MASTER’S THESIS

2003:160 CIV

JENNY LONGWORTH

Green Concern atCar Dealerships

A Competitor Analysis

MASTER OF SCIENCE PROGRAMME

Department of Business Administration and Social SciencesDivision of Industrial Organization

2003:160 CIV • ISSN: 1402 - 1617 • ISRN: LTU - EX - - 03/160 - - SE

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Abstract This study was carried out in cooperation with Volvo Car Corporation, VCC. The aim of the study was to determine which environmental activities are performed at car dealerships, how the dealerships make these activities known to their community and how VCC’s dealerships compare to other brands’ dealerships. The aim was also to identify potential improvement possibilities for VCC. The six brands targeted in this study are Toyota, Volkswagen, Audi, Mercedes-Benz, Daimler Chrysler and VCC. Car dealerships from the selected brands in Sweden, Germany, the Netherlands, the United Kingdom and the USA were approached and asked to participate in the survey. Information was gathered through the use of an Internet survey which was sent out to the selected dealerships enquiring about their environmental activities, for instance, if they were certified to any environmental standard like ISO 14001(International environmental standard for companies) or EMAS (European environmental standard for companies). The results of the survey are presented for each brand in each country. Subjective conclusions of the car dealerships’ environmental work are drawn to enable a comparison of the different brands regarding their environmental commitment, environmental chemicals and environmental communication. Finally, recommendations on future endeavours which could improve their work in this area were suggested to VCC. The results of the study reflect, in general terms, that the interest for environmental activities at car dealerships roughly depends on the country of the car dealership. For example, Swedish dealerships seem to be more environmentally aware than their international counterparts. The study shows what environmental activities are performed at car dealerships and how the different brands compare to each other within this area.

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Sammanfattning Den här studien genomfördes i samarbete med Volvo Car Corporation, VCC. Målet med studien var att ta reda på vilka miljöanpassade aktiviteter som utförs av återförsäljare, hur dessa aktiviteter marknadsförs och hur bra VCCs återförsäljare är på det här området jämfört med andra bilmärkens återförsäljare. Målet var också att identifiera möjliga förbättringsåtgärder för VCC. Sex olika bilmärken valdes för studien: Toyota, Volkswagen, Audi, Mercedes-Benz, Daimler Chrysler och VCC. Återförsäljare i Sverige, Tyskland, Nederländerna, Storbritannien och USA kontaktades angående medverkan i studien. Informationen samlades in med hjälp av en Internetenkät som skickades ut till de utvalda återförsäljarna. I enkäten tillfrågades de om vilka miljörelaterade aktiviteter som de utförde, bland annat, om de var miljöcertifierade enligt någon gällande miljöstandard så som ISO 14001 (Internationell miljöcertifiering) eller EMAS (Europeisk miljöcertifiering). Resultaten för återförsäljarna av varje bilmärke i varje land presenteras och de olika bilmärkena jämförs på basis av miljöengagemang, miljövänliga kemikalier och hur de marknadsför sina miljöanpassade aktiviteter. Jämförelsen baseras på subjektiva slutsatser från resultatet. Slutligen ges VCC ett antal rekommendationer angående möjliga förbättringsåtgärder inom det här området. Resultatet av studien visar, i generella termer, att intresset för miljöanpassade aktiviteter i beror mycket på i vilket land återförsäljaren befinner sig i. Återförsäljarna i Sverige verkar, till exempel, ha ett större miljöintresse än sina internationella motparter. Studien visar på vilka miljöaktiviteter som utförs hos återförsäljare, samt jämför de olika bilmärkena inom detta område.

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Acknowledgements This study was carried out as a Master Thesis at Luleå University of Technology, in cooperation with Volvo Car Corporation. I would like to thank Li Norrby and Malin Persson at Volvo Car Corporation for their support and help and for making this study possible. I would like to thank my supervisor at Luleå University of Technology, Torbjörn Nilsson, for his help with this study. I also appreciate the help I have received from personnel within Volvo Car Corporation and from everyone who has taken part in the survey. Lastly, I would like to thank my family for their support and help. Luleå, 17 may 2003 Jenny Longworth

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Table of Contents

1 INTRODUCTION........................................................................................................................................ 9

1.1 BACKGROUND ........................................................................................................................................ 9 1.1.1 Industry presentation......................................................................................................................... 9

1.2 PROBLEM FORMULATION...................................................................................................................... 10 1.3 LIMITATIONS ........................................................................................................................................ 11

2 THEORY .................................................................................................................................................... 13 2.1 COMPETITOR INTELLIGENCE ................................................................................................................ 13

2.1.1 What is competitor intelligence?..................................................................................................... 13 2.1.2 Why competitor intelligence is increasingly interesting for today’s businesses.............................. 13 2.1.3 The Competitor Analysis process .................................................................................................... 14 2.1.4 Competitive benchmarking.............................................................................................................. 15

2.2 STRATEGY DETERMINATION................................................................................................................. 16 2.2.1 The Strategic Clock ......................................................................................................................... 16 2.2.2 The Strategic Group Analysis ......................................................................................................... 18

2.3 GREEN CONCERN – AS A COMPETITIVE EDGE........................................................................................ 18 2.3.1 The concept of resource productivity .............................................................................................. 18 2.3.2 Levels of environmental commitment .............................................................................................. 20 2.3.3 The societal marketing concept....................................................................................................... 21 2.3.4 Competitive strategies using “green” thinking............................................................................... 21

2.4 ETHICS ................................................................................................................................................. 22 3 METHOD.................................................................................................................................................... 25

3.1 APPROACH ........................................................................................................................................... 25 3.2 TYPES OF DATA .................................................................................................................................... 25 3.3 THE PROCESS........................................................................................................................................ 26 3.4 METHODOLOGICAL PROBLEMS............................................................................................................. 27

3.4.1 Validity ............................................................................................................................................ 27 3.4.2 Reliability ........................................................................................................................................ 27

3.5 OBJECTIVE OF SURVEY ......................................................................................................................... 28 3.6 QUESTIONNAIRE DESIGN ...................................................................................................................... 29 3.7 SURVEY LIMITATIONS .......................................................................................................................... 29 3.8 NON-RESPONSE RATE........................................................................................................................... 30 3.9 WEBSITE AND OTHER SOURCES ............................................................................................................ 31 3.10 RESULTS PRESENTATION ...................................................................................................................... 31

4 RESULTS.................................................................................................................................................... 33 4.1 DAIMLER CHRYSLER/MERCEDES-BENZ ............................................................................................... 33

4.1.1 Sweden ............................................................................................................................................ 33 4.1.2 USA ................................................................................................................................................. 36 4.1.3 Websites and other sources ............................................................................................................. 38

4.2 VOLKSWAGEN/AUDI ............................................................................................................................ 39 4.2.1 Sweden ............................................................................................................................................ 39 4.2.4 Germany.......................................................................................................................................... 45 4.2.5 Volkswagen Websites and other sources......................................................................................... 48 4.2.6 Audi Websites and other sources..................................................................................................... 49

4.3 TOYOTA ............................................................................................................................................... 51 4.3.1 Sweden ............................................................................................................................................ 51 4.3.2 USA ................................................................................................................................................. 53 4.3.3 Toyota Websites and other sources ................................................................................................. 55

4.4 VOLVO CAR CORPORATION.................................................................................................................. 57 4.4.1 Sweden ............................................................................................................................................ 57 4.4.2 Germany.......................................................................................................................................... 62 4.4.3 Websites and other sources ............................................................................................................. 64

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5 CONCLUSIONS......................................................................................................................................... 65 5.1 CONCLUSIONS DAIMLER CHRYSLER/MERCEDES-BENZ.................. ERROR! BOOKMARK NOT DEFINED.

5.1.1 Daimler Chrysler/Mercedes-Benz Sweden......................................... Error! Bookmark not defined. 5.1.2 Daimler Chrysler USA ....................................................................... Error! Bookmark not defined. 5.1.3 General Conclusions Daimler Chrysler............................................. Error! Bookmark not defined. 5.1.4 General Conclusions Mercedes-Benz ................................................ Error! Bookmark not defined.

5.2 CONCLUSIONS VOLKSWAGEN/AUDI............................................... ERROR! BOOKMARK NOT DEFINED. 5.2.1 Volkswagen/Audi Sweden................................................................... Error! Bookmark not defined. 5.2.2 Volkswagen/Audi USA........................................................................ Error! Bookmark not defined. 5.2.3 Volkswagen/Audi the Netherlands...................................................... Error! Bookmark not defined. 5.2.4 Volkswagen/Audi Germany ................................................................ Error! Bookmark not defined. 5.2.5 General Conclusions Volkswagen...................................................... Error! Bookmark not defined. 5.2.6 General Conclusion Audi ................................................................... Error! Bookmark not defined.

5.3 CONCLUSIONS TOYOTA.................................................................. ERROR! BOOKMARK NOT DEFINED. 5.3.1 Toyota Sweden ................................................................................... Error! Bookmark not defined. 5.3.2 Toyota USA ........................................................................................ Error! Bookmark not defined. 5.3.3 General Conclusions Toyota.............................................................. Error! Bookmark not defined.

5.4 CONCLUSIONS VOLVO CAR CORPORATION .................................... ERROR! BOOKMARK NOT DEFINED. 5.4.1 VCC Sweden....................................................................................... Error! Bookmark not defined. 5.4.2 VCC Great Britain ............................................................................. Error! Bookmark not defined. 5.4.3 VCC Germany .................................................................................... Error! Bookmark not defined.

5.5 COMPARISON BETWEEN MANUFACTURERS IN SWEDEN .................. ERROR! BOOKMARK NOT DEFINED. 5.6 GENERAL CONCLUSIONS ................................................................ ERROR! BOOKMARK NOT DEFINED.

6 RECOMMENDATIONS ........................................................................................................................... 66 6.1 MARKETING ................................................................................... ERROR! BOOKMARK NOT DEFINED. 6.2 EDUCATION .................................................................................... ERROR! BOOKMARK NOT DEFINED. 6.3 RECYCLING/REUSE......................................................................... ERROR! BOOKMARK NOT DEFINED. 6.4 ENVIRONMENTAL DEALER FORUM................................................. ERROR! BOOKMARK NOT DEFINED. 6.5 WEBSITE ........................................................................................ ERROR! BOOKMARK NOT DEFINED. 6.6 OTHER RECOMMENDATIONS .......................................................... ERROR! BOOKMARK NOT DEFINED.

7 DISCUSSION ............................................................................................................................................. 67 REFERENCES.................................................................................................................................................... 69 APPENDIX 1....................................................................................................................................................... 73 APPENDIX 2....................................................................................................................................................... 75 APPENDIX 3....................................................................................................................................................... 81 APPENDIX 4..................................................................................................................................................... 109

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1 Introduction

1.1 Background The world is dynamic, and changes at a fast pace. Companies need to take notice of what is happening and how changes can affect them. This includes being aware of activities performed by competitors. Competitive intelligence is not a new concept, but its importance for the individual company is still the same: “to understand your surroundings, identify changes at an early stage and react forcefully in the right way at the right time”1. For a company operating in a dynamic world, being aware of competitors’ actions can be challenging. For companies that make up a link in a value chain, it can be extra difficult to keep an eye on competitors, especially those at other levels in the value chain. Looking at the world through the eyes of ones own company, can be compared to standing inside a cave looking out, and only seeing part of the surroundings as the cave walls bar the view.2 In a world becoming increasingly environmentally aware and where environmental awareness has become a competitive advantage, it is important for companies to outline a clear competitive profile. Being able to offer clients as environmentally adapted products and services as possible can create a competitive edge. Car manufacturers are becoming more focused on environmental issues, especially since pollution from cars has been identified as one of the main factors causing greenhouse effect and climate change. They are investing increasing amounts of capital into developing new technology to create environmentally adapted vehicles. The need for transportation will more than likely increase in the future, but most people realise that the need for transportation also needs to be compatible with a sustainable future for the entire earth.

1.1.1 Industry presentation The characteristics of a car dealerships is that it is a place where new cars are sold. Moreover, car dealerships usually also provide some kind of repair and mechanical maintenance service, sell car products and accessories, and may or may not deal in second-hand cars. The car dealership industry is a made up of an abundant number of dealers who provide the retail points for car manufacturers. Most of the dealerships are franchised companies, usually fairly small although the industry has started to consolidate. Therefore the dealerships are not controlled by car manufacturers and are as such also independent. The requests of the car manufacturers will however, logically, play a large part in the actions of the dealerships. To understand the aftermarket it is important to look at the automotive industry as a whole. Forces that affect the car industry will invariably have consequences for the aftermarket as well. In addition, just to get an understanding of the significance of the automotive industry –and its supply chain - it can be mentioned that the global volume for 1998 amounted to about to E932 billion3. Below follows a short list of forces which might have an impact on the automotive industry in the future.4

1 Frankelius, p.12. 2 Frankelius 3 http://www.foresightvehicle.org.uk/news/documents/FASMAT-R.PDF 4 http://www.foresightvehicle.org.uk/news/documents/FASMAT-R.PDF

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• The global overcapacity, which has characterized the car industry over the last few years, will probably continue over the years to come. Pressure on the car manufacturers to cut prices will increase, and competition between car dealerships will most certainly increase. This can result in lower margins for dealerships.

• The pressure to cut cost has resulted in manufacturers trying to achieve economies of scale by

utilising the same platform for as many of their car models as possible.

• The industry is also becoming more regulated. Especially regarding safety, emissions, recycling, manufacturing emissions and economic pressures on fuel consumption. This will create challenges on the design and construction of new vehicles, especially combined with the pressure to cut costs.

• It will also become increasingly important to differentiate the car brand and one way of doing

this may be concentrating on a niche market. Time to market, creating profitability at low volumes, and superior design skills can become success factors.

• The automotive industry has become a global industry, resulting in mergers and collaborative

arrangements between companies in different countries and between different cultures. It is believed this will continue and pressures on all parts of the automotive chain will become more international.

• The regulations regarding the safety of vehicles will become more stringent, requiring better

design for different types of impacts, including more safety for pedestrians hit by vehicles.

• Due to the world’s growing environmental problems, environmental issues are also becoming an increasingly important concern for the automotive industry. This has, among other things, led to higher demands on vehicle recycling and restrictions on emissions from both manufacturer’s plants and the vehicle itself.

As seen above there are many forces, which directly or indirectly influence the automotive industry, and many of them will have an effect on car dealerships. One probable scenario could be increased competition between dealerships, while at the same time they are having to cater for a (smaller) niche markets. When companies cut costs the consolidating usually results in mergers and collaborations between companies, in the hope to achieve an advantage through economies of scale.

1.2 Problem formulation The car industry offers a tangible good, the car, with accompanying services. There are several levels in which environmental concern can be introduced. There are three levels of product5. The core product is an answer to a customer’s need, for example transportation. The second level of product is the actual product with all its characteristics. If a car is environmentally adapted this will increase customer value at the actual product level. The third level consists of the augmented products offered together with the actual product. They may consist of car maintenance, car insurance, etc. The quality of these accompanying services may create added value to the customer. It is this third level that will be studied here. Car dealerships are the last link in the car industry’s value chain. They are the ones in charge of selling cars and offering customers service and information. They are the car manufacturers’ contact with

5 Kotler, Principles of marketing.

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customers. The standard and service offered by car dealers is important and can affect the customers’ choice of car. One way for dealers to create added value for their customers can be to invest in the environment, decreasing the environmental impact of their operations. As Volvo Car Corporation, VCC, is quite a large company, involving a number of suppliers, sales companies and dealerships, it can be difficult, at a corporate level to observe what is transpiring at competitors’ dealerships. With this study VCC hopefully gains an insight into what is happening at their own, and their competitors dealerships within the environmental area. The car industry is an international industry and it was therefore decided to investigate the environmental activities in a selected number of countries. It is presumed that the environmental commitment will differ in the different countries and collecting information from different markets would contribute to a broader knowledge base within this area. This study sets the following question;

1. Which environmental activities are performed by the chosen car dealers in the selected countries?

2. How do VCC dealers compare to competitors’ dealers with regard to environmental activity

and awareness?

3. Which car manufacturers are interested in creating an environmental image for themselves?

4. What can VCC/VCC dealerships improve?

1.3 Limitations As there are a number of different car manufacturers in the car industry, the choice has been made to focus on a limited number. These have been chosen to be included in the study on the basis of two criteria. The first is their environmental concern – car manufacturers who are supposed to be the best at environmental issues. Although it has not been possible to thoroughly examine all of the different manufacturers to determine which seem most environmentally conscious, it has been possible to select a few that are perceived as environmentally conscious. The second criterion covers manufacturers identified by VCC as being direct competitors. The countries first targeted in this study were Sweden, Germany, UK, the Netherlands, the USA and Japan, as these are markets on which VCC are active. However, it proved impossible (due to language differences and project time limitation) to obtain results for this study from Japan and they have therefore been excluded.

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2 Theory

2.1 Competitor Intelligence

2.1.1 What is competitor intelligence? Intelligence is the result of evaluation, analysis, integration and interpretation of information6. Usually all the pieces of a puzzle will not be available so intelligence has to be constructed by finding patterns in apparently incongruent pieces of data. 7 The intelligence is then used as an aid in the decision-making process and strategy development. The aim is to achieve a competitive advantage and superior performance in comparison to competitors. 8 “Good intelligence by itself will not produce a great strategy, but successful strategies are often derived from good intelligence concerning a company’s total business environment, including the competition”9

2.1.2 Why competitor intelligence is increasingly interesting for today’s businesses The purpose of carrying out a competitive analysis is to create a better understanding of the environment in which the company exists. External forces affecting the company can be new competitors, government regulations, economic boom, society’s values, etc. Internal forces include company structure, culture and norms. Competitor intelligence is becoming more important in all types of industry. Competition between companies is increasing, almost certainly due to the following number of reasons. 10 Global Competition: The world has become “smaller” and companies are becoming more international. The headquarters of the strongest rival might be situated on another continent. It is no longer possible to assume that they are playing by the same set of rules or assumptions of what the industry looks like and who the customers are. Companies have different cultures, experiences, norms and this gives them different perceptions of reality. Knowledge economy: Services or intangible assets have become increasingly important for companies. Although businesses today are inundated with information, information has, at the same time, become increasingly important. That is, having the “right” kind of information. Achieving and sustaining a competitive advantage requires the ability to uniquely interpret information and data and to use this to create advantage. Imitation: It is also increasingly easy for companies to copy products and services. A lot of companies base their strategies on being “quick seconds” into the marketplace. Complexity and speed: Due to improvements in information technology and communication channels, data can be transferred, products developed and services performed at an increasingly rapid pace.

6 Craig Fliescher, p. 6 7 Advances in Applied Business Strategy, p. 137 8 Craig Fliescher, . 6 9 Advances in Applied Business Strategy, p. 72 10 Craig Fliescher, p. 7

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Increasing aggression: Markets becoming more mature can lead to an increased aggression from existing competitors. Competitor intelligence can be used to11:

• Provide “early warnings”, discover threats or possibilities and prevent surprises. • Facilitate the decision-making process, both the strategic and the operational • Monitor and assess current and potential competitors • Aid in planning and strategic formulation

2.1.3 The Competitor Analysis process The process of competitor analysis is shown in Figure 2.1.1 below. Competitor analysis should be an ongoing process within the company. However, it is important that the intelligence is created in answer to a present intelligence requirement. Figure 2.1.1; The Competitor Analysis Process12 Once an intelligence need has been identified, it is important to decide the quality and quantity of the data needed. This will in turn determine the methods that can be used to collect the data. Some methods may be more suitable than others. When as much as possible of the available and relevant data has been gathered, it should be analysed and the results compared to internal activities. The difference between competitor operations and internal operations can be described as a positive or negative performance gap. A positive gap means that the internal operations are superior compared to the competitors, whilst a negative performance gap signifies the opposite. When, after investigations have been concluded, no significant differences have been found the companies are at parity. A positive performance gap should be commended and receive the appropriate recognition. It does not mean however, that the search for better ways of operating should end. If the results show a negative performance gap the reasons for this should be analysed and measures for improvement outlined.

11 Advances in Applied Business Strategy, p. 57 12 Advances in Applied Business Strategy

Use of intelligence to improve

company position

Identification of an intelligence

need

Planning and Direction

Collection of information

Analysis

Evaluation and recommendations

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In practice the analysis can be done descriptively/qualitatively or quantitatively using numerical values. The qualitative description is usually beneficial for explaining the reasons for the results in the quantitative data.13 When the analysis of the present situation has finished it is time to look at the future, and more specifically - will the performance gap widen or close? It is important to give some projection of future trends and obtain an understanding of possible scenarios.

