daimler-2009 sustainability report facts gesamt...

Daimler

Facts

Procurement organization publishes sustainability guidelines for suppliers

“German Company Health Award 2008” conferred on Daimler

Daimler increasingly counts on effi cient electric and hybrid drives

Management Environment Employees

Sustainability Report 2009

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360 DEGREES print and 360 DEGREES online: Each medium has its own unique advan-tages. We are making full use of the opportunities made available by print and online media to provide added value for you, our readers. You will find a concise presentation of the most important facts and figures on the topic of sustainability in the printed report, and additional in-depth information on the Internet.

At http://sustainability2009.daimler.com you will find the specific online report“360 DEGREES – Facts on Sustainability 2009.” Presented in a user-friendly manner, this comprises both the content of the printed version and numerous supplements.

– These include a compilation of key figures and specific vehicle data along with the GRI Index and further information, in the form of graphics, timelines, and tables.

– A user’s guide with search function, interactive table of contents, and numerous links also helps you to rapidly locate specific information.

– You also have the opportunity to individually select data material, compile key figure comparisons over a period of several years, and download them for your own requirements.

In the margin of this printed publication, you will find numerous links that provide further in-depth information on the Internet. Simply enter the website ending with a two-digit number (e.g. sustainability2009.daimler.com/sr/01) in your browser and you will instantly find the information you require.

Even more value through close interlinking: 360 DEGREES sustainability report in print and as an interactive Internet presentation

The additional report “360 DEGREES – Magazine on Sustainability 2009” provides information and best practice examples from all three dimensions of sustainability and supplements this publication in the form of a feature magazine.

Daimler

Facts

Procurement organization publishes sustainability guidelines for suppliers

“German Company Health Award 2008” conferred on Daimler

Daimler increasingly counts on efficient electric and hybrid drives

Management Environment Employees


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Daimler

Magazine


THE E-FILES

Even cleaner: the drives of Daimler’s new generation of commercial vehicles

Daimler employees join together to work on community projects

Daimler is already testing the electric vehicles of the future — with great success

Evolution Engagement Electricity

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ContentsForeword

The company

1.0 The company

2.0 Values and strategy

3.0 Our product range

Managing sustainability

1.0 Group-wide control of sustainability management

2.0 Responsible corporate management

3.0 Corporate management

4.0 Environmental management system

5.0 Human resource management

6.0 Supplier relations management

7.0 Customer relations management

8.0 Management of the dialogue with our stakeholders

Economy

1.0 Business development in 2008

2.0 The Daimler share in sustainability indexes

3.0 The economic significance of the automotive industry

4.0 Global procurement

Environmental protection, innovation, and safety

1.0 Environmental protection in the product lifecycle

2.0 Innovation, development, and safety

3.0 Suppliers

4.0 Logistics

5.0 Production

6.0 Sales

7.0 Product use

8.0 End of life

Our environmental commitment:

Activities and goals

External statement

Employees

1.0 Workforce

2.0 Workforce and management relations

3.0 Human rights

Our responsibility as an employer:


External statement

Customers and society

1.0 Customers

2.0 Social commitment

3.0 Public policy

Our responsibility to our customers:


Social responsibility:


Report profile

Graphic index

Imprint/contact

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� Daimler 360 DEGREES – Facts on Sustainability 2009

Dear readers,

Since the financial crisis expanded to become a global recession, I’ve been asked on several occasions wheth-er we at Daimler “still have time” to deal with the issue of sustainability. This question has surprised me every time, because it implies that sustainability is a “fair weather” topic that has to be shelved when the going gets tough. We see things differently at Daimler. For us, sustainability is a basic principle governing our busi-ness operations.

What does this mean in practice? It means that our economic, environmental, and social targets must be in harmony. After all, lasting business success is possible only if environmental and social concerns aren’t neglect-ed. The long-term results of pursuing business targets without considering their risks and side effects can be seen in the financial crisis and its consequences. At the same time, we as a company can do little for the envi-ronment or for society if our business isn’t competitive. In other words, these three dimensions are interdepen-dent — perhaps even more so in difficult times.

A good example is provided by the automotive industry, which is facing a major technological transformation. Our society is entering an age of mobility based on post-fossil fuel sources. Up to now, automobiles have been powered almost exclusively by oil-based fuels, but in the future electric drive components will play an increasingly important role. Here, environmental and economic goals will enter into a symbiosis: Only drive systems that are environmentally friendly will also be profitable in the long run.

And that’s why we’re forging ahead with our efforts to make our vehicles even “greener” as part of our “Drive for Zero Emissions” initiative. For example, the CDI die-sel model of the new E-Class consumes only 5.3 liters per 100 kilometers (44 miles per gallon) and emits only 139 grams of CO2 per km (224 g CO2 per mile). These are fantastic numbers for a vehicle in this class, and they show that modern internal combustion engines are far from obsolete. On the contrary, over the medium term they will be the most important lever for decreas-ing CO2 emissions from road traffic.

Foreword

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� Foreword

The year 2009 will also mark the start of Daimler’s hybrid offensive, which will kick off this fall with thelaunch of the Mercedes-Benz S 400 BlueHYBRID — the luxury sedan with the world’s lowest CO2 emissions. What’s more, it will be the world’s first series-produced vehicle with a lithium-ion battery. These batteries have a key role to play in achieving electric mobility. And the fact that our e-mobility projects are now starting up in several European cities demonstrates that we’re making good progress toward zero-emission driving. In these projects we are cooperating with energy provid-ers to put electric vehicles in customers’ hands, while at the same time building up the necessary infrastruc-ture. In addition, the first limited-volume series of fuel cell vehicles will be produced by Mercedes-Benz this year.

The actual engine of creativity behind all these techno-logical innovations is our workforce. Our employees’ skills and motivation are ultimately the foundation of our success. Here, our experience has shown us that performance is independent of age, gender or place of origin. And as our customers become increasingly diverse, so too should our workforce. That’s why we systematically promote diversity and equal opportuni-ties within our Group as part of our diversity manage-ment strategy.

In particular, we can’t afford to neglect our top perform-ers who are women. Accordingly, we aim to increase the proportion of women in management positions to 20 percent by 2020. To this end, we are supporting women “high potentials” with the help of mentoring programs and specifically addressing women university graduates through our CAReer trainee program. And because we consider it important to help our employ-ees reconcile their career and family responsibilities, we have created almost 600 places for employees’ chil-dren in our “sternchen” (Little Star) daycare centers.

We take our sense of responsibility for our employees very seriously. In return, we also expect our employees to behave responsibly. Anyone working at Daimler or acting in the name of our Group must comply, without any “ifs, ands, or buts,” with the legal regulations and the ethical principles to which we have voluntarily com-

mitted ourselves — for example, in the “Global Com-pact” of the United Nations. There can be no excep-tions to this rule — at any time or in any place. Anyone who violates the law or our internal Daimler regulations will be appropriately disciplined in accordance with our “zero tolerance” principle.

Within Daimler, we have therefore created an effective compliance organization that on the one hand oversees our compliance with regulations, and on the other hand provides appropriate training and support for our employees. But compliance doesn’t end at our factory gates or office doors. Last year we instituted a set of sustainability guidelines for our suppliers all over the world. We expect our suppliers to insist that their sup-pliers also comply with our standards.

As you can see, sustainability is a key principle of our corporate culture. That’s why we anchored it in our corporate structure last year at the Board of Manage-ment level in our Corporate Sustainability Board, which consolidates all of our existing management processes related to sustainability.

In conclusion, I’d like to come back to the idea I men-tioned at the outset: Sustainability doesn’t depend on whether business is booming or experiencing a reces-sion. It is an ethical imperative, but it’s also a basic principle of legitimate business self-interest. Above all, this basic principle dictates responsible and future-ori-ented behavior — and it’s valid every day, everywhere, with 360-degree coverage.

