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Mercedes-Benz: A Greener Luxury Sedan

Mercedes-Benz: A Greener Luxury Sedan. Stephanie Dalquist Seward Matwick Bill Nickerson 13 May 2002. Mercedes-Benz Strategy. Manufacture world-class luxury cars Maintain industry leadership in technology and design Maximize profits, delivering consumer and environmental benefits

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Mercedes-Benz: A Greener Luxury Sedan

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

  2. 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

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

  4. 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

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

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

  7. Base Case Comparison New ModelChange 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

  8. Change in BIW Profit by Case Number

  9. Cost Savings versus Recyclability

  10. Cost Savings versus Fuel Economy

  11. Recyclability versus MPG

  12. ELI Results by Case Number

  13. 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

  14. 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

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

  16. 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 Graph explanation

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