2.1.4 Competitive benchmarking Competitive benchmarking is a kind of competitor analysis14. However, where competitor analysis focuses mostly on the competitor as an entity, benchmarking often concentrates on a specific product, process, or service trying to identify best practices. Of the different variants of benchmarking practices, competitor benchmarking can be considered one of the most important15. It is also widely practiced within the technical field to examine the technology behind competitors’ products, usually by employing methods like reverse engineering. It can however also be used to investigate other areas of interest, although this is not as common. Competitor benchmarking should not be limited to direct competitors, as they may not be deploying the best methods or practices and could therefore be undesirable to copy. Rather, the term “competitors” should be defined in a broader sense and companies employing best practices within the whole industry should be identified. For the results to be as compatible as possible it can be advantageous to target companies that have comparable operations to the own company. Some similar qualities are therefore desirable, like levels of customer satisfaction, the product managing procedures, organisational structure and factors affecting business performance16. Otherwise, there is a chance that results could become impossible to emulate successfully. Obtaining information (other than direct product information) about competitors can be a difficult challenge, as detailed information is usually not available through public information sources. So in general, the chosen company is approached and informed about the purpose of the study. The reason that companies choose to be benchmarked is that they too are interested in understanding the best practices that make their operation so successful. There is however also a considerable possibility that they will decline the offer to become benchmarked by their competitor.

13 Robert C. Camp p. 128 14 Advances in Applied Business Strategy, p. 71 15 Robert C. Camp. 16 Robert C. Camp.

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2.2 Strategy determination

2.2.1 The Strategic Clock A common method to use when determining strategic direction is the strategic clock17 (See figure 2.2.1). It shows the possible strategies a company can employ18. Figure 2.2.1; The strategic clock19 Strategies 1 and 2 are mainly on low price strategies; Strategy 1 is based on a “no frills” strategy, uniting a low price with low perceived added value. This strategy targets a segment of the market where the low cost is more important than the quality. Strategy 2 attempts to offer the same quality as competitors (the same perceived added value) while, simultaneously, keeping the price down. Strategies 3,4 and 5 are based on differentiation – customers get a higher perceived added value, which justifies a higher price; Strategy 3 is a hybrid strategy where the company seeks to differentiate its products, while at the same time keeping a lower price. The success of this strategy will depend on the company’s aptitude to appreciate what the customer wants together with its ability at keeping a low cost base, permitting low prices. This strategy can be debateable in certain conditions, as, if the differentiation is successful, the company would not need to keep lower prices than the competitors. However, this strategy can be used, among other things, as an entry strategy into a market with established competitors, or as a winning concept if the company can supply much greater volumes then that of the competition, at a much lower cost. Strategy 4 is a clear differentiation strategy. A company pursuing this strategy seeks to offer products or services that differ from the products or services provided by competitors. If the company offers products that are better than the competitors’ then if the price of the products is kept on the same level, this strategy could be used to attain a higher market share. Alternatively, it could be used to yield cost benefits if the products are offered at a higher price than the competitors’ products. Strategy 5 is a focused differentiation strategy. This strategy tries to combine a high perceived added value with a high price, usually targeting a specific market segment. The selected market segment 17 Bouman. C, Competitive and Corporate Strategy 18 Johnson, Scholes, Exploring Corporate Strategy 19 http://www1.ximb.ac.in/users/fac/dpdash/dpdash.nsf/pages/BP_M6

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needs to be identified and defined in terms of customer needs. There are market segments willing to pay a high price for higher perceived added value, and this could yield advantages for firms facing tough competition in broader market segments. New ventures also often start in this way, i.e., with a high cost base, but also a high perceived added value. The advantages of choosing a focused differentiation strategy need to be monitored closely as market situations change. There are three ways to achieve a differentiation strategy (strategy 3, 4, 5)20:

1. Investment in R&D, design or innovation and thus creating unique products. The problem with this approach is it is not durable in the long run: competitors are usually able to catch up.

2. Marketing route, demonstrating that their products are superior in meeting customer needs compared to the competition. This strategy is largely based on brand image.

3. Competence-based route, where a company builds on its core competences as a differentiation strategy. Could become a successful strategy if the core competences are unique and difficult to imitate.

To achieve a successful differentiation strategy certain prerequisites need to be considered:

• It is essential that the company is clear on who the customer is. Whom are they targeting with their differentiation strategy?

• It is just as important to be knowledgeable on what the identified customer values. Even if the products are unique, this might not be of value unless they are unique in a way that the customer values. Responding quickly to changes in customer needs could be a differentiating factor in itself.

• It is likewise important to be conscious of who the competition is. In the face of tough competition a more focused strategy (strategy 5) might be more attractive. As markets become more international it might be difficult to establish exactly who the competitors are.

• The extent to which a differentiation strategy can be successful also depends on how easily competition can imitate the differentiated products. Differentiation based on of competencies is more difficult for competitors to reproduce than differentiation based on technical advancements or activities.

• A company pursuing a differentiated approach must also be aware of that the bases for differentiation is dynamic and will change with time. There are two explanations to why differentiation is not static. One is that customer needs change over time and new requirements develop. The other depends on the competitions’ ability to replicate the bases for differentiation. Businesses seeking a differentiation strategy need to continuously evaluate their strategy and keep modifying their products.

Strategies 6, 7 and 8 are doomed to failure as they combine a high price with low perceived added value. Strategy 6 combines a high price with a fairly low perceived added value. A route companies with a monopoly on the market might choose. Strategy 7 unites a reduction in value with a high price. Strategy 8 involves a reduction in value while maintaining the price, which will probably, in turn, create a decrease in market share. Companies trying to create an environmental image often aim for the differentiation strategies. They hope the customer will perceive their environmentally adapted product as of higher value, and that this will give them a competitive edge.

20 Johnson, Scholes, Exploring Corporate Strategy

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2.2.2 The Strategic Group Analysis Another way of determining strategy is using the strategic group analysis. Companies are grouped according to different factors, for example environmental concern and product cost. See Figure 2.2.2 below. Figure 2.2.2; Strategic Group Analysis21 Even though the strategic group analysis is most often used as an analysis of the strategic groups within an industry it is here presented as an analysis examining individual companies and their positions. Company A, for example might be trying to differentiate its products, hoping that the customer might perceive a greater added value if the products are environmentally adapted and thus be willing to pay more. Company B, on the other hand might want to sell their products as cheaply as possible and not be interested in investing in environmental products. Or another company, Company C, might have figured out a way to sell their environmentally adapted products at a low cost. As a third dimension the size of the company’s circle can correspond to the relative size of the company in reality.

2.3 Green concern – as a competitive edge

2.3.1 The concept of resource productivity22 Usually when environmental issues are discussed the matter of economics appears. In the minds of most, being environmentally conscious is bound to cost you. There exists a presumption that there is a trade-off between ecology and economy. Benefits arising from stringent environmental standards are offset against the price companies are presumed to have to pay in the form of prevention and clean up. This cost consequently leads to higher prices and therefore reduced competition. This is the traditional way of thinking. There is however another way to view companies’ environmental actions. The traditional view of environmental regulations is a static view where all factors, like technology, products, processes and customer needs are constant except for environmental regulation. Consequently, costs are inevitable. But today’s world is dynamic and moving at a fast pace and the traditional ways of competing are

21 Johnson, Scholes 22 Porter: “Green and competitive” and Reinhardt: “Bringing the environment down to earth”

High product cost

Low product cost

Low environmental awareness

High environmental awareness

B

A

C

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becoming obsolete. Companies used to have a comparative advantage if they had local access to the cheapest raw materials, labour, energy and capital. As a result of globalisation, this is no longer the case. Companies can manufacturer their products anywhere, receive input from anywhere, and superior technology can offset disadvantages in the cost of inputs. A way to create competitiveness today is to use resources productively. Companies must begin to think in terms of opportunity costs of pollution – where pollution should be a sign that resources are not being used in an optimal way. It is logical really, that waste can be seen as an unexploited opportunity to make a profit. This is similar to the quality revolution in the 1980s when companies started using TQM, Total Quality Management, after their market share had dramatically decreased due to the higher quality products sold by Japanese competitors. Managers believed then that there was no way of improving quality and at the same time lowering cost. It was believed that improving quality could only be achieved through inspection and rework and that defects were inevitable. This however was proved to be a flawed perception. The new concept is resource productivity. But the methods that can be used follow the same principles that are used in TQM programs: more efficient utilization of inputs, elimination of dangerous substances which can be difficult to manage and elimination of unnecessary activities. This can be done in many ways, from designing products that make better use of material, to inventing new processes or creating substitute products. If environmental concern can be considered important, not in the least to create a sustainable future, then why are not more companies encouraging innovation to produce new, better and more environmental ways of doing things? It is well know that companies are most inclined to be innovative and come up with ground-breaking solution when times are tough - when there is pressure on the firm to change, such as in a depression or when threatened by competitors’ dramatically increasing market share. In many cases the environmental regulations that have been imposed on industry have put pressure on companies to change and are often a large motivational factor when it comes to environmental innovation. There are numerous examples of this23. When it comes to environmental innovations there are two types. The first is pollution control, which deals with managing pollution that has already been created. This usually means the company finds new ways of dealing with waste material, for example converting the waste into something of value, maybe even selling it to another industry. The second type focuses on the fundamental causes of pollution and tries to eliminate the problem. Real competitive advantage is achieved by creating better products, enhanced product yields, more efficient resource usage and can even redefine the traditional way of doing business. This is the way to take the company far ahead of its competitors. Good environmental innovations often lead to one or more of the following: increased net profit, less pollution, competitive edge, better resource usage, and - if the marketing is done correctly – a better image. Using resources wastefully will be a cost for the company either directly or indirectly. This is what it is all about; viewing waste, not only as a cost, but as an opportunity cost, and then innovating to make the most of it. Easy in theory, but a lot harder in practice.

23 Porter: Green and competitive, Kotler: Principles of Marketing, Reinhardt: Bringing the environment down to earth

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2.3.2 Levels of environmental commitment24 Companies trying to be green can go about this in several ways. For a company to gain a real competitive advantage it should follow one of the strategies presented earlier in the strategic clock (chapter2.2.1). The level of environmental commitment can also be divided into four categories as shown in figure 2.3.1. Figure 2.3.1; The environmental sustainability grid25. The most basic level of environmental commitment is pollution prevention, which focuses on what the company can do internally in the present time. Companies practicing pollution prevention make an effort to produce ecologically adapted products. They use recyclable or biodegradable packaging and minimise their energy usage in production. Although this is the most basic step, most companies do not get this far, as they focus mostly on managing pollution after it has been created. A lot of companies do not have the resources to do anything else. The next level of commitment is the product stewardship. The company takes responsibility for it’s products entire life cycle. All of a company’s activities are examined and waste and pollution minimised or eliminated everywhere, not just in the production. This also involves creating products that can be recovered, reused or recycled. One process for this is the DFE, Design For Environment. It is basically a method which allows environmental aspects to be taken into consideration during the whole design process. The third level of commitment is to plan ahead for future possibilities in the form of new environmental technologies. Existing technology often limits the work that can be carried out in the earlier stages. Companies really committed to a sustainable future need to develop new technologies that are more environmentally sound.

24 Kotler, Armstrong 25 Kotler, Armstrong, p. 763.

New environmental technology

• Is the environmental performance of our products limited by our existing technology base?

• Is there potential to realize major

improvements through new technology?

Today

Tomorrow

Internal External

Pollution prevention

• Where are the most significant waste and emission streams from our current operations?

• Can we lower costs and risks by

eliminating waste at the source or by using it as useful input?

Product stewardship

• What are the implications for product design and development if we assume responsibility for a product’s entire life cycle?

• Can we add value or lower costs

while simultaneously reducing the impact of our products?

Sustainability vision

• Does our corporate vision direct us toward the solution of social and environmental problems?

• Does our vision guide the

development of new technologies, markets, products and processes?

21

In the final level an environmental vision is developed. The vision will serve as a set of guidelines for the company and its future development. This involves all of the company’s activities from day to day business decisions, to the development of new technology, to the creation of company policies. The different levels of environmental commitment are independent of each other and one can be initiated without undertaking the previous level. Many companies are, for example, creating environmental visions, without having solved their own wastage problems.

2.3.3 The societal marketing concept26 “Green marketing” is becoming increasingly popular. From being a marketing stunt it has gradually taken on a deeper social responsibility. Companies are now becoming proactive, and are taking their social responsibility more seriously. The environmentalist movement is important, and more and more companies are developing environmental strategies which combine environmental concerns with creating profit. A recent study carried out in the USA27, claims that nearly half of all Americans would be willing to switch product brand in favour of environmentally adapted products. This can have important implications for all kinds of companies - and great possibilities. The “societal marketing concept” asserts that, when the needs, wants and interests of the target markets have been identified, the company should deliver superior value to the customer in a way that maximises the customer’s as well as the society’s health and welfare. It questions the appropriateness of the pure marketing concept in a world filled with environmental problems, pollution, resource shortages and poverty and takes the view that a balance between consumer short-run wants and consumer long-run welfare is a smart business. To satisfy consumer long-term wants is important. Companies that have committed to the long-term well-being of the consumer have found that “doing the right thing” has benefited both the company and the consumer.28

2.3.4 Competitive strategies using “green” thinking Managers have a responsibility towards the shareholders to create a profit, and although the concept of resource productivity is a great way of trying to improve the company, coming up with good innovations is easier said than done. This should however always be a company’s goal – to develop new, better ways of doing things. So how can environmental work be integrated into business decisions and strategy? In this section, five approaches29 will be presented on how managers can merge their responsibility toward stakeholders and their responsibility toward society and at the same time create a competitive advantage for their company. It is important to note however, that most benefits from environmental investments are realised over longer periods and what is good in the short run might not be the most favourable choice for the company in the long run. The usefulness of these strategies also depends on factors such as the position of the company, the company culture, the industry at the present time etc. Environmental product differentiation: Companies pursuing this strategy manufacture products or employ processes that have lower environmental impact than those of their competitors. Even though this can have a negative effect on overheads, it can lead to increased market share and/or a possibility 26 Kotler, Armstrong, p. 20-22, 763 27 Kotler, Armstrong, p. 764 28 Kotler, Armstrong, p. 22, 763 29 Reinhardt, Bringing the environment down to earth

22

to retain a higher price, especially so if it can, directly or indirectly lower the consumer’s costs – for example by decreasing the customers need for expensive pollution control measures. There are however three conditions for success.

• The company needs to be able to promote its environmental work in a convincing way. • The investment needs to be difficult to imitate within a near future, so the company will have

time to benefit from it. • If the new environmental investment increases the price of the product, the company needs to

have customers who are prepared to pay more for environmentally adapted products. Managing competition: As environmental regulations are getting harsher, it can be difficult for companies to gain a profit from the environmental work they are forced to undertake. There is however a way the company might come out on top, and that is by managing the competition. Lobbying the government to favour its products over competitors’ products is one way. Cooperating with the government in the design of new regulations can also be an effective way to force competitors to match one’s own behaviour. Another could be joining with other companies in the industry that are in similar positions, and setting private standards to forestall any new regulations, and creating an improved image on the company’s own terms. This can create a competitive advantage over companies outside of the group. This does however require that the regulators are able to set measurable standards, can verify compliance, and have the power to enforce the regulations. Concept of resource productivity: A lot of companies in different industries have used this method to increase their profits. This has been done by reducing waste, while at the same time delivering customer value. (For more information, see chapter 2.3.1 on the concept of resource productivity.) Environmental risk management: All companies are dependent on the goodwill of society - some industries more than others. Environmental accidents do happen, and they can result in anything from a consumer boycott to an environmental lawsuit. Environmental risk management is concerned with managing the business risk environmental problems can result in. This means taking a proactive stance so that environmental problems can be avoided, not just managed as they happen. Being better at environmental risk management than competitors can be a competitive advantage in itself, as it should result in lower costs (less stoppages, law suits, clean-up costs etc) and should also create a better image compared to competitors. Redefining the market: This happens when companies, through innovation and imagination, come up with a totally new way of doing business. The new way is often controversial and seems to work best for companies that are industry leaders. Companies that have access to advanced research facilities, the capital to manage the risks involved in redefining the market, and the power to impose their vision. The driving force behind the innovation is often pressure from competitors or pressure from society to reduce their environmental impact.

2.4 Ethics Most people working with competitive intelligence will sooner or later have to deal with the issue of ethics, especially in the context of information gathering. The issue of ethics is now more important than ever, as companies are becoming more global, and there are cultural issues and different legal standards to contend with. Moreover, the increased demand for information can result in a deterioration of corporate ethical behaviour. It can be difficult to decide the boundaries of ethical behaviour. Where should the line be drawn? This of course depends on the situation. Some believe that as long at it is legal it is ok. But is that really where the boundaries of ethical behaviour should be set – if the method of collection is legal, is it therefore ethical as well? Many would disagree.

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Webster’s30 defines ethical behaviour as “a discipline dealing with good, evil and with moral duty”31. This will however not be much help in the task of drawing boundaries for everyday applications. One key rule that can be useful when working in the intelligence business is that if you do not want to see your action on the front page of a newspaper – do not do it! Other guidelines can be achieved by trying to put yourself in your subject’s position and see what you would feel had it been done to you. Would it make you feel hurt or betrayed? It is important that companies give their employees clear guidelines of where the ethical limits are drawn. To outline the principles is not enough. Companies need to make sure that the principles are understood and followed by all employees. This will benefit the company, as for example they should be able to avoid being sued (type of a risk management). Employees who know where the boundaries are drawn will experience less stress when having to make decisions and company credibility and image will not suffer from any bad press associated with low ethical behaviour. In any case, it should not be necessary to resort to unethical behaviour when collecting information on competitors. According to some competitive intelligence gatherers, “Eighty-five percent of the information you need is in the public domain. The other 15 percent you probably don’t need”32

30 Webster’s in Kahaner, 31Webster’s in Kahaner, p. 245 32 Kahaner, p. 248

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25

3 Method

3.1 Approach There are several approaches to choose from when carrying out a study. If the study is based on empirical data, and conclusions are drawn after the processing of the data, the study is inductive. Conversely, a study that is based on a theory, later verified (or unproven) by the data gathered, is said to be deductive. The conclusions are, in this case, based on both theory and gathered data and the study can therefore be considered deductive. 33 A study can also be qualitative or quantitative, where quantitative indicates that the information sought is mostly numerical and conclusions are drawn from numerical measurements and data. A qualitative study concentrates on “soft” data that is difficult to measure numerically, like personnel satisfaction. This study includes both quantitative and qualitative data.

3.2 Types of data There are, in principle, two types of data; secondary and primary. Secondary data is data that has already been collected or compiled for an earlier purpose, for example as an article, a report, or a television documentary. Existing secondary data is relatively easy to get hold of and is seldom expensive. Usually this type of data can be accessed by using library search engines. Caution has to be taken when using secondary data as most of the information has often been gathered for another purpose in another time period and might not be relevant for the present study. Primary data is gathered specifically for the report, directly from the people concerned. Primary data will need to be processed and analysed to fit the purpose. The most frequent ways to gather primary data are through personal or telephone interviews and mail surveys. Mail surveys are used mostly when it is necessary to obtain information from a large sample population as it is cheaper and less time consuming than using the method of interviews. Interviews can however be valuable when the target population is small and the information needed more specific. Most of the data collected for this study is of a primary nature as there was not a lot of recent information to be found concerning this subject. The mail survey method was chosen for collecting primary data as information was needed from several manufacturers in a number of different countries and this was considered the most effective way of gathering the information required. The secondary data collected is in the form of articles and other information obtained using Internet search engines, corporate websites and environmental reports.

33 Wiedersheim-Paul, Eriksson, p. 150

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3.3 The process In the spring of 2002 a need for competitor intelligence was identified at Volvo Car Corporation in Gothenburg, Sweden. This project was initiated by the department of quality and environment as they wanted more information concerning their competitors’ actions within the environmental field. It was then offered as a graduation project. The study started in September 2002. The first stage was to decide the kind of information needed and the level of detail necessary. This, of course depended on the information VCC wanted and how they were going to use it. To get an idea of the information that was needed, several people working in different departments at VCC were interviewed and asked to give suggestions to possible questions and specific areas of interest within the subject. The conclusion was that the information needed to be detailed, but also cover a broad spectrum. Four research questions were developed (presented in chapter One) and they have been used as a guide for whole process, both in the information gathering and the analysis. An Internet search was conducted, library sources were explored, as well as internet search engines, manufacturer and dealer WebPages, but without result. There was information of car manufacturers environmental work in general but not a lot on the environmental actions of the dealerships. The next step was therefore to decide how the necessary information was to be collected. As this was a project on a limited time schedule, the information collection needed to be swift. It was therefore decided to use a mail survey, as this is a good way of getting responses from a large number of respondents over a sizeable geographical area. The questionnaire was, in most cases, sent out by email to the respondents. The email explained why information was needed and contained a link to the questionnaire website. To try to increase the response rate the results of the survey were were promised to be available for the respondents. (The questionnaire and the cover letter can be found in appendix one and two.) Mail surveys do however have their drawbacks, as response rate can be very low. It was therefore decided to contact the manufacturers’ sales company in the countries selected for the study. The expectation was that this would lead to a higher credibility for the survey and an increased response rate. It did however prove slightly difficult to get the sales companies to consent to the survey being distributed to their dealers, even though the result would be presented to the participants. The most common excuse was that the dealerships receive many surveys and did not like them. The sales companies in Sweden, however, did not see any problems in letting their dealers participate in the survey and assisted with addresses and names when possible, or sent out the survey to their dealers themselves. This did result in a higher response rate. The sales companies in Germany, the UK, and the Netherlands were a lot more difficult. They were not keen on the questionnaire being sent to their dealers, in spite of being offered the results of the survey. In two cases the dealers were approached anyway, but without great results. A lot of time was spent trying to get hold of the right person, trying to get them to agree to the questionnaire being sent out and waiting for their reply. In Japan, an employee at Ford has been in contact with the sales companies of other brands there, but without results. Which is why there will not be any results from Japan included in this study. Many of the dealerships were contacted beforehand, by phone, to ensure that the survey was sent to the right person, preferably someone working with environmental issues, as that person might be more motivated to answer. The questionnaire was only sent out to those willing to partake in the survey, which could be considered to be about 25-60 percent of the contacted dealers depending on the country. In the last part of the information gathering, the corporate websites of the manufacturers were examined. The focus was on what kind of environmental activities they report on and how much

27

environmental information the website contained. This is an additional indication as to how important they feel it is to promote environmental activities. The survey will mainly show the present situation although some questions give the car dealer an opportunity to recommend improvements for the future. The commitment of the manufacturer to environmental issues in general might imply how large their interest will be in the environmental work of the car dealers in the future. When as much pertinent information as possible had been gathered, it was analysed and conclusions were drawn with regards to the questions posed in chapter One.