Pleasant reading!

Sincerely,

Dr. Dieter ZetscheChairman of the Board of Management of Daimler AGand Head of Mercedes-Benz Cars

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Daimler 360 DEGREES – Facts on Sustainability 2009

The company. Strong brands, excellent products, and a highly motivated workforce all contribute to our success. Thanks to our international orientation, pioneering spirit, and expertise in innovation and technology, we are confi-dent about the future — despite the difficult market environment.

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The company 7

1.0 The company

Daimler can look back on a tradition covering more than one hundred years, which features pioneering achievements in automotive engineering and extends back to Gottlieb Daimler and Carl Benz, the inventors of the automobile. Today, the Daimler Group is a lead-ing supplier of superior premium automobiles and the world’s biggest manufacturer of heavy and medium trucks, with a wide range of first-class trucks, vans and buses. The product portfolio is completed by a range of tailored automotive services. Daimler holds a 22.5 percent equity interest in the European Aeronautic Defence and Space Company (EADS), a leading com-pany in the aerospace and defense industries. In addi-tion, during 2008 Daimler acquired 28.4 percent of the shares in Tognum AG, one of the world’s leading pro-ducers of off-highway engines. Following the transfer of a majority interest in Chrysler to Cerberus Capital Man-agement in August 2007, Daimler AG holds an equity interest of 19.9 percent in Chrysler, a US automobile manufacturer.

Daimler is active in nearly all of the countries in the world, with strong brands and a comprehensive port-folio of vehicles ranging from small cars to heavy trucks, complemented by services along the automo-tive value chain. The Group has production facilities in a total of 19 countries and approximately 7,300 sales centers worldwide. The global networking of research and development activities and of production and sales locations gives Daimler considerable potential to enhance efficiency and to gain advantages in an inter-nationally competitive market. For example, we can apply our new green drive technologies in a broad port-folio of vehicles while utilizing experience and expertise from all parts of the Group.

Of Daimler’s total revenue of €95.9 billion in the year 2008, 49 percent was generated by Mercedes-Benz Cars, 27 percent by Daimler Trucks, 9 percent by the Daimler Financial Services division and 15 percent by the Vans, Buses, Other segment.

At the end of 2008, Daimler employed a total workforce of more than 270,000 people worldwide.

The Daimler Group

Brands: Mercedes-Benz, smart, Mercedes-AMG, Maybach, Freightliner,Western Star, Mitsubishi Fuso, Thomas Built Buses, Orion, Setra, Detroit Diesel, Mercedes-Benz Bank, Mercedes-Benz Financial, Daimler Trucks Financial

Legal form: Stock company (AG) incorporated under the laws of the Federal Republic of Germany

Board of Management: Dieter Zetsche (Chairman of the Board of Manage-ment and Head of Mercedes-Benz Cars), Günther Fleig (Human Resources and Labor Relations Director), Rüdiger Grube (Corporate Development), Andreas Renschler (Daimler Trucks), Bodo Uebber (Finance & Controlling/Daimler Financial Services), Thomas Weber (Group Research and Development Mer-cedes-Benz Cars) (as of December 31, 2008)

Supervisory Board: Comprising of ten shareholders’ representatives and ten employees’ representatives. The Supervisory Board monitors and advises Board of Management in its management of the company.

Headquarters: Stuttgart, Germany

Employees: 273,216 at the end of 2008

Trainees: 9,603 at the end of 2008

Market capitalization: About €24.8 billion (as of December 31, 2008)

Total assets: €132.2 billion

Global stock: The Daimler share is listed on the stock exchanges in Frankfurt, New York, and Stuttgart.

Shareholders: Daimler has a broad shareholder base of approximately 1.3 mil-lion shareholders. At the end of 2008, the largest shareholder was the Kuwait Investment Authority with a 7.6 percent shareholding. In total, institutional investors held 69 percent of the Group’s equity and private investors held24 percent. Around 76 percent of the capital stock was in the hands of Euro-pean investors and around 16 percent was held by U.S. investors.

Automotive sales: 2.1 million vehicles in business year 2008(2007: 2.1 million)

Mercedes-Benz Cars: 1,273,000 (- 2 percent)

Daimler Trucks: 472,100 (+ 1 percent)

Mercedes-Benz Vans: 287,200 (- 1 percent)

Daimler Buses: 40,600 (+ 4 percent)

Daimler Financial Services: Management of a leasing and sales financingportfolio of €63.4 billion (+ 7 percent)



In order to achieve our strategic targets, we have laid down four strategic focus areas for the coming years in the framework of the Daimler target system:

– We will strive for excellence in our business operations. Our determination to deliver top performance will form an essential part of our corporate culture.

– We aim to expand our core business activities and open up new markets in the major growth regions of the world.

– We aim to extend the range of services we offer our customers and to work on refining innovative vehicle technologies.

– Lastly, we aim to take advantage of new opportunities for growth in automobile-related areas.

3.0 Our product range

The products supplied by the Mercedes-Benz Cars divi-sion range from the high-quality small cars of the smart brand to the premium automobiles of the Mercedes-Benz and Mercedes-AMG brands and to the Maybach luxury sedans. Most of these vehicles are produced in Germany, but the division also has production facilities in the United States, France, South Africa, Brazil, India, Vietnam, Indonesia and China. Worldwide, Mercedes-Benz Cars has 17 production sites at present. In order to extend our model range in the compact-car segment, we

2.0 Values and strategy

We invented the automobile and we intend to continue to shape its future. As a pacemaker for technological progress in the automobile industry, we build on our traditional strengths.

We want to inspire our customers with:

– exciting premium automobiles that set standards in the areas of design, safety, comfort, perceived value, reliability and environmental compatibility;

– commercial vehicles that are the best in their respective competitive environment; and

– outstanding service solutions related to these products.

We intend to achieve sustainable profitable growth in all of our divisions and thus to increase the value ofthe Group. With our products and services, we aim to have a leading market position in each relevant seg-ment. We regard ourselves as one of the world’s leading automotive manufacturers. In order to achieve these targets we have defined a strategic framework — the Daimler target system — which consists of six strate-gic dimensions and is based on the four key values of passion, respect, integrity and discipline. We believe that these values are a prerequisite for excellent per-formance — and we therefore act in accordance with them. I 1

1 I You can find more information on

the Daimler target system and our

strategic areas of activity in the

Annual Report 2008, pp. 45 – 47

2006 2007 2008 2007/2008

in million Change in %

Revenue

Western Europe

thereof Germany

NAFTA

thereof United States

Other markets

Employees (Dec. 31)

Investment in property, plant and equipment

Research and development expenditure

thereof capitalized

Cash provided by operating activities

(including discontinued operations)

EBIT

Value added

(including discontinued operations)

Net profit

Net profit from continuing operations

Earnings per share (in €)

Earnings per share, continuing operations (in €)

Total dividend

Dividend per share (in €)

99,222 99,399 95,873

46,999 49,289 45,916 - 7

21,652 22,582 21,817 - 3

27,857 23,499 21,139 - 10

24,943 20,270 17,922 - 12

24,366 26,611 28,818 + 8

274,024 272,382 273,216 + 0

3,005 2,927 3,559 + 22

3,733 4,148 4,442 + 7

715 990 1,387 + 40

14,337 13,088 3,205 - 76

4,992 8,710 2,730 - 69

631 1,380 (1,147) -

3,783 3,985 1,414 - 65

3,166 4,855 1,704 - 65

3.66 3.83 1.41 - 63

3.06 4.67 1.71 - 63

1,542 1,928 556 - 71

1.50 2.00 0.60 - 70

1 Adjusted for the effects of currency translation and changes in the consolidated group, decrease in revenue of 1 %.

Daimler Group – key figures

- 41


The company 9

(7 percent). The Sprinter is also sold under the Dodge and Freightliner brands in the United States and Canada.

