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The road to sustainable mobility: Innovations for drive systems and vehicle technology Daimler AG Communications, 04/2008 Stuttgart | Germany www.daimler.com

Daimler Road To Sustainable Mobility

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The road to sustainable mobility: Innovations for drive systems and vehicle technology

Daimler AGCommunications, 04/2008Stuttgart | Germanywww.daimler.com

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Sustainable drive systems and innovative safety technologies are the mainstays of our vision of mobility for the future. As a leading automobile producer, we are just as much committed to the protection of the climate and our environment as to the safety of our vehicles and the prevention of accidents. Our customers – and all other partici-pants in road traffic – throughout the world can put their trust in this commitment.

In 1950, the world’s automobile population num-bered about 70 million. Today, the figure is around 900 million; and two billion vehicles are predicted for the year 2050. How do we, as the inventors of the automobile, deal with the challenges brought about by this immense growth?

Individual mobility and goods transport are prere-quisites for growth and prosperity in every society. We intend to retain this mobility for future genera-tions too, by securing it in a sustainable manner. This guiding principle means reducing emissions, preserving natural resources, and at the same time ensuring the highest level of road safety. In this brochure we explain how we are shaping the future of mobility: with innovative drive systems and vehicle technology along the road to emission-free driving – sustainable mobility.

We are proactive: The road to sustainable mobility

Daimler – The road to sustainable mobility Introduction

Concerted development and optimization of our internal combustion engines.

Energy for the future:Clean fuels for internal combustion engines. Forms of energy for emission-free driving.

Further enhanced efficiency through hybridization.

Emission-free driving with fuel cell and battery-powered vehicles.

Daimler’s road map to sustainable mobility:

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What will our future mobility look like?Rapidly and effectively reducing fuel consumption and thus CO2 emissions is essential not only against the background of the CO2 discussion, but also in view of the limited nature of fossil fuels. This task cannot be accomplished with one tech-nology alone, with legislation, or by one branch of industry. The global challenge can only be mas-tered if each and every country, every branch of industry, every household, and each and every human being on our planet makes a contribution.

Since the requirements placed on mobility of the future are becoming increasingly differentiated, there will be more than just one vehicle with one drive system in future. We are therefore working simultaneously on all technologies that we see as appropriate: optimization of our vehicles with internal combustion engines; further enhanced efficiency with hybrid drive; emission-free driving with fuel cell and battery-powered vehicles. We are also promoting the development, production, and distribution of clean fuels for internal combustion engines and of forms of energy for emission-free driving.

Discussions centered on the so-called “greenhouse gases” highlight the conflict of interests between the desire for individual mobility on the one hand and the responsibility this entails on the other. As the inventors of the automobile, we have both the ambition and the responsibility to secure the future of mobility in a sustainable manner. Sustainability means making use of natural resources to fulfill diverse human require-ments without restricting the actions of our children and grandchildren. For us, this means making engines more efficient, reducing emissions, and – throughout a vehicle’s life cycle – making careful use of the materi-als that we use in manufacturing our cars, vans, trucks, and buses. It also means developing alternatives to tra-ditional fuels, and giving thought to new drive concepts and the future of our transportation systems.

The intensity of our climate protection measures is also reflected by our financial commitment: In 2007, we invested 4.1 billion euros in research and develop-ment, including 1.5 billion euros in Europe alone for the environmental compatibility of our Mercedes-Benz products. From 1990 to 2007, for example, we re- duced the fleet consumption of our passenger cars in Germany by 32 percent – and this in the face of grow-

ing requirements for power output, safety and comfort. In commercial vehicles, too, the average fuel consump-tion has dropped over the past few decades by around one-third. The success of our ecological commitment is also borne out by environmental certification, as prescribed by the internationally recognized ISO 14062 standard for environment-oriented product develop-ment. This certification was first issued in 2005 for the S-Class; this was followed last year by the new C-Class, and the A and B-Class models will also receive certifica-tion in early 2008. We are thus the world’s only automo-tive manufacturer to have been given this recognition. We are demonstrating the entire scope of our commit-ment in our annually produced report titled “FACTS on Sustainability,” which was recently examined by the independent Global Reporting Initiative (GRI) and was awarded the classification “Level A+” – the highest possible recognition for the implementation of sustaina-bility guidelines.

For more than 120 years, we have been finding answers to the automotive challenges of the respective eras. Tradition, pioneering spirit, and a sense of responsibility have invariably been our driving force. In the following chapters, you can read about Daimler AG’s commitment to sustainable mobility of the future.

We are proactive: The road to sustainable mobility

Climate change:Joining forces to reduce CO2 emissions

Today’s mobility:Safety and comfort with optimal environmental compatibility

Tomorrow’s mobility: Groundbreaking technologies, fascinating vehicles, emission-free driving

The driver’s role:Economical driving

Life cycle assessment:More than CO2 reduction – environmental protection as a corporate objective

Conclusion: We invented the automobile – and are shaping its future with passion

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Contents

Mercedes-Benz F 700 research vehicle Mitsubishi Fuso Canter Eco-D study vehicle

Daimler – The road to sustainable mobility Contents | Prologue

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Cutting-edge technologySustainabilityResponsibilityEnvironmental protectionSaving natural resources

We invented the automobile – and are shaping its future with passion.

As the pioneers of automotive engineering, it is our ambition to shape future mobility in a safe and sustainable manner with groundbreaking technologies.

Prologue

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Daimler – The road to sustainable mobility Climate change8 9

Climate change. Worldwide CO2 emissions must be drastically reduced. This will only be possible with concerted action on the part of all parties responsible. We continually bring about marked reductions in environmentally detrimental emissions from our cars and commercial vehicles. Our objective is emission-free driving with battery and fuel-cell vehicles.

According to the Intergovernmental Panel on Climate Change (IPCC), anthropogenic CO2 emissions – those caused by human activity – are one cause of global warming along with other so-called greenhouse gases (e.g. methane, nitrous oxide and CFCs). Road traffic worldwide accounts for around 13 percent of these anthropogenic CO2 emissions. The remaining approximately 87 percent of worldwide CO2 emissions derive from other sources. As these figures show, the problem cannot be solved by focusing on the automotive sector alone. The automotive industry is undertaking all technically and economically feasible measures to reduce its share of CO2 emissions. However, we can only influence global warming if all other parties responsible for emissions play their part as well.

Climate change: Joining forces to reduce CO2 emissions

Overall CO2 emissions worldwide:

Energy production (25.9 percent)Waste / wastewater (2.8 percent)Industry (19.4 percent)Domestic / employment (7.9 percent)Forestry (17.4 percent)Agriculture (13.5 percent)

Transportation / road, air, rail, water (13.1 percent)

Cars (6 percent)Trucks (3.5 percent)Other (3.6 percent)

Source: Intergovernmental Panel on Climate Change (IPCC)

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Daimler – The road to sustainable mobility Climate change10 11

The CO2 debate: What does the World Climate Council say?

Automobiles and transportation are held primarily responsible for changes to the environment and the climate. At the center of this intensive and at times very emotional discussion is CO2. Solutions can only be found with dry, scientifically founded facts and figures. In discussions of the climate and CO2, too, differing and often contradictory analyses and opinions are the order of the day. Some light is cast on the matter by the Intergovernmental Panel on Climate Change (IPCC) of the United Nations, also known as the “World Climate Council”: Their more than 2,500 experts do not carry out research themselves, but assess existing research findings with a view to their credibility. This method, known as “peer review,” is seen as a reliable way of distinguishing genuine knowledge from half-truths. Some statements from the Fourth Assessment Report of the IPCC, submitted in February 2007, are summarized in the following.

CO2: The various branches of industry’s shares in CO2 emissions are subject to considerable variation among individual countries. In Germany, for instance, accord-ing to statistical data of the Federal Environmental Office, the energy industry accounts for 41.3 percent, and the entire transportation sector for 19.1 percent of CO2 emissions. Surveys conducted throughout the EU arrive at different figures. These often large fluctua-tions are due in part to genuine regional discrepancies, but also to differing methods of data acquisition and assessment. Whatever the discrepancies in absolute figures, however, we must acknowledge one fact above all: CO2 is not the problem of one single branch of industry. None of the originators mentioned can solve the problem of CO2 alone; emissions can only be re-duced by the concerted efforts of all active partici-pants in an industrial economy.

Over the past few years, Daimler AG has already brought about a continual considerable reduction in CO2 and other emissions from its cars and commercial vehicles, and shall continue to do so. Along with the further development and optimization of our internal combustion engines – both with and without the hybrid option – and the reinforced application of high-quality and alternative fuels, our goal is emission-free driving with vehicles powered by batteries and the fuel cell.

CO2 originator: homo sapiens. According to mea-surements and calculations of the climate researchers, the atmosphere’s carbon dioxide content has been steadily increasing since 1750 – the birth of the In-dustrial Revolution. The figure has now reached more than 380 ppm; and it is continuing to increase, current-ly by 1.5 to 2 ppm annually. There are many causes of this: industrialization, population growth, energy consumption, transportation, deforestation. Carbon dioxide arises at many sources, above all through the use of fossil fuels. Energy generation in power plants with coal, oil, and gas produces CO2; oil and gas heating produces CO2; cars, trucks, aircraft and ships produce CO2; volcanic eruptions and deforestation produce CO2; humans and animals exhale CO2. At the same time, the researchers have established an increase in the average temperature on our planet, a process of receding glaciers, a rise in the sea level, and an increase in devastating rainstorms and long periods of drought.

Combustion of one liter of diesel fuel gives rise to 2,650 g of CO2, and one liter of gasoline around 2,370 g. There is no significant difference in this regard between premium and standard gasoline.