3.4 Methodological problems

3.4.1 Validity Validity can be characterized as a measuring tool’s ability to measure what it was designed to measure. It can be divided into outer and inner validity, where inner validity means that the design of the tool is correct, for example if the questions asked will get the answers that are sought. Outer validity represents the correctness of the way the tool has been used to get the answers, for example; was the right sample population targeted, was the sample population complete etc. 34 A lot of time was put into formulating the questions correctly. Five car dealers were also contacted in person and asked to give their opinions on the questions in advance. In addition the questionnaire contained explanations to clarify the meaning of certain questions that could be misinterpreted. The target population varied depending on the situation. The dealerships were also targeted in different ways depending on the situation. Some dealerships were contacted by their own sales organisation who also sent out the questionnaire, others were approached first by phone and asked if they were willing to participate in the study and some were sent the questionnaire without previous contact as language difficulties led to complications. All the dealerships pertaining to a certain brand in a certain country were approached in a similar manor. Contacting the respondents by phone also minimized the risk of sending the questionnaire to the wrong person.

3.4.2 Reliability Reliability is defined as the measuring instrument’s ability to give a certain reliability35. If the process is repeated at another time using the same tool, will it yield the same result – independent of the investigator? There are several ways of verifying survey reliability, most of them very time consuming, for example sending out the survey a few months later to see if the answers are the same. As this was a competitor analysis/benchmarking study and competitor dealerships were contacted there is a risk that the results would have been different depending on who distributed the survey. Although most of the sales organisations were contacted beforehand and informed that Volvo had initiated the survey, most of the dealerships where not informed of this. Therefore most were unaware of the fact that Volvo Cars Corporation was behind the project when answering the questions.

34 Wiedersheim-Paul, Eriksson, p. 27,28 35 Wiedersheim-Paul, Eriksson, p. 29

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3.5 Objective of survey The objective of the survey was to discover what environmental activities were performed at selected car dealerships in Sweden, the UK, the Netherlands, Germany, and the USA. The questionnaire focused on a number areas of interest which had been identified through interviews with VCC personnel. Environmental certifications The first area concerned environmental standards. Were dealerships becoming environmentally certified? Did this depend on country and/or car brand? The process of achieving environmental certifications is time consuming and involves substantial investments, both in capital and man-hours. This process would not be ventured into if there was not a belief that the environmental work would increase the dealership’s profit. This would therefore indicate if dealers believe that environmental concern will become more important in the future. It was also of interest to know what the force behind the investment in environmental image was. Are dealerships becoming more concerned about their environment, for whatever reason, or are car manufacturers - or customers? It was the hope that these questions would also give a small indication as to the car manufacturers commitment to environmental practices, and if this commitment might increase in the near future. In the questionnaire, ISO 14001 standard refers to the international environmental standard set by industry and monitored by accredited bodies. EMAS stands for “Eco-Management & Audit Scheme” and is the equivalent European standard. Another standard is the British standard BS7750 which is a specification for an environmental management system. The standards are used to describe an organisation’s environmental management system, assess its performance and to define policy, procedures and objectives. They also provide a means for continuous improvement. Environmental chemicals VCC has developed its own brand of environmental chemicals called Car & Eco Care. It is therefore interesting to know if dealers sell environmental products and, if so, how large their range is. Questions have also been included to find out what dealers’ main considerations are when choosing products for use in their garage. Furthermore, do they sell other products that are environmentally labelled? Environmental Communication Another important area to examine is how dealers (who have invested in the environment) communicate their environmental work to their customers or surroundings. How do they promote their environmental work and what have they promoted recently? Do they generally promote their environmental work? If so, what do they promote? Building an image often involves some kind of marketing. How well are dealerships marketing their environmental products? Environmental commitment There are several questions in the questionnaire which focus on environmental commitment. For example, do dealerships have personnel assigned to environmental issues, and if so, how much time do they invest in this? Do they believe they are doing a better job at working with environmental issues than other dealerships and do they provide any environmental services for their customers? This was mainly to try to see if any dealership was doing something particularly interesting and maybe learn about new possibilities. To find out why they were working with the environment they were asked what their environmental work leads to. The amount of help received from their sales company is also an indication as to how much the manufacturer prioritises environmental work at the dealerships. Do they encourage and support their dealers?

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3.6 Questionnaire design There are many different aspects to consider when writing a questionnaire. It is very important to be aware of who the potential respondents are in order to choose the right level of detail. In this case the respondents would all be employed at a car dealership, although it was impossible to control whom within the dealership would be answering the questionnaire. So, the questions should not be made too specific. They should be possible to answer by either the service manager, site manager or any environmentally responsible personnel. It was also necessary to choose an appropriate level of detail on the questionnaire so as not to make it too complicated, but still obtain the information required. It was important that the dealers would not feel threatened by the questions, and therefore no questions are included which ask for information that could be conceived as sensitive or confidential. It was also important not to make the questionnaire too long, or it would become tiresome for the respondents. The use of open-ended questions in a self-administered questionnaire is debateable, but in this case, it was necessary to include a few to enable spontaneous suggestions and information that goes beyond the boundaries of the closed questions. Most of the open-ended questions have also been placed at the end of the questionnaire as they are usually harder to answer. The focus of the questionnaire has been mainly on the present situation. It is generally better to focus on the present when creating a self-administered survey as the past can be difficult for the respondent to recall and the future can be challenging to predict. The demographic questions have been placed at the end as they can be considered boring and take focus off the purpose. This is all a matter of preference. Some questions were multiple answer questions where the respondents could choose one or more of the answers (see for example questions 14, 16 and 20 in Appendix 2). Sometimes the respondent’s choice was limited to maximum two answers (see question 10 in Appendix 2). If the limitation had been placed lower, at one answer, environmental issues would not have been chosen as a priority and the question would not have measured what it was supposed to measure. When these multiple answer questions are presented in the results (chapter 4), the total percentage responses for the question will exceed 100 percent as the respondents are allowed more than one response. The total percentage for each response cannot, however, exceed 100 percent. For some charts there might be a slight discrepancy in the percentage due to round off. Pre-tests were used to reduce errors in the questionnaire and to ensure that questions were understandable. A small number of dealerships in Sweden were approached and asked to complete the questionnaire in advance. They thereafter gave their suggestions on what could be improved, added or changed to create a better questionnaire. The overall response on the questionnaire was positive.

3.7 Survey Limitations One drawback with a mail survey is that there is no control over who responds. This survey was sent out to a number of dealerships and they may or may not have someone in charge of environmental issues. At some dealerships the person answering might be the manager, whereas at some it might be the service manager, or the site manager. This might also cause discrepancies as they probably view the environmental work from different perspectives. There might also have been some complications when it came to language and cultural differences. This survey was distributed in a number of countries and complications may arise due to the fact that

30

everyone might not have good command of the English language. Although the questionnaire was distributed in German to dealerships in Germany, Swedish and Dutch dealers received the questionnaire in English. The motivation among the respondents might vary a lot. For example, for a respondent who works with environmental issues the motivation is likely to be high, whereas for a respondent that does not work with environmental issues the motivation might be lower. In order to increase the response rate the sales companies for every brand in several countries were approached, although with varying results. (See chapter 3.3 and chapter 3.8).

3.8 Non-response Rate The response rate of the survey varies quite a lot, although it is difficult to draw any conclusions about if this could depend at all on country or car brand. It is obvious that the Swedish dealership are more amenable to this kind of survey than the other countries targeted. The chart below shows the number of targeted dealerships and the response rates. The number of targeted dealers only includes those dealerships who were actually sent the questionnaire. Therefore it does not include the dealerships that declined the opportunity to participate in this survey.

Sweden Germany The Netherlands USA Great Britain

Volvo 42% (19 of 35) 13 respondents - - 6% (11 of 180) Daimler Chrysler/ Mercedes-Benz 18% (7 of 38) - 6% (2 of 31) 27% (7 of 26) - Volkswagen/Audi 16 respondents 35 respondents 8% (6 of 64) 29% (4 of 14) - Toyota 29% (15 of 51) 1% (1 of 131) - 19% (5 of 16) - Figure 3.8.1; Chart showing the response rate of the different brands in the selected countries. (-) means that no data was gathered for that brand in that country. The numbers in the parenthesis signify the number of respondents compared to number of dealers that were sent the questionnaire. In some cases the response rate was impossible to calculate as the number of dealerships given the questionnaire is unknown, due to the sales company distributing the questionnaire. The fact that there were so many responses from Volkswagen/Audi in Germany stems from the interest shown by the Volkswagen Sales company in this study. The Daimler Chrysler and Toyota sales company in Germany did not want their dealerships participating in the study and the same situation was experienced with Toyota and Volkswagen in the UK, and Toyota in the Netherlands. The time limitation restricted the number of dealerships targeted in the USA and also the extent of the survey in general. The response rate from Toyota in Germany and Daimler Chrysler/Mercedes-Benz in the Netherlands was so low that the results will not be presented in this study. The low response rate will of course affect the results and the conclusions that can be drawn. In Sweden, where the questionnaire was sent out to the majority of the dealerships for the different brands, the response rate is fairly high creating more dependable results. For the other countries the response rate is very low. In the USA, only about 20 percent of the approached dealerships cared to participate in the study and were sent the questionnaire and of those, only about 20-30 percent actually answered.

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It could be the case that the dealerships that have responded are the ones most interested in the environment. This results in the possibility that although the response rates may be low, the respondents would more or less represent the environmentally leading dealers from each car brand, except for the USA, where only a tiny percentage of the total number of car dealerships for each brand were targeted.

3.9 Website and other sources To add another dimension to this study the websites of the different car manufacturers were examined based on environmental activities. The quality of a car manufacturers environmental work cannot be judged by examining their website so this will not be attempted. Examining a website can however give a lead as to what kind of image the company is trying to create for itself and what their priorities are. A company heavily promoting its environmental work is probably aiming to improve its environmental image. Likewise, a company not interested in the environmental area would probably not have a lot of information to disclose. If the company has an environmental report this is inspected and as the website, judged on what kind of information it discloses.

3.10 Results presentation Chapter 4 - Results The results of the survey are presented in chapter Four, together with the findings from websites and other sources. The results of the survey are presented for each brand divided into the representative countries. The results aim to answer the following question posed in chapter One:

1. Which environmental activities are performed by the chosen car dealers in the selected countries?

Chapter 5 - Conclusions Conclusions have then been drawn based on the results and findings and they are presented in chapter Five. The aim of this chapter is to answer the second and third question presented in chapter One.

2. How do VCC dealers compare to competitors’ dealers with regard to environmental activity and awareness?

3. Which car manufacturers are interested in creating an environmental image for themselves?

It is important to realise that the graphs presented in chapter Five are subjective and based on the experience and knowledge obtained in this study. There has been no numerical evaluation system when assessing the position of the different brands in the different countries. The graphs should be regarded as a guide and can by no means be considered conclusive in any way. They are based on the following factors (See figure 3.10.1). A high achievement in one area and a lower in another will lead to a medium position on the graph.

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Environmental commitment takes into account; • the number certified dealers, or environmentally interested dealers • if they have any employees working with environmental issues, and how many hours they spend on

this • if they offer their customers any environmental services • the help/support received by their sales company

The future environmental commitment takes into account;

• the number of dealers planning on getting certified • the help/support received from their sales company • the reasons for becoming certified (to a small degree) • the perceived benefits of their environmental work

Environmental communication takes into account;

• how many dealers promote their environmental work • what methods they use when promoting their environmental work

Environmental chemicals takes into account;

• how many dealerships use/sell environmental chemicals • how many product groups they use/sell

Figure 3.10.1; Factors taken into consideration when creating the graphs in chapter 5, Conclusions. If, for example, a huge number of dealerships are non-certified, but their sales company appears to be very dedicated to assisting them with environmental issues and they employ personnel who devote a lot of time to environmental work. These dealerships will probably become increasingly better in the environmental area and this will also award them a higher ranking in the figure for future environmental commitment. The graph only shows the position within the three selected areas; environmental commitment, environmental communication and environmental chemicals. Some brands may however, be better at a certain aspect of environmental commitment, but still receive a low position due to low achievements in the other areas of environmental commitment. Chapter 6 - Recommendations Recommendations for future work are presented in chapter Six. These are also based on the experiences gained in this study, and they identify areas that need developing/improving but also possible opportunities for VCC within this field. This chapter aims to answer the last question posed in chapter one:

4. What can VCC/VCC dealerships improve?

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4 Results In this chapter, the results of the survey will be presented, combined with the findings from websites and other sources. The results try to answer the first question posed in chapter one;

1. Which environmental activities are performed by the chosen car dealers in the selected countries?

To acquire more specific information the full list of responses for each car brand and country is presented in Appendix 3. To get an idea of the number of respondents, and the level of environmental certification see Appendix 4. Results will be presented for:

• Daimler Chrysler/Mercedes-Benz -Sweden • Daimler Chrysler -USA • Volkswagen/Audi -Sweden • Volkswagen/Audi -USA • Volkswagen/Audi -the Netherlands • Volkswagen/Audi -Germany • Toyota -Sweden • Toyota -USA • VCC -Sweden • VCC -Great Britain • VCC –Germany

The results are based solely on the survey unless stated otherwise. All the figures presented can be found in Appendix 3.

4.1 Daimler Chrysler/Mercedes-Benz Due to external factors36, responses from Daimler Chrysler/Mercedes-Benz dealers have been collected in Sweden, responses from Daimler Chrysler in the USA and responses from Mercedes-Benz dealers in the Netherlands. However, the response rate from the Netherlands was so low that it will not be presented in this study.

4.1.1 Sweden Although Daimler Chrysler and Mercedes-Benz are two different brands, they are both covered in this section as the majority of the car dealerships sold both brands. The respondents were all contacted beforehand and asked if they would be willing to partake in the survey and of the round 60 that were contacted 38 were sent the questionnaire and 7 responded creating a response rate of about 18 percent.

36 Sales company not willing to let dealers participate, and difficulties in obtaining addresses

34

Environmental certifications According to the survey, none of the Daimler Chrysler/Mercedes-Benz dealers claim to be certified by ISO 14001 or EMAS standards (chart 4.1.1). 80 percent (5 of 7) of the non-certified are planning on becoming certified within the next year. The driving forces behind the certification seems to be the desire to achieve a competitive advantage and the fact that it is encouraged by the car manufacturer (see chart 4.1.2.). Chart 4.1.1; Percentage of certified Daimler Chrysler/Mercedes-Benz Dealers in Sweden. Answering the question “ Is your company environmentally certified?” (n = 7)37

29%29% 29%

0%0%

14%

0%5%

10%15%20%25%30%

Yes, ISO 14001 Yes, Emas Yes, other. No,we have anenvironmental

program.

No, but we dohave an

environmentaldiploma.

No

Perc

enta

ge

Chart 4.1.2; Percentage of influencing forces on Daimler Chrysler/Mercedes-Benz dealers in Sweden with regard to environmental certification. (n =5)

33%

17%

33%

17%

0% 0%0%5%

10%15%20%25%30%35%

Required byour car

manufacturer

Competitorsare accredited

Customerdemand

To achieve acompetitiveadvantage

Other Don’t know

Perc

enta

ge

Environmental chemicals It is interesting to note that more dealerships use environmentally labelled chemicals in their workshops than they sell in their shop. In this case, 86 percent (6 of 7) use environmental products in their workshop, whereas only 71 percent (5 of 7) sell them in their shop. The majority of Daimler Chrysler/Mercedes-Benz dealers using environmentally labelled chemicals use up to 10 product groups as shown in chart 4.1.3. Chart 4.1.3; Percentage of product groups of environmentally labelled chemicals used in Daimler Chrysler/Mercedes-Benz dealers’ shop and workshop. ( nshop =5, nworkshop =6)

40% 40%

20%

0%

50% 50%

0% 0%0%

10%

20%

30%

40%

50%

60%

Less than 5 product groups 5-10 product groups 10-20 product groups More than 20 product groups

Perc

enta

ge

Shop

Workshop

37 Number of responses = n

35

Chart 4.1.4; Daimler Chrysler/Mercedes-Benz dealers’ main considerations when choosing chemicals for the workshop. (n = 7)

0%

14%

0%

57%71%

43%

0%

20%

40%

60%

80%

Product cost Environmentallyadapted/ ”green”

Health aspects Customer demand Time consuption Other

Perc

enta

ge

Health aspect were considered the most important consideration when choosing chemicals for their own garage (5 of 7). (Chart 4.1.4) More than half (4 of 7) also claim that environmental considerations are important, more so than the cost of the product. Environmental Communication 4 of 7 Daimler Chrysler/Mercedes-Benz dealers promote their environmental work in some way. The most popular method of doing this is by brochures, with Internet being the second most popular. (Chart 4.1.5) Chart 4.1.5; How Daimler Chrysler/Mercedes-Benz dealers communicate their environmental work. (n = 7)

57%

14%29%

14%0% 0%

14%

0%

20%

40%

60%

Brochures Advertisements Internet Exhibitions inthe showroom

Lectures,seminars oropen house

events

Exchangeprograms with

schools oruniversities

Other

Perc

enta

ge

Environmental Commitment

• According to this survey more than 2/3 of the Swedish Daimler Chrysler/Mercedes-Benz dealers have someone working with environmental issues. However, the majority do not spend more than five hours per week on this.

• Only a small percentage of Daimler Chrysler/Mercedes-Benz dealers believe they are doing a

better job at being environmentally conscious than other dealerships.

• 57 percent (4 of 7) of the Daimler Chrysler/Mercedes-Benz dealers provide some kind of environmental service to their customers. The most common service provided was the collection of customers’ old chemicals for reuse/recycling purposes (43% - 3 of 7). 29 percent (2 of 7) also take care of customers’ old car parts for reuse/recycling.

• When it comes to their sales company, all Daimler Chrysler/Mercedes-Benz dealers receive

help in some way (Chart 4.1.6). 86 percent (6 of 7) obtain information brochures from their sales company regarding environmental issues, 43 percent (3 of 7) receive advice concerning the environment and assistance in signing agreements with external waste management companies. It appears as if the sales company offers all the services mentioned but dealerships are not taking advantage of the services available.

36

Chart 4.1.6; Help/Support received from sales company regarding environmental issues. (n = 7)

0%

86%

14% 14% 14% 14%

43%43%29%29%

0%

20%

40%

60%

80%

100%

We do notreceive any

support

Informationbrochures

Training forsales personnel

in how toincorporate

environmentalissues to further

the companyproducts

Education Adviceconcerning

environmentallaws

Adviceconcerningchemicals

Adviceconcerning theenvironment in

general

Agreementswith external

wastemanagementcompanies

Adviceconcerning

wastemanagement

Other:

Perc

enta

ge

• The majority of the respondents (71% - 5 of 7) considered the main benefits of their

environmental work to be that of gaining a competitive advantage and increased customer satisfaction. Three respondents believed that the workload has increased because of the environmental work. None thought that it had affected their turnover in any way.

4.1.2 USA More than 100 American Daimler Chrysler dealerships were contacted beforehand and asked if they would be willing to participate in the survey. Of these, 26 were interested and were sent the questionnaire – 7 responded. The response rate is approximately 27 percent. The dealerships targeted were all situated in different states. Environmental certification None of the dealerships that have responded are certified to the ISO 14001 or the EMAS standard. 43 percent (3 of 7) claim they have an environmental program (chart 4.1.7). None of the dealers who are not certified are planning on becoming certified within the next year. The reasons for achieving certification are stated to be “required by car manufacturer” and “achieving a competitive advantage”. Chart 4.1.7; Percentage of certified Daimler Chrysler dealers in the USA. Answering the question “ Is your company environmentally certified?” (n = 7)

29%29%

0% 0% 0%

43%

0%10%20%30%40%50%

Yes, ISO 14001 Yes, Emas Yes, other. No,we have anenvironmental

program.

No, but we dohave an

environmentaldiploma.

No

Perc

enta

ge

37

Environmental Chemicals A majority of the dealers (71% - 5 of 7) sell and use up to ten different groups of environmentally labelled chemicals in their shop and their workshop. When enquiring about what their main considerations were when choosing chemicals for their workshop there was a marked difference compared to the Swedish dealers. As many as 86 percent (6 of 7) consider the product cost to be important, with health aspects and customer demand following at 43 and 29 percent (3 respectively 4 of 7). None of the respondents thought that the environmental impact was a main consideration. Environmental Communication Only one of the respondents claimed to be promoting their environmental work and they did this solely through advertisements. Even though 71 percent (5 of 7) claimed to be performing some kind of environmental work they are not promoting this at all. Environmental commitment

• A clear majority have personnel working with environmental issues, although this was generally limited to five hours or less per week.