The product range of Daimler Buses, the world’s lead-ing manufacturer of omnibuses above 8 tons with the brands Mercedes-Benz, Setra and Orion, comprises buses for tourist, urban and interurban applications as well as bus chassis. The most important of the 15 pro-duction sites are in Germany, Turkey, Brazil and the NAFTA region. In 2008, 48 percent of the unit’s revenue was generated in Western Europe, 15 percent in the NAFTA markets and 19 percent in Latin America (excluding Mexico). I 2

Portfolio changes. With the goal of strengthening our core business and utilizing new growth potential, we took some important steps for the expansion of our business portfolio in 2008.

In April 2008, Daimler AG and the Indian Hero Group signed the articles of incorporation for a commercial-vehicle joint venture. Daimler Hero Commercial Vehi-cles Ltd., in which Daimler holds a 60 percent stake, will at first produce light, medium and heavy-duty com-mercial vehicles for the Indian volume market under a new brand name in a newly built factory in Chennai. At a later date, the production of trucks for export markets is also planned.

In June 2008, Daimler AG acquired a 22.3 percent equi-ty interest in Tognum AG from EQT, a Swedish financial investor, and purchased a further 6.1 percent of Tog-num’ shares on the stock exchange. The total price paid amounted to €702 million. In the past two years, Tog-num has become one of the world’s leading suppliers of off-highway engines with above-average operating mar-gins. This business has great growth potential. Another advantage of this equity interest is that it will secure our long-term supply relationship with Tognum.

In August 2008, Daimler AG and Beiqi Foton Motors Ltd. signed a letter of intent concerning the establish-ment of a joint venture. The objective is to produce medium and heavy trucks and technologies for the Chi-nese market and in a second step also to utilize expan-sion opportunities outside China. The approval of the Chinese authorities is required for the establishment of the joint venture.

In Moscow in December 2008, Daimler AG, Kamaz, state-owned company Russian Technologies, and Troika Dialog signed an agreement covering an exclusive stra-tegic partnership. The agreement includes the acquisi-tion by Daimler Trucks of a 10 percent stake in Kamaz from Troika Dialog, a Russian investment company. The strategic partnership with Kamaz, the market leader for heavyduty trucks in Russia, is part of our growth strate-gy in the BRIC countries. As a result of the technology transfer and various joint projects, both companies will benefit from this strategic partnership.

decided in June 2008 to build a new plant in Hungary, which is to go into operation in 2012. The most impor-tant markets for Mercedes-Benz Cars in 2008 were Ger-many with 26 percent of unit sales, the other markets of Western Europe (31 percent), the United States (20 per-cent), China (4 percent) and Japan (3 percent).

As the world’s leading manufacturer of heavy-duty and mediumduty trucks, the Daimler Trucks division devel-ops and produces vehicles within a global network under the brands Mercedes-Benz, Freightliner, Sterling, Western Star and Mitsubishi Fuso. The division’s 33 production facilities are in the NAFTA region (16), Europe (7), South America (1), Asia (8) and Africa (1). In the context of repositioning our North American truck business, we will cease production of the Sterling brand in March 2009 and will close the plants in St. Thomas, Canada in March 2009 and in Portland, USA in June 2010. In February 2009, we opened a new plant for the production of heavy trucks in Saltillo, Mexico. Daimler Trucks’ product range covers light, medium and heavy-duty trucks for local and long-distance deliveries and construction sites, as well as special vehicles for municipal applications. Due to close links in terms of production technology, the product range also includes the buses of the Thomas Built Buses and Mitsubishi Fuso brands. The division’s most important sales mar-kets in 2008 were Asia (with 33 percent of unit sales), the NAFTA region (21 percent), Western Europe (18 per-cent) and Latin America excluding Mexico (13 percent).

The Daimler Financial Services division supports the sales of the Daimler Group’s automotive brands in more than 40 countries. Its product portfolio mainly compris-es tailored financing and leasing packages for custom-ers and dealers, but it also provides services such as insurance, fleet management, investment products and credit cards. The main areas of the division’s activities are Western Europe and North America. In 2008, every third vehicle sold by Daimler was financed by Daimler Financial Services. Its contract volume of €63.4 billion covers 2.5 million vehicles. Daimler Financial Services also holds a 45 percent interest in the Toll Collect con-sortium, which operates an electronic road-charging system for trucks over 12 metric tons on highways in Germany.

The Vans, Buses, Other segment primarily comprises the Mercedes-Benz Vans and Daimler Buses units and our shareholdings in the European Aeronautic Defence and Space Company (EADS), Tognum AG and Chrysler Holding LLC.

The Mercedes-Benz Vans unit has production facilities at a total of seven locations in Germany, Spain, the United States, Argentina and Vietnam for the Vito/Via-no, Sprinter and Vario series in weight classes ranging from 1.9 to 7.5 metric tons. An additional plant is now being established in China. The main sales marketsfor vans are Europe (82 percent) and the NAFTA region

2 I For more information on the

Daimler Group — business portfolio

go to:

sustainability2009.daimler.com

/sr/01


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Americas

45,644 employees, of whom 29,178 work in North America (incl. Mexico)and 16,466 in South and Central America


Also in December 2008, subject to the approval of the antitrust authorities, Daimler AG acquired a 49.9 per-cent equity interest in Li-Tec Vermögensverwaltung GmbH (Li-Tec). Evonik Industries AG holds the remain-ing 50.1 percent stake. On the basis of Evonik’s lithium-ion technology and Daimler’s know-how, the two partners will push forward with the research, develop-ment and production of battery cells and battery sys-tems. Evonik is the technology leader for high-tech battery cells capable of going into series production, and is significantly ahead of the competition in several aspects of this technology. In recent years, Daimler has registered more than 230 patents in the field of lithium-ion batteries. The two companies will together establish a joint venture, which will concentrate on the develop-ment and production of batteries and battery systems for automotive applications. 90 percent of this jointventure will belong to Daimler and 10 percent to Evonik.

Since the middle of 2008, Daimler has been holding discussions with Cerberus Capital Management con-cerning the transfer of its 19.9 percent equity interest in Chrysler Holding LLC. Those discussions had not yet been finalized when this report went to press at the end of February 2009.

Repositioning of truck business in North America. In October 2008, within the context of the Global Excel-lence Program, Daimler Trucks North America (DTNA) presented a far-reaching plan for the optimization and repositioning of its business operations. The Group thus reacted to the ongoing weak demand in the entire industry and to the structural changes in key markets. As of March 2009, production of Sterling brand trucks will be discontinued. DTNA will thus concentrate its development and sales resources on the Freightliner and Western Star brands. This will allow increased inno-vation in the areas of safety, environmental compatibili-ty and customer benefits. With the discontinuation of the Sterling brand, production will be ended at the plant in St. Thomas, Ontario, and as of June 2010, the plant in Portland, Oregon will be closed. These actions should lead to annual earnings improvements of US $900 mil-lion as of the year 2011. In February 2009, a new plant was opened in Saltillo, Mexico, where the Cascadia, the new flagship of the Freightliner brand, is now produced.

