number:

Change in BIW Profit by Case Number

Cost Savings versus Recyclability:

Cost Savings versus Recyclability

Cost Savings versus Fuel Economy:

Cost Savings versus Fuel Economy

Recyclability versus MPG:

Recyclability versus MPG

ELI Results by Case Number:

ELI Results by Case Number

Experience and Challenges:

Experience and Challenges Diversify product line with new materials Changeover will be smoothed by years of manufacturing experience Meet future mandates, look forward to more improvements

Design Conclusions: the Future of Mercedes-Benz:

Design Conclusions: the Future of Mercedes-Benz New materials selected to reach manufacturing goals Meet 2006 recyclability mandates of the EU Improved fuel efficiency Stay on the cutting edge of technology and profitability

PowerPoint Presentation:

9800 10000 10200 10400 10600 10800 11000 11200 0 2 4 6 8 10 12 14 Change # Total ELU for Car Min ELU Max ELU Avg ELU ELU Sensitivity

Graph explanation:

Graph explanation Legend: ELUs of all 54 options Change # 1: original ELU 2: -10% ELUs 3: -30% ELUs 4: -50% ELUs 5: 50% ELUs 6: 30% ELUs 7: 10% ELUs 8: - biodiversity ELUs 9 - production ELUs 10 - energy ELUs 11 - health ELUs 12 – biodiversity/production ELUs 13– energy/health ELUs

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