• Two of the respondents believed that they were doing more on the environmental side than other dealers and when asked to specify what they did better, one of them mentioned antifreeze coolant recycling.

• All except one of the dealers provided some kind of environmental service for their customers. 86 percent (6 of 7) took care of customers’ old car parts and 71 percent (5 of 7) took care of customers’ old chemicals for reuse/recycling purposes.

• The sales company appears to offer some kind of support (see chart 4.1.8), although not all of the services that have been mentioned. They do not offer any advice on the environment in general or assist in training sales personnel in environmental issues. As the graph shows, 50% (3 of 6) do however claim that they receive information brochures, advice concerning chemicals and environmental laws and assist in creating agreements with external waste management firms from their sales company.

Chart 4.1.8; Help/support received from Daimler Chrysler sales company in the states regarding environmental issues. (n = 6)

17%

0%

33%

0%

33%

0%

67%50%50%50%

0%

20%

40%

60%

80%

We do notreceive any

support

Informationbrochures

Training forsales personnel

in how toincorporate

environmentalissues to further

the companyproducts

Education Adviceconcerning

environmentallaws

Adviceconcerningchemicals

Adviceconcerning theenvironment in

general

Agreementswith external

wastemanagementcompanies

Adviceconcerning

wastemanagement

Other:

Perc

enta

ge

• None of the respondents believe that their environmental work achieves a competitive

advantage. 71 percent (5 of 7) consider their work to lead to increased customer satisfaction. One respondent thinks it leads to a lower turnover.

38

4.1.3 Websites and other sources When examining the corporate website of Daimler Chrysler a fair amount of environmental information was found. The majority of it concentrated on the different possibilities for future fuel technology. The information on this, and on their efforts to reduce waste and energy usage at production plants, was exhaustive. They seem to invest a lot in new technology within these areas, and they are promoting this heavily in their environmental report. There is, however, hardly anything mentioned about the aftermarket and what their dealerships are doing to benefit their environmental image. The perception is that they are not doing a lot in this area at the moment. An internet search endorsed this theory as not one of the first few pages contained any information about environmental practices at Daimler Chrysler/Mercedes-Benz dealerships. It is obvious that Daimler Chrysler is working to create an environmental image, at least at the corporate level, and environmental protection seems to be part of their corporate strategy. They have won awards for their environmental report, among others the Environmental Leadership Award. No information regarding environmental activities was found on the Mercedes-Benz website.

39

4.2 Volkswagen/Audi A majority of the respondents sold both Volkswagen and Audi so they will therefore be described together in this section. Results have been gathered from Sweden, the USA, the Netherlands and Germany.

4.2.1 Sweden The response rate for Volkswagen/Audi in Sweden is unknown as the questionnaire was sent out by Volkswagen/Audi’s sales company in Sweden. The dealers were also informed that Volvo had initiated the study, but that the sales company had checked the questions and were interested in their participation. 16 of the Swedish Volkswagen/Audi dealerships responded. Environmental certification According to the respondents, the main way Volkswagen/Audi dealers are working with environmental issues is on the basis of an environmental program (50% - 8 of 16) (Chart 4.2.1). 13 percent (2 of 16) are certified according to the ISO14001 standard. 7 of the 12 respondents that are not already certified are planning on becoming certified within the next year. Chart 4.2.1; Percentage of certified Volkswagen/Audi Dealers in Sweden. Answering the question “ Is your company environmentally certified?”(n = 16)

50%

0% 0%

13% 13%25%

0%10%20%30%40%50%60%

Yes, ISO 14001 Yes, Emas Yes, other. No, but we dohave an

environmentalprogram.

No, but we dohave an

environmentaldiploma.

No

Perc

enta

ge

The main reason for certification was stated to be the achievement of a competitive advantage (5 of 11). Only 18 percent (2 of 11) had been encouraged by their car manufacturer, or felt any pressure from their customers. (chart 4.2.2) Chart 4.2.2; Percentage of influencing forces on Volkswagen/Audi dealers in Sweden with regard to environmental certification.(n = 11)

45%

9% 9%18%

0%

18%

0%10%20%30%40%50%

Required by ourcar manufacturer

Competitors areaccredited

Customer demand To achieve acompetitiveadvantage

Other Don’t know

Perc

enta

ge

Environmental Chemicals 88 percent (14 of 16) of the Volkswagen/Audi dealers use environmentally labelled chemicals in their workshop and 81 percent (13 of 16) sell them in their shop. Quite a high percentage has five or more product groups in their shop or workshop, -see Chart 4.2.3. The by far most important concern for

40

Chart 4.2.3; Percentage of product groups of environmentally labelled chemicals used in Volkswagen/Audi dealers’ shop and workshop. ( nshop =13, nworkshop =14)

23%

31% 31%36%

15%21%29%

14%

0%

10%

20%

30%

40%

Less than 5product groups

5-10 productgroups

10-20 productgroups

More than 20product groups

Perc

enta

ge

Shop

Workshop

Volkswagen/Audi dealers when selecting chemicals to use in their workshop is the health aspect (94% - 15 of 16). This is followed by the cost of the product (38% - 6 of 16) and the environmental impact of the chemical (19% - 3 of 16). Some of the respondents sold other environmentally adapted products in their shop, and products mentioned are batteries, brake bands, clutch linings, engine heater, oil free tyres and environmentally adapted tyre studs. Chart 4.2.4; Main considerations when choosing chemicals for the workshop. (n =16)

38%19%

94%

13% 13%0%

0%

20%

40%

60%

80%

100%

Product cost Environmentallyadapted/ ”green”

Health aspects Customer demand Time consuption Other

Perc

enta

ge

Environmental Communication Approximately 70 percent (11 of 16) are promoting their environmental work, which is reasonable since about 75 percent (12 of 16) claim to be working with environmental issues in some way. The marketing takes the forms depicted in the chart 4.2.5. Only a small percentage of the dealers are using a majority of the different possibilities open to them. Chart 4.2.5; How Volkswagen/Audi dealers communicate their environmental activities. (n = 11)

91%

36%27%27% 27% 27%

9%0%

20%

40%

60%

80%

100%

Brochures Advertisements Internet Exhibitions in theshowroom

Lectures, seminarsor open house

events

Exchangeprograms with

schools oruniversities

Other

Perc

enta

ge

Environmental Commitment

• 88 percent (14 of 16) of the dealers employ someone to work with environmental issues and the majority spends more than five hours per week on this. See Chart 4.2.6.

41

Chart 4.2.6; Number of hours per week dedicated to the dealership’s environmental issues. (n =14)

36%43%

7%14%

0%10%20%30%40%50%

Less than 5 hours 5-10 hours 10-20 hours More than 20hours

Perc

enta

ge

• Only 25 percent (4 of 16) feel that they are doing a better job at watching out for the environment than other dealerships.

• All but one offer some kind of environmentally labelled service. Most take care of customers’ old car parts (9 of 15) and chemicals (13 of 15) for reuse/recycling purposes.

• Most of the dealers receive some kind of help/support from their sales company when it comes to environmental concerns - as shown in Chart 4.2.7.

Chart 4.2.7; Help/Support received from sales company regarding environmental issues (n = 16)

63%

25% 25%

56%

25%19%

0%

38%44%

50%

0%10%20%30%40%50%60%70%

We do notreceive any

support

Informationbrochures

Training forsales personnel

in how toincorporate

environmentalissues to further

the companyproducts

Education Adviceconcerning

environmentallaws

Adviceconcerningchemicals

Adviceconcerning theenvironment in

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Agreementswith external

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Other:

Perc

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• The majority of the respondents believed that their competitive work leads to increased

customer satisfaction (14 of 16) and a competitive advantage (10 of 16). 38 percent (6 of 16) think that their workload increases due to the environmental investments and a quarter (4 of 16) of the respondents believed that their environmental efforts lead to a higher turnover. One of the respondents believed it decreased his turnover.

4.2.2 USA The response rate from American Volkswagen/Audi dealers was 29 percent. Approximately 80 dealerships were contacted and 14 of these were willing to participate and were therefore sent the questionnaire. In the end, four responded. The dealerships targeted were all situated in different states. Environmental certification The companies that responded all have some kind of basis for their environmental work, as shown in Chart 4.2.8 below. None of the dealers that are not certified are planning on becoming certified within the next year. The three main reasons for getting certified is that it is required by the car manufacturer, it creates a competitive advantage, and that it is regulated by local government agency.

42

Chart 4.2.8; Percentage of certified Volkswagen/Audi Dealers in America. Answering the question “ Is your company environmentally certified?” (n = 4)

25%

50%

25%

0% 0%0%0%10%20%30%40%50%60%

Yes, ISO 14001 Yes, Emas Yes, other. No, but we do havean environmental

program.

No, but we do havean environmental

diploma.

No

Perc

enta

ge

Environmental Chemicals All of the respondents use environmentally labelled chemicals in their workshop, whereas only one of the respondents sell them in their shop(Chart 4.2.9). The general number of chemicals used in the workshop was about five to ten product groups. None had any other products in their shop that could be considered environmentally labelled. Chart 4.2.9; Percentage of product groups of environmentally labelled chemicals used in the American Volkswagen/Audi respondents shop and workshop. ( nshop =1, nworkshop =4)

100%

25%

0% 0% 0%

75%

0% 0%0%20%40%60%80%

100%

Less than 5product groups

5-10 productgroups

10-20 productgroups

More than 20product groups

Perc

enta

ge Shop

Workshop

All of the respondents think product cost is the most important consideration when choosing for chemicals their workshop. This is followed by time consumption (50% - 2 of 4) and environmental impact (25% - 1 of 4). (Chart 4.2.10) Chart 4.2.10; Main considerations when choosing chemicals for the workshop. (n =4)

0%

100%

25%

0%

50%

25%

0%20%40%60%80%

100%

Product cost Environmentallyadapted/ ”green”

Health aspects Customerdemand

Time consuption Other

Perc

enta

ge

Environmental Communication The American Volkswagen/Audi dealers are not very good at promoting their environmental efforts. Only one of the dealers claimed to market their environmental work and this is done utilising advertisements and the Internet. Environmental Commitment

• Only one of the respondents has someone employed to work with environmental issues, and this person dedicated less than five hours per week to this.

43

• 75 percent (3 of 4) think they are doing a better job at watching out for the environment than other dealerships.

• All of the respondents take care of their customers’ old chemicals and car parts for reuse, recycling purposes.

• All of the respondents feel that they receive some kind of help/support from the American Volkswagen/Audi sales company, as shown in Chart 4.2.11.

Chart 4.2.11; Help/Support received from American Volkswagen/Audi sales company regarding environmental issue. (n = 4)

50% 50%

25% 25%

50%

25%

0% 0%0%

50%

0%10%20%30%40%50%60%

We do notreceive any

support

Informationbrochures

Training forsales personnel

in how toincorporate

environmentalissues to further

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Perc

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• 75 percent (3 of 4) believe that their environmental efforts lead to satisfied customer, 25

percent (1 of 4) believes it leads to an increased work load and 50 percent (2 of 4) believe that it creates a sense of self satisfaction in trying to minimise the environmental impact of their operations.

4.2.3 The Netherlands The response rate for the questionnaire was 8 percent. It was sent to 64 Audi dealerships and 5 responded. However, as all but one respondent sell both Audi and Volkswagen, they are presented together again. Environmental certification A majority of the dealerships claim to be certified but not by the ISO 14001 or EMAS standard and all of the respondents work with the environment in some way (Chart 4.2.12). None of the non-certified dealers are however planning on becoming certified within the next year. The main grounds for certification are stated to be that it is required by their manufacturer and their government.

44

Chart 4.2.12; Percentage of certified Volkswagen/Audi Dealers in The Netherlands. Answering the question “Is your company environmentally certified?”(n =5)

60%

0%

20%20%

0% 0%0%10%20%30%40%50%60%70%

Yes, ISO 14001 Yes, Emas Yes, other. No, but we dohave an

environmentalprogram.

No, but we dohave an

environmentaldiploma.

No

Perc

enta

ge

The main forces behind environmental certification were claimed to be that it was required by the car manufacturer (67 % - 2 of 3) and governmental demands (33 % - 1 of 3). Chart 4.2.13. Chart 4.2.13; Main forces behind certification. ( n = 3)

33%

0% 0% 0% 0%

67%

0%10%20%30%40%50%60%70%

Required by ourcar manufacturer

Competitors areaccredited

Customer demand To achieve acompetitiveadvantage

Other Don’t know

Perc

enta

ge

Environmental Chemicals All of the dealerships use environmental chemicals in their workshop, and 80 percent (4 of 5) sell them in their shop. Most, however, use/sell less than five product groups. When asked about their main considerations when choosing what chemicals to use in their workshop, the majority claimed that customer demand was a central factor (80% - 4of 5). This was followed by the cost of the product (60% - 3 of 5) and health aspects (40% - 2 of 5). None thought that the products environmental impact or time consumption was a chief concern. Chart 4.2.14. Chart 4.2.14; Main considerations when choosing chemicals for the workshop. (n = 5)

80%

0%

60%40%

0% 0%0%20%40%60%80%

100%

Product cost Environmentallyadapted/ ”green”

Health aspects Customerdemand

Time consuption Other

Perc

enta

ge

None of the dealers had any environmentally labelled products other than chemicals. Environmental Communication Only 40 percent (2 of 5) of the dealers promote their environmental work in some way. They do this through brochures, advertisements, lectures, seminars or open house events.

45

Environmental Commitment • 80 percent (4 of 5) of the dealers have an employee assigned to working with the dealerships’

environment, but most spend less than five hours on this. • 60 percent (3 of 5) feel that they are doing a better job than other dealerships when it comes to

the environmental area. • 60 percent (3 of 5) of the respondents do not offer any environmental service to their

customers. The ones that offer services mainly take care of customers’ chemicals for reuse, recycling purposes.

• All of the respondents feel that they receive some kind of help/support from their sales company in the Netherlands when it comes to environmental issues. The assistance given is shown below in Chart 4.2.15.

Chart 4.2.15; Help/Support received from Volkswagen/Audi’s sales company in The Netherlands regarding environmental issues. (n = 5)

0%

80%

40%

20%

40% 40%

0%

40%

20%

0%0%

20%

40%

60%

80%

100%

We do notreceive any

support

Informationbrochures

Training forsales personnel

in how toincorporate

environmentalissues to further

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Education Adviceconcerning

environmentallaws

Adviceconcerningchemicals

Adviceconcerning theenvironment in

general

Agreementswith external

wastemanagementcompanies

Adviceconcerning

wastemanagement

Other:

Perc

enta

ge

• The main benefit of their environmental work is considered to be increased customer

satisfaction (60% - 3 of 5)

4.2.4 Germany The response rate for Volkswagen in Germany is unknown. The questionnaire was sent out to the Volkswagen dealers by the Volkswagen sales company on condition that they remain anonymous. 35 of the dealers have responded. Environmental Certification As illustrated in Chart 4.2.16, quite a few of the Volkswagen dealers claim that they work with the environment in some way. 26 percent (9 of 35) do not work with the environment at all, and only 11 percent (4 of 35) have an ISO 14001 certification. The ones that have stated that they have some other kind of certification mostly have ISO9002 or Dekra certificate.

46

Chart 4.2.16; Percentage of certified Volkswagen/Audi Dealers in Germany. Answering the question “ Is your company environmentally certified?” ( n = 35)

3%

23%26%

20% 17%11%

0%5%

10%15%20%25%30%

Yes, ISO 14001 Yes, Emas Yes, other. No, but we dohave an

environmentalprogram.

No, but we dohave an

environmentaldiploma.

No

Perc

enta

ge

Only 17 percent (3 of 18) of the dealers who are not certified are planning on becoming certified within the next year. The main reasons for becoming certified is that it is required by the car manufacturer (53% - 9 of 17), but quite a few also achieved certification to obtain a competitive advantage (35% - 6 of 17). (Chart 4.2.17) Chart 4.2.17; Main reasons for becoming environmentally certified. (n = 17)

53%35%

6%6%0% 0%0%

20%

40%

60%

Required by our carmanufacturer

Competitors areaccredited

Customer demand To achieve acompetitiveadvantage

Other Don’t know

Perc

enta

ge

Environmental chemicals About half (54% - 19 of 35) of the dealers sell some kind of environmentally labelled chemical in their shop, and about 60 (21 of 35) percent use them in their workshop. (Chart 4.2.18) Chart 4.2.18; Percentage of product groups of environmentally labelled chemicals used in Volkswagen/Audi dealers’ shop and workshop ( nshop =19, nworkshop =21)

52%

5%0%

16%

42% 42%

10%

33%

0%10%20%30%40%50%60%

Less than 5 productgroups

5-10 product groups 10-20 product groups More than 20 productgroups

Perc

enta

ge ShopWorkshop

When asked about what their two main considerations were when choosing chemicals for their workshop 66 percent (21 of 32) thought the product’s cost was very important, 47 percent (15 of 32) thought that the environmental impact of the product was of significance, and 41 percent (13 of 32) considered the health aspects to be of major concern see Chart 4.2.19.

47

Chart 4.2.19; Main considerations when choosing chemicals for the workshop.(n = 32)

66%

3%

47%41%

9%

28%

0%10%20%30%40%50%60%70%

Product cost Environmentallyadapted/ ”green”

Health aspects Customer demand Time consuption Other

Perc

enta

ge

21 percent (7 of 34) of the respondents claimed to have other environmentally labelled products in their shop, for example recycling of bumpers, reconditioned spare car parts, battery recycling, and reusable cloth. Environmental Communication 47 percent (16 of 34) of the Volkswagen dealers say they promote their environmental work. Considering 74 percent (26 of 35) claim to have some kind of environmental program this is quite a low percentage. Most use advertisements to communicate their work (88% - 14 of 16) and 50 percent (8 of 16) use brochures. Some also have exhibitions in their showroom (44% - 7 of 16). (Chart 4.2.20) Chart 4.2.20; How the German Volkswagen/Audi dealers communicate their environmental work. (n = 16)

50%

88%

13% 13%31%

6%44%

0%20%40%60%80%

100%

Brochures Advertisements Internet Exhibitions inthe showroom

Lectures,seminars oropen house

events

Exchangeprograms with

schools oruniversities

Other

Perc

enta

ge

Environmental Commitment

• 97 percent (34 of 35) of the dealers have personnel assigned to working with environmental issues. The majority (94% - 32 of 34) spend less than five hours per week on this.

• 69 percent (24 of 35) of the dealers feel that they are doing a better work in the environmental area than other dealerships.

• 82 percent (28 of 35) of the respondents offer an environmental service to their customers. The majority take care of customers’ old car parts (76% - 26 of 35) and chemicals (53% - 18 of 35) for reuse/recycling purposes. Some have listed that they take care of other products as well, such as batteries. (Chart 4.2.21)

Chart 4.2.21; Environmental services offered to customers.(n = 35)

76%

24% 18%15%

53%

12%0%

20%

40%

60%

80%

100%

Yes, anenvironmentally

labelled car wash.

Yes, a car serviceperformed specifically

to reduce the car’senvironmental

impact.

Yes, we take care ofcustomers’ oldchemicals for

recycling/reuse.

Yes, we take care ofcustomers’ old car

parts forrecycling/reuse.

No Yes, other. Pleasespecify:

• The main benefit of their environmental work is considered to be increased customer

satisfaction (68% - 23 of 34), although quite a few think that other consequences are;

48

increased workload (44% - 15 of 34) and the gaining of a competitive advantage (50% - 17 of 34). (Chart 4.2.22)

Chart 4.2.22; Showing the benefits of the German Volkswagen/Audi dealers’ environmental work (n = 34)

68%

44%

12%0%

6%

50%

0%

20%

40%

60%

80%

Satisfiedcustomers

Competitiveadvantage

Higherturnover

Lowerturnover

Increasedamount of work

Other

Perc

enta

ge

• All of the respondents think that they receive some kind of help/support from their sales company when it comes to environmental issues. The assistance given is shown below in Chart 4.2.23. They appear to be getting a lot of advice regarding everything from laws to waste management, but very little help in the form of education and training.

Chart 4.2.23; Help/Support received from Volkswagen/Audi’s German sales company regarding environmental issue. (n = 35)

66%

17%

69% 69% 63% 60%69%

11%

0%

6%

0%

20%

40%

60%

80%

We do notreceive any

support

Informationbrochures

Training forsales personnel

in how toincorporate

environmentalissues to

further thecompanyproducts

Education Adviceconcerning

environmentallaws

Adviceconcerningchemicals

Adviceconcerning theenvironment in

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Agreementswith external

wastemanagementcompanies

Adviceconcerning

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Perc

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4.2.5 Volkswagen Websites and other sources Volkswagen appear to have an large interest in their environment. Although slightly difficult to find they have a website dedicated to their environmental work and they have been producing an environmental report since 1995. Like the other brands their environmental report focuses a lot on fuel technology and emissions. They have an environmental policy, which among other things states that “Those responsible for environmental management at Volkswagen shall, on the basis of the company’s environmental policy, ensure that in conjunction with suppliers, service providers, retailers and recycling companies, the environmental compatibility of its vehicles and production plants is subject to a process of continuous improvement.”38 They also state in the policy that “ ..entering into a dialogue with customers, dealers and the public is a matter of course for Volkswagen.”39 38 Volkswagen environmental policy, Environmental report, p 23. 39 Volkswagen environmental policy, Environmental report, p 23.