A crate of mineral water contains approx. 72 g of CO2.Source: Informationszentrale Deutsches Mineralwasser

A rider of a bicycle emits an average of 6.6 g of CO2 per kilometer.Source: Deutsche Sporthochschule

76 g of CO2 per second worldwide are released through the clearing of forests and arable land. Source: Food and Agriculture Organisation

A human exhales on average approx. 28 g of CO2 per hour.Source: Deutsche Sporthochschule

During its last eruption, the volcano Mt. Etna released 348,808 g of CO2 per second. Source: Geophysikalisches Observatorium

A German dairy cow produces an average of 271 g of CO2 per hour.Source: Bundesforschungsanstalt für Landwirtschaft

Facts: CO2

CO2. Carbon dioxide, or CO2, is a chemical com-pound comprising carbon and oxygen. It arises in the combustion of coal, oil, and gas, but also in all vital processes of nature, for example when humans or animals breathe, and during bushfires or volcanic eruptions. A non-toxic, non-combustible gas, CO2 is a natural cons- tituent of the earth‘s atmosphere, which con-sists primarily of molecular nitrogen (78 per-cent) and oxygen (21 percent). The remaining one percent is accounted for by CO2, argon, water vapor, and trace gases. Our climate is influenced by an increasing share of CO2, due to the so-called greenhouse effect. Carbon dioxide is the most abundant greenhouse gas in the atmosphere; in direct comparison with other greenhouse gases, however, CO2 has a less pronounced effect on the climate. Methane (CH4), nitrous oxide (N2O) and above all chlorofluorocarbons (CFCs) are much more detrimental to the climate, since they have a greater influence on the climatic mechanism and remain in the atmosphere for a longer period.

The greenhouse effect. The so-called green-house gases absorb and reflect a certain amount of the earth’s infrared heat radiation. Nocturnal cooling is thereby reduced, and the average temperature rises. Life on our planet would not be possible without this “greenhouse effect.” The average temperature on the earth’s surface is currently around plus 15 degrees Celsius; without the natural greenhouse effect, the figure would be around minus 18 degrees Celsius. When the naturally occurring green-house gases are artificially increased or supple-mented by further climate-relevant substances, the greenhouse effect is reinforced. Tempera-tures at ground level and in the lower atmo-sphere continue to rise as a result. This green-house effect is referred to as anthropogenic – i.e. caused by human activity.

Climate change

CO2 worldwide. The originators of CO2 are distributed over the entire globe. Almost 60 percent of carbon dioxide emissions in the 20th century arose in the USA and Europe (source: World Resources Institute). In the 21st century the share of major national economies marked by dynamic growth, such as India or China, will markedly increase. The situation is different in the European Union, where greenhouse gas emissions have fallen somewhat, although with considerable variation among the member states: While Germany managed to curb CO2 emissions, Portugal, Spain, and Greece for example showed a considerable increase. This was due to a reorientation in energy production. And energy requirements are constantly rising. China is now the world‘s second-largest originator of CO2 after the USA. In terms of pro-capita emissions, on the other hand, China still lies well behind the industrial nations, with 2.5 tons of carbon dioxide per inhabitant. According to WWF, each German produces on average ten tons of CO2 per year, US citizens 20 tons, and the inhabitants of the Arabian Gulf state of Qatar on average no less than 60 tons of carbon dioxide annually.

The CO2 concentration of the atmosphere is now much higher than at the beginning of the Industrial Revolution.

It is highly likely (probability of error: less than 10 percent) that anthropogenic CO2 emissions – i.e. those caused by humans – are the prime cause of climate change.

Assuming constant or increasing CO2 emission levels, in the 21st century the effects on the climate will be stronger than those observed in the 20th century (probability of error: less than 10 percent).

Contributions to global CO2 emissions worldwide: Energy production (25.9 percent), industry (19.4 percent), forestry (17.4 percent), agriculture (13.5 percent), transportation / road, air, rail, water (13.1 percent), domestic / employment (7.9 percent), waste / wastewater (2.8 percent).

Source: Intergovernmental Panel on Climate Change (IPCC)

Facts: The climate

Stern Review: The economy of climate change: “The costs of stabilizing the climate are considerable, but bearable; delays would be dangerous and much more expensive. Time is limited. If we were to wait another ten or twenty years, we would be in a dan-gerous situation. We must not let this opportunity pass.”Sir Nicholas Stern, author of the “Stern Review”*

Key statements of the Stern Review*:

There is still time to avert the worst consequences of climate change if we act now with determination.

Acting against climate change is essential for all countries and need not hinder the growth ambitions of either rich or poor nations.

Climate change requires a concerted international response, with agreement on long-term aims and a framework of action.

*Sir Nicholas Stern, former Chief Economist of the World Bank, is now head of the United Kingdom’s Government Economic Service. In October 2006, on commission from the British government, Stern presented an analysis of climate change in the light of the national economy. The text of this report is available on the Internet at www.sternreview.org.uk.

Facts: Climate change

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Daimler – The road to sustainable mobility Climate change12 13

Achievements to dateUniversal commitment for reduced emissionsTo illustrate the countless measures and the success achieved to date, we shall allow some figures to speak for themselves; these point out what the European and German automotive industries in general and Daimler in particular have accomplished for climate protection over the past few years:

01 From 1995 to 2005, the European manufacturers reduced CO2 emissions from their passenger cars by some 14 percent (from 186 to 160 grams). Over the same period, Daimler achieved a reduction of about 20 percent (from 230 to 187 grams).

02 The market share of low-consumption diesel vehicles has doubled in the EU since 1998 and has exceeded the share of gasoline vehicles since 2004.

03 Already in 2004, more than 60 percent of all new ACEA cars emitted less than 160 g of CO2 per km.

04 By comparison with 1990 (EURO 0), modern diesel engines in trucks and buses complying with the EURO 5 standard now only emit between 5 and 20 percent of particulates, carbon monoxide, hydrocarbons, and oxides of nitrogen. 05 The average fuel consumption of a European long-distance truck with a GVW of 40 tons has fallen over the past few decades from around 50 to about 32 liters/100 km.

06 Since 2000, absolute CO2 emissions from passenger cars in Germany have fallen – despite increased mileages and transport volumes.

07 The German automotive industry has reached its interim goal: a 25 percent reduction in CO2 from 1995 to 2005.

08 Compared with 1990, new German cars now derive almost 60 percent more power from a liter of fuel while transporting about 40 percent more weight, for example in the form of safety features.

09 Without the fuel-saving measures introduced since the late 1970s, the entire German vehicle fleet would now consume around 21 billion liters more gasoline and diesel.

10 The fuel consumption of Mercedes-Benz passenger cars sold in Germany fell by 32 percent between 1990 and 2007.

11 The average fuel consumption of an S-Class automobile per 100 kilometers is now about 3 liters less than in 1990.

12 Around 29 percent of all cars produced by Mercedes-Benz are in the so-called “5-liter car” category.

Sources: ACEA, VDA, Daimler AG

Reducing emissions: How is Daimler contributing? As an automotive manufacturer, we are carrying out intensive research and development work to reduce consumption and emissions. In pursuing this aim, we are counting not on individual technologies and vehicles, but on the sum total of all possible measures involving drive systems, lightweight design, energy management, and fuels. We are concerned with con-stantly increasing the efficiency with which fuel is put to use in the transportation of people and goods. These measures are to the benefit of the entire passenger car and commercial vehicle fleet. Our strategy is paying off: The CO2 emissions from our passenger car fleet fell by some 22 percent between 1995 and 1997 – more than for any other European automotive producer. Fuel consumption in trucks and buses has fallen by around one-third since the mid-1980s.

Universal commitment for reduced emissions. An all-encompassing view of the CO2 issue shows that not only the technological features of new and existing vehicles have a decisive influence on emissions, but also the fuel they use, the transport infrastructure, the transport management, and the driving behavior of the customer. Increasing the share of renewable fuels, for example, is a powerful lever for reducing CO2 emis-sions, since it takes immediate effect in all vehicles, not only in the more recent models. By comparison: Around 14 million automobiles are newly registered each year in Europe, but there are currently 140 million cars on the European roads. With an appropriate driving style, the consumption and thus also the CO2 emissions of these vehicles can be reduced by up to 20 percent. And the political sphere is ultimately respon-sible for providing an adequate transportation infra-structure and sensible transport management. These parameters offer much additional potential for CO2 reduction and should thus also be taken into account in the political decision-making process. Cost consid-erations* are also of interest here: CO2 reductions through modifications to vehicle technology alone account for 400 to 500 euros per ton of CO2. With an integrated approach extending to all originators, the average costs would be much more favorable, at 180 to 210 euros per ton of CO2.

*Source for costs: Association des Constructeurs Européens d’Automobiles (ACEA)

Technical triathlon: Consumption, emissions, safety. A central challenge is the conflict of aims between minimum consumption and noxious emissions on the one hand, and maximum safety on the other. It would not be appropriate to optimize just one of these aspects, since they directly influence each other. A reduction in particulate emissions from diesel en-gines by means of filters, for example, is accompanied by an increase in fuel consumption. We must also comply with safety requirements – regarding pedestri-an protection, for instance – and fulfill the customer’s demands for comfort. This increases both vehicle weight and fuel consumption. As with a triathlon, the disciplines of consumption, emissions, and safety are concerned with achieving the best overall result, not merely coming first in one individual event.

Climate change

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Today’s mobility. Daimler does not make cars that require self-denial on the part of their drivers. Our customers expect and receive safety, comfort, and performance. We put our skills and knowledge to use in ensuring that these values associated with our vehicles are secured for the future, along with optimized fuel consumption and environmental compatibility.

Whether it be passenger cars, commercial vehicles or vans, Daimler already today offers a wide variety of economical, clean models. With the smart cdi, some 150,000 customers are already driving the currently most eco- nomical (3.3 liters/100 km) and climate-friendly (88 grams of CO2/km) car on the market.

