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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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slide1

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 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

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
slide16

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 #

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

Graph explanation