49

They also say that “In order to safeguard the long term future of the company and enhance its competitive position, Volkswagen is researching into and developing ecologically efficient products, processes and concepts for personal mobility.”40 They do have a section describing their goals, although none are specifically targeted at their dealerships, they declare that they will be increasing their training program for their employees and their partners. The report does mention their dealers and practices that concern them. They include a list containing 25 items that car dealers should be taking back in a free take-back scheme (figure 4.2.16). And they claim to recycle anti-freeze and brake fluid (through close-loop systems). The fluid is returned to the manufacturer and entered into production. Figure 4.2.16; Items included in Volkswagens free take-back scheme.41 Volkswagen are also concerned with other parts of their dealerships pollution management and have created a standard from which they examine their car dealerships around the world, and which forms a basis for improvement. They provide an environmental handbook for their dealers called “Environmental Protection and Waste Management in Service Operations” and they also offer “VW/Audi Environment Advisory Service” to assist their dealerships in their environmental practices. According to an article on their international website Volkswagen will, in cooperation with BP Solar, be able to offer their dealerships environmentally friendly energy in the form of solar power. The plan is to provide the dealers with photo-voltaic systems that will supply them with power. The first 50 systems are proposed to come into operation in 2005.

4.2.6 Audi Websites and other sources Environmental protection is a central component of this company’s corporate strategy42. They believe their brand to be associated with the following characteristics; “High technological standards, aesthetic appeal emphasis on customer requirements and an ecological orientation.”43 According to their environmental report their approach is pre-emptive, endeavouring to minimise environmental impact at the source when possible. Their main research focus is on reducing carbon dioxide emissions by developing cars that use less fuel by utilising new lightweight technologies and engine models.

40 Volkswagen environmental policy, Environmental report, p 23 41 Volkswagen Environmental report, p 98 42 Audi Environmental report 43 Audi Environmental report

Airbags/seatbelt tensioners, Tyres, Batteries, Brake fluid, Anti-freeze, Class 1

mixed plastics, Fuel tanks, Wheel trims, Radiator grilles, Lock plates, Air filters,

Oil and fuel filters, Wheel arch liners, Bumpers, Shock absorbers, Laminated glass,

Packaging, Wood, uncontaminated, Plastic containers, empty, Metal containers, empty,

Cardboard, paper, cardboard boxes, Polyethylene film, Foam rubber, Polystyrene,

Aerosol cans

50

There is not a lot of information about dealerships in their report, although they are mentioned as the key to the customer and that dealers will be encouraged to invest in environmental protection activities -as a part in Audi’s aim to create an environmental image. Especially at service outlets where the waste can be substantial. In the report Audi stated that there would be support for dealerships who wish to work with the environment. The amount information given on the corporate website on environmental practices is very limited compared to the amount of information in the environmental report. The Swedish website did not seem to contain any information whatsoever regarding environmental protection. This does not mean however that Audi are not interested in the environment. Their environmental report shows otherwise.

51

4.3 Toyota The questionnaire was sent to Toyota dealerships in three different countries; Sweden, Germany and the USA. However the response rate from Germany was 1.5 percent, with responses from only two of the 130 dealers to whom the questionnaire was sent, and therefore the results are deemed inconclusive and will not be presented in this study.

4.3.1 Sweden The questionnaire was sent to 51 of the Swedish Toyota dealers and 15 responded creating a response rate of 29 percent. The respondents were all contacted beforehand and asked if they would be willing to partake in the survey. Environmental certification Quite a few of the respondents are certified according to ISO 14001. The others all have some kind of environmental program as basis for their environmental work. See Chart 4.3.1. 50 percent (5 of 10) of the non-certified respondents are planning on becoming certified within the next year. Chart 4.3.1; Percentage of certified Toyota Dealers in Sweden. Answering the question “ Is your company environmentally certified?”(n = 15)

27%

0%

60%

7%0%

7%

0%10%20%30%40%50%60%70%

Yes, ISO 14001 Yes, Emas Yes, other. No, but we dohave an

environmentalprogram.

No, but we dohave an

environmentaldiploma.

No

Perc

enta

ge

An overwhelming majority (80% - 8 of 10) state that encouragement from their manufacturer is the main reason for their certification. The other reason mentioned was that they wanted to achieve a competitive advantage (20% - 2 of 10). (Chart 4.3.2) Chart 4.3.2; Percentage of influencing forces on Toyota dealers in Sweden with regard to environmental certification. (n =10)

80%

0% 0% 0% 0%20%

0%20%40%60%80%

100%

Required by ourcar manufacturer

Competitors areaccredited

Customerdemand

To achieve acompetitiveadvantage

Other Don’t know

Perc

enta

ge

Environmental Chemicals Like other dealers, they use more environmentally labelled chemicals in their workshop than they sell in their shop. All of the respondents utilise environmentally labelled chemicals in their workshop, whereas only 73 percent (11 of 15) sell them in their shop. The number of product groups used in the shop and workshop respectively are distributed in Chart 4.3.3.

52

Chart 4.3.3; Percentage of product groups of environmentally labelled chemicals used in Toyota dealers’ shop and workshop. ( nshop =11, nworkshop =15)

30%

60%

0%10%

0%

14%

43% 43%

0%10%20%30%40%50%60%70%

Less than 5 productgroups

5-10 product groups 10-20 product groups More than 20 productgroups

Perc

enta

ge

ShopWorkshop

The main consideration for Toyota dealers when choosing chemicals to use in their workshop is health aspects. See Chart 4.3.4. The product’s cost and its environmental impact are also important. Other aspects mentioned are the dealer’s possibility to purchase the chemicals in bulk, and thereby keeping the number of suppliers down. Chart 4.3.4; Toyota dealers’ main considerations when choosing chemicals to use in the workshop. (n = 15)

40% 40% 47%

0%7%

20%

0%10%20%30%40%50%

Product cost Environmentallyadapted/ ”green”

Health aspects Customer demand Time consuption Other

Perc

enta

ge

Environmental Communication 71 percent (10 of 14) of the respondents communicate their environmental work in some way. The prevailing method of doing this is by utilising brochures, but quite a few have exhibitions in their showroom (36% - 5 of 14), and/or use advertisements (36% - 5 of 14) and Internet (21% - 3of 14) to promote their work. (Chart 4.3.5) Chart 4.3.5; How the Swedish Toyota dealers communicate their environmental work (n = 10)

50%30%

50%

10% 10%0%

100%

0%20%40%60%80%

100%

Brochures Advertisements Internet Exhibitions inthe showroom

Lectures,seminars oropen house

events

Exchangeprograms with

schools oruniversities

Other

Perc

enta

ge

Environmental Commitment

• All but one of the respondents has someone employed to deal with environmental issues. The majority spend less than five hours per week on this.

• Only 29 percent (4 of 14) of the Swedish Toyota dealers feel that they are performing better when it comes to environmental issues than other dealerships.

• 71 percent (10 of 14) offer some kind of environmental service to their customers. Most take care of their customers’ old chemicals (64% - 9 of 14) and car parts (50% - 7 of 14) for reuse,/recycling purposes.

53

• Toyota dealers seem to get a fair amount of assistance from their sales company when it comes to environmental issues. (Chart 4.3.6)

Chart 4.3.6; Help/Support received from Toyotas Swedish sales company regarding environmental issues. (n = 14)

0%

86%

43% 43%

57%

43%

64%71%

64%

0%

20%

40%

60%

80%

100%

We do not receiveany support

Informationbrochures

Training for salespersonnel in how

to incorporateenvironmental

issues to furtherthe company

products

Education Adviceconcerning

environmentallaws

Adviceconcerningchemicals

Adviceconcerning theenvironment in

general

Agreements withexternal wastemanagementcompanies

Adviceconcerning waste

management

Perc

enta

ge

• As shown in chart 4.3.7, most of the respondents believe that their environmental work leads

to satisfied customers and a competitive advantage. Quite a few also believe it leads to a higher turnover for the company.

Chart 4.3.7; The benefits derived from their environmental work according to the Toyota dealers in Sweden. (n = 14)

71%64%

0%

29%

7%21%

0%

20%

40%

60%

80%

Satisfiedcustomers

Competitiveadvantage

Higherturnover

Lowerturnover

Increasedamount of work

Other

Perc

enta

ge

4.3.2 USA More than 100 American Toyota dealers were contacted. The questionnaire was, in the, end sent out to 26 of them and 5 responded, creating a response rate from the American Toyota dealers of about 19 percent. Environmental Certification 80 percent (4 of 5) of the respondents have some kind of environmental work, although it is difficult to draw any conclusions on what is the most prevalent method as they are all evenly distributed. See Chart 4.3.8. Only one of the non-certified respondents is planning on achieving a certification within the next year. It is also difficult to draw any real conclusion on what the principal force behind the certifications is as they are also quite evenly distributed among the respondents.

54

Chart 4.3.8; Percentage of certified Toyota Dealers in the USA. Answering the question “ Is your company environmentally certified? (n = 5)

20% 20% 20% 20% 20%

0%0%5%

10%15%20%25%

Yes, ISO 14001 Yes, Emas Yes, other. No, but we dohave an

environmentalprogram.

No, but we dohave an

environmentaldiploma.

No

Perc

enta

ge

Environmental Chemicals When it comes to environmentally labelled chemicals four of the five respondents use them in their workshop, and three of the five sell them in their shop. The ones that do use environmental chemicals use a surprisingly large amount of products. (Chart 4.3.9) Chart 4.3.9; Percentage of product groups of environmentally labelled chemicals used in American Toyota dealers’ shop and workshop. ( nshop = 3, nworkshop =4)

67%

0% 0%

33%

0% 0%

50% 50%

0%

20%

40%

60%

80%

Less than 5 productgroups

5-10 product groups 10-20 product groups More than 20 productgroups

Perc

enta

ge ShopWorkshop

Two respondents claimed to have other environmentally labelled products in their shop but did not specify what this could be. Three aspects were important to the Toyota dealers when choosing products for their workshop; the product’s cost (60% - 3 of 5 ), the health aspects (60% - 3 of 5) and the environmental impact of the product (40% - 2 of 5). (Chart 4.3.10) Chart 4.3.10; Toyota dealers’ main considerations when choosing chemicals to use in the workshop. (n = 5)

60% 60%

0%

40%

0% 0%0%

20%

40%

60%

80%

Product cost Environmentallyadapted/ ”green”

Health aspects Customer demand Time consuption Other

Perc

enta

ge

Environmental Communication Only 40 percent (2 of 5) of the dealers promote their environmental work in some way, which is not much considering that 80 percent (4 of 5) claim to be working with environment in some way. The

55

methods used are few and the dealers are concentrating mostly on brochures advertisements or “lectures seminars and open house events” to promote their work. Environmental Commitment

• All of the respondents have someone working with environmental issues. The majority spends less than five hours per week on this.

• Only 20 percent (1 of 5) feel that they are doing a better job than other dealerships when it comes to environmental issues.

• All of the respondents offer some kind of environmental services, the most customary being taking care of customers’ old chemicals (100% - 5 of 5) but quite a few also take care of customers’ old car parts for reuse, recycling purposes (60% - 3 of 5).

• The dealers appear to be receiving quite a lot of help and support from their sales company. Chart 4.3.11. All of them claim to be given advice on chemicals, and 80 percent ( 4 of 5) get assistance when signing agreements with external waste management companies. Another 80 percent ( 4 of 5) are given advice concerning environmental laws. But only 20 percent (2 of 5) feel that they are given guidance in how to incorporate environmental issues into sales pitches and none are getting advice concerning the environment in general.

Chart 4.3.11; Help/Support received from Toyota’s American sales company regarding environmental issues. (n = 5)

100%

0%0%

60%

20%

40%

80%

60%

80%

0%

20%

40%

60%

80%

100%

120%

We do notreceive any

support

Informationbrochures

Training forsales personnel

in how toincorporate

environmentalissues to

further thecompanyproducts

Education Adviceconcerning

environmentallaws

Adviceconcerningchemicals

Adviceconcerning theenvironment in

general

Agreementswith external

wastemanagementcompanies

Adviceconcerning

wastemanagement

Perc

enta

ge

• The main benefits of investing in the environment are listed as satisfied customers (60% - 3 of

5) and a sustainable future for their kids (40% - 2 of 5). One respondent thinks that it gives them a competitive advantage, and another respondent feels their workload has increased. Yet another respondent believes they are saving costs through their environmental work.

4.3.3 Toyota Websites and other sources Toyota is recognised for their environmental awareness, and it is clear when studying their website, that this is a priority for them. The corporate website is packed with information about the environmental work which they are conducting. They are researching a number of areas including fuel cell technology, new environmentally adapted materials and new ways of recycling car parts. When it comes to the aftermarket area they have a program for their dealerships to help them increase their environmental awareness and are on the way to implementing ISO 14001 at many of their

56

dealers. They have an eight step program for dealers who do not choose to implement the ISO14001 standard. They have initiated “Environmental Issue Information Exchange Meetings” which is a regional forum to encourage and motivate dealers. It allows for a dialogue and an exchange of knowledge between dealers on issues like local regulations and waste management. Their investment in their dealerships’ environmental images will most probably increase in the future. The Swedish website shows the same situation. It has a fair amount of information about Toyotas environmental work, mentioning that they are working towards implementing ISO14001 at their dealerships in Sweden. They also have a page containing environmental goals, some of which have been achieved and some of which should be achieved within the disclosed time frame. One of their goals, which they have achieved, included introduction of waste management system at all their dealerships.

57

4.4 Volvo Car Corporation Below results will be presented for VCC dealers in Sweden, the Great Britain and Germany.

4.4.1 Sweden The VCC dealers in Sweden were not contacted beforehand in any way and they were not told that VCC had initiated this survey. The questionnaire was sent out to the environmentally responsible at 45 of the Swedish VCC dealerships, 19 responded creating a response rate of 42 percent. Environmental certification As chart 4.4.1 shows, 47 percent (9 of 19) of the VCC dealers are ISO 14001 certified and 84 percent (16 of 19) have some kind of guidelines for their environmental work. 80 percent (8 of 10) of the non-certified are planning on becoming certified next year. All of the dealers that responded that they were not certified and did not have an environmental program or diploma are hoping to achieve certification within the next year. Chart 4.4.1; Percentage of certified VCC dealers in Sweden. Answering the question “ Is your company environmentally certified?”(n = 19)

5%16%

47%

0% 0%

32%

0%10%20%30%40%50%

Yes, ISO 14001 Yes, Emas Yes, other. No, but we dohave an

environmentalprogram.

No, but we dohave an

environmentaldiploma.

No

Perc

enta

ge

The main reason for achieving certifications appears to be that the Swedish VCC dealers believe it gives them a competitive advantage (Chart 4.4.2). Only 24 percent (4 of 17) have become certified because they believe it was required by Volvo Car Corporation. Chart 4.4.2; Percentage of influencing forces on VCC dealers in Sweden with regard to environmental certification. (n = 17)

65%

12%24%0% 0% 0%

0%

20%

40%

60%

80%

Required by ourcar manufacturer

Competitors areaccredited

Customer demand To achieve acompetitiveadvantage

Other Don’t know

Perc

enta

ge

Environmental chemicals All of the VCC dealers questioned responded that they do in fact sell environmental chemicals in their shop, and all but one used them in their workshop. As shown below in chart 4.4.3, the majority have among 5-10 different product groups both in their workshop and their shop.

58

Chart 4.4.3; Percentage of product groups of environmentally labelled chemicals used in Swedish VCC dealers’ shop and workshop.( nshop =19, nworkshop =18)

16%

53%61%

0%

32%

11%0%

28%

0%10%20%30%40%50%60%70%

Less than 5 product groups 5-10 product groups 10-20 product groups More than 20 productgroups

Perc

enta

ge Shop

Workshop

Health aspects are the main consideration when choosing chemicals for their garage, (chart 4.4.4) followed by environmental impact and customer demand. Only a small percentage considered the product cost to be a chief factor. Chart 4.4.4; Main considerations when choosing chemicals for the workshop. (n = 19)

74%

0%11%

42% 26%

16%

0%

20%

40%

60%

80%

Product cost Environmentallyadapted/ ”green”

Health aspects Customerdemand

Time consuption Other

Perc

enta

ge

Environmental Communication When it comes to communicating their environmental efforts, 68 percent (13 of 19) maintained that they promote their work and all of the possible approaches were used when doing this (see chart 4.4.5). The general way of promoting the environmental work is by using brochures, and more than 2/3 use the internet. Chart 4.4.5; Utilised methods of communicating environmental work. (n = 13)

100%69%

31%8%

38%38%

0%0%

20%40%60%80%

100%120%

Brochures Advertisements Internet Exhibitions inthe showroom

Lectures,seminars oropen house

events

Exchangeprograms with

schools oruniversities

Other

Perc

enta

ge

Environmental commitment

• All but one dealership had someone in charge of working with environmental issues. Most dedicated more than 5 hours per week to this.

• Even though everything suggests that the VCC dealers are very dedicated to environmental issues, only 44 percent (8 of 18) believe they are doing a better job than other dealers.

• All but one dealership also offers some kind of environmental service to their customers as chart 4.4.6 shows.

59

Chart 4.4.6; Environmental services offered to customers. (n = 18)

67% 72%

0%6%

50%50%

0%

20%

40%

60%

80%

Yes, anenvironmentally

labelled car wash.

Yes, a car serviceperformed

specifically to reducethe car’s

environmentalimpact.

Yes, we take care ofcustomers’ oldchemicals for

recycling/reuse.

Yes, we take care ofcustomers’ old car

parts forrecycling/reuse.

No Yes, other. Pleasespecify:

Perc

enta

ge

• As shown in chart 4.4.7 below, the VCC dealers also receive a lot of help and support when it comes to environmental issues. The sales company appears to be very dedicated to assisting their dealerships when it comes to environmental issues.

• Chart 4.4.7; Help/Support received from sales company regarding environmental issues. (n = 19)

89%74% 74%

84%

0% 5%

58%63%68%68%

0%20%40%60%80%

100%

We do notreceive any

support

Informationbrochures

Training forsales

personnel inhow to

incorporateenvironmental

issues tofurther thecompany

Education Adviceconcerning

environmentallaws

Adviceconcerningchemicals

Adviceconcerning theenvironment in

general

Agreementswith external

wastemanagementcompanies

Adviceconcerning

wastemanagement

Other:

Perc

enta

ge

• The main reasons for investing in the environment were stated by the respondents to be

satisfied customers (68% - 13 of 19) and achieving a competitive advantage (68% - 13 of 19). Quite a few (32% - 6 of 19) also though that it also leads to a higher turnover, but at the same time, the same percentage also thought it increased their workload.

4.7.2 Great Britain The response rate for VCC in the UK was about 6 percent. The questionnaire was sent to approximately 180 VCC dealerships and 12 responded. The VCC dealers in the UK were sent the questionnaire by post and this has probably decreased the response rate. They were aware that VCC was involved in this study, as their replies were directed to the Volvo Car Corporation in Gothenburg. Environmental certification All of the respondents work with the environment in some way, which supports the theory that the environmentally leading dealerships would also be the ones to be the most motivated to respond. A small percentage work with some kind of certification, but most base their work on an environmental program. (Chart 4.4.8)

60

Chart 4.4.8; Percentage of certified VCC Dealers in the UK. Answering the question “ Is your company environmentally certified?”(n =12)

50%

25%

8%0%

17%

0%0%

20%

40%

60%

Yes, ISO 14001 Yes, Emas Yes, other. No, but we do havean environmental

program.

No, but we do havean environmental

diploma.

No

Perc

enta

ge

None of the non-certified dealerships are planning on becoming certified within the near future. Of the dealers already certified, 60 percent (3 of 5) stated that they chose to become certified due to encouragement from the car manufacturer. Environmental Chemicals More dealers used environmentally labelled chemicals in their workshop (83% - 10 of 12) than they sold in their shop (57% - 7 of 12). The distribution of the number of product groups sold is shown in chart 4.4.9. Chart 4.4.9; Percentage of product groups of environmentally labelled chemicals used in British VCC dealers’ shop and workshop ( nshop =7, nworkshop =10)

29%

0%

14%

30%

0%

57%40%

30%

0%

15%

30%

45%

60%

Less than 5 productgroups

5-10 product groups 10-20 product groups More than 20 productgroups

Perc

enta

ge

ShopWorkshop

The chief concern for the UK VCC dealers when choosing chemicals for use in their workshop was the cost of the product, followed by health aspects (Chart 4.4.10). Impact on the environment did however affect their selection, as well as customer demand and time consumption. The other aspect mentioned was compliance with VCC minimum standard. Chart 4.4.10; Main considerations when choosing chemicals for the workshop. (n = 12)

83%

33%17%11% 8%

50%

0%

20%

40%

60%

80%

100%

Product cost Environmentallyadapted/ ”green”

Health aspects Customer demand Time consuption Other

Perc

enta

ge

61

Environmental Communication Even though all of the VCC dealers claim to be working with the environment in some way, only 58 percent (7 of 12) are using this when promoting the company. Of the dealers that promote their work, most do this using brochures (6 of 7). 43 percent (3 of 7) had exhibitions in their showroom, 43 percent ( 3 of 7) used advertisements, and two of the respondents had some kind of exchange with schools and universities. Chart 4.4.11. Chart 4.4.11; Utilised methods of promoting environmental work.(n = 7)

86%

14% 14% 14%43%43% 29%

0%20%40%60%80%

100%

Brochures Advertisements Internet Exhibitions inthe showroom

Lectures,seminars oropen house

events

Exchangeprograms with

schools oruniversities

Other

Perc

enta

ge

Environmental Commitment

• All except two of the respondents had someone working with environmental issues, although the majority spent less than five hours a week on it.