The Mercedes-Benz E 320 BlueTEC, “World Green Car of the Year 2007,” has the world’s cleanest diesel engine. And with spray-guided direct injection, the Mercedes-Benz CLS 350 CGI and E 350 CGI models represent milestones in fuel savings for gasoline-engined automobiles. In all our passenger car series, we offer highly economical vehicles with a “BlueEFFICIENCY” technology package. These variants have additional optimization features that reduce fuel consumption by up to 12 percent.

In North America, more than 1,100 hybrid-drive city buses of the Group’s American Orion brand can already be seen on the roads, and a further 1,500 have been ordered; we are thus world leaders in hybrid buses. More than 140,000 of our BlueTEC trucks are currently in operation on the roads of Europe – and the great majority of these already today comply with the EURO 5 exhaust standards to be introduced in 2009. And the Mitsubishi Fuso Canter Eco Hybrid, in series production since 2006, is the world’s cleanest light-duty truck. On the following pages, you can find out what environment-friendly technologies and vehicles are already available today.

Today’s mobility: Safety and comfort with optimal environmental compatibility

Daimler – The road to sustainable mobility Today’s mobility

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Mercedes-Benz Vario with BlueTEC system

Daimler has been synonymous with pioneering achievements and progress in automotive engineering for over 100 years. The founders of our company invented the automobile and made it marketable; they built the first bus, the first truck and the first motor boat. We secure our leading technological position in interna-tional competition with some 1,600 patents annually; our groundbreaking inven-tions include ABS, the airbag, ESP, and Active Brake Assist for emergency braking. Today, we are deploying our comprehensive technological competence in the development of economical, low-emission vehicles and are putting our techno-logical potential to effect by offering our customers optimal fuel consumption with no compromise in safety, performance, or comfort.

Today’s mobility

Commercial vehicles – Daimler Trucks / Daimler BusesTransporters – Mercedes-Benz VansPassenger cars – Mercedes-Benz Cars

smart fortwo cdi Consumption: 3.3 l/100 km

Mercedes-Benz A-Class A 160 CDI BlueEFFICIENCY Consumption: 4.5 l/100 km

Mercedes-Benz B-Class B 180 CDI BlueEFFICIENCYConsumption: 5.3 l/100 km

Mercedes-Benz C-Class C 200 CDI BlueEFFICIENCY Consumption: 5.1 l / 100 km

Mercedes-Benz E-Class E 300 BlueTEC Consumption: 7.3 l/100 km

Mercedes-Benz Vito 111 CDI Consumption: 8.2 l/100 km

Mercedes-Benz Actroswith BlueTEC system

Mercedes-Benz Axorwith BlueTEC system

Mercedes-Benz Ategowith BlueTEC system

Mercedes-Benz M-Class ML 280 CDI Consumption: 9.4 l / 100 km

Mercedes-Benz Viano CDI 2.0 Consumption: 8.2 l/100 km

Mercedes-Benz Citaro G Bus with BlueTEC HYBRID system

Mercedes-Benz Econic NGTwith natural gas drive

Mitsubishi Fuso Canter Eco Hybridwith HYBRID system

Mercedes-Benz R-Class R 280 CDI Consumption: 8.2 l/100 km

Mercedes-Benz Sprinter 215 CDI Consumption: 9.4 l/100 km

Mercedes-Benz Unimog with BlueTEC system

Setra Omnibus with BlueTEC system

Orion Bus with HYBRID system

Mercedes-Benz S-Class S 320 CDI Consumption: 8.3 l/100 km

Freightliner M2 with HYBRID system

Freightliner Cascadia™aerodynamically optimized

Thomas Built Buses school bus with HYBRID system

Daimler – The road to sustainable mobility Today’s mobility

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CDI | CGI

20 l

15 l

10 l

5 l

S-Class 1990

S-Class 2007

S-Class: Consumption reduction in liters/100 km

We see no contradiction in the fact that despite the environmental debate we still build large and often par-ticularly powerful vehicles, which are desired by cus-tomers throughout the world. The decisive factor is the efficiency of these vehicles and thus of the entire fleet. And we have been making immense progress here over the past few years in passenger cars and commercial vehicles alike. Whereas in 1990, 14.5 liters of fuel were burned per 100 kilometers in the engine of an S-Class, the consumption of a Mercedes-Benz S 320 CDI – an automobile with comparable performance – now amounts to 8.5 liters. Around 29 percent of all new Mercedes-Benz cars sold today in Europe already consume less than 6.5 liters per 100 kilometers. The thirst for fuel of large commercial vehicles has dropped by more than one-third since the mid-1980s – despite the marked increase in transport efficiency. And our BlueTEC trucks perform excellently in consumption and emissions; this is the basis of their market success, with over 140,000 vehicles sold.

It is our ambition to assume leadership with our tech-nologies in the field of drive systems – for example in the development of economical diesel engines: These not only perform admirably in direct comparison with premium competitors, but also have the edge over the few hybrid models currently available. The hybrid has advantages in urban traffic, but in driving operation outside city areas modern diesel vehicles perform just as well and often even better in terms of consumption. Nevertheless, hybrid drive is an important topic of the future for Daimler AG. We already have the world’s lar-gest commercial vehicle fleet with hybrid drive and are world market leaders in hybrid buses. Our strategy is to offer both in future to car customers as well: state-of-the-art gasoline and diesel vehicles with and without hybrid options. We are working towards this aim to-gether with General Motors, BMW, and Chrysler at our Hybrid Development Center in the USA. The emphasis here is on the so-called two-mode hybrid system, which unlike today’s hybrid solutions not only exhibits favorable fuel consumption in the urban driving cycle, but also achieves excellent consumption on long journeys thanks to fixed transmission ratios.

Heavy automobiles consume more fuel than light ones. Luxurious, safe touring sedans require more energy than compact city cars. Automotive produ-cers who mainly offer small and mid-sized vehicles thus automatically achieve a lower fleet consump-tion than a manufacturer that is at home above all in the premium segment.

But in the overall analysis, shouldn’t we take into account that larger cars can transport a whole large family with their luggage, while there is room for perhaps one passenger in a compact car? And the fact that significant technological innovations – also for reduced fuel consumption – almost invariably find their way to the compact car segment via larger automo-biles? And that it is ultimately the customer who de-cides on the vehicle category for his or her individual mobility?

Today’s mobility

Our ambition: Technological leadership

(29 percent) sales of Mercedes-Benz cars with a consumption of under 6.0 l/100 km

Share of low-consumption Mercedes-Benz cars in the European sales region.

Source: Daimler AG

Source: Daimler AG

Today’s mobility 19

CDI: Common-rail direct injection, introduced in the Mercedes-Benz C 220 CDI in 1997, is a milestone of diesel technology. The fuel is directly injected into the diesel engine’s cylinders via a shared high-pressure fuel line (common rail). The high injection pressure and the variable control of the injection process result in considerably improved mixture formation in the cylinders; this in turn reduces fuel consumption and exhaust emissions. For the first time, CDI has paved the way for the design of diesel engines that are com-parable with their gasoline counterparts in terms of driving dynamics and in some cases in fact have superior torque. We have been the pioneers of common rail technology for more than ten years, and our diesel vehicles produced since 2001 operate with CDI technology.

CGI: So-called stratified charged gasoline injection, or spray-guided direct injection, is a key technology for reducing fuel consumption in gasoline engines while at the same time optimizing handling characteristics. It positions the precisely metered quantity of fuel directly at the spark plug. During each power stroke, the combustion chambers are repeatedly provided with fuel within a fraction of a second, so that mixture formation, combustion, and fuel consumption are greatly improved. The result: markedly better performance and a reduction in consumption of around ten percent. The world’s first vehicle with this innovative combustion system was the Mercedes-Benz CLS 350 CGI, introduced in early 2006; and the Mercedes-Benz E 350 CGI has now been available as a sedan or station wagon since December 2007.

Downsizing: Thanks to increasingly intelligent injection technology, turbochargers, and compressors, more engine power is now available from smaller engines. The share of the part-load sector increases, while consumption and emissions are reduced. Today’s engines derive a good 50 percent more power from the same amount of fuel as in 1990. Thanks to common-rail injection systems with piezo injectors, diesel engines in particular have become more powerful and economical over the past few years. At the same time, the downsizing of gasoline and diesel engines also reduces weight and space requirements.

The considerable reductions in fuel consumption that we have achieved over the past few years are the result of state-of-the-art engine technology. Optimally contoured combustion chambers and immense injection pressures of up to 2,100 bar allow extremely fine atomization of the fuel and perfected combustion. Further advances are individual cylinder control, reduced friction in the engine, highly developed charging technology, resilient materials and fully electronic engine management; we already introduced these fea-tures in Mercedes-Benz passenger cars in 1996.

Engine technology in cars: Series innovations

Engine test rigMercedes-Benz S 320 CDI Ignition with spray-guided direct injection

In March 2008, Mercedes-Benz introduced the first of its new BlueEFFICIENCY passenger cars; these models – initially numbering about 20 – unite strong points typical of the brand, such as safety and comfort, with exemplary efficiency and environment-friendliness. For the new BlueEFFICIENCY models, the Mercedes engineers are benefiting from potential in all areas of development to further reduce vehicle weight along with air and rolling resistance, and to make onboard energy management even more efficient. For this purpose, we have developed a whole package of measures for consump-tion reduction, which we shall be offering in numerous models – from the A-Class to the S-Class. This package, which will cut fuel consumption by up to twelve percent, includes measures such as aerodynamic refinement, our new electric ECO steering system, intelli-gent lightweight design, low-resistance tires, and innovative generator management. A new shift and consumption display in the dashboard also helps the driver maintain an economical, energy-conscious driving style.

