Mercedes-Benz: A Greener Luxury Sedan

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

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Motivations for Change

• Maintain profitability
• Meet environmental mandates
• Recycling laws
• Fuel efficiency
• Balance the competing mandates while still
  achieving profitability

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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

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The New Mercedes-Benz Materials

• Aluminum Roof
• Steel QPI
• SMC QPO
• SMC Floor
• Production 50,000
• BIW Cost 1996
• 81 recyclable
• 22.9 mpg

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Advantages of the New Mercedes-Benz

• Increased profit margin, savings on BIW
• Meet EU recycling mandate
• Lighter total weight
• Greater fuel economy
• Lower emissions

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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

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Change in BIW Profit by Case Number
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Cost Savings versus Recyclability
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Cost Savings versus Fuel Economy
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Recyclability versus MPG
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ELI Results by Case Number
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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

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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

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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
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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