• Half of the respondents (6 of 12) believe that they are doing a better job than other dealerships. Most were proud of their waste management system. The general feeling seemed to be that most dealers in England do not do a very good job at all with regard to environmental efforts, and at least the VCC dealers have some kind of program for this.

• 77 percent (8 of 12) of the dealers offer some kind of environmental service to their customers. Most take care of their customer’s old car parts (7 of 12), but quite a few also collect customers’ old chemicals (5 of 12) for recycling or reuse.

• The dealers interested in investing in the environment get a lot of help and support from their sales company (See chart 4.4.12). All except one receive information brochures about the environment, and advice concerning waste management. Only 27 percent (3 of 11) however, feel that they get help with educational matters.

Chart 4.4.12; Help/Support received from sales company regarding environmental issues. (n = 12)

83% 83%75%

92%

0%0%

25%

67%50% 50%

0%

20%

40%

60%

80%

100%

We do notreceive any

support

Informationbrochures

Training forsales

personnel inhow to

incorporateenvironmental

issues tofurther thecompany

Education Adviceconcerning

environmentallaws

Adviceconcerningchemicals

Adviceconcerning theenvironmentin general

Agreementswith external

wastemanagementcompanies

Adviceconcerning

wastemanagement

Other:

Perc

enta

ge

• Only two of the VCC dealers in the UK believe that their environmental work will lead to any

kind of competitive advantage for the firm. 58 percent (7 of 12) believe that it leads to satisfied customers and 42 percent (5 of 12) believe it creates more work for them.

62

4.4.2 Germany The questionnaire was made available to the German VCC dealers by their intranet and therefore it is impossible to calculate a response rate. The number of respondents amounted to 12. Environmental certification Only 8 percent (1 of 12) of the dealers were certified according to the ISO 14001 standard, see chart 4.4.13. None were certified according to the EMAS standard and 50 percent (6 of 12) did not seem to have any environmental work at all. Neither were any of the non-certified dealers planning on becoming certified within a near future. Chart 4.4.13; Percentage of certified VCC Dealers in Germany. Answering the question “ Is your company environmentally certified?” (n = 12)

8% 8%

25%

8%

50%

0%0%

10%20%30%40%50%60%

Yes, ISO 14001 Yes, Emas Yes, other. No, but we dohave an

environmentalprogram.

No, but we dohave an

environmentaldiploma.

No

Perc

enta

ge

Environmental Chemicals Like the German Volkswagen dealers, the German VCC dealers are not very proficient at using environmentally labelled chemicals. Only 58 percent (7 of 12) use them in their workshop, and 50 percent (6 of 12) sell them in their shop. As chart 4.4.14 below shows, the majority of the dealers use a minimal number of different environmental chemicals. Chart 4.4.14; Percentage of product groups of environmentally labelled chemicals used in German VCC dealers’ shop and workshop. ( nshop =6, nworkshop =7)

83%

17%0% 0%

14%14%0%

71%

0%

20%

40%

60%

80%

100%

Less than 5 productgroups

5-10 product groups 10-20 productgroups

More than 20product groups

Perc

enta

ge

ShopWorkshop

The most important when choosing what chemical to use in the workshop was stated to be the cost of the product (67% - 8 of 12), followed by environmental concerns (42% - 5 of 12) and health aspects (33% - 4 of 12) as chart 4.4.15 shows.

63

Chart 4.4.15; Main considerations when choosing chemicals for the workshop.(n = 12)

33%

67%

17%17%

42%

8%0%

10%20%30%40%50%60%70%

Product cost Environmentallyadapted/ ”green”

Health aspects Customer demand Time consuption Other

Perc

enta

ge

Environmental Communication Only a small percentage (25% - 3 of 12) promote their environmental work in some way, mostly through the internet or through exhibitions in the showroom, but also by utilising information brochures and advertisements. Environmental commitment

• 92 percent (11 of 12) of the dealers had personnel responsible for environmental issues, although the majority of these spent five hour or less on this.

• Half of the respondents thought that they were doing a better environmental work than other dealerships.

• When it comes to environmental services, only 58 percent (7 of 12) take care of their customers old car parts, and a mere 33 percent (4 of 12) take care of customers old chemicals for recycling/reuse purposes. (Chart 4.4.16)

Chart 4.4.16; Environmental services offered to customers.

17% 17%33%

58%

25% 8%

0%

20%

40%

60%

80%

Yes, anenvironmentally

labelled car wash.

Yes, a carservice performed

specifically toreduce the car’senvironmental

impact.

Yes, we takecare of customers’old chemicals forrecycling/reuse.

Yes, we takecare of customers’

old car parts forrecycling/reuse.

No Yes, other.Please specify:

Perc

enta

ge

• They get relatively good support from their sales company in quite a few areas, although there

are some important areas in which the support could be better.

64

Chart 4.4.17; Help/Support received from sales company regarding environmental issues

83%

17% 17%

75%58% 58%

0%

50%67%

8%

0%

20%

40%

60%

80%

100%

We do notreceive any

support

Informationbrochures

Training forsales personnel

in how toincorporate

environmentalissues to further

the companyproducts

Education Adviceconcerning

environmentallaws

Adviceconcerningchemicals

Adviceconcerning theenvironment in

general

Agreementswith external

wastemanagementcompanies

Adviceconcerning

wastemanagement

Other:

Perc

enta

ge

• The majority of the dealers (67% - 8 of 12) believe their environmental work leads to increased amounts of work for the dealership. 58 percent (7 of 12) believes it leads to satisfied customers. Only three of the 12 respondents believe it leads to a competitive advantage.

4.4.3 Websites and other sources When examining the Swedish website for Volvo Car Corporation44 quite a lot of information on environmental issues was found. There is a page allocated to the aftermarket were they mention that approximately half of the Swedish VCC dealerships have become certified. It also mentions that VCC provide agreements with waste management companies for their dealerships and that they sell reconditioned parts that lower impact on the environment. After searching the site another page regarding environmental activities at car dealerships was found. It is supposed to show the number of VCC dealerships in the different markets that have become environmentally certified. It also states that VCC has developed an environmental standard to aid their dealerships in their environmental work. They have also developed a questionnaire to evaluate their dealerships environmental work. The environmental information is fairly easy to find and there is a lot of information regarding environmental issues. The focus is mostly on EPD, their environmental program and their bi-fuel technology. EPD (Environmental Product Declarations), try to give the customer an overall view of their customer’s Volvo’s affect on the environment. The environmental program clearly indicates that VCC are concerned with the whole lifecycle of the car, divided into “use”, “recycling” “production” and “management”. Their bi-fuel technology allows the car to function on either gas or petrol.

44 There is no international website.

65

5 Conclusions

66

6 Recommendations

67

7 Discussion The information available on competitor analysis focuses mostly on the need for intelligence for the company as an entity and how to develop an intelligence department within the company. Competitor analysis and business intelligence also provides some tools for analysing data gathered about a competitor, like the strategic clock and the strategic group analysis (chapter 2.2). Very little theory was found, however, on how to perform a competitor analysis on a part of a company’s process or on their retailers further along the value chain. A fundamental concept of competitor analysis is that it provides some basis for comparison between competitors and the own company. Comparing processes can identify possible performance gaps and create an insight into potential improvement areas within the own company. The methods that are used for analysing a company as an entity are however not suitable for analysing data gathered on a part of a process. In this case another way of comparing the performance of the different brands and creating intelligence had to be developed. This resulted in the creation of a subjective scale where the brands were positioned based on the information and data that was obtained on them in this study. The brands were compared in three dimensions; their interest in environmental commitment, their interest in environmental marketing and their interest in environmental chemicals. The scale shows the approximate position of the companies in comparison to each other within these three important areas, and enables the identification of potential improvement areas or conversely possible areas of excellence. There are probably several ways this comparison could have been done. Another possibility could have been to compare the dealerships on some kind of numerical/quantitative basis. To do that it would have been necessary to work out some weighted system to calculate what the different responses were worth. An attempt was made to do this but it proved very time consuming and difficult to get an accurate estimate. In addition, in the end, it was still a matter of the subjective to decide what is important and should be allowed a strong influence on the results and what was less important. Another alternative was to narrow down the analysis and only look at a few major responses. This would however give a skewed picture of what is happening as some brands have different focus than others. As it is the results in chapter 4 or the data in appendix 3 also enables direct comparison between the different brands on specific issues. A large concern from the start has been to judge the ethical boundaries. Where should the line between what is ethical and what is not be drawn? This will probably always be an issue when performing a competitor analysis, especially if the information that is wanted is hard to come by. The fact is that dealerships are small companies, and as the focus was only on a small area of their work, it made information hard to find in the public area. The difficulty, in this case, lay in how the information needed was to be gathered and what lay within the ethical boundaries. To attain guidance in this area, competitor intelligence books were searched and although most of them contained some reference to this issue, mostly stating that it was a difficult issue and it was up to each and everyone’s own intuition to judge, only one book had some kind of guidelines (See chapter 2.4). Several employees working in different departments at VCC were also approached to give their advice on this matter. In the end an information gathering process was decided on which was deemed within the ethical boundaries. Another problem encountered was during the information gathering. It was assumed that, in the computerised world we live in, the companies would have ready access to a computer and email addresses. Especially as the countries targeted were all industrialised countries. This was however not the case. The access to the Internet varied greatly, making the information gathering more difficult. And although postal services was used when contacting VCC in the UK, this was not really an option when contacting the rest of the dealerships considering the limited time available for the study.

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General reflection As mentioned in Chapter 2.3.4, competing on the basis of creating an environmental concept or redefining the market by inventing new ways of doing things is only possible if the company is large enough to sustain the extra cost this will entail. Dealerships, particularly small ones, do not have this possibility. If they could and if it was economically viable, many dealerships would probably be very much more environmentally active than they are today. Nevertheless, as dealerships are usually fairly small, they are not able to exert pressure on their supplier or through research come up with new methods of doing things. Even though an ISO 14001 certification may be the best way to start the environmental work, this is rarely an option for small firms a certification is very expensive. Small companies usually operate on a minimum margin and cannot afford this scheme. Sometimes the manufacturer might even hinder the environmental process. For example, they might specify that only “tested and approved” products are allowed to be used on the car for the guarantee to be valid. This could mean that environmentally adapted products are not used as they have not been “tested and approved” by the manufacturer. So ultimately, the environmental work at car dealerships depends a lot on the car manufacturer’s commitment to environmental issues.

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References Books: Bouman, C Faulkner, D Competitive and corporate strategy, 1996, Irwin Bourque, Linda B, Fielder, Eve P. How to conduct self-administered and mail surveys, 1995, Sage

Publication, Inc, Camp, Robert C. Benchmarking; The Search for Industry Best Practices that Lead to

Superior Performance. 1993, New York: ASQC Quality Press. Fleisher, Craig S. Bensoussan, Babette E. Strategic and competitive analysis; Methods and techniques for

analysing business competition. 2002New Jersey: Prentice Hall. Fink, Arlene How to ask survey questions, 1995, Sage Publications, Inc. Johnson, G. Scholes, K. Exploring Corporate Strategy, 1999, 5th edition, Prentice Hall Europe. Kahaner, Larry Competitive intelligence : how to gather, analyse, and use information to

move your business to the top, 1997,New York: Simon & Schuster. Kotler, Philip Kotler on Marketing; How to create, win and dominate Markets. 1999,

New York: The Free Press. Kotler, Philip, Armstrong, Gary Principles of Marketing, 2001, New Jersey, 9th edition, Prentice-Hall Litwin, Mark S How to measure survey reliability and validity, The Survey Kit 7, 1995,

Sage Publication,Inc Sammon,W, Kurland,M. Spitalnic, R. Business Competitor intelligence; Methods for collecting, organizing

and using information. 1984, New York: John Wiley & Sons, Inc. Wiedersheim-Paul, F. Eriksson, L. Att utreda, forska och rapportera. 1991, Malmö: Liber Hermods. Advances in Applied Business Strategy, Supplement 2A, p5-48, 53-81, p137-151, p159-180. 1996 JAI Press Inc.

ISBN: 0-7623-0181-3 Articles: Porter, Michael E., van der Linde, Claes Green and competitive: Ending the stalemate, Sept-Oct, 1995, pp 120-

134, Harvard Business Review. Reinhardt, Forest L. Bringing the environment down to earth; Executive Summaries, Jul/Aug

1999 Vol. 77 Issue 4, p149-157, Harvard Business Review.

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Good things come in threes, article, 2002-11-29, Volkswagen environmental website Solar energy for Volkswagen dealers, article, 2002-09-04, Volkswagen environmental website, WWW-sources: Toyota www.toyota.co.jp www.toyota.com www.toyota.se Toyota Environmental Report http://www.toyota.co.jp/en/ci.html Audi www.audi.se www.audi.com Audi environmental report http://www.audi.com/rich_media/com/en/company/company_perspective/environmental_protection/environmental_protection/102744567807124986.pdf Daimler Chrysler www.daimlerchrysler.com www.daimlerchrysler.se Daimler Chrysler environmental report http://www.daimlerchrysler.com/index_e.htm?/environ/report2002/editorial_e.htm Mercedes-Benz www.mbusi.com http://www.mercedes-benz.se/ Daimler Chrysler Environmental Report http://www.daimlerchrysler.com/index_e.htm?/environ/report2002/editorial_e.htm Volkswagen www.volkswagen http://www.volkswagen-environment.de/ www.volkswagen.se Volkswagen Environmental Report http://www.volkswagen-environment.de/ FORESIGHT VEHICLE – ADVANCED MATERIALS AND STRUCTURES THEMATIC GROUP (FASMAT), Mission to the USA Automotive Industry (1999), H J Powell, A Seeds, D Boomer, D Biggs, C Rudd, G Smith, K Young, K Lindsey http://www.foresightvehicle.org.uk/news/documents/FASMAT-R.PDF The strategic clock http://www1.ximb.ac.in/users/fac/dpdash/dpdash.nsf/pages/BP_M6

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Contacts in connection with Volvo Car Corporation: Bay, Michael Volvo Cars Germany, Germany Book, Eeva-Liisa Volvo Cars North America, USA Halling, Petter Department of public affairs, Sweden Norrby, Li Volvo Cars Customer service, Sweden Mellby, Lennart Bilia Personbilar AB, South and West Region, Sweden Ohlsson, Eva Volvo Cars Department of Market Intelligence, Sweden. Persson, Malin Volvo Cars Customer Service, Sweden Pitts, John Volvo Cars UK, United Kingdom Staag, Roger Volvo Cars Customer Service, Sweden Shibata, Yoshiko Ford Motor Company, Japan Wahlen, Anders Volvo Personbilar, Sweden

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Appendix 1 Cover Letter Dear Sir or Madam, Please give me 5 minutes of your time. Link to the questionnaire: http://q.esmaker.com/?which=478 My name is Jenny Longworth and I am a final year student at Luleå University of Technology, Sweden. As part of my graduation project, I am trying to identify the environmental activities of car dealerships around the world, and for this I would greatly appreciate your assistance. I am hoping to carry out a comparison study between car dealerships in Sweden, the United Kingdom, the Netherlands, Germany, Japan and the USA. The aim of the survey is to establish to what extent car dealers:

• use environmentally compatible/”green” chemicals or products • offer any environmentally compatible/”green” services • promote their environmental work in any way

The results of the survey will be made available to all participants as soon as it has been completed. The names of any individual car dealerships will be kept strictly confidential, i.e. known only to myself and will not be referred to in the report. I hope, however, that I may contact you, if need be. If you have any questions, you are welcome to contact me at jenlon-6@student.luth.se. I would very much appreciate your participation!! Yours sincerely, Jenny Longworth

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Appendix 2 Environmental survey

Questionnaire

Please pick the alternative which best applies to your company.

1. Is your company environmentally certified?

Yes, ISO 14001

Yes, EMAS

Yes, other: _____________________________________

If Yes, please go to question 3

No, but we do hold have an environmental diploma from _______________

No, but we have an environmental program.

No

2. If No, are you planning on becoming certified within the next year?

Yes

No If No, please go to question 4

3. Why did (or do) you choose to become certified? Please pick the main reason only

Required by our car manufacturer

Competitors are accredited

Customer demand

To achieve a competitive advantage

Other: _______________________________

Don’t know

4. Do you have any personnel assigned to working with environmental issues?

Yes

No If No, please go to question 6.

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5. How much time does he/she allocate to environmental issues per week?

Less than 5 hours

5-10 hours

10-20 hours

More than 20 hours

6. Do you have environmentally labelled chemicals for sale in your shop? Yes

No If No, please go to question 8.

In question 7 and 9 I am interested in knowing the number of product groups in which you have environmentally friendly alternatives. A product group includes all products used for a specific purpose, e.g. wax.

7. How many environmentally labelled chemical product groups do you have in your shop? Less than 5 product groups

5-10 product groups

10-20 product groups

More than 20 product groups

8. Do you use environmentally labelled chemicals in your workshop?

Yes

No If No, please go to question 10

9. How many environmentally labelled chemical product groups do you use in your workshop?

Less than 5 product groups

5-10 product groups

10-20 product groups

More than 20 product groups 10. What are your company’s main considerations when deciding which chemicals to use in

the workshop? (Besides the function)? Please tick the TWO most important factors

Product cost

Environmental friendliness

Health aspects

Customer demand

Time consumption

Other, please specify: _______________________________________

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11. Do you have other products in your workshop or your store that are environmentally labelled? (Besides any environmentally labelled chemicals)

Yes

No If No, please go to question 13 12. Please specify what other products you have in your workshop or your store that are

environmentally labelled. (Besides any environmentally labelled chemicals)

______________________________________________________________________

__________________________________________________________

________________________________________________________________

13. Do you promote your environmental work in any way?

Yes

No If No, Please go to question 16

14. How do you promote your environmental work? Please pick all the alternatives that apply. Any comments will be appreciated.

Brochures

Advertisements

Internet

Direct mail

Exhibitions in the showroom

Lectures, seminars or open house events

Exchange programs with schools or universities

Other, please specify: ______________________________________

15. What have you promoted during the past year? (Within the environmental field)

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

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16. What help/support do you receive from your sales company regarding environmental issues? Please pick all the alternatives that apply. Any comments will be appreciated.

We do not receive any support ____________________________________

Information brochures__________________________________________

Training for sales personnel in how to incorporate environmental issues to further

the company products45 _______________________________________

Education46 ___________________________________________________

Advice concerning environmental laws _____________________________

Advice concerning chemicals _____________________________________

Advice concerning the environment in general _______________________

Agreements with external waste management companies _______________

Advice concerning waste management _____________________________

Other: _______________________________________________________

______________________________________________________________________

_________________________________________________________

17. When it comes to environmental issues, is there anything you believe can be improved on or performed that is not done today? -by yourselves, your sales company or car manufacturer.

_____________________________________________________________________________

_____________________________________________________________________________

______________________________________

18. Do you feel that there is any part of your environmental work that you do better than

other dealerships? No If No, please go to question 20

Yes

19. What part of your environmental work do you do better than others?

________________________________________________________________

________________________________________________________________

________________________________________________________________

45 Training for sales personnel refers to the instruction sales personnel receive in how to incorporate environmental activities into their sales pitch. 46 Education refers to general education for all the dealership personnel in general environmental issues.

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20. Do you offer any environmental services? Please pick all the alternatives that apply. Any comments will be appreciated.

Yes, an environmentally labelled car wash.

Yes, a car service performed specifically to reduce the car’s environmental

impact.

Yes, we take care of customers’ old chemicals for recycling/reuse.

Yes, we take care of customers’ old car parts for recycling/reuse.

No

Yes, other. Please specify:

________________________________________________________________

21. What does your environmental work lead to?

Please pick all the alternatives that apply

Satisfied customers

Competitive advantage

Higher turnover

Lower turnover

Increased amount of work

Other: __________________________________________________

22. In which country is your company situated?

Sweden

Great Britain

The Netherlands

Germany

USA

Japan

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23. Which of the following car brands does your company sell?