Mercedes-Benz Cars

1 SindelfingenMercedes-Benz S-, E-Class sedan and station wagon, C-Class sedan, CL- and CLS-Class and Maybach

2 Stuttgart-UntertürkheimEngines, axles, transmissions, components. Incl. “upstream” facilities foundry, forge, and engine development

3 BerlinEngines and components, and development of drivetrain components

4 BremenMercedes-Benz C-Class sedan, C-Class station wagon, GLK-Class, E-Class coupe, E-Class convertible (starting fall 2009), SLK-Class, SL-Class

5 RastattMercedes-Benz A- and B-Class

6 KölledaEngines

7 AffalterbachMercedes-AMG: engines

8 Hambach, Francesmart fortwo

9 Tuscaloosa, U.S.Mercedes-Benz M-, R- and GL-Class

10 Juiz de Fora, BrazilMercedes-Benz CLC-Class

11 East London, South AfricaMercedes-Benz C-Class

12 Beijing, ChinaMercedes-Benz C- and E-Class

13 6th of October, Egypt CKD assembly Mercedes-Benz C-Class, E-Class, GLK-Class (starting spring 2009) and S-Class

Daimler AG

Corporate headquartersStuttgart-Untertürkheim

Locations of the Daimler Group


1 2 19 39

4

22 48

25

202340 41

49

47

51

52

3

8

2127

29

30

2824

5042

53

26

11 58

16

18 46

17 59

45

7

6

15

12

13

14 60

5

Africa

7,190 employees Australia

1,279 employees

Asia

20,091 employees

Europe

199,032 employees, of whom167,753 work in Germany

The company 11

14 Pune, IndiaCKD assembly Mercedes-Benz C-, E- and S-Class

15 Samutprakan, Thailand CKD assembly Mercedes-Benz C-, E- and S-Class

16 Pekan, MalaysiaCKD assembly Mercedes-Benz C-, E- and S-Class

17 Wanaherang, IndonesiaCKD assembly Mercedes-Benz C-, E- and S-Class

18 Ho Chi Minh City, Vietnam CKD assembly Mercedes-Benz C-Class, E-Class, GLK-Class (starting spring 2009) and S-Class

19 StuttgartHeadquarters functions, sales, product development

20 WörthMercedes-Benz truck assembly incl. cabs; body and assembly plant for Unimog

21 GaggenauCar and truck transmissions, planetary and portal axles, converter production, machine cutting and forming technology, as well as international logistics (Consolidation Center)

Daimler Trucks

Vans, Buses, Other

22 MannheimCommercial vehicle and industrial engines, foundry, remanufactured engines for cars and vans

23 KasselFront and rear axles, trailer axles and drive shafts for commercial vehicles; components for Mercedes-Benz cars

24 Aksaray, TurkeyLight and medium-duty Mercedes-Benz trucks

25 Molsheim, FranceCommercial vehicle conversion

26 Tramagal, PortugalMitsubishi Fuso: Canter trucks for Europe

27 Kawasaki, JapanMitsubishi Fuso: light, medium and heavy-duty trucks; vehicle and industrial engines, axles

28 Toyama, JapanMitsubishi Fuso: medium and heavy-duty buses

29 Oye/Nagoya, JapanMitsubishi Fuso: light buses

30 Bangkok, ThailandMitsubishi Fuso: light, medium and heavy-duty trucks

31 Cleveland, U.S.Freightliner: Cascadia, Century Class, Columbia

32 Portland, U.S.Western Star: 4900 and 6900 series

33 Mount Holly, U.S.Freightliner: Business Class M2

34 High Point, U.S.Thomas Built Busses

35 Redford, U.S.Detroit Diesel: Engines

36 Santiago Tianguistenco, MexicoFreightliner: Business Class M2, Century Class, Columbia, Coronado

37 Saltillo, MexicoFreightliner: Cascadia

38 São Bernardo do Campo, BrazilTotal Mercedes-Benz Trucksproduct program for LatinAmerica, engines, axles, andtransmissions, stampingfacility

52 Ligny-en-Barrois, FranceMercedes-Benz city buses

53 Sámano, SpainMercedes-Benz chassis

54 Oriskany, U.S.Orion Buses

55 Mississauga, CanadaOrion bus bodies

56 Monterrey, MexicoMercedes-Benz bus chassis

57 São Bernardo do Campo, BrazilMercedes-Benz bus chassis

58 East London,South Africa Mercedes-Benz bodies chassis and assembly for buses

59 Jakarta, Indonesia Mercedes-Benz bus chassis

60 Pune, India Mercedes-Benz bus chassis

61 Buenos Aires, ArgentiniaMercedes-Benz bus chassis

39 StuttgartHeadquarters

40 DüsseldorfMercedes-Benz Sprinter, (closed models)

41 LudwigsfeldeMercedes-Benz Sprinter, (open models), Mercedes-Benz Vario

42 Vitoria, SpainMercedes-Benz Vito, Mercedes-Benz Viano

43 Charleston, U.S.Dodge/Freightliner Sprinter

44 Gonzáles Catan, ArgentiniaBodywork and assemblyvans

45 Fuzhou, PR China (Opening July 2009)Mercedes-Benz Sprinter, Mercedes-Benz Vito, Mercedes-Benz Viano

46 Ho Chi Minh City, Vietnam CKD assembly Mercedes-Benz Sprinter

47 Ulm/Neu-UlmPaint shop and assembly: city buses, intercity buses, and touring buses

48 MannheimBody shop, cathodic dip painting: city buses, intercity buses, and touring buses; paint shop, assembly: low-floor city and intercity buses

49 DortmundMercedes-Benz minibuses

50 Istanbul-Hosdere, TurkeyMercedes-Benz city buses, intercity buses, andtouring buses

51 Holysov, Czech Rep.Body componentsfor bus production inMannheim



Managing sustainability. Effective management systems support us as we strive to reach the sustainability targets we have set for ourselves. In 2008 we further strength-ened our sustainability management processes by set-ting up the Corporate Sustainability Board at the Board of Management level.

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Managing sustainability 13

1.0 Group-wide control of sustainability management

Our central management committee for sustainability is the Sustainability Board, which was established in 2008 on the basis of a Board of Management resolution. Here we have successfully combined all of the management processes that are relevant to sustainability. This com-mittee, which is directly responsible to the CEO and chaired by the Board of Management member for Cor-porate Development and Strategy, coordinates signifi-cant sustainability measures throughout the Group and supports the operating units as they put solutions into practice. The stringent implementation of sustainability initiatives is ensured through the involvement of rele-vant corporate units and important decision-makers from all the divisions (see diagram).

By creating a Sustainability Board at the top manage-ment level, supported by the Sustainability Office, Daimler has further systematized and optimized its sus-

tainability management throughout the Group. TheSustainability Board complements and links together existing management structures and committees within the Group, such as the Corporate Environmental Pro-tection unit, the Business Practices Committee in the Legal & Compliance unit, and the Global Diversity Office in the area of human resources.

By integrating the Sustainability Board into the Group’s existing governance structure and by including the cor-porate departments as well as the operating units, Daimler is ensuring effective strategic and operative control of sustainability activities at every level, from the Board of Management to the shop floor.

Various focus areas were defined by the Sustainability Board in order to structure its work. These include Cli-mate (CO2), Procurement, Vehicle Safety, Employees, Compliance, Stakeholder Dialogue, and Community Relations. The Sustainability Board has assigned a com-prehensive work program, with specific targets and measures, to each of these areas. In addition to these

Sustainability governance structure

Daimler

Trucks

Integration of relevant sectors:

– Development

– Global Services & Parts

– Sales & Marketing

– Production

– Global Diversity Offi ce

Integration of existing bodies:

– Business Practice Committee

– Corporate Environmental Protection

– Global Diversity Council

Legal &

Compliance

Topical integration of business units:

– Mercedes-Benz Cars

– Daimler Trucks

– Vans, Buses, Other

– Daimler Financial Services

Sustainability Offi ce – meeting 8 times/year

Board of Management

Human

Resources

Corporate

Development

Chairman of the Board

Head of

Mercedes-Benz Cars

Corporate Research &

Development

Finance &

Controlling

Sustainability Board – meeting 4 times/year

Human

Resources

Global

Procurement

Public Policy

and

External Affairs

Investor

Relations

Communi-

cations

Corporate Research &

Environmental Protection

Corporate Development/

Strategy (chair)


14 Daimler 360 DEGREES – Facts on Sustainability 2009

2 I For more on the Statutes and the

rules of procedure of the Board of

Management and the Supervisory

Board, plus corporate governance:

www.daimler.com Corporate

Profile Corporate Governance

on the New York Stock Exchange. The powers of the three corporate organs — the General Meeting, the Board of Management, and the Supervisory Board — are defined by law. The dual management system mandat-ed by German corporation law is characterized by a strict separation between the management organ (the Board of Management) and the supervisory organ (the Supervisory Board) (see diagram). I 2

2.2 Our standards of professional behavior. As a globally operating company, Daimler AG is subject to legal systems that often differ greatly from one region to another. In order to help our employees orient them-selves in this complex legal environment, we have for-mulated a set of standards of professional behavior. These serve as a binding definition of correct behavior in everyday business operations. These standards com-prise the relevant laws as well as additional internal guidelines. Every individual employee is obligated to ensure that his or her daily behavior on the job com-plies with the Daimler professional standards.