BlueEFFICIENCY

Daimler – The road to sustainable mobility

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BlueTEC20

Environmental protection is an integral part of all modern logistics, but investments must also make economic sense for transportation compa-nies and other fleet operators. BlueTEC tech-nology is an investment that pays off not merely for the environment, but also for operators: It cuts running costs and enhances resale value. Thanks to their optimized combustion, BlueTEC trucks use up to five percent less fuel than other comparable vehicles. With an annual distance covered of around 160,000 kilometers, the savings made with one truck alone already amount to more than 3,000 euros. The reduced tolls for EURO 5 vehicles – two cents per kilome-ter in Germany, for example – make for further savings in the order of 3,000 euros. If the cost of the necessary AdBlue fluid is taken into account, the somewhat more expensive blue technology is already amortized after about 18 months. And BlueTEC makes for considerable added value even when a truck is resold. No wonder more than 140,000 BlueTEC trucks from Daimler are already to be seen on the roads of the world.

BlueTEC in the commercial vehicle: Reduced emissions – and costs

At Daimler Trucks, we have already been using BlueTEC since 2005, and more than 140,000 trucks with this clean technology are already on the roads. Having started with trucks for heavy-duty long-distance operation, we have now compre-hensively extended our range of BlueTEC 5 vehicles to light trucks for short-radius distribution. We have thus made extremely economical, environment-friendly vehicles available well in advance of the introduction of the binding European emission standards EURO 4 and EURO 5.

The future-oriented BlueTEC technology saves up to 2,000 liters of diesel fuel per vehicle and year as compared with other exhaust gas purification systems. When applied to the entire fleet of around 140,000 trucks with BlueTEC technology at the beginning of 2008, this means savings of some 200 million liters of fuel annually, corresponding to a load of approximately 7,500 truck/trailer combinations, or around 700,000 tons of CO2. And thanks to the optimized combustion process, emission of fine dust particles (PM10) is also significantly reduced. With BlueTEC, our engines burn their fuel so efficiently and with such low emission levels that our commercial vehicles already today fulfill the require-ments of the EURO 5 exhaust standard that will only come into force in 2009 for new vehicles in the EU. BlueTEC technology, which can look forward to a bright future, thus constitutes the basis for EURO 6, the next stage of emission legislation to come into force in about 2014 for all European commercial vehicles. It also allows our trucks and buses of the Mercedes-Benz and Setra brands to comply with the stringent future exhaust gas standards EPA 10 in the NAFTA states and JP 09 in Japan.

Today’s mobility21

BlueTEC: The world’s cleanest diesel

The second BlueTEC version, used until now primarily in our commercial vehicles such as the Actros, Axor, Atego, Unimog, and Citaro and in our buses, will in future also be used in our passenger cars and is even more effective: Injection of an odorless carbamide solution known as AdBlue into the hot exhaust stream causes the oxides of nitrogen to react in the catalytic converter with the added ammonia to form harmless nitrogen and water vapor. Reduction of nitrogen oxides with AdBlue and the SCR catalytic converter is as yet the only method for compliance with the EURO 6 standard of the European Union and the American BIN 5 regulations. In passenger cars, the BlueTEC fleet is led by the Mercedes-Benz E 320 BlueTEC, which is already available in the USA. With the intro-duction of this diesel vehicle in California, we are the first carmaker to comply with the stringent emission limits of this U.S. state – and of the other relevant countries – in compression-ignition engines. Our BlueTEC SUV vehicles from the Mercedes-Benz ML-, R-, and GL-Class series, to be introduced in 2008, comply with the BIN 5 regulations and are thus genuine 50-state automobiles. The Mercedes-Benz E 300 BlueTEC has been available in Germany since late 2007, and the Mercedes-Benz C 250 BlueTEC is set to be launched at 2009. With commercial vehicles, BlueTEC has already been in the fast lane since 2005.

Internal combustion engines have become increas-ingly clean and economical over the past few years, and they will remain the most important automotive drive principle until emission-free drive concepts are introduced on a large scale. We shall therefore keep working intensively on this technology and further optimize consumption and emissions. We are now providing you with an overview of our technology already available for the world’s cleanest diesel: BlueTEC.

BlueTEC combines measures within the engine for emission reduction with treatment downstream of the engine – so-called selective catalytic reduction (SCR), which considerably reduces emission of the noxious oxides of nitrogen. These are the only exhaust components for which the figures are inherently higher for diesel engines than for their gasoline counterparts. BlueTEC technology cuts emission of the oxides of nitrogen in two ways: In passenger cars, such as the Mercedes-Benz E-Class, the oxidation catalytic converter and particulate filter are combined with a further developed, particularly long-life NOx storage catalytic converter and an additional SCR catalytic converter.

BlueTEC – the technology for the world’s cleanest diesel

01 Engine optimized combustion

02 CO + HC reduction carbon monoxide and hydrocarbons

03 Particulate reduction soot

04 NOX reduction Oxides of nitrogen NO and NO2

Mercedes-Benz E 300 BlueTEC

Filling AdBlue into a commercial vehicle

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22 23

Hybrid

Today’s mobility

Daimler already today offers a diverse range of vehicles for operation with compressed natural gas (CNG). This fuel is used for example to power the Mercedes-Benz E-Class 200 NGT BlueEFFICIENCY – a vehicle with biva-lent drive, i.e. it can run either on CNG or on premium grade gasoline. The gas is filled from the pump at the filling station into cylinders at the rear of the vehicle, where it is compressed to a pressure of 200 bar. A filling of 18 kilograms of CNG provides for an operating range of around 300 kilometers. CNG is cheaper than gasoline or diesel and has a major ecological benefit: Natural-gas operation only gives rise to very low emis-sions, as well as producing around 20 percent less CO2 than with a comparable gasoline engine. Following the

Mercedes-Benz E 200 NGT BlueEFFICIENCY, in summer 2008 we will be presenting the Mercedes-Benz B 170 NGT BlueEFFICIENCY – the first compact model with natural gas drive. With the Mercedes-Benz Sprinter NGT and the Econic, a garbage truck based on the Actros, customers can choose between two further natural gas vehicles. Their low-emission operation is of particular advantage in city centers and densely popu-lated areas. Commercial vehicle operators also appre-ciate the lower running costs of natural gas vehicles. More than 250 units of the Mercedes-Benz Econic NGT have already been delivered. In Germany, Econic garbage trucks with natural gas drive are in operation for instance in Berlin, Bonn, and Augsburg.

Particulates g/kWh0.035

Euro 4 | Euro 5: 0.030 0.0300.025

EEV: 0.020 0.0200.0150.010

Natural gas operation: 0.004 0.0050.000

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 NOx g/kWhNatural gas operation: 1.94 EEV: 2.0 | Euro 5 Euro 4: 3.6

CO2 emissions in comparison

10 20 30 40 50 60 70 80 90 100% CO2 emission

Natural gas operation

Gasoline operation

In the production of biodiesel, oils are esterified to yield fuel. This process can be used with almost any vegetable oils, for example from rapeseed, soy beans or jatropha nuts, or with animal fats and used cooking oil. In Europe, biodiesel commonly takes the form of rapeseed methyl ester. Biodiesel can reduce dependence on fossil fuels, although the CO2 savings are relatively small. In the passenger car sector, Daimler is therefore concentrating on second-generation synthetic fuels such as BTL (biomass-to-liquid), which is now being produced at a pilot plant in Freiberg, Saxony. Biodiesel is already being used to an increasing extent as an additive in diesel fuel for trucks. The EU is aiming for a blend rate of 5.75% by the year 2010. All commercial vehicles of the Mercedes-Benz brand produced since 1988 are approved for operation with biodiesel, although this requires more frequent oil changes. New trucks and buses from Mercedes-Benz and Setra are available ex-factory with a special biodiesel adaptation feature, and retrofitting is possible for vehicles already in operation.

The Euro 5 standards can already be fulfilled today with en-gines running on natural gas. Even the stringent Environmen-tally Enhanced Vehicle (EEV) standards are met with ease.

Natural gas | Biodiesel

Alternative fuels today: Natural gas and biodiesel Hybrid: Technologies intelligently combined Hybrid drive units combine internal combustion engines with electric motors; depending on the type of vehicle and driving situation, these modules can be used either individually or in tandem. The hybrid units available today are particularly suited for use in inner city areas. Approximately 2,000 hybrid trucks and buses of the various Daimler brands are already on the move in conurbations throughout the world, and many further orders are currently being processed. These include line service city buses from Orion, Freightliner trucks in North America, the light-duty Mitsubishi Fuso Canter Eco Hybrid truck, and the Aero Star line service city bus in Japan – no other manufacturer in the world has produced more commercial vehicles with hybrid drive. But this is only the beginning: The Mercedes-Benz Atego and the Citaro G with hybrid drive are now celebrating their world premiere. The Mitsubishi Fuso Canter Eco Hybrid is undergoing trial operation with customers in the United Kingdom, and Freightliner is producing a series of 1,500 hybrid trucks. These vehicles are all demonstrating their everyday practicality in real-life opera-tion: They stand for Daimler’s competence in hybrid drive systems and are impor-tant milestones along the road to the ambitious aim of the zero-emission vehicle.

Joint developments have arisen from practical experience bridging continents. The Daimler engineers have decided on a common hybrid drive architecture for trucks, notwithstanding the diversity of units used to match the various vehicle sizes. With a view to optimizing costs and efficiency, and taking into account the technical conditions of operation, Daim-ler is concentrating on a parallel hybrid drive for trucks. In this configuration, the additional electric motor is positioned behind the engine and clutch, but in front of the transmission; this arrangement makes purely electrical operation possible and provides an optimal compromise between production costs, dimensions, weight, and performance. The entirely different operating conditions for city buses have led to a fundamental decision in favor of series hybrid drive. This principle is characterized by the absence of a mechanical link to the driven axles. The drive units can be positioned practically independently of each other inside the vehicle; this is of advantage especially in a low-floor city bus, where space is limited.