Mercedes-Benz

Toyota

Saab

Volvo

Audi

Volkswagen

Daimler Chrysler

24. What is the name of your company?

_____________________________________

25. What position do you hold?

_________________________________

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Appendix 3

Daimler Chrysler/Mercedes-Benz

Sweden, USA and The Netherlands

Survey Data

Mercedes-Benz, Netherlands

Mercedes-Benz, Daimler Chrysler, Sweden

Daimler Chrysler, USA

Q1. Is your company environmentally certified? Num

ber

of

resp

onde

nts

Perc

enta

ge

Num

ber

of

resp

onde

nts

Perc

enta

ge

Num

ber

of

resp

onde

nts

Perc

enta

ge

Yes, ISO 14001 2 100% 0 0% 0 0% Yes, Emas 0 0% 0 0% 0 0% Yes, other. 0 0% 2 29% 2 29% No, but we do have an environmental program. 0 0% 2 29% 3 43% No, but we do have an environmental diploma. 0 0% 1 14% 0 0% No 0 0% 2 29% 2 29% Total 2 100% 7 100% 7 100%

Q2. Are you planning on becoming certified within the next year? Yes 0 0% 4 80% 0 0% No 0 0% 1 20% 5 100% Total 0 0% 5 100% 5 100%

Q3. Why did (or do) you choose to become certified? Required by our car manufacturer 0 0% 2 33% 1 50%

Competitors are accredited 0 0% 1 17% 0 0% Customer demand 0 0% 1 17% 0 0% To achieve a competitive advantage 1 50% 2 33% 1 50% Other 1 50% 0 0% 0 0% Don’t know 0 0% 0 0% 0 0% Total 2 100% 6 100% 2 100%

Q4. Do you have any personnel assigned to working with environmental issues? Yes 2 100% 5 71% 5 71% No 0 0% 2 29% 2 29% Totalt 2 100% 7 100% 7 100%

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Q5. How much time does he/she allocate to environmental issues per week?

Less than 5 hours 1 50% 4 80% 3 75% 5-10 hours 1 50% 0 0% 1 25% 10-20 hours 0 0% 1 20% 0 0% More than 20 hours 0 0% 0 0% 0 0% Total 2 100% 5 100% 4 100%

Q6. Do you have environmentally labelled chemicals for sale in your shop? Yes 2 100% 5 71% 5 71% No 0 0% 2 29% 2 29% Total 2 100% 7 100% 7 100%

Q7. How many environmentally labelled chemical product groups do you have in your shop? Less than 5 product groups 1 50% 2 40% 2 40% 5-10 product groups 0 0% 2 40% 2 40% 10-20 product groups 0 0% 1 20% 0 0% More than 20 product groups 1 50% 0 0% 1 20% Total 2 100% 5 100% 5 100%

Q8. Do you use environmentally labelled chemicals in your workshop? Yes 2 100% 6 86% 5 71% No 0 0% 1 14% 2 29% Total 2 100% 7 100% 7 100%

Q9. How many environmentally labelled chemical product groups do you use in your workshop? Less than 5 product groups 0 0% 3 50% 2 40% 5-10 product groups 1 50% 3 50% 2 40% 10-20 product groups 0 0% 0 0% 0 0% More than 20 product groups 1 50% 0 0% 1 20% Total 2 100% 6 100% 5 100%

Q10. What are your company's main considerations when deciding which chemicals to use in the workshop? (Besides the function)? Product cost 0 0% 3 43% 6 86% Environmentally adapted/ ”green” 2 100% 4 57% 0 0% Health aspects 2 100% 5 71% 3 43% Customer demand 0 0% 1 14% 2 29% Time consumption 0 0% 0 0% 0 0% Other 0 0% 0 0% 1 14% Total 2 200% 7 186% 7 171% Q11. Do you have other products in your workshop or your shop that are environmentally labelled? (Besides any environmentally labelled chemicals) Yes 1 50% 2 29% 2 29% No 1 50% 5 71% 5 71% Total 2 100% 7 100% 7 100%

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Q13. Do you promote your environmental work in any way? Yes 1 50% 4 57% 1 14% No 1 50% 3 43% 6 86% Total 2 100% 7 100% 7 100%

Q14. How do you promote your environmental work? Brochures 1 50% 4 57% 0 0% Advertisements 1 50% 1 14% 1 100% Internet 1 50% 2 29% 0 0% Exhibitions in the showroom 1 50% 1 14% 0 0% Lectures, seminars or open house events 0 0% 0 0% 0 0% Exchange programs with schools or universities 0 0% 0 0% 0 0% Other 0 0% 1 14% 0 0% Total 2 200% 7 129% 1 100%

Q16. What help/support do you receive from your sales company regarding environmental issues? We do not receive any support 0 0% 0 0% 1 17% Information brochures 2 100% 6 86% 4 67% Training for sales personnel in how to incorporate environmental issues to further the company products 2 100% 2 29% 0 0% Education 0 0% 1 14% 2 33% Advice concerning environmental laws 0 0% 1 14% 3 50% Advice concerning chemicals 1 50% 2 29% 3 50% Advice concerning the environment in general 1 50% 3 43% 0 0% Agreements with external waste management companies 2 100% 3 43% 3 50% Advice concerning waste management 1 50% 1 14% 2 33% Other: 0 0% 1 14% 0 0% Total 2 450% 7 286% 6 300%

Q18. Do you feel that there is any part of your environmental work that you do better than other dealerships? Yes 1 50% 1 14% 2 33% No 1 50% 6 86% 4 67% Total 2 100% 7 100% 6 100%

Q20. Do you offer any environmental services? Yes, an environmentally labelled car wash. 1 50% 0 0% 1 14% Yes, a car service performed specifically to reduce the car’s environmental impact. 0 0% 1 14% 1 14% Yes, we take care of customers’ old chemicals for recycling/reuse. 1 50% 3 43% 5 71%

Yes, we take care of customers’ old car parts for recycling/reuse. 2 100% 2 29% 6 86% No 0 0% 3 43% 1 14% Yes, other. 0 0% 0 0% 1 14% Total 2 200% 7 129% 7 214%

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Q21. What does your environmental work lead to? Satisfied customers 1 50% 5 71% 5 71% Competitive advantage 1 50% 5 71% 0 0% Higher turnover 0 0% 0 0% 0 0% Lower turnover 0 0% 0 0% 1 14% Increased amount of work 2 100% 3 43% 3 43% Other 1 50% 0 0% 2 29% Total 2 250% 7 186% 7 157%

Open-ended questions and answers.

Q3. Why did (or do) you choose to become certified? If ”Other” was chosen, please specify:

Daimler Chrysler/ Mercedes-Benz Sweden - Daimler Chrysler/ Mercedes-Benz Netherlands To be sure that the environmental influence is balanced Daimler Chrysler/ Mercedes-Benz USA -

Q10. What are your company's main considerations when deciding which chemicals to use in the workshop? (Besides the function)? If other was chosen, please specify:

Daimler Chrysler/ Mercedes-Benz Sweden - Daimler Chrysler/ Mercedes-Benz Netherlands - Daimler Chrysler/ Mercedes-Benz USA -

Q12. Please specify what other products you have in your workshop or your shop that are environmentally labelled. (Besides any environmentally labelled chemicals)

Daimler Chrysler/ Mercedes-Benz Sweden Freon 134 Daimler Chrysler/ Mercedes-Benz Netherlands Brake pad absorption, material cleaning cloths etc Daimler Chrysler/ Mercedes-Benz USA

We use an oil furnace to burn the used oil. This also adds heat to the shop and we do not need to get rid of the oil in other means.

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There are a large amount of chems used in a dealership, from brake cleaner to parts cleaners and automotive fluids ie. oil, trans and brake fluids etc... We also use freon and car cleaning chems for detailing cars. State and federal law requires that we keep a binder of each chemical used and its environmental impact if any. It also contains any hazards to health in any way. These binders are referred to as MSDS binders and all businesses; with over 20 employees are required to keep one if they have any chems on their property. MSDS is short for Material Safety Data Sheet.

Q14. How do you promote your environmental work? If other was chosen, please specify:

Daimler Chrysler/ Mercedes-Benz Sweden Direct customer contact Daimler Chrysler/ Mercedes-Benz Netherlands - Daimler Chrysler/ Mercedes-Benz USA -

Q15. What have you promoted during the past year? (Within the environmental field)

Daimler Chrysler/ Mercedes-Benz Sweden The huge development of environmental consciousness Daimler Chrysler/ Mercedes-Benz Netherlands

fuel consumption, asbestos free brake and clutch materials, cfk-free aerosols, environment-friendly carwash

Daimler Chrysler/ Mercedes-Benz USA -

Q16. What help/support do you receive from your sales company regarding environmental issues? If other was chosen, please specify:

Daimler Chrysler/ Mercedes-Benz Sweden Community service Daimler Chrysler/ Mercedes-Benz Netherlands - Daimler Chrysler/ Mercedes-Benz USA -

Q17. When it comes to environmental issues, is there anything you believe can be improved on or performed that is not done today? -by yourselves, your sales company or car manufacturer.

Daimler Chrysler/ Mercedes-Benz Sweden Yes, there is plenty that can be done. Daimler Chrysler/ Mercedes-Benz Netherlands

We have given much effort already and expect to increase this in the future. But for now there are no concrete improvements planned.

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Self: improve waste disposal, Sales company: better agreements with suppliers, Manufacturer: Use less package material, use cleaner fuel (e.g. H2)

Daimler Chrysler/ Mercedes-Benz USA None that i can think of None

Personally I want to see alternative fuels put to use. We have the means and technology to move beyond Gasoline and Deisel. The manufacturers d show interest, but it should be sooner rather than later.

Q19. Do you feel that there is any part of your environmental work that you do better than other dealerships? - What part of your environmental work do you do better than others?

Daimler Chrysler/ Mercedes-Benz Sweden Taking care of oil filters, fuel filters, glycol. Daimler Chrysler/ Mercedes-Benz Netherlands

We don't do things better, but we think we are ahead of some dealers by using green products.

Daimler Chrysler/ Mercedes-Benz USA None that I know of. Oil burning and antifreeze coolant recycling.

Q20. Do you offer any environmental services? If other was chosen please specify:

Daimler Chrysler/ Mercedes-Benz Sweden - Daimler Chrysler/ Mercedes-Benz Netherlands - Daimler Chrysler/ Mercedes-Benz USA We recycle oils antifreeze and tires

Q21. What does your environmental work lead to? If other was chosen, please specify:

Daimler Chrysler/ Mercedes-Benz Sweden - Daimler Chrysler/ Mercedes-Benz Netherlands - Daimler Chrysler/ Mercedes-Benz USA

Less expensive heat in the work place. Also cost of anti freeze is less costly to customers

A better environment

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Toyota

Sweden and Germany Survey Data

Toyota, Sweden Toyota, USA

Q1. Is your company environmentally certified? N

umbe

r of

re

spon

dent

s

Perc

enta

ge

Num

ber

of

resp

onde

nts

Perc

enta

ge

Yes, ISO 14001 4 27% 1 20% Yes, Emas 0 0% 1 20% Yes, other. 1 7% 1 20% No, but we do have an environmental program. 9 60% 1 20% No, but we do have an environmental diploma. 1 7% 0 0% No 0 0% 1 20% Total 15 100% 5 100%

Q2. Are you planning on becoming certified within the next year?

Yes 5 50% 1 50% No 5 50% 1 50% Total 10 100% 2 100%

Q3. Why did (or do) you choose to become certified? Required by our car manufacturer 8 80% 1 25% Competitors are accredited 0 0% 0 0% Customer demand 0 0% 1 25%

To achieve a competitive advantage 2 20% 1 25% Other 0 0% 1 25% Don’t know 0 0% 0 0% Total 10 100% 4 100%

Q4. Do you have any personnel assigned to working with environmental issues? Yes 14 93% 5 100% No 1 7% 0 0% Total 15 100% 5 100%

Q5. How much time does he/she allocate to environmental issues per week? Less than 5 hours 12 86% 4 80% 5-10 hours 2 14% 1 20% 10-20 hours 0 0% 0 0% More than 20 hours 0 0% 0 0% Total 14 100% 5 100%

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Q6. Do you have environmentally labelled chemicals for sale in your shop? Yes 11 73% 3 60% No 4 27% 2 40% Total 15 100% 5 100%

Q7. How many environmentally labelled chemical product groups do you have in your shop? Less than 5 product groups 6 60% 0 0% 5-10 product groups 3 30% 1 33% 10-20 product groups 1 10% 2 67% More than 20 product groups 0 0% 0 0% Total 10 100% 3 100%

Q8. Do you use environmentally labelled chemicals in your workshop? Yes 15 100% 4 80% No 0 0% 1 20% Total 15 100% 5 100%

Q9. How many environmentally labelled chemical product groups do you use in your workshop? Less than 5 product groups 6 43% 0 0% 5-10 product groups 6 43% 2 50% 10-20 product groups 2 14% 2 50% More than 20 product groups 0 0% 0 0% Total 14 100% 4 100%

Q10. What are your company's main considerations when deciding which chemicals to use in the workshop? (Besides the function)? Product cost 6 40% 3 60% Environmentally adapted/ ”green” 6 40% 2 40% Health aspects 7 47% 3 60% Customer demand 0 0% 0 0% Time consumption 1 7% 0 0% Other 3 20% 0 0% Total 15 153% 5 160%

Q11. Do you have other products in your workshop or your shop that are environmentally labelled? (Besides any environmentally labelled chemicals) Yes 7 54% 2 40% No 6 46% 3 60% Total 13 100% 5 100%

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Q13. Do you promote your environmental work in any way?

Yes 10 71% 2 40% No 4 29% 3 60% Total 14 100% 5 100%

Q14. How do you promote your environmental work? Brochures 10 100% 1 50% Advertisements 5 50% 1 50% Internet 3 30% 0 0% Exhibitions in the showroom 5 50% 0 0%

Lectures, seminars or open house events 1 10% 1 50% Exchange programs with schools or universities 0 0% 0 0% Other 1 10% 1 50% Total 10 250% 2 200%

Q16. What help/support do you receive from your sales company regarding environmental issues? We do not receive any support 0 0% 0 0% Information brochures 12 86% 3 60% Training for sales personnel in how to incorporate environmental issues to further the company products 6 43% 1 20% Education 9 64% 2 40% Advice concerning environmental laws 10 71% 4 80% Advice concerning chemicals 9 64% 5 100% Advice concerning the environment in general 6 43% 0 0%

Agreements with external waste management companies 8 57% 4 80% Advice concerning waste management 6 43% 3 60% Other: 1 7% 0 0% Total 14 479% 5 440%

Q18. Do you feel that there is any part of your environmental work that you do better than other dealerships? Yes 4 29% 1 20% No 10 71% 4 80% Total 14 100% 5 100%

90

Q20. Do you offer any environmental services? Yes, an environmentally labelled car wash. 1 7% 1 20% Yes, a car service performed specifically to reduce the car’s environmental impact. 5 36% 0 0% Yes, we take care of customers’ old chemicals for recycling/reuse. 9 64% 5 100%

Yes, we take care of customers’ old car parts for recycling/reuse. 7 50% 3 60% No 4 29% 0 0% Yes, other. 0 0% 1 20% Total 14 186% 5 200%

Q21. What does your environmental work lead to? Satisfied customers 10 71% 3 60% Competitive advantage 9 64% 1 20% Higher turnover 4 29% 0 0% Lower turnover 0 0% 0 0% Increased amount of work 3 21% 1 20% Other 1 7% 3 60% Total 14 193% 5 160%

Open-ended questions and answers. Q3. Why did (or do) you choose to become certified? If ”Other” was chosen, please specify: Toyota Sweden - Toyota USA Required Q10. What are your company's main considerations when deciding which chemicals to use in the workshop? (Besides the function)? If other was chosen, please specify: Toyota Sweden The possibility to limit the number of suppliers. Purchasing in bulk to reduce the amount of waste packaging Toyota USA - Q12. Please specify what other products you have in your workshop or your shop that are environmentally labelled. (Besides any environmentally labelled chemicals) Toyota Sweden Batteries and tyres Brake pads, clutch material Tyres (2 respondents) Toyota USA - Q14. How do you promote your environmental work? If other was chosen, please specify: Toyota Sweden - Toyota USA -

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Q15. What have you promoted during the past year? (Within the environmental field) Toyota Sweden Environmental control, recycling of used products.

Advertisement for ISO 14001. Customer meetings, direct mail to different customer segments, general environmental conversations with customers in the showroom.

Toyota Prius (3 respondents) Toyota's 8 steps (2 respondents) Tyres Toyota USA Hydro parts washers, ZEP products Recycling waste oil, blocks, tyres Q16. What help/support do you receive from your sales company regarding environmental issues? If other was chosen, please specify:

Toyota Sweden We have, under guidance of Toyota Sweden, started an environmental certification project together with other dealerships.

Toyota USA - Q17. When it comes to environmental issues, is there anything you believe can be improved on or performed that is not done today? -by yourselves, your sales company or car manufacturer.

Toyota Sweden Yes, there is always a way to become better. We work after the word Kaizen

More training for sales personnel for new models. The sales company's environmental consciousness should be larger.

When we have achieve our certification, a lot of things will probably have changed.

We are, at the moment, trying to achieve certification. This will probably lead to improvements at our dealership. When it comes to our manufacturer we know they invest a lot to improve their products and their production in a, for the environment, positive way. They are also involved in environmental projects outside of their core industry, like the development of trees that better absorb pollution.

More eco cars. More chemicals that are right. In Toyota we work with continuous improvements Yes, we can become better at using environmental products YES

Toyota USA In the automotive industry this issue seems to have just become important. Furthering education in this area would help.

Recycle more body parts. More recycling. Q19. Do you feel that there is any part of your environmental work that you do better than other dealerships? - What part of your environmental work do you do better than others?

Toyota Sweden

We have exact statistics on all our waste. We have a computer program that holds all our chemicals, in other words, we know exactly what chemicals we use. We have folder that work in the same way for all departments. We even know what chemicals are on the OBS or limited list. We have a commitment from all employees and the environmental management group. We believe we are worthy of a ISO14001 certificate from DNV.

Prius Working toward ISO14001 certification.

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Toyota USA We heat our buildings with waste oil Q20. Do you offer any environmental services? If other was chosen please specify: Toyota Sweden - Toyota USA - Q21. What does your environmental work lead to? If other was chosen, please specify: Toyota Sweden Better working environment. Toyota USA Cost saving. A future for our kids.

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Volkswagen/Audi

Sweden, USA and The Netherlands and Germany Survey Data

Q1. Is your company environmentally certified? V

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Q1. Is your company environmentally certified? N

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Yes, ISO 14001 0 0% 2 13% 0 0% 4 11% Yes, Emas 1 25% 0 0% 0 0% 1 3% Yes, other. 2 50% 2 13% 3 60% 8 23% No, but we do have an environmental program. 1 25% 8 50% 1 20% 7 20% No, but we do have an environmental diploma. 0 0% 0 0% 1 20% 6 17% No 0 0% 4 25% 0 0% 9 26% Total 4 100% 16 100% 5 100% 35 100% Q2. Are you planning on becoming certified within the next year? Yes 0 0% 7 58% 0 0% 3 17% No 1 100% 5 42% 2 100% 15 83% Total 1 100% 12 100% 2 100% 18 100%

Q3. Why did (or do) you choose to become certified? Required by our car manufacturer 1 33% 2 18% 2 67% 9 53% Competitors are accredited 0 0% 0% 0 0% 0 0% Customer demand 0 0% 2 18% 0 0% 1 6%

To achieve a competitive advantage 1 33% 5 45% 0 0% 6 35% Other 1 33% 1 9% 1 33% 1 6% Don’t know 0 0% 1 9% 0 0% 0 0% Total 3 100% 11 100% 3 100% 17 100%

Q4. Do you have any personnel assigned to working with environmental issues? Yes 1 25% 14 88% 4 80% 34 97% No 3 75% 2 13% 1 20% 1 3% Total 4 100% 16 100% 5 100% 35 100%

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Q5. How much time does he/she allocate to environmental issues per week? Less than 5 hours 1 100% 5 36% 3 75% 32 94% 5-10 hours 0 0% 6 43% 1 25% 2 6% 10-20 hours 0 0% 2 14% 0 0% 0 0% More than 20 hours 0 0% 1 7% 0 0% 0 0% Total 1 100% 14 100% 4 100% 34 100%

Q6. Do you have environmentally labelled chemicals for sale in your shop? Yes 1 25% 13 81% 4 80% 19 54% No 3 75% 3 19% 1 20% 16 46% Total 4 100% 16 100% 5 100% 35 100%

Q7. How many environmentally labelled chemical product groups do you have in your shop? Less than 5 product groups 0 0% 3 23% 2 50% 8 42% 5-10 product groups 1 100% 4 31% 1 25% 8 42% 10-20 product groups 0 0% 4 31% 0 0% 3 16% More than 20 product groups 0 0% 2 15% 1 25% 0 0% Total 1 100% 13 100% 4 100% 19 100%

Q8. Do you use environmentally labelled chemicals in your workshop? Yes 4 100% 14 88% 5 100% 21 60% No 0 0% 2 13% 0 0% 14 40% Total 4 100% 16 100% 5 100% 35 100%

Q9. How many environmentally labelled chemical product groups do you use in your workshop? Less than 5 product groups 1 25% 5 36% 3 60% 11 52% 5-10 product groups 3 75% 3 21% 2 40% 7 33% 10-20 product groups 0 0% 4 29% 0 0% 2 10% More than 20 product groups 0 0% 2 14% 0 0% 1 5% Total 4 100% 14 100% 5 100% 21 100% Q10. What are your company's main considerations when deciding which chemicals to use in the workshop? (Besides the function)? Product cost 4 100% 6 38% 3 60% 21 66%

Environmentally adapted/ ”green” 1 25% 3 19% 0 0% 15 47% Health aspects 0 0% 15 94% 2 40% 13 41% Customer demand 0 0% 2 13% 4 80% 3 9% Time consumption 2 50% 2 13% 0 0% 9 28% Other 1 25% 0 0% 0 0% 1 3% Total 4 200% 16 175% 5 180% 32 194%

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Q11. Do you have other products in your workshop or your shop that are environmentally labelled? (Besides any environmentally labelled chemicals) Yes 0 0% 8 50% 0 0% 7 21% No 4 100% 8 50% 5 100% 27 79% Total 4 100% 16 100% 5 100% 34 100%

Q13. Do you promote your environmental work in any way? Yes 1 25% 11 69% 2 40% 16 47% No 3 75% 5 31% 3 60% 18 53% Total 4 100% 16 100% 5 100% 34 100%

Q14. How do you promote your environmental work? Brochures 0 0% 10 91% 1 50% 8 50% Advertisements 1 100% 4 36% 1 50% 14 88% Internet 1 100% 3 27% 0 0% 1 6% Exhibitions in the showroom 0 0% 3 27% 0 0% 7 44% Lectures, seminars or open house events 0 0% 3 27% 1 50% 2 13% Exchange programs with schools or universities 0 0% 3 27% 0 0% 2 13% Other 0 0% 1 9% 0 0% 5 31% Total 1 200% 11 245% 2 150% 16 244%

Q16. What help/support do you receive from your sales company regarding environmental issues? We do not receive any support 0 0% 3 19% 0 0% 0% Information brochures 2 50% 10 63% 4 80% 23 66%

Training for sales personnel in how to incorporate environmental issues to further the company products 2 50% 4 25% 2 40% 2 6% Education 1 25% 4 25% 1 20% 6 17% Advice concerning environmental laws 2 50% 8 50% 2 40% 24 69% Advice concerning chemicals 1 25% 9 56% 2 40% 24 69% Advice concerning the environment in general 0 0% 7 44% 0 0% 22 63% Agreements with external waste management companies 2 50% 4 25% 2 40% 21 60% Advice concerning waste management 1 25% 6 38% 1 20% 24 69% Other: 0 0% 0 0% 0 0% 4 11% Total 4 275% 16 344% 5 280% 35 429%

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Q18. Do you feel that there is any part of your environmental work that you do better than other dealerships?