Daimler established the Integrity Code, a set of guide-lines for professional behavior, as early as 1999. They are based on our corporate values of Integrity, Passion, Respect, and Discipline, and apply to all of our employ-ees. In 2003 we supplemented the Integrity Code with our Principles of Social Responsibility and our Code of

focus area activities, the Board carries out communica-tive measures such as publishing the Daimler Sustain-ability Newsletter several times a year. It also intends to further improve the transparency of sustainability reporting. A new key initiative is the Sustainability Dia-logue, which was first conducted in Stuttgart in Novem-ber 2008. At this event we received important input from approximately 60 interest groups concerning improved performance with regard to sustainability. I 1

2.0 Responsible corporate management

Daimler is listed on stock exchanges and thus has obli-gations to its shareholders. Responsible and continually evolving corporate management with smoothly func-tioning organs and efficient tools for guidance and con-trol are needed in order to exploit development potentialand minimize business risks.

2.1 Corporate Governance. Because our corporate headquarters are in Germany, the formal structure of our corporate governance has on the one hand been defined for us by German law. On the other hand, we also need to comply with the additional requirements placed on us, for example, by the fact that we are listed

1 I To find out about the measures

related to the individual focus

areas, see the following chapters

Corporate governance at Daimler

Governance Structure

Election of shareholder representatives

Appointments, monitoring, consulting

Executive management

Organization

Framework

Applicable law

Statutes

Stock exchange

regulations

Codes

Internal

guidelines

Controlling

External audit

Internal audit

Risk

management

Internal controls

Ecological

site audit

Daimler Trucks Vans, Buses, Other Daimler

Financial Services

Mercedes-Benz Cars

Institutions for implementing our vision of sustainability

– Sustainability Board – Global Diversity Office (GDO) – Group Compliance Board (GCB) – Global Product Environmental Council – Global Facility Environmental Council – International Trade and Investment Network (ITIN) – Business Practices Committee – Worldwide Corporate Representative Offices – Compliance Consultation Desk

Shareholders (Annual Meeting of all shareholders)

Supervisory Board (10 shareholder and 10 employee representatives)

Nomination Committee Audit Committee Presidential Committee Mediation Committee

Board of Management (6 Board members)


15 Managing sustainability

Ethics. Additionally introduced corporate policies and corporate guidelines implement the principles of the Integrity Code in concrete rules of behavior.

In 2008 the Board of Management approved the House of Policies, a new system of guideline management that brings together all of the Group-wide guidelines and makes it even easier to comply with the different sets of regulations, because all of the guidelines are now also available in a central database on the intranet.

2.3 Compliance. We reject any kind of business activi-ty that runs counter to the law or to our values and fundamental principles. The job of the Corporate Com-pliance (CCO) unit is to require and promote behavior that is in line with this principle throughout our work-force. The CCO unit is headed by the Chief Compliance Officer appointed in 2008, who also heads the Legal Affairs department and reports directly to the Board of Management. The CCO unit creates the necessary basic conditions and develops measures aimed at keep-ing Daimler and its employees from making the wrong decisions and preventing inappropriate behavior.

At the end of 2008 the Board of Management decided to replace the Compliance Committee with the Group Compliance Board (GCB). Within the GCB, the heads of Legal & Compliance and Corporate Audit meet with high-ranking representatives of the divisions and the corporate functions to define the compliance program. CCO coordinates and carries out the implementation of the program laid down by the GCB and supports all of the Group units in their efforts to comply with the regu-lations relevant to them. We have instituted a variety of measures to ensure that the rules for compliance are clearly implemented in our day-to-day business opera-tions. For example, since 2006 we have conducted training programs on compliance-relevant topics for more than 22,000 employees all over the world. Our internal media also provide comprehensive information on compliance, and the Board of Management regularly issues position statements on this topic.

At its business locations all over the world, Daimler has to date appointed more than 85 Compliance Managers who give additional support to the local operating units. It has also introduced new standard processes to con-solidate compliance in the long term, such as mandato-ry consultation in the case of business dealings with government agencies and due diligence (verifying the integrity of new business partners).

All Daimler employees dealing with compliance issues can turn to their supervisors and an online database, as well as a central Compliance Consultation Desk (CCD). Our employees and external partners can also report any suspicions of misconduct to the central Business Practices Office (BPO). All tips are handled with strict confidentiality and, if the employee so wishes, he or she can remain anonymous. The Business Practices

Compliance and sustainability

It is crucial to the success of our company that we live up to our economic, environmental, and social responsibilities. We can do so by fulfilling all of our obligations everywhere and at all times. Daimler AG — and consequently every one of its employees — is subject to a great diversity of laws, regula-tions, and self-imposed obligations. Fulfilling these rules fully and in a sus-tainable manner is one of our top priorities. After all, no business deal in the world can ever justify putting our Group’s reputation at risk.

Business success is sustainable only if it is achieved by legal means. Unethi-cal behavior leads to high direct and indirect costs that go far beyond fines or legal fees. Legal consequences such as blockage of contracting, import bans, confiscation of company assets or liability claims would not only lead to high costs but also — and this is equally important — diminish employees’ motivation and in the long run destroy our company’s outstanding reputa-tion. That’s why strict compliance with the rules protects our most impor-tant capital: the trust placed in us by our employees, business partners, and customers.

The employees, suppliers, and business partners of Daimler AG are unified by our claim to deliver outstanding performance based on our corporate values. And the prerequisite for outstanding performance is integrity, because true champions obey the rules. That’s why we have no patience with individuals whose misbehavior compromises the reputation of the hon-est work done by more than 270,000 Daimler employees all over the world. And that’s why Daimler AG punishes every proven case of misbehavior by its employees, independent of their rank or status. By dealing with such cases in a fair, transparent, and consistent manner, we help ensure that every indi-vidual employee reliably obeys all the rules.

Framework

Local Guidance Anti-Bribery Handbook

Corporate Guidelines

Corporate Policies

Integrity CodeCode of Ethics

CorporateValues



For example, when we select projects to promote, we value opportunities to bring in our know-how and expe-rience as a globally operating automaker and maximize the social benefits. In 2008 Daimler spent € 41.46 mil-lion to support nonprofit organizations and socially ben-eficial projects (this refers only to project funding). I 6

What’s more, starting in 2008, instead of offering gifts at vehicle presentations, Daimler donated the money it usually spends on such presents (around € 90,000) to nonprofit organizations. In 2008 these donations went to education projects in SOS Children’s Villages in France, the U.S., Austria, and Germany.

With regard to donations to political parties we apply a special guideline we introduced in 2006. According to these regulations, donations to political parties requireauthorization from the Board of Management on principle.

3.0 Corporate management

The Board of Management controls the Group’s busi-ness operations jointly in accordance with the principle of collegiality. Without affecting the Board’s overall res-ponsibility, each Board member heads his own depart-ment on his own responsibility. The Daimler Board of Management consists of six members. Its functions include the strategic guidance of the Group and man-agement of its day-to-day business operations. It is also responsible for preparing the Annual Report and the corporate and interim reports, as well as setting up and monitoring the risk management system. Daimler informs shareholders, financial analysts, shareholders’ associations, the media, and the interested public if possible simultaneously about the Group’s situation and any significant changes in its business operations.

