Green Industry Special : Sustainable mobility is a mission at Daimler

The oldest carmaker in the world is also an old hand when it comes to green motoring, combining innovation with sustainability in its global operations.

Daimler AG, whose Mercedes- Benz division was founded in 1881 and patented its first car in 1886, is actively engaged at meeting the demands of future mobility while also setting new standards with clean production processes, clean and economical drives and fascinating vehicle concepts. Climate protection is an environmental goal that is given top priority in its production process. The Group-wide target is to reduce the CO2 emissions generated by production activities by 20 percent per vehicle by 2015, compared to the values recorded in 2007.

The concept of sustainability is incorporated into its system of strategic targets, emphasising the fact that economic, ecological, and social responsibility are all interconnected. Sustainability is the basic principle that governs its business operations.

Prof. Dr. Herbert Kohler, vice-president, e-drive and future mobility in Group Research & Advanced Engineering and chief environmental officer of Daimler AG, sent in detailed replies to Autocar Professional’s questionnaire.

Daimler AG's annual R&D expenditure

In 2011, we have invested 5.6 billion euros in R&D (2010: 4.8 billion euros). This investment is our basis to create competitive advantages: with innovative solutions for efficient and safe vehicles. We intend to utilise the growth opportunities offered by automotive markets worldwide with new and attractive products that are tailored to the needs of our customers. In 2012 and 2013, we plan to spend a total of 10.9 billion euros (Rs 70,850 crore) on R&D activities.

Amount spent on developing greener technology

About half of our R&D investment is related to the R&D of green technologies.

The path to greener technologies and processes

We are convinced that the future of mobility lies in the electrification of the drivetrain, but the age of electric mobility will not be ushered in at the press of a button. Our aim is therefore to substantially reduce fuel consumption, to minimise emissions step by step, and to completely avoid them in the long run.

To this end, we are developing cutting-edge drive technologies that meet current and future mobility requirements in all segments of road traffic. As part of our ‘Road to Emission-free Mobility’ strategy, we are concentrating on three main areas: the optimisation of vehicles with state-of-the-art combustion engines, increased efficiency with hybridisation and emission-free driving with electric vehicles powered by fuel cell or battery.

In addition, alternative fuels play a significant role as well. One example is a project for the cultivation of the biodiesel raw material Jatropha that we have started in South India in 2010 – after a five-year research project. Our company supports several village communities in Tamil Nadu with funds and expertise from our already successfully completed research projects. The farmers from these village communities cultivate the Jatropha plants and harvest their seeds as basic raw material for biodiesel production.

Only non-arable land that is no longer suitable and used for the cultivation of food crops is cultivated with Jatropha plants. Thus, the biofuel does not compete with local food production.

On reducing the carbon footprint

Innovations are the key to the efficient use of resources and environmentally sound mobility. In concrete terms, this means that environmentally responsible product development goes from the selection of suitable raw materials, to the design of an efficient powertrain and an environmentally friendly production process and ends with a comprehensive recycling. All these measures help to reduce the carbon footprint.

For instance, the current Mercedes-Benz B-class 180 BlueEfficiency with 7G-DCT dual clutch transmission, causes 16 percent less CO2 emissions than its predecessor over its entire lifecycle – from production and service over 160,000km to recycling. The energy balance shows a similarly positive picture, with primary energy consumption over the vehicle’s entire lifecycle cut by 14 percent in comparison to its predecessor.

This corresponds to the energy content of around 2,400 litres of petrol. In addition to the B-class, nine other series models have also received the Environmental Certificate from the German technical service corporation TÜV Süd.

On future eco-friendly measures

The population is growing and so does the need for individual mobility. The electrification of the drivetrain is important. Daimler is the only car manufacturer having four electric vehicles in the market today – from the smart fortwo electric drive up to the Vito E-Cell.

In addition, with regard to increasing traffic volume in urban areas and an increasing population density in general, intelligent mobility concepts gain furthermore importance. These mobility services offer a useful complement to our core business. Mobility concepts such as car2go are thus part of a long-term corporate strategy.

On achieving a balance between price competitiveness and eco-friendliness In order to provide a sound basis for the development of environmentally compatible products, we are pursuing a modular strategy. This allows us to exploit the very considerable potential for synergies between our model series and thus to achieve tremendous savings with regard to costs, weight and production time.

Modularisation is also extremely important as it allows us to safeguard and further improve quality. Drive components that can be combined in very flexible ways have been brought together in a modular system. That makes it possible to use common parts in our electric vehicles, for example. These commonalities range from the electric motor and transmission through to the battery, the high-voltage safety concept, the high-voltage cabling and the software modules.

Challenge of investing in more efficient tech

Our objective is to develop efficient and environmentally compatible vehicles across our full model range, without compromises on driving pleasure, comfort or safety. We already offer our customers a range of referring vehicle concepts with customised drive solutions. The S250 BlueEfficiency, for example, gets by with just 5.7 litres per 100km, setting a benchmark in the luxury segment. The E300 BlueTec Hybrid shows how hybridisation can help to reduce fuel consumption to just 4.2 litres per 100km. And even locally emission-free driving is now already a reality, with the smart fortwo electric drive. We will continue to work on offering the best possible solution for sustainable mobility in each specific segment.

How the automotive industry can play a more active role in protecting the environment

Climate protection is the environmental goal that is given top priority to all stakeholders. As an automobile company, Daimler is facing challenges to continuously lowering emissions and to keep up conscious handling of natural resources. Innovations are our key to the efficient use of resources and the most environmentally sound mobility.

One example how the automotive industry can actively contribute to environment protection is electro mobility. Since electric vehicles enable 100 percent emission-free driving only if the electric power is produced with renewable resources, this technology is a motivating factor for the investment in green energy.

Capabilities of Indian companies in developing cleaner technologies compared to foreign counterparts

In order to establish a sustainable basis for the automobile, all parties concerned need to have a common objective to use environmentally compatible technologies. This is particularly true of a densely populated country such as India, where more and more people are expressing a desire for individual mobility.

It is therefore very gratifying to see that India is, for example, investing in the production of renewable electricity, and that the automotive manufacturers are working on alternative drive systems.

Of course, for us as an international manufacturer, India represents an extremely interesting market. And we are convinced that if you want to be successful in a certain market, you also have to have a presence there. This was one of the reasons why we established our research and development location in Bangalore in 1996 that is now very successful – these days, Mercedes-Benz Research and Development India is our largest R&D location outside Germany. Another example is our BharatBenz brand. These trucks are developed and built for the Indian market by Daimler India Commercial Vehicles at Oragadam by specialist teams from India – an excellent example of how to get the mix right between Daimler expertise and Indian know-how.

How the government can play a more active role in helping the auto industry reduce its carbon footprint

Of course, governmental support programmes and subventions vary from country to country and from continent to continent. However, government support is vital if new technologies are to be introduced quickly and widely into the market.

In Germany, the politicians are just as convinced as we are that the future belongs to alternative drive technologies. The Federal government wants to make Germany one of the leading markets in terms of electric mobility. By 2020, it is planned to have a million electrically powered, or electrically assisted, passenger cars on German roads. Helping with this process is the NPE (National Platform for Electric mobility), established in 2010, which is dedicated to the key areas of drive technology, battery technology, charging infrastructure, definition of standards, materials and recycling, and to the provision of the necessary training and qualifications. The Federal government has committed to providing the necessary funding from 2011 to 2013. In our view, the governments are responsible to create market stimuli to encourage people to buy electric vehicles, for example in the form of tax concessions, and to identify other prerequisites for a high penetration level for electric vehicles.