The smart fortwo mhd includes a start-stop system with a belt-driven starter-alternator; this unit replaces both the conventional starter motor and the alternator. During idling, the smart fortwo mhd cuts out the engine, but as soon as the driver releases the brake pedal, the alternator activates the engine once more. This feature reduces the fuel consumption of the smart fortwo mhd to 4.3 liters per 100 kilometers, corresponding to a CO2 emission level of 103 grams per kilometer. The smart fortwo mhd has been available since October 2007.

Biodiesel from rapeseed, soy, and jatropha

Source: Daimler AG

Source: Daimler AG

20 percent CO2 reduction

Mercedes-Benz E 200 NGT BlueEFFICIENCY

Mercedes-Benz Sprinter NGTThe electronics in the “micro hybrid”

use idling phases to save fuelsmart fortwo mhdMercedes-Benz B 170 NGT BlueEFFICIENCY Mercedes-Benz Econic NGT

Daimler AG is the world’s first carmaker to succeed in matching lithium-ion battery technology, used until now chiefly in the field of consumer electronics, to the high demands of automotive application. Daimler holds a total of 25 patents that have paved the way for the breakthrough in this crucial technology. Decisive for this success was above all the integration of the lithium-ion battery into the vehicles’ climate cycle, a process developed by Daimler. The energy storage unit thus constantly operates at an ideal system temperature of between 15 and 35 degrees Celsius and can therefore attain a long service life in passenger cars, with maximum efficiency. The advantages of the lithium-ion battery lie above all in its compact dimensions and its far superior performance in comparison with conventional nickel-metal hydride batteries. Lithium-ion batteries are ideally suited for use in hybrid vehicles, where they help reduce fuel consumption and thus also CO2 emissions. This new energy storage medium will be regularly used as of 2009 in the Mercedes-Benz S 400 BlueHYBRID.

Breakthrough in lithium-ion battery technology

Daimler – The road to sustainable mobility

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2524Hybrid Today’s mobility

The Mitsubishi Fuso Canter Eco Hybrid is powered by a parallel hybrid system. This means that it can be operated with the electric motor alone, the diesel engine alone, or with both units in combination. The vehicle is designed above all for inner-city operation: Weighing 2.8 tons and with a payload of two to three tons, it is ideally suited for countless applications, for example in city delivery service or in municipal waste disposal. The hybrid system automatically changes its operating mode as required by the various situations. The electric drive module is used for setting off from standstill. For sharp acceleration, the diesel engine and electric motor power the vehicle in tandem. When cruising at constant speed, the truck is powered by the diesel engine alone. On braking, the electric motor functions as a generator, converting the braking energy into electricity, which it stores in the lithium ion battery for the next start or acceleration maneuver.

The principal components of the Mitsubishi Fuso Canter Eco Hybrid’s drive system are a newly de- veloped compact diesel engine (92 kW), an ultra-slim electric motor (35 kW), a powerful lithium ion battery, and a special semi-automatic transmission for com-fortable, economical driving in inner-city traffic.

These vehicles not only accelerate more powerfully and consume less diesel fuel than conventional buses – they are also much cleaner and run more smoothly and quietly. The quiet revolution is driven by a powerful electric motor and a rear-mounted diesel generator. The engine runs in the most economical sector as required by the driving situation, thus cutting fuel consumption by up to 45 percent depending on the driving cycle. Via the generator, the diesel engine at the same time supplies a powerful battery that is avail-able as an energy pool during starting or accelerating. When the driver brakes, the electric motor becomes a generator and additionally charges the battery with the braking energy. Idling losses in the diesel engine at bus stops are prevented, as are unpleasant clouds of soot and smoke. Particularly in the harsh conditions of inner-city stop-and-go traffic, this new technology can play out its advantages to the full. In New York, Toronto, and San Francisco, for example, more than a hundred bus drivers and their passengers are already benefiting from hybrid technology.

The diesel engine mounted longitudinally at the rear, developing 191 kW (260 hp) from a displacement of 5.9 liters, powers a generator that supplies the electric traction motor with energy. This oil-cooled unit de-velops 184 kW (250 hp) and attains a peak output of no less than 235 kW (320 hp). In the Orion bus, the energy can alternatively be provided by lead batteries. These are housed in two containers on either side of the roof of the bus, each consisting of 23 modules and together weighing 1.8 tons. The charging process involves the recuperation of braking energy and of excess power generated by the diesel engine. The environmental profile of the Orion VII: Up to 45 percent lower fuel consumption than conventional diesel buses. Soot particulates reduced by 90 percent. Oxides of nitrogen reduced by 40 percent. Greenhouse gases reduced by 30 percent. Driver satisfaction level: 100 percent.

A bus driver’s everyday working routine comprises two procedures: stop and go. For some 1,100 American bus drivers, the daily journey from one red traffic light to the next and from bus stop A to bus stop B has now become somewhat easier: They drive a hybrid bus of the Daimler corporate brand Orion.

The world’s cleanest truck has already been on the move in Japanese cities since mid-2006. “Canter Eco Hybrid” is the name of this light-duty truck from the Daimler subsidiary Mitsubishi Fuso Truck & Bus Corporation. It demonstrates its eco-friendliness with considerable reductions in fuel consumption (20 percent lower) and emissions of nitrogen oxides (41 percent lower) and particulates (46 percent lower) in comparison with conventionally powered vehicles. The oxides of nitrogen and particulates represent the greatest technological challenge to be met in complying with the worldwide emission regulations for commercial vehicles. The Japanese emission regulations number among the most stringent in the world. The first of ten vehicles commenced trial operation with customers in the United Kingdom in late 2007.

Saving with hybrid drive: Light-duty trucks for city operation

Hybrid buses: The quiet revolution

Emissions g/mile3.0

2.5

2.0

1.5

1.0

0.5

0.0 Particulates * 10 NOx / 10 CO2 / 1.000

Diesel Natural gas Orion VII Hybrid

Source: BAE Systems

Mitsubishi Fuso Canter Eco Hybrid Orion VII Hybrid

The powertrain of the Mitsubishi Fuso Canter Eco Hybrid

Daimler – The road to sustainable mobility

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Daimler – The road to sustainable mobility Tomorrow’s mobility26 27

We invented the automobile – and we are shaping its future with passion.

We arouse enthusiasm in our customers with outstanding premium cars and with commercial vehicles that are the best in their class.

BlueTECDirect injectionBlueEFFICIENCYDIESOTTOBlueHYBRIDSynthetic fuelsFuel cell driveBattery drive

Daimler AG’s innovation headquarters: The Mercedes-Benz Technology Center (MTC) in Sindelfingen near Stuttgart.

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28 29

Tomorrow’s mobility. In anticipation of the large-scale introduction of emission-free driving with vehicles powered by batteries or the fuel cell, we are setting store by constantly optimized internal combustion engines and further increases in efficiency with hybridization. We are also sup-porting the development of new fuels for internal combustion engines and forms of energy for emission-free driving. To expedite the universal distribution of new technologies, we are cooper-ating with other companies on the market.

In order to secure individual mobility for the future, greater attention must be given to the preservation of resources and to environmental compatibility. We are therefore leaving no stone unturned in realizing new technologies for the benefit of the environment and in optimizing vehicles, drive systems, components, materials, production processes, and fuels. Since the mobility requirements of our customers and the conditions of operation and transportation infrastructures show great variation throughout the world, we offer a wide range of efficient, environment-friend-ly drive concepts: from BlueTEC – the world’s cleanest diesel – through the low-consumption and low-emission direct-injection gasoline engine, up to various hybrid drive units. In cars and com-mercial vehicles alike, we are setting our sights on emission-free driving with battery and fuel cell vehicles. We are thus fulfilling both the individual requirements of our customers and the demands of society for clean, efficient automobiles manu-factured in sustainable processes.

Tomorrow’s mobility: Groundbreaking technologies, fascinating vehicles, emission-free driving

Daimler – The road to sustainable mobility Tomorrow’s mobility

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30 31

The world is changing. And so are our vehicles.Our customers quite rightly place high demands on vehicles from the Daimler Group. They expect safety, quality, reliability, comfort, performance, eco-friendliness, and sustainability. This applies to our cars, vans, trucks, buses, and special vehicles alike. For more than 120 years, Daimler has been finding solutions with a future for the pressing requirements of the various eras. And the challen-ges that lie ahead of us are no less demanding. In addition to optimizing vehicle safety, we are above all working toward attaining the highest possible level of environmental compatibility for our vehicles. Our aim: zero emissions.

This goal cannot be reached in the short term. But we are already heading in the right direction on various fronts. With our “Shaping Future Transportation” and “TrueBlueSolutions” initiatives, we are constantly improving the efficiency and environmental compati- bility of our commercial vehicles and passenger cars. In numerous research vehicles, we are testing new vehicle concepts and technologies, new materials and forms of production. When it comes to realizing sustainable mobility that is independent of fossil fuels, the key technology is for us the fuel cell. As the pioneers of this technology, we already presented the first vehicle with this highly efficient environment-friendly drive concept in 1994. With more than 100 test vehicles that have covered around 4 million kilo-

meters in all, we have the most experience worldwide with fuel cell vehicles. We are expecting the first zero-emission vehicles to reach market maturity in 2010. Until the necessary infrastructure for fuel cell vehicles is in place, we are continuing to tap the potential of conventional drive systems. In this endeavor, we are making full use of aspects such as alternative fuels, traffic management, the infrastructure, and individual driving styles.