4.0 Environmental management system

Protecting the environment is a primary objective of our Group. It is an integral part of our corporate strategy. Its key targets set out in the environmental guidelines defined by the Board of Management, which are binding for all employees in all of our business locations (see “The Group’s Environmental Guidelines”).

As an automaker we must keep environmental protec-tion in mind throughout the entire lifecycle of our prod-ucts — from development to deliveries by our suppliers, production and logistics, sales, utilization, and the dis-posal or recycling of end-of-life vehicles. I 7

Production-related environmental management. The certification of all our sites around the world in line with the international norm ISO 14001 and the additional val-idation of our German sites by the EU’s Eco-Manage-

Committee (BPC), whose members are representatives of top management, investigates all reported cases and takes the necessary measures.

To define our anti-corruption measures, compliance reviews have been carried out in sales companies or business units in several countries since 2006. We have also established standardized control systems in 69 sales companies and business units (including 22 in 2008). These systems help to ensure legal and ethical behavior, and their effectiveness is assessed in tests conducted by the Corporate Audit unit. IT applications enhance transparency and provide support in sustain-ing the implemented processes and control systems.

We made good progress in 2008 with our efforts to firmly anchor compliance within our company. We have created a strong management organization in the form of the CCO, and have initiated a transformation of our corporate culture that is firmly establishing compliance in all of our business units and business processes.

2.4 Risk management system. Within the framework of their global operations, Daimler’s divisions are exposed to a large number of risks that are inextricably linked with their business activities. For the early detec-tion, evaluation, and consistent management of risks, we use effective management and control instruments that are combined into a uniform risk management sys-tem which meets the applicable legal requirements. The main risk categories are economic risks, sector-specific risks (including environmental and social risks), and financial market risks. I 3, 4

2.5 Dialogue with political decision-makers. In line with a Board of Management decision made in 2006, Public Policy and External Affairs is the coordination center for all dialogue with political decision-makers on issues relevant to our company. This department car-ries out advance monitoring of our lobbying activities to ensure that they comply with our legal obligations and ethical regulations. In addition, in 2007 we put in place specific standards for responsible lobbying. I 5

2.6 Principles regarding donations and sponsor-ship. In the past two years we have reorganized and consolidated our decision-making processes regarding donations and sponsorship. Since 2007, all of our Group-wide activities in the areas of donations and sponsorship have been registered in a donations and sponsorship database. In December 2006 the Board of Management appointed a Donations and Sponsorship Committee that coordinates the Group’s activities and promotes its strategic approach in these areas. It evalu-ates and makes decisions concerning all of the Group’s major sponsoring projects and promotional plans.

These newly created structures create greater transpar-ency within the Group and outside it, and form the basis of the further profiling of our social commitment.

I 4 Information on compliance with

competition legislation:


/sr/03

and the Annual Report 2008, p. 118

I 6 Additional information on our

social responsibility projects and

support projects: p. 65

I 5 More on the dialogue with politi-

cal decision-makers: p. 68

I 3 More on risk management:


/sr/02

and the Annual Report 2008, p. 75 ff.

I 7 Detailed version of the Environ-

mental Guidelines:


/sr/04



In addition, our process for evaluating the environmen-tal risks connected with our production facilities helps us to apply uniform standards worldwide in order to identify environmental risks, reduce them, and thus to refine our preventive measures for environmental pro-tection. This process involves the regular and systemat-ic scrutiny of each site’s environmental management system and all of its environment-related aspects, such as emissions, wastewater, waste disposal, and handling of hazardous materials. The elimination of any existing risks to the environment is one of the goals agreed on by the Board of Management and the plant managers.

Environmental protection in product development. Vehicle development is a standardized process in which the vehicle specifications and the quality gates (mile-stones in the development process) form the basic cor-nerstones. Environmental protection issues and requirements (fuel consumption, emissions, prohibited or prescribed materials, environmental audits, and recycling requirements) are integral parts of the vehicle specifications and are taken into account and managed throughout the entire product creation process within the framework of the quality gates.

Mercedes-Benz Cars fully complies with the require-ment that environmental aspects be included in the product development process in line with the interna-tional environmental standard ISO TR 14062 and the expanded criteria of TÜV Management Service GmbH. It also fulfills all of the requirements of ISO 14001 and EMAS II concerning the product-related part of the environmental management system.

4.1 Organization of Group-wide environmental man-agement. We have developed clear structures, process-es, and areas of responsibility in order to systematically

ment and Audit Scheme (EMAS) are important elements of our environmental management system. The efficacy of our system is regularly audited by external experts. Today, more than 95 percent of our worldwide work-force is employed in production facilities with certified environmental management systems.

The merging of the management systems for quality, environmental protection, and health & safety into a single system is a key task. This process integrates environmental protection tasks even more closely into processes at the respective units. An integrated con-cept has already been implemented since 2002 in the production facilities of Mercedes-Benz Cars world-wide.

The Group’s Environmental Guidelines

– We address the environmental challenges of the future.

- We strive to develop products which are highly respon-

sible to the environment in their respective market

segments.

- We plan all stages of manufacturing to provide optimal

environmental protection.

- We offer our customers ecologically oriented service

and information.

- We endeavor to achieve exemplary environmental per-

formance worldwide.

- We provide our employees and the public with compre-

hensive information on environmental protection.

Corporate organization — environmental protection

Line of responsibility Line of information/reporting

Board of Management

Group Research and Mercedes-Benz Cars Development

Chief EnvironmentalOfficer

Environmental Management Officers of the business units

Production-related environmental panels

Daimler Americas

Environmental Officers

EnvironmentalOfficers of the European/Ger-man locations

Daimler Hazard ous Goods

Pan el of the German locations

Corporate Env. Protection

Product Environmental Council

Public Policy and External Affairs

Corporate Strategy

Communications (research, devel-opment, environ-

mental topics)

EnvironmentalOfficers (product)




pursue our environmental targets and make specific improvements (see the diagram “Corporate organization — environmental protection”). On behalf of the Board of Management of Daimler AG, the Board member respon-sible for Group Research and Mercedes-Benz Cars Development is also charged with the company’s envi-ronmental protection activities. In addition, we have established four functions or organizational units that are in charge of the central management of our environ-mental protection activities, as well as the cross-unit networking and communication of these activities:

– A Chief Environmental Officer has been appointed to coordinate environmental management throughout the Group. He has also been commissioned by the Board of Management to oversee the central envi-ronmental management system and to advise the Board on environmental issues.

– The Corporate Environmental Protection unit coordi-nates the operational requirements of Group-wide environmental management. Its work includes ana-lyzing and implementing legal requirements, moni-toring progress toward environmental targets, defining and refining environmental standards, ensuring regular reporting on environmental issues, and environment-related risk management.

– The Product Environmental Council consists of the environmental officers for products as well as repre-sentatives of the Corporate Strategy, Public Policy and External Affairs, and Communications functions. The Council analyzes product-related environmental issues, sets targets, coordinates cross-unit environ-mental protection tasks, and initiates overarching environmental protection projects.

– Production-related environmental protection issues are dealt with by various regionally oriented commit-

tees that are coordinated by the Corporate Environ-mental Protection unit in cooperation with the Chief Environmental Officer. I 8

5.0 Human resources management

5.1 Organization and management. The Human Resources organization of Daimler is an integral part of the Group’s management structure. The approximately 6,700 employees in this organization worldwide are responsible for all of the functions and processes relat-ed to our employees. Daimler pursues a global human resources strategy that is in line with its corporate goals. It is based on five pillars: profitability, a competi-tive workforce, future-oriented managerial expertise, high attractiveness as an employer, and professional organization.