Yes 3 75% 4 25% 3 60% 24 69% No 1 25% 12 75% 2 40% 11 31% Total 4 100% 16 100% 5 100% 35 100%

Q20. Do you offer any environmental services? Yes, an environmentally labelled car wash. 0 0% 3 20% 0 0% 8 24% Yes, a car service performed specifically to reduce the car’s environmental impact. 1 25% 4 27% 0 0% 5 15% Yes, we take care of customers’ old chemicals for recycling/reuse. 4 100% 13 87% 2 40% 18 53% Yes, we take care of customers’ old car parts for recycling/reuse. 4 100% 9 60% 1 20% 26 76% No 0 0% 1 7% 3 60% 6 18% Yes, other. 0 0% 2 13% 0 0% 4 12% Total 4 225% 15 213% 5 120% 34 197%

Q21. What does your environmental work lead to? Satisfied customers 3 75% 14 88% 3 60% 23 68% Competitive advantage 0 0% 10 63% 1 20% 17 50% Higher turnover 0 0% 4 25% 0 0% 2 6% Lower turnover 0 0% 1 6% 0 0% 0 0% Increased amount of work 1 25% 6 38% 1 20% 15 44% Other 2 50% 1 7% 1 20% 4 12% Total 4 150% 16 225% 5 120% 34 179%

Open-ended questions and answers.

Q3. Why did (or do) you choose to become certified? If ”Other” was chosen, please specify: Volkswagen/Audi Sweden The good working environment Volkswagen/ Audi Netherlands Governmental demands Volkswagen/ Audi USA Regulated by local government

Q10. What are your company's main considerations when deciding which chemicals to use in the workshop? (Besides the function)? If other was chosen, please specify: Volkswagen/Audi Sweden -

97

Volkswagen/Audi Netherlands - Volkswagen/Audi USA - Volkswagen/Audi Germany Central purchasing by wholesaler

Q12. Please specify what other products you have in your workshop or your shop that are environmentally labelled. (Besides any environmentally labelled chemicals)

Volkswagen/Audi Sweden Engine heater, oilfree tyres, environmentally adapted tyre spikes. Batteries, brake pads, clutch liners. Cars Batteries Volkswagen/Audi Netherlands - Volkswagen/Audi USA - Volkswagen/Audi Germany Reusable cloths (are cleaned). Spare parts recycling, e.g. battery, bumper etc.

Cloths, seat and steering-wheel protection sheets rented by another company which cleans and reuses them. Water regeneration

Parts that are out-of-order are recoditioned and used as exchange parts.

Q14. How do you promote your environmental work? If other was chosen, please specify: Volkswagen/Audi Sweden Official environmental policy Volkswagen/Audi Netherlands - Volkswagen/Audi USA - Volkswagen/Audi Germany On the bills.

Q15. What have you promoted during the past year? (Within the environmental field) Volkswagen/Audi Sweden LOTS system

I only buy products from environmental approved companys Car recycling The environmental policy

Environmental analysis in conjunction with ISO14001 certification Internal information within the company Window cleaning Volkswagen/Audi Netherlands Bulk oil Volkswagen/Audi USA Friendly parts cleaner Volkswagen/Audi Germany No costs for disposal The paint shop. Volkswagen original catalysts. Professional disposal of used tyres.

"Ecoproject" - a corporate campaignof the city (Agenda 21) Certification according to the DEKRA checklist. Tyre disposal.

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For a clean future - environmental protection and recycling at our dealership

The DEKRA ceritficate and quality and operational safety Car wash. Reception point for end-of-life-vehicles.

Q16. What help/support do you receive from your sales company regarding environmental issues? If other was chosen, please specify: Volkswagen/Audi Sweden - Volkswagen/Audi Netherlands - Volkswagen/Audi USA - Volkswagen/Audi Germany Information rearding disposal.

Help with all kinds of questions regarding disposal and environm. protection

Q17. When it comes to environmental issues, is there anything you believe can be improved on or performed that is not done today? -by yourselves, your sales company or car manufacturer. Volkswagen/Audi Sweden NO

That we should try even harder to exchange the old cars and that we will, together work even harder to recycle the materials from scrap cars

Common view on work environment issues More education

Increase the environmental conciousness of the employees. Minimise the number of suppliers

Better program for product specifications, like the one Scania has

Better att correctly sorting the waste (waste management) Volkswagen/ Audi Netherlands No

Volkswagen/ Audi USA Most green chemicals do not work as well as the non-greaan.

A program implemented in the USA that would promote recycling of used automotive parts. Many parts are plastics and aluminum that could be recycled.

Recycling of containers for expired aerosols Volkswagen/Audi Germany Saving of packaging

Improved logistics at manufacturer and wholesaler and therefore savings of package and shorter transportation ways.

Standardized laws that don't differ from country to country. No, not in Germany.

Authorities should increase control of dealers who don't participate in the VW/Audi advisory service.

Nein.

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We consider the support and advice optimal

Volkswagen new container system; sufficient amount should be guaranteed

reduction of packaging material and one-way-items Through dealership resp. manufacturer

Information and training by the manufacturer. Transfer of information by the responsible person for environment

Q19. Do you feel that there is any part of your environmental work that you do better than other dealerships? - What part of your environmental work do you do better than others? Volkswagen/Audi Sweden Don't think smaller workshops recycle. Recycling/waste management.

Offer customer alternatives - environmentally adapted vs hazardous products.

Volkswagen/ Audi Netherlands Waste control.

Volkswagen/ Audi USA We recycle many used automobiles through outside companies when it is cost effective (does not cost us to do so).

Recycling of oils, oils filters, antifreeze and hazardous liquids.

Friendly parts cleaners and low or zero residue cleaners and lubricants.

Volkswagen/Audi Germany We save time through the workshop disposal system of the manufacturer.

Cleanliness. Waste disposal.

Free take-back of tyres from free workshops and tyre services Organisation of disposal. Cleaning of waste water.

Waste management certification. Alternative energyblock heat and power plant.

Disposal of used parts. Disposal system.

100% separation of recyclable waste. Disposal of waste by licensed waste companies. Achieved an environmental award.

Environmentally friendly disposal with certificate. Separation of waste.

Waste separation, Information to all employees regarding recycling, consequent check of appliance guidelines.

We participate in the extended environmental advise service of DEKRA

Correct waste disposal, separation into different waste fractions All aspects of disposal

Concept for waste disposal at the workshop and support by the wholesaler

100

Separate collection of waste fractions, waste water diary Waste management, free of charge disposal. separate collection of waste

Q20. Do you offer any environmental services? If other was chosen please specify: Volkswagen/Audi Sweden - Volkswagen/ Audi Netherlands - Volkswagen/ Audi USA - Volkswagen/Audi Germany Batteries, used oil. Gas conversion. Reception point ELV

Q21. What does your environmental work lead to? If other was chosen, please specify: Volkswagen/Audi Sweden Better control of hazardous waste costs Volkswagen/ Audi Netherlands -

Volkswagen/ Audi USA Makes you feel as if you are at least trying to be environmentally friendly, minimize waste and it's impact.

Self satisfaction on reducing hazardous waste into the environment.

Volkswagen/Audi Germany Tidiness in the workshop area.

Time saving by participation at the VW waste disposal system (no request for different offers, identic procedure in time fixing, complete handling of the disposal documentation)

Well ordered working procedure

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Volvo Car Corporation

Sweden, The United Kingdom and Germany Survey Data

VCC, Sweden VCC, UK VCC, Germany

Q1. Is your company environmentally certified? N

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Yes, ISO 14001 9 47% 3 25% 1 8% Yes, Emas 0 0% 0 0% 0 0% Yes, other. 0 0% 2 17% 1 8%

No, but we do have an environmental program. 6 32% 6 50% 3 25% No, but we do have an environmental diploma. 1 5% 1 8% 1 8% No 3 16% 0 0% 6 50% Total 19 100% 12 100% 12 100%

Q2. Are you planning on becoming certified within the next year?

Yes 8 80% 0 0% 0 0% No 2 20% 6 100% 10 100% Total 10 100% 6 100% 10 100%

Q3. Why did (or do) you choose to become certified?

Required by our car manufacturer 4 24% 3 60% 0%

Competitors are accredited 0 0% 0 0% 0% Customer demand 2 12% 0 0% 0%

To achieve a competitive advantage 11 65% 1 20% 0%

Other 0 0% 1 20% 2 100% Don’t know 0 0% 0 0% 0% Total 17 100% 5 100% 2 100%

Q4. Do you have any personnel assigned to working with environmental issues?

Yes 18 95% 9 75% 11 92% No 1 5% 3 25% 1 8% Total 19 100% 12 100% 12 100%

Q5. How much time does he/she allocate to environmental issues per week?

102

Less than 5 hours 6 33% 8 89% 10 91% 5-10 hours 8 44% 1 11% 1 9% 10-20 hours 3 17% 0 0% 0 0% More than 20 hours 1 6% 0 0% 0 0% Total 18 100% 9 100% 11 100%

Q6. Do you have environmentally labelled chemicals for sale in your shop?

Yes 19 100% 7 58% 6 50% No 0 0% 5 42% 6 50% Total 19 100% 12 100% 12 100%

Q7. How many environmentally labelled chemical product groups do you have in your shop?

Less than 5 product groups 3 16% 4 57% 5 83% 5-10 product groups 10 53% 2 29% 1 17% 10-20 product groups 6 32% 0 0% 0 0% More than 20 product groups 0 0% 1 14% 0 0% Total 19 100% 7 100% 6 100%

Q8. Do you use environmentally labelled chemicals in your workshop?

Yes 18 95% 10 83% 7 58% No 1 5% 2 17% 5 42% Total 19 100% 12 100% 12 100%

Q9. How many environmentally labelled chemical product groups do you use in your workshop?

Less than 5 product groups 5 28% 4 40% 5 71% 5-10 product groups 11 61% 3 30% 1 14% 10-20 product groups 2 11% 3 30% 1 14% More than 20 product groups 0 0% 0 0% 0 0% Total 18 100% 10 100% 7 100%

Q10. What are your company's main considerations when deciding which chemicals to use in the workshop? (Besides the function)?

Product cost 3 16% 10 83% 8 67%

Environmentally adapted/ ”green” 8 42% 4 33% 5 42%

Health aspects 14 74% 6 50% 4 33% Customer demand 5 26% 1 11% 1 8% Time consumption 0 0% 1 8% 2 17% Other 2 11% 2 17% 2 17% Total 19 168% 12 203% 12 183%

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Q11. Do you have other products in your workshop or your shop that are environmentally labelled? (Besides any environmentally labelled chemicals)

Yes 11 58% 3 25% 5 42% No 8 42% 9 75% 7 58% Total 19 100% 12 100% 12 100%

Q13. Do you promote your environmental work in any way?

Yes 13 68% 7 58% 9 75% No 6 32% 5 42% 3 25% Total 19 100% 12 100% 12 100%

Q14. How do you promote your environmental work?

Brochures 13 100% 6 86% 1 33% Advertisements 5 38% 3 43% 1 33% Internet 9 69% 1 14% 2 67% Exhibitions in the showroom 5 38% 3 43% 2 67% Lectures, seminars or open house events 4 31% 1 14% 0 0% Exchange programs with schools or universities 1 8% 2 29% 0 0% Other 0 0% 1 14% 0 0% Total 13 285% 7 243% 3 200%

Q16. What help/support do you receive from your sales company regarding environmental issues?

We do not receive any support 0 0% 0 0% 1 8% Information brochures 17 89% 10 83% 10 83%

Training for sales personnel in how to incorporate environmental issues to further the company products

14 74% 8 67% 2 17%

Education 13 68% 3 25% 2 17% Advice concerning environmental laws 14 74% 10 83% 9 75% Advice concerning chemicals 16 84% 6 50% 7 58% Advice concerning the environment in general 13 68% 9 75% 7 58%

Agreements with external waste management companies

12 63% 6 50% 8 67%

Advice concerning waste management 11 58% 11 92% 6 50%

Other: 1 5% 0 0% 0 0% Total 19 584% 12 525% 12 433%

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Q18. Do you feel that there is any part of your environmental work that you do better than other dealerships?

Yes 8 44% 6 50% 6 50% No 10 56% 6 50% 6 50% Total 18 100% 12 100% 12 100% Q20. Do you offer any environmental services?

Yes, an environmentally labelled car wash. 12 67% 1 8% 2 17%

Yes, a car service performed specifically to reduce the car’s environmental impact.

9 50% 3 25% 2 17%

Yes, we take care of customers’ old chemicals for recycling/reuse.

13 72% 5 42% 4 33%

Yes, we take care of customers’ old car parts for recycling/reuse.

9 50% 7 58% 7 58%

No 1 6% 4 33% 3 25% Yes, other. 0 0% 0 0% 1 8% Total 18 244% 12 167% 12 158%

Q21. What does your environmental work lead to?

Satisfied customers 13 68% 7 58% 7 58% Competitive advantage 13 68% 2 17% 3 25% Higher turnover 6 32% 0 0% 0 0% Lower turnover 0 0% 0 0% 1 8% Increased amount of work 6 32% 4 33% 8 67% Other 0 0% 5 42% 1 8% Total 19 200% 12 150% 12 167%

Open-ended questions and answers.

Q3. Why did (or do) you choose to become certified? If "Other" was chosen, please specify: VCC Sweden - VCC UK Pilot scheme with Volvo VCC Germany To pollute the environment as less as possible Demarcation to others

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Q10. What are your company's main considerations when deciding which chemicals to use in the workshop? (Besides the function)? If other was chosen, please specify:

VCC Sweden All aspects are compared and when it’s a choice we chose the green products Volvolinked VCC UK Compliance with Volvo minimum standard VCC Germany Use possibilities

Q12. Please specify what other products you have in your workshop or your shop that are environmentally labelled. (Besides any environmentally labelled chemicals) VCC Sweden 90-95 % of the cars that we sell are recyclable, different kinds of plastics Paper soap (2 respondents) (environmentally adapted car wash) Environmental petrol for garden equipment Tyres VCC UK Aerosols for lubrication

VCC Germany All detergents have the "Blue Angel" (notice that it's good for the environment), toilet paper recyclable...

All products are recyclable, recycling paper is made of old paper, and energy-saving lamps.

Recycling paper, "dual system" products for the packing (german system that collects recyclable rests and produces new raw material)

Q14. How do you promote your environmental work? If other was chosen, please specify: VCC Sweden In price offers to customers VCC UK Direct mail VCC Germany -

Q15. What have you promoted during the past year? (Within the environmental field) VCC Sweden Green driving

Exchange programs with schools and universities through an "environmental bus project"

Environmentally adapted car wash (2 respondents)

VCC UK Two local primary schools in conjunction with Volvo (2 respondents)

We have promoted the fact we are one of five dealers in the world to be issued with Dealer Environmental Product Declaration label (DEPD/14021)

Member of Local Business Environmental Forum. Promoted Volvo products. Volvo cars School wildlife project Environmental activities and the impact on our work profits

VCC Germany

We are certified since last year. We have been checked in November for the first time since our certification, and everything was OK. The complete company had to change and did it.

Refillable pressure-bottles for breaks-cleaners

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Certification in the "Umweltpakt Bayern"

Q16. What help/support do you receive from your sales company regarding environmental issues? If other was chosen, please specify: VCC Sweden - VCC UK - VCC Germany -

Q17. When it comes to environmental issues, is there anything you believe can be improved on or performed that is not done today? -by yourselves, your sales company or car manufacturer. VCC Sweden We could be better at marketing (3 respondents) Everything can and will be improved in all time Everything can be improved - no specific complaints

Waste management/ Recycling of paper boxes and packaging in general (2 respondents)

Energy consumption More refill stations for gas VCC UK There will always be ways of making improvement ongoing

Better disposal plan from VCUK for wood & cardboard - There is so much waste from parts

Make better use of environmentally friendly disposal services

Not much more, Volvo are world leaders in this area. We need to train all staff globally to respect this.

I feel that the manufacturer, although doing a good job could promote the environmental aspects of the product further.

Need for additional training and commitment

General environmental issues and products currently add cost to the business. If the products were cheaper, and the government increased tax beaks for environmental issues more companies would be pro-active and not reactive.

Take back old plastic bumpers etc to be recycled Take back packaging to be reused VCC Germany No

The distributors of the products should automatically give information about environmental- and health-digestibility. Many laws are hard to understand because of doubts on their contents. The whole system should be structured in an easier and more clear way.

Yes, packing is to big and mostly too good packed.

Yes, but the analogy between law and way of producing has to be seen. The taking back of environmental packaging by Volvo is, contrary to the behaviour of the whole sale trade, not really satisfactory.

No! As long as the environmental protection only plays a small role in other states and costs money, this will be a disadvantage in competition.

It should be paid attention to during the producing of the products to reach the highest value of environmental compatibility.

A lot. First with the lot of packaging. By all together.

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Q19. Do you feel that there is any part of your environmental work that you do better than other dealerships? - What part of your environmental work do you do better than others?

VCC Sweden We have come further in our environmental work than many of out competitors Information and waste separation Chemicals

We have the first car wash with 80 percent cleaning. There are three in Sweden and the others have 100 percent cleaning.

Vi har den första biltvätten med80% rening i Sverige3st finns i sverige de andra 2 är med 100% rening

Waste management VCC UK We at least have a policy.

Paper disposal - All oil tanks budded - Annual clean of petrol interceptors - Safe disposal waste oils - antifreeze Batteries Tyres.

We are DEPD dealers and have to maintain our status as environmentally correct.

Target Key areas, i.e. Energy consumption, waste going to landfill.

I feel that we have a genuine concern for the environment which many other dealerships perhaps don't.

We have working party who look all time at our waste management to improve what we do

VCC Germany The storage of chemicals and their disposal. Decrease in the amount of existing waste and the right disposal. Environmental factors, cleanliness of the workshop, safety and quality

We try to follow standards and laws before they are official, because we personally highly identify to the environmental protection.

We only use detergents that pollute the wastewater as less as possible. All fluids are collected and treated. All washbasins are lead over oil filters. But always is valid: If no waste is produced, there is no waste to eliminate.

Plastic recycling, old-car recycling, glass recycling.

Q20. Do you offer any environmental services? If other was chosen please specify: VCC Sweden We install cleaning systems on our car washes. chemicals = engine oil VCC UK The site is too small to allow us to offer better services to our customers. VCC Germany The lawful collection of old-oil, batteries...

Q21. What does your environmental work lead to? If other was chosen, please specify: VCC Sweden Cleaner environment VCC UK A safer environment We need to educate our customers to be more aware of the environment.

Cost of disposing of waste oils/filters/tyres etc has increased considerably over the last 5 years. We pass on an environmental charge to the customer, which most are happy to pay, some feel that it is not their responsibility and argue the cost.

Look after the future for all of us. VCC Germany -

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