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

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Presentation transcript:

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

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 Aluminum Roof Steel QPI SMC QPO SMC Floor Production 50,000 BIW Cost $ % recyclable 22.9 mpg

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 New ModelChange Cost$1996-$353 Weight2748 lbs lbs Recyclability81%+6.3% ELI Fuel efficiency22.8 MPG+1.3 MPG

Change in BIW Profit by Case Number

Cost Savings versus Recyclability

Cost Savings versus Fuel Economy

Recyclability versus MPG

ELI Results by Case Number

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 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

Change # Total ELU for Car Min ELU Max ELU Avg ELU ELU Sensitivity

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