The Board of Management member responsible for Human Resources, who is also the Group’s Labor Rela-tions Director, is responsible for the human resources operations within the Group. The Human Resources organization is divided into three key areas: – Group functions, which are responsible for human

resources strategy, policy, and guidelines through-out the Group;

– divisional resources functions that are responsible

for personnel work in the divisions and business locations as well as for the implementation of human resources strategy;

– and service centers, which provide human resources

services at the regional level.

The highest decision-making body in Human Resources is the Human Resources Executive Committee. It con-

I 8 Information on environmental

protection training within the

company:


/sr/05

HR management scheme — integrated HR functions

Corporate HR functions

Executive Management Development

Global Diversity

Policies and Employee Relations

Organization

Corporate Security

Divisional HR functions

Human Resources Mercedes-Benz Cars, Vans & HQ

Human Resources Daimler Trucks & HR Wörth plant

Human Resources Sales & Financial Services

Human Resources Buses

HR service sectors

Corporate Facility Management

Regional Human Resources Shared Services

Responsible for strategy, policy,

and guidelines

Responsible for human resources activities

at the business units and locations

Regional grouping

of services

Board of Management

BoM member for HR + Labor Relations Director




sists of the heads of the corporate, divisional, and ser-vice functions within the Human Resources organization, and is headed by the Board of Management member responsible for Human Resources. Through an initiative started in 2008/2009 that is part of its human resourc-es strategy, Daimler has emphasized sustainability as a key dimension of operational excellence in its human resources work, and aims to systematically establish it throughout its business processes. This initiative is an important motivation to safeguard the results achieved in recent years and ensure further penetration. Imple-mentation is assured by the cascading of the strategic targets through the annual target agreement process.

In order to ensure the comprehensive management, implementation, and reporting of sustainability issues in the Human Resources organization, the Human Resources Executive Committee decided in 2008 to establish the Human Resources Sustainability Commit-tee, in which all of the affected corporate functions having to do with human resources are represented. This committee is headed by the Director of Human Resources and Labor Policy, who represents the area of human resources at the Group level as a member of the Corporate Sustainability Board.

The “Global Human Resources Scorecard” is an impor-tant management tool in this area. It, in turn, is an inte-gral part of the strategic scorecard of the Group as a whole. Through the success factors and their perfor-mance measurement criteria (currently 14) — known as the key performance indicators (KPIs) — it is possible to compile global key figures concerning human resources in a targeted manner. This makes it possible to measure the success of human resources processes and strate-gies. The information gained in this manner is used to design the most important functional human resources

measures in the goal agreement process of all human resources directors. The Global Human Resources Scorecard provides targeted support for the business strategies and processes in the divisions and creates the foundation for a continual mutual learning process within the Group through best practices.

5.2 Principles of human resources management. Our manager development process is carried out in strict accordance with a uniform process at all levels of the company worldwide: the Leadership Evaluation and Development Process, or LEAD for short. The corporate values Passion, Respect, Integrity, and Discipline are the frame of reference for management and the basis of our management evaluation and development pro-cesses. As part of the LEAD process, selected special-ized employees are evaluated to determine their potential for entering the lowest level of management.

In addition to their fixed remuneration, all managers also receive variable earnings, with the exact amount depending on the Group’s success and the individual’s performance. The measure of individual performance here is the degree to which he or she has achieved the targets agreed on at the annual meeting. On principle, Daimler expects all of its managers to orient their activ-ities toward sustainability. This element is also consid-ered when evaluating their managerial activities. I 9

For employees in technical and administrative functions who are covered by collective bargaining agreements — a category covering some 50 percent of the Group’s employees — Daimler uses a separate procedure known as the NAVI management process to set agreed-upon goals and evaluate the extent to which these goals have been achieved. The name of this process refers to the navigation unit in a vehicle and stands for the precise

I 9 More information:


/sr/06

Global Human Resources Scorecard — success factors and key performance indicators (KPIs)

Profi tabilityCompetitive

workforce

Management

competence

Employer

attractiveness

Professional

HR activities

Management potential

Employer ranking Global HR process

implementation

rate

Employee

qualifi cation index

Number of women in

management functions

Fluctuation

rate

Hourly labor

costs

Labor costs

Reduction in

sickness rate

Attendance Employee satisfaction

Management/employee

commitment index

HR customer

satisfaction index

HR customer satisfaction

Potential-bearers

Management qualifi -

cation index

Employer image HR services & instruments

Qualifi cation Diversity Fluctuation

Versatility

Employee and

working time

versatility

Age structure

Demographic structure



determination of targets and location performance for managers and employees at various times during the annual management process. I 10

6.0 Supplier relations management

Daimler AG’s procurement organization consists of three purchasing units: Procurement Mercedes-Benz Cars and Vans; Procurement Daimler Trucks and Buses; and International Procurement Services, which is responsible for the purchase of non-production materi-als. Together they make up the Corporate Procurement Services department, which reports to the Board mem-ber in charge of Finances & Controlling. Around 1,900 employees at more than 50 locations worldwide work in the area of procurement.

In our procurement processes we use an approach based on long-term, performance-oriented cooperation with our suppliers. In this way, we strive to promote and safeguard innovation and top performance over the long term. We measure the performance of our suppli-ers with the help of the globally standardized External Balance Scorecard (EBSC). I 11

In line with the slogan “Commitment to Excellence in Procurement,” our global procurement policy is based on three strategic approaches:

1. Cost Optimization — i.e. the global consolidation of purchasing volumes, the creation of a global supplier network, and the efficient structuring of the pro-cesses resulting from these measures;

2. Supplier Relationship — i.e. the successful operative and strategic management of our worldwide base of suppliers;

3. Sustainable Performance — i.e. the long-term support of an effective and efficient procurement organization

7.0 Customer relations management

Our customers expect a great deal from us. That’s why the utmost customer satisfaction is the target we aim to reach with all of our Daimler brands and products. And this is why our customers are so loyal to us. Our efforts encompass all the areas where we aim to exceed our customers’ expectations in terms of sales, service, and support services such as financing and insurance. Here we take into account the vehicle’s com-plete lifecycle, i.e. the entire period during which the vehicle is used.

We know that our customers have very different expec-tations, depending on the product — whether it’s a pas-senger car, truck, a bus or a van — and the associated services. In order to comprehensively back up our

I 11 Further information on our crite-

ria for evaluating suppliers: p. 27

Sustainability guidelines for suppliers

On the basis of our corporate guidelines and international standards and princi-ples, including the Global Compact of the United Nations and the International Labour Standards of the ILO, Daimler AG has developed sustainability guide-lines for its suppliers. Sent to all suppliers worldwide in July 2008, these guide-lines set standards for sustainable business operations. They also explain what kind of behavior we expect from our suppliers with regard to social, environ-mental, and other ethical issues. They supplement existing regulations such as the Daimler Integrity Code, the Principles of Corporate Social Responsibility, and the Group’s Environmental Guidelines. They are currently available in ten languages and can be accessed online at the Daimler suppliers’ portal. Daimler AG has expressly instructed its direct suppliers to communicate the content of the guidelines throughout their own organizations, inform their business part-ners in the supplier chain, and demand that these partners adhere to the guide-line standards.

The sustainability guidelines can be downloaded from our supplier portal at:

daimler.covisint.com

I 10 Additional information on NAVI:


/sr/07



– Corporate Environmental Protection coordinates the dialogue with stakeholders about environmental issues;

– the development units of the divisions are in charge of vehicle safety issues;

– contact and communication with the employees on human resources issues is the responsibility of the Human Resources organization;

– our purchasing organization discusses social and environmental issues that are relevant to procurement with our suppliers and other automakers;

– dialogue with elected officials, committees, and associations regarding political and Group-related issues is coordinated by the Public Policy and Exter-nal Relations unit and Corporate Strategy;

– Corporate Communication answers media inquiries.