Mobility through diversity. Approximately half of our research budget now flows directly into the investigation of environment-friendly technologies. It is not the sole aim of our drive strategy to save fuel or to reduce CO2 emissions. Our holistic approach

also includes aspects such as an overall CO2 score-card for vehicles (production, operation, recycling), the availability of new fuels, and the affordability of new technologies. For us, individual developments such as hybrid drives – even when they are at the focus of public awareness – are just one of many opportunities along the road to sustainable mobility. Operating conditions, transportation infrastructures and personal mobility requirements throughout the world are highly diverse – and so are our drive concepts.

Tomorrow’s mobility: The road to sustainable mobility

TrueBlueSolutionsShaping Future Transportation

Concerted development and optimization of our internal combustion engines.

Energy for the future:Clean fuels for internal combustion engines. Forms of energy for emission-free driving.

Further enhanced efficiency through hybridization.

Emission-free driving with fuel cell and battery-powered vehicles.

Daimler’s road map to sustainable mobility:

Daimler – The road to sustainable mobility Tomorrow’s mobility

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32 33

Until environment-friendly, emission-free fuel cell technology is introduced on the market on a large scale, vehicles powered by internal combustion engines will continue to dominate the traffic scenario. Our strategy is therefore to make the diesel engine as clean as its gasoline counterpart, and the gasoline engine as economical as the diesel. By comparison with the energy supply or building construction sectors, we in the automotive industry must invest about ten times more funds in the reduction of CO2 emissions. Nevertheless, we are constantly intensifying our endeavors to reduce exhaust emissions and the consumption of fossil fuels.

The future of BlueTEC. The modular exhaust treat-ment system BlueTEC was developed in two versions. In the Mercedes-Benz E 320 BlueTEC and E 300 BlueTEC sedans, which are already available in the USA and Europe, the oxidation catalytic converter and particulate trap are com-bined with an NOx storage catalytic converter and an additional SCR catalytic converter. The second BlueTEC version – used in our commercial vehicles since 2005 – is even more efficient and will also be used in passenger cars in

future. AdBlue, an aqueous carbamide solution, is injected into the exhaust stream; the succeeding SCR catalytic converter transforms up to 80 percent of the oxides of nitrogen into harmless molecular nitrogen and water. On this basis, we offer the world’s cleanest diesel-powered passenger cars, which in combination with engines providing optimal fuel consumption can comply with the world’s most stringent future exhaust standards.

The DIESOTTO engine. Many customers would choose none other than a gasoline engine. As pioneers of the automobile, we have always devoted our atten-tion to both engine types. As a logical consequence, we shall be uniting the best features of the diesel and gasoline engines in a future-oriented drive unit: the DIESOTTO engine. We are combining the emission levels of modern, low-emission gasoline engines with the low fuel consumption and outstanding torque of diesel power units. Despite its considerably smaller cubic capacity, this compact unit provides effortless smooth-running performance otherwise found only in premium-class vehicles. The DIESOTTO runs on conven-tional fuels. In addition to its low fuel consumption, the DIESOTTO – thanks to its homogeneous compression ignition combustion under part load – greatly reduces emissions of the oxides of nitrogen. The fuel-air mixture is only ignited by a spark plug during starting and under full load. Depending on customer requirements and operating conditions, DIESOTTO drive units can also be combined with hybrid modules; this makes driving even more economical, especially in city traffic.

The Mercedes-Benz F 700 research vehicle, pre- sented as a realistic vehicle for the future, is pow- ered by a 1.8-liter DIESOTTO engine with an output of 175 kW/238 hp. In tandem with a 15 kW/20 hp hybrid module, the DIESOTTO hybrid attains a combined maximum output of 190 kW/258 hp. Its fuel consumption of 5.3 l and CO2 emission level of 127 g CO2/km are on a par with those of today’s compact diesel models.

DIESOTTO – technological features:

01 Weight and size reduction (downsizing) with fewer cylinders and reduced engine displacement

02 Turbocharging for effortless performance

03 Direct gasoline injection

04 Homogeneous charge compression ignition (HCCI) – similar to the diesel’s combustion process

05 Variable valve timing

06 Variable compression ratio

BlueTEC DIESOTTO

The impressive performance, high torque, economical fuel consumption, and mini-mal emissions of the BlueTEC models from the Mercedes-Benz ML-, R-, and GL-Class series available as of 2008, and of the C-Class to be launched in 2009, demon-strate that the innovative BlueTEC tech-nology can deploy its potential in highly diverse vehicle categories.

Looking into the future: With a power output of 238 hp,

the Mercedes-Benz F 700 consumes only 5.3 liters of

gasoline per 100 kilometers.

The future of the internal combustion engine: Economical gasoline units and clean diesels

Diesel engine with BlueTEC system

AdBlue tank at the rear

of the vehicle

Mercedes-Benz F 700Mercedes-Benz C 250 BlueTECMercedes-Benz BlueTEC models: R-, GL-, and ML-Class

Tomorrow’s mobilityDaimler – The road to sustainable mobility

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34 35

A distinction is also made in the degree of hybridization. Vehicles with start-stop systems are fitted with a special starter-generator, which replaces both the conventional starter motor and the alternator. The next stage of hybridi-zation combines an internal combustion engine and an electric motor, where-by the latter is used as a power booster or for brake energy recuperation. Vehicles with the highest degree of hybridization, unlike the above-mentioned concepts, can also be operated in purely electric mode.

The first commercial vehicle with hybrid drive was presented by the then Daimler-Benz AG at the Frankfurt International Motor Show (IAA) in 1969. Today, Daimler is the world leader in the field of hybrid commercial vehicles: 1,500 hybrid drive buses of the corporate brand Orion are already on the roads of North America, and orders have been received for a further 1,100 of these buses. In Japan, with the Canter Eco Hybrid, a product of our Mitsubishi Fuso brand, we are also offering a light-duty series-production truck with hybrid drive. We are currently testing our Mercedes-Benz Sprinter van with a so-called plug-in hybrid unit in practical trials with customers in Europe and the USA, and we are also preparing solutions for heavy-duty trucks. In the luxury segment, the Mercedes-Benz S 400 HYBRID – the first passenger car to be powered by a lithium ion battery – will be setting new standards as of mid-2009.

Also in 2009, Daimler will be launching the innovative two-mode hybrid system for rear-engined premium cars on the market. This concept offers the customer an ideal combination of performance, economical fuel consumption, comfort, and minimal space requirements. With its versatile range of power options, the two-mode system is ideal both for city and rural operation. In conjunction with intelligent energy management, it provides all hybrid characteristics such as purely electric operation, a start-stop function for the internal combustion engine, a boost effect, and brake energy recuperation.

Hybrid concepts. An important element of Daimler’s strategy for sustainable mobility is the hybrid drive unit, which combines an inter-nal combustion engine with an electric motor. With hybrid drive, up to 20 percent of fuel can be saved, especially in inner-city traffic. We distinguish largely between three hybrid principles: series, parallel, and the series/parallel variant. In the series hybrid unit, two drive modules operate in sequence. The internal combustion engine powers a generator, which in turn supplies an electric traction motor. In the parallel hybrid unit, on the other hand, the internal combustion engine and the electric motor power the vehicle either separately or in tandem. The series/parallel variant combines these two approaches.

Hybrid

Hybrid drive: The best of both worldsMercedes-Benz Citaro bus with serial hybrid drive. The Citaro G articulated bus in-corporates a special type of hybrid technology: The diesel engine in the Mercedes-Benz Citaro series hybrid bus functions not as a drive unit, but as an electrical generator; the actual tractive power is provided by four electric hub motors on the vehicle’s axles. On short inner-city routes, the bus is thus operated in a purely electric and thus zero-emission mode. The hybrid Mercedes-Benz Citaro attains fuel consumption and CO2 emission levels 20 to 30 percent below those of a comparable diesel bus. Series production is planned for 2009. This hybrid drive variant is a logical step along the path to the fuel cell drive city bus. Already today, the Mercedes-Benz Citaro includes an appropriate electric drive unit and batteries as an energy storage medium, so only the diesel engine would have to be replaced by fuel cells. Practically emission-free operation in city areas would thus be attainable with only minor modifications – the zero-emission vehicle.

CO2 emissions and fuel consumption in comparison

10 20 30 40 50 60 70 80 90

Conventional diesel drive

Diesel hybrid driveCO2 and consumption reduced by up to 30%

100% CO2 emission and fuel consumption

Source: Daimler AG / Orion

Mercedes-Benz Atego: light and medium-duty hybrid trucks. The Atego Hybrid, with a permissible GVW of either 7.5 or 12 tons, benefits from the worldwide network of the Daimler Group: The tried-and-tested drive technology is derived from the Mitsubishi Fuso Canter Eco Hybrid, which is already manufactured in series in Japan. The devel-opers are expecting fuel savings of around 20 percent in short-range distribution.

Freightliner M2 Hybrid: An electric vehicle with elevating platform. The Freightliner M2 Hybrid is an elevating platform vehicle with a permissible GVW of 15 tons. It uses the electrical module of the drive system not only as an alternative and an adjunct to the diesel engine, but also for exhaust-free, quiet operation of the platform auxiliary unit. This advantage can be used in numerous further applications, such as the operation of pumps for tank trucks or fire engines, or many other auxiliary units. Fuel savings: up to 30 percent.

Daimler is presenting the two-mode system for the first time in the Mercedes-Benz ML 450 HYBRID, the world’s most economical gasoline hybrid SUV in its class. The Mercedes-Benz S 400 HYBRID and our BlueTEC hybrid combinations will also be setting new standards.

The Mercedes-Benz S 400 HYBRID is the first car to be powered by a lithium ion battery. The energy obtained through recuperation, for example, is stored in this powerful but compact battery and can be drawn on as required.

Mercedes-Benz Citaro G HYBRID

Tomorrow’s mobilityDaimler – The road to sustainable mobility

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Fuels

Alternative and renewable fuels

To reduce dependence on fossil energy media, we are pre-paring our internal combustion engines for use with alter-native fuels; these can make a major contribution to environ-mentally compatible mobility. Already today, environmental performance in road traffic can be improved with blends of vege-table fuels. As a member of the Alliance for Synthetic Fuels Europe (ASFE), established in 2006 by automotive producers and petroleum enterprises, we are committed to tapping the potential of alternative fuels.

Daimler has a share in the biofuel producer CHOREN Industries. Under the brand name “SunDiesel,” CHOREN produces a synthetic fuel of the second generation. For Daimler, this BTL (biomass-to-liquid) fuel is the most promising regenerative fuel option for internal combustion engines and an important component of environmental strategy. In the so-called Fischer-Tropsch process, SunDiesel can be derived from any type of biomass, such as straw, thinning wood or energy crops. Unlike biodiesel, which is produced for example from rapeseed oil, BTL makes use of the entire plant – all of its fibers, from the stalk to the fruits and from the roots to the uppermost twigs. Compared with biodiesel, SunDiesel yields several times the amount of biofuel per acre of cropland. SunDiesel is a highly pure fuel that is entirely free of sulfur and aromates, gives rise to minimal emissions and has an excellent CO2 balance. SunDiesel can be used without modifi-cation in existing and future diesel engines. In the combustion of SunDiesel, no additional CO2 from fossil petroleum sources is released into the atmosphere. Except for the fossil energy consumed in the production of SunDiesel, its CO2 scorecard is practically CO2-neutral; SunDiesel saves up to 95 percent of CO2 emissions as compared with conventional diesel fuel. Daimler works in cooperation with the United Nations Environment Programme (UNEP) and WWF in drawing up sustainability criteria for the cultivation of biomass for biofuels.

Anthropogenic CO2 balance for fuels

10 20 30 40 50 60 70 80 90 100% CO2 burden

Biodiesel

Biomass-to-liquid (BTL, “SunDiesel”)

Conventional fuels (gasoline/diesel)

50% CO2 savings

95% CO2 savings

Source: Daimler AG

Biodiesel (RME, FAME, PME) is derived from oils or fats, reduces CO2 emis-sions by up to 50 percent and is free of sulfur. All trucks from Mercedes-Benz manufactured since 1988 are approved for operation with biodiesel.

Natural gas/biogas. A good alternative to the diesel engine in city traffic is natural gas drive. Compressed natural gas and biogas are very low-emission fuels, with nitrogen oxide emission levels well below those for diesel.

Hydrogen is the fuel of the future. As long as it is generated by electroly-sis from renewable energy sources such as hydroelectric, wind, solar or geothermal power plants, the vision of emission-free, sustainable mobility independent of fossil energy sources can become reality.

The science of well-to-wheel scenarios. Projected fuel consumption and the resulting greenhouse gas emissions can be calculated on the basis of holistic studies of energy accounting – from the energy source to the driven wheel. These calculations are based on a study jointly conducted by CONCAWE, EUCAR, and JRC.

The interactive web module OPTIRESOURCE is available at: www.daimler.com > Sustainability > Ecology

The heart of SunDiesel production: A high-temperature gasifier with burner at the technology complex of CHOREN Industries GmbH.

Example: SunDiesel from waste wood.

Mercedes-Benz C 220 CDI 2007 CO2 Champion: smart fortwo cdi

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Vehicles with hydrogen-powered fuel cells provide ideal conditions for environment-friendly mobility that makes sparing use of natural resources. For this reason, we are already pressing ahead with the regenerative and economical production of hydrogen and the establishment of an appro-priate infrastructure. These are both essential to the realization of future fuel cell drive systems. Daimler is proactive in Europe’s Clean Energy Partnership (CEP) and the American FreedomCAR and Fuel Partnership.

In greatly simplified terms, the fuel cell functions as follows: The chemical reaction between hydrogen and oxygen in the fuel cell generates an electrical current, with which one or more electric motors power a vehicle. Fuel cell technology is not merely highly environment-friendly, but also extremely efficient: Its efficiency factor is around twice that of the inter- nal combustion engine. No emissions are produced; the only “waste product” is water. If the hydrogen is derived from renewable energy sources such as solar, wind or hydroelectric power plants, its ecological scorecard is outstanding.

Emission-free driving

The hydrogen infrastructure. Everyday operation of fuel cell vehicles will only be possible with a comprehensive hydrogen infrastructure. Daimler is working toward this objective with leading companies from the energy supply sector.

Twice the radius of operation with 700-bar technology. In the next F-CELL generation on the basis of the Mercedes-Benz B-Class, tanks pressurized to 700 bar make for an operating range now doubled to 400 kilometers.

Fit for the freeze: The Mercedes-Benz B-Class F-CELL during successful winter testing in frosty Sweden.

Cold-start ability. Fuel cell vehicles can now be started without problem even at temperatures of minus 25 °C. The Daimler subsidiary NuCellSys received the “f-cell Award” for its solution to this problem.

Fuel cell

As the pioneer of this key technology, Daimler already presented the first fuel cell vehicle in 1994. Today, with more than 100 test vehicles and some four million kilometers covered, we are the manufacturer with the greatest wealth of experience in fuel cell vehicles worldwide – from the compact A-Class through our Sprinter vans up to the Citaro bus. In 2010 we shall be presenting the first series-produced fuel cell passenger car: the Mercedes-Benz B-Class F-CELL, with a com-pact, powerful fuel cell suitable for everyday operation. The basis of this development is the optimized fuel cell drive system from our Mercedes-Benz F 600 HYGENIUS research vehicle.

For series manufacture, this unit has been reduced in size by about a further 40 percent, although its output has been increased by some 30 percent. The Mercedes-Benz B-Class F-CELL will have a maxi-mum output of 100 kW/136 hp, a maximum torque of 320 newton-meters, and a fuel consumption – in terms of diesel equivalent – of just 2.9 liters per 100 kilometers.

Efficiency factor (NEDC)

Source: European Compact Car, NEDC

Efficiency factor in %50

40

30

20

10

0 Gasolineengine

Dieselengine

Gasolineengine

Dieselengine

Fuel cell H2 combus-tion engine

Conventional Hybrid Hydrogen

Potential Today

Mercedes-Benz F 600 HYGENIUS Mercedes-Benz B-Class F-CELL

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Concept and feasibility studies Fit for daily use | Fleet trials Market launch

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Future

Necar 1

Necar 2

Cars

Cars

Light-duty vehicles

Heavy-duty vehicles

Necar 4 Necar 4 Advanced

Fuel Cell SprinterFuel Cell Citaro

F-CELL A-Class F 600 F-CELL A-Class AdvancedF-CELL A-Class | Field tests F-CELL B-Class

F-CELL CitaroFuel Cell Sprinter

Fuel Cell Sprinter | Field tests

Fuel Cell Citaro | Field tests

Nebus

Necar 3 Necar 5

Hydrogen Hydrogen Hydrogen

MethanolThe fuel cell. This technology is seen as the drive technology of the 21st century and has been at the focus of Daimler’s research since 1994

36 fuel cell buses in operation throughout the world have covered a combined total of more than two million kilometers.

The Mercedes-Benz Sprinter with fuel cell drive is undergoing trials with leading transport companies worldwide.

Mercedes-Benz A-Class with fuel cell drive as an emergency fire brigade vehicle in Sacramento, California.

Fuel cell

Electric drive

Practical trials today. Under a wide range of climatic and geographical conditions, sixty Mercedes-Benz F-CELL A-Class vehicles are demonstrating their ability in everyday operation on public roads.

Investment in the fuel cell is investment in the future. Daimler will continue to work intensively toward making this technology even more reliable and reducing costs. For all companies involved, the establishment of the Automotive Fuel Cell Cooperation represents a major step into the future, since the fuel cell offers the best long-term prospects for sustainable, emission-free mobility that makes sparing use of natural resources.

Automotive Fuel Cell Cooperation. With a share of 50.1 percent, Daimler AG has majority holdings in the Automotive Fuel Cell Coop-eration, established in 2007 for fuel cell application on board vehicles. The cooperation’s world-leading role in this sector is being extended with the addition of the stakeholders Ford Motor Company and Ballard Power Systems. With numerous patents and around 150 highly specialized employees, this enterprise is technology leader in the field of automotive fuel cell stacks. The objective is to expedite series production of fuel cell vehicles.

Powerful and versatile. The fuel cell system used in the Mercedes-Benz B-Class F-CELL is also demonstrating its suitability for heavy- duty operation in commercial vehicles. By means of system clustering – two B-Class systems in combination with an energy storage unit – a highly powerful aggregate is created for application in the new Mercedes-Benz F-CELL Citaro bus. The modular nature of the new B-Class system also allows installation in a variety of vehicle platforms, thus increasing production volumes and reducing manufacturing costs.

Automotive Fuel Cell Cooperation.

Ford Motor Company (30 percent)Ballard Power Systems (19.9 percent)Daimler AG (50.1 percent) Mercedes-Benz Citaro F-CELL

With the smart electric drive, Daimler already has a purely electrically powered vehicle in pilot operation. In 2007 a trial program involving 100 smart electric drive vehicles was launched in London. At the rear of smart fortwo electric drive cars is a 30 kW/41 hp magnetic motor, which is supplied by a powerful sodium-nickel chloride battery. With a consumption rate of just 12 kilowatt-hours per 100 kilometers and zero grams of carbon dioxide emission, the smart fortwo electric drive is an economical, climate-friendly alternative for city traffic. Once charged, this two-door car can travel about 115 kilometers. When the battery runs down, it can be recharged from any 230-volt power outlet – at least 1,000 times over.

E-Drive

smart fortwo electric drive Electric motor in the smart fortwo electric drive Charging the drive batteryDrive battery charge display

Daimler – The road to sustainable mobility Tomorrow’s mobility

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Any driver can reduce fuel consumption and thus CO2 emissions by up to 20 percent with an eco-nomical driving style. The recommendations for economical driving are not new, but they remain highly effective. In the commercial vehicle sector, fleet operators invariably cast a critical eye over the driving style of their employees, because fuel accounts for a major portion of overall costs. Truckers therefore appreciate the ECO driver training courses that we have been offering for twenty years, where they learn fuel-saving driving. Since the mid-1990s, we have also provided courses in economical driving for drivers of pas-senger cars. After all, there are many ways of saving fuel – with no compromise in mobility or independence. And economical driving means safe driving, since an anticipatory driving style reduces the risk of accidents.

The driver’s role: Economical driving

Emissions arise whenever a car is driven. But together with vehicle technology, an appropriate driving style can also help reduce them: Economical driving cuts fuel consumption and CO2 emissions by up to 20 percent. This figure was confirmed by field tests conducted in summer 2007.

01 Shift up early

02 Don’t drive excessively fast

03 Maintain a regular speed

04 Don’t brake unnecessarily

05 Allow your vehicle to coast

06 Don’t run the engine longer than necessary

07 Start without the accelerator and drive off straight away

08 Keep an eye on tire pressure

09 Remove unnecessary superstructures

10 Don’t overload your vehicle

Trucks: Less is more. As the world’s largest manu-facturer of commercial vehicles, we are well aware that fuel consumption is a decisive economic and success factor for our customers. The most fundamental requirement for low-emission, economical driving are thrifty engines that burn fuel efficiently, for example our BlueTEC units. However, fuel consumption is con-siderably influenced not only by the engine and drive-train, but also by the tires and aerodynamics, the vehicle’s equipment, its technical condition, weight, body, and trailers. On the other hand, the technology is not the only decisive factor: A significant role is also played by driving style, speed and the area of application of the individual vehicle. Many of these factors, which do not seem important when assessed individually, add up to yield considerable savings. According to statistics, for example, around 30 percent of all trucks are on the move with insufficient tire pres-sure; this increases consumption by up to 4 percent. Individual aerodynamic optimization measures save between 0.2 and almost 8 percent of fuel. Careful journey and route scheduling also has considerable savings potential: Avoidable stops at traffic lights, for instance, account for an increase in consumption of up to 0.5 liter, and an ascent with an altitude dif-ference of 100 meters – as compared to a level route – accounts for one additional liter for a 40-ton truck combination. We therefore provide support for our customers in route planning, in optimal configuration of their vehicles, and with special ECO training for drivers, so that they can operate their vehicles with a minimum of fuel consumption and emissions.

Ten ways to save fuel, money, and CO2.

Savings potential in commercial vehicles.Lower consumption Higher consumption

Tires

Up to 5% with road tread instead of traction tread

Up to 6% with greater profile depth

Up to 4% with recut tires Up to 5% with retreaded tires

Up to 3% with tires with reduced rolling resistance

Up to 4% with insufficient tire pressure

Up to 2% with extra-wide tires instead of dual tires

Up to 1% with greater tire width

Up to 1% with low-profile tires

Aerodynamics

Up to 1.25% with side trim panels on the tractor unit

Up to 2% with roof-mounted headlamps

Up to 5% with side trim panels on the semitrailer/trailer

Up to 2% with an excessive gap between semitrailer and cab

Up to 7.5% with air deflectors, front apron, side deflectors

Up to 0.3% with air horns

Up to 0.2% with a sun visor

Route profile

Up to 0.5 liter with an avoidable traffic light stop

Up to 1.0 liter per 100 meters altitude difference

Up to 0.8 liter with unexpected traffic jams and sharp braking from 80 km/h

Further savings potential with matched semitrailer and trailer, optimized auxiliary units, and regular maintenance.

Source: Daimler AG

Participation in an ECO driver training course pays off.The elements of our ECO driver training are: an initial consumption measurement drive for reference purposes; ECO instruction, in which our ten hints for economical driving are presented; and practical implementation of the newly learned driving style with a further consump-tion measurement drive. The result is impressive: Fuel consumption and CO2 emissions are significantly reduced independently of the type of transmission, and the newly acquired anticipatory driving style enhances safety.

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We believe that the corporate objective of environmen-tal protection can only be attained if it is not regarded separately alongside the other goals, but is treated as an organic constituent of the company. We can only reach our goal of the highest possible level of product quality by at the same time complying with stringent environmental standards and making careful use of the resources on which life depends. Our “Design for Environment” concept has thus been secured in the development process for more than ten years. This program sets out to make the environmental compati-bility of our vehicles both objectively measurable and directly experienceable for our customers. Experts from the fields of life cycle assessment, dismantling and recycling planning, materials and process engineer-ing, design, and production therefore accompany the development of vehicle models right from the outset, define the ecological framework, and monitor rigorous adherence to our principles. For this all-encompassing life cycle assessment, our experts investigate 40,000 individual processes for example in the Mercedes-Benz S-Class; the result extends to more than 200 “input” factors (resources) and about 300 “output” parameters (emissions). Daimler’s environmental guidelines also ensure that we provide the public with comprehensive information on our environmental measures.

This environment-related product information documents for example a comparison with the predecessor model, life cycle assessments for individual components, design with a view to recycling, information on dismantling, avoidance of materials with hazardous potential, and the use of recyclates and renewable raw materials. In drawing up these certificates, we are guided by international standards that are accepted by all affected groups of society. Compliance with these standards and correctness of the information received is verified by independent assessors.

Our annually produced report titled “FACTS on Sustainability” provides comprehensive insights into Daimler’s strategies, activities, and advances in the field of sustainability. This report complies with the requirements of the G3 guidelines of the Global Reporting Initiative (GRI), which are recognized throughout the world as standards in corporate sustainability reporting.

The environmental certificates for the Mercedes-Benz A-, B-, C-, and S-Class series can be downloaded from our homepage. We invite all interested parties to gain their own impression of our initiatives and innovations for the protection of our environment.

Life cycle assessment

Along with drive technology, there are further aspects that are decisive for fuel consumption and consequently also for the environmental compatibility of a vehicle – for example tires, aerodynamics, auxiliary units, vehicle weight, and onboard energy management. This applies to all our vehicles, whatever their drive systems, to an equal extent. Our engineers – also in cooperation with our partners and suppliers – are thus leaving no stone unturned in optimizing all components to achieve further reductions in fuel consumption and exhaust emissions. Fuel consumption can be cut by five to ten percent by means of improved onboard energy management alone, such as the use of electric water pumps and steering systems.

Optimization in all areas

Life cycle assessment: More than CO2 reduction – environmental protection as a corporate objective

Decisive for the environmental compatibility of a vehicle are not only its fuel consumption and emis-sions in driving operation, but its environmental impact and the consumption of natural resources throughout its life cycle: from manufacture, through its active service life, to recycling and disposal. We therefore look far beyond the exhaust pipe into the future and are already today developing concepts, technologies, and materials that will only take effect after many years – for example in recycling. This is a holistic approach that takes into account the entire life cycle of our automobiles. The success of this commitment is documented by environmental certification, which we were first awarded in 2005 for the Mercedes-Benz S-Class and then in 2007 also for the new Mercedes-Benz C-Class. In 2008 the Mercedes-Benz A- and B-Class receive the environmental certification, too. Daimler is thus the world‘s first automotive pro-ducer to receive this certification in recognition of environment-oriented product development, in accordance with the internationally recognized ISO 14062 standard. Daimler was also the first automotive manufacturer to be awarded certifi-cation of “reusability, recyclability, and recover-ability” from the German Federal Motor Vehicle Registration Agency (KBA).

Material production

Input:01 Energy: electrical, mechanical, and thermal02 Operating fluids03 Auxiliary fluids04 Additional fluids

Output:01 Waste02 Wastewater03 Waste heat04 Residues05 Byproducts06 Emissions in air, water, and soil07 Excavation residues

Recycling

Manufacture

Use

Disposal

Source: Daimler AG

Mercedes-Benz C-Class station wagon with environmental certification:39 components approved for manufacture from recycled plastics,32 components produced from renewable raw materials.

Mercedes-Benz C-Class: exemplary CD value Freightliner Cascadia: aerodynamically optimized Low-resistance tires

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Clean, efficient operation worldwide with BlueTEC, BlueEFFICIENCY, DIESOTTO, hybrid, alternative fuels, battery drive, and the fuel cell.

BlueTEC: BlueTEC: The world’s cleanest diesel. On board commercial vehicles since 2005 – and in cars since 2006.

BlueEFFICIENCY: 20 new passenger car models, combining exemplary efficiency and eco-friendliness with safety and comfort.

Hybrid: With a market share of 60 percent, we are the world leader in hybrid buses. Various hybrid solutions in our passenger cars as of 2009.

DIESOTTO: The best of the diesel and gasoline engine united in a future-oriented drive concept, combining the emission values of modern, low-pollutant gasoline engines with the low fuel consumption and excellent torque of diesel power units.

New synthetic fuels: Already today, our vehicles run on biodiesel and natural gas. For the near future, we are setting our sights on SunDiesel, the synthetic fuel of the second generation.

The fuel cell with hydrogen: We hold the world record, with more than 4,000,000 kilometers covered. Emission-free driving with hydrogen is becoming reality: in the Mercedes-Benz B-Class F-CELL as of 2010.

We invented the automobile – and are shaping its future with passion.

We are facing up to our responsibility toward society and the environment. Our road to sustainable mobility: We are proactive!

Daimler – The road to sustainable mobility Conclusion

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