Sustainability Dialogue. The Sustainability Board plays a key role in the coordination of cross-issue and cross-unit activities. It also decides on the use of new and more far-reaching instruments. One example of this is the Sustainability Dialogue, which was held for the first time in November 2008. At the event’s debut in Stuttgart, about 60 interested businesspeople, politi-cians, and citizens talked with top Daimler managers. Through this event, which will be held regularly in the future, we aim to systematically deepen our dialogue with critical interest groups and make it a fixed institu-tion. We will use the results of the Sustainability Dia-logue to work out, in cooperation with the participating groups, concrete proposals for solutions in selected areas where action is required, in order to further improve our performance in terms of sustainability. I 13

promise to customers that appreciation is one of our guiding principles, all of our business units have there-fore developed customized strategies and programs that are tailored to meet regional and customer-specific demands. The goal-oriented implementation of these strategies and programs includes:

– a clearly structured and prioritized program of action that is based on practice-oriented descriptions of the processes at the point of sale;

– a specific training program for all of our employees who come into contact with customers, as well as customized consultations;

– measurable performance criteria — internal as well as external — and new success-oriented remunera-tion models that offer the right incentives for sales consultants and service employees.

In this way, utmost customer satisfaction and apprecia-tion form the basis of a strategy that sets our business operations apart and thus lays the groundwork for prof-itability and sustainable growth. I 12

8.0 Management of the dialogue with stakeholders

Daimler engages in dialogue with its stakeholders all over the world and thus includes them in its operations. A critical factor for us in the identification and evalua-tion of our stakeholders is the question of whether, and to what extent, a specific group of people is affected by our activities. A contact person in the Group is respon-sible for each of the main issues in the dialogue:

– The Investor Relations unit is responsible for com-municating with investors and shareholders;

I 13 Additional information on the

sustainability dialogue:


/sr/08

I 12 You can find more information

on our customer relations manage-

ment on p. 63 ff.

Stakeholders at Daimler — two-way relationships

Stakeholders who are affected by Daimler’s operations

People who can influence Daimler’s

performance

Employees

UnionsCustomers

Rating agencies

Suppliers Shareholders

Communities

Science

Authorities Social andenvironmentalNGOs

National governmentsLocal administrations

ServicesTaxes

Capital and fundsReturn on investment

ProfitsProducts

Media

RemunerationProductivity

ProfitsMaterials

WealthLicence to operate

People to whom Daimler has legal, financial

or operational responsibilities


Daimler 360 DEGREES – Facts on Sustainability 2009 22

Economy. We aim to create value in a sustainable manner for our shareholders, our customers, and our employees. We are therefore focusing our efforts on strengthening our competi-tiveness and ensuring our long-term business success.

090305_F_Okonomie_ENG_RZ_2.indd 22090305_F_Okonomie_ENG_RZ_2.indd 22 13.03.2009 11:14:16 Uhr13.03.2009 11:14:16 Uhr

23 Economy

Dear readers,

The year 2008 was marked by the dramatic effects of the world-wide financial and economic crisis in the second half of the year, which led to a significant and abrupt drop in demand for automo-biles.

We are facing up to the challenges of this financial and economic crisis, and we aim to emerge from it stronger than ever. That’s why we will continue our policy of making no cuts in our future-oriented investments — be it in our new products and green technologies or our penetration of important growth markets. At the same time, we are intensifying our efforts to operate efficiently in every area of our company in order to ensure lasting success for our divisions and business units and enable our shareholders and employees to share in our company’s success. An essential criterion of this effort is sustainability — in our production activities, in our automotive products and financial services for our customers, and also in our business operations.

As we already announced at the Annual Press Conference in Feb-ruary, we expect that the earnings of the Daimler Group and its divisions will continue to be affected by significant additional pres-sures in 2009. However, thanks to the launch of the new E-Class and savings resulting from our efficiency measures, we expect earnings to gradually improve in the course of the year.

Only a large measure of competitiveness and the achievement of business targets enables a company to make a positive contribu-tion to sustainability in other areas as well. We aim to live up to this responsibility. At the same time, we plan to further increase our transparency. One step we are taking in this direction is to represent Mercedes-Benz Vans and Daimler Buses as separate seg-ments in our business figures starting with business year 2009.

Bodo UebberMember of the Board of Management of Daimler AGFinance & Controlling/Daimler Financial Services

Bodo Uebber



1 I Further information on our gener-

al business development can be

found in the Annual Report 2008

p. 40 ff.

2 I For a breakdown of our consoli-

dated revenues according to divi-

sion and region, go to:


/sr/09

1.0 Business development in 2008

The weak world economy and the internationalfinancial market crisis had a significant impact on theautomotive industry in 2008. Global unit sales of cars decreased by approximately 5 percent, the biggest drop in nearly 30 years. A sharp drop in demand in the volume markets of North America, Western Europe, and Japan was partially offset by growth in the emerg-ing markets. Demand for commercial vehicles also declined in the NAFTA region, Western Europe, and Japan. Although demand rose in some of the emerging markets despite weakening towards the end of the year, worldwide unit sales of commercial vehicles decreased slightly.

Despite extremely difficult market conditions, especiallyin the second half of the year, Daimler sold a total of 2.1million vehicles in 2008, thus nearly equaling the prior-year level. Daimler’s total revenue amounted to €95.9 billion in 2008, compared with €99.4 billion in the prior year; adjusted for exchange-rate effects and changes in the consolidated group, there was a decrease of 1 per-cent. EBIT from ongoing operations excluding special items, particularly due to Chrysler, reached €6.2 billion, which was more than the level we had announced in our reporting on the third quarter. I 1, 2

The Mercedes-Benz Cars division sold 1,273,000 ve-hicles (2007: 1,293,200). We therefore defended our worldwide market position in the premium-car seg-ment. However, the development of business was im-pacted by the rapid deterioration in economic condi-tions during 2008, leading to massive drops in unit sales in major markets in the second half of the year. Unit sales of the Mercedes-Benz brand fell to 1,125,900 cars (2007: 1,180,100). The smart brand in-creased its unit sales significantly to 139,000 cars in

the year under review (2007: 103,100 cars). This was partially due to the great success of the smart fortwo in the United States, where 27,600 cars were shipped in the first year of sales. Mercedes-Benz seeks to in-spire its customers with economical and environmen-tally compatible premium automobiles that sacrifice nothing in the way of the typical brand attributes of safety, comfort, and superior driving pleasure. Our “Road to the Future” program launched in September 2007 demonstrates how we intend to achieve that goal. An important step in this respect was taken during the year under review with the introduction of numerous BlueEFFICIENCY models. BlueEFFICIENCY comprises a package of fuel-economy enhancement measures that are being applied in all Mercedes-Benz model series. InDecember 2008, Mercedes-Benz then launched the first-ever luxury-segment BlueEFFICIENCY model in the form of the S 320 CDI. This sedan consumes 7.6 liters of fuel per 100 km — better than any other model in its segment. The new C 250 CDI BlueEFFICIENCY, which was launched in the fall of 2008 and is equipped with a new four-cylinder diesel engine, combines driving plea-sure with outstanding efficiency. With fuel consumption of only 5.2 liters of diesel per 100 kilometers and car-bon-dioxide emissions of 138 grams per kilometer, the model offers the performance of a conventional six-cylinder engine but with much lower fuel consumption. Our S 400 BlueHYBRID, which we unveiled in Septem-ber 2008, will be the world’s most fuel-efficient gaso-line-powered luxury sedan when it is launched in mid-2009.

Daimler Trucks sold a total of 472,100 heavy, medium and light-duty trucks in 2008, surpassing prior-year sales of 467,700 vehicles. We also succeeded in de-fending our leading position in the market for trucks above 6 tons. Trucks Europe/Latin America increased its sales once again by 6 percent to 170,100 units, thus setting a new record. We achieved strong growth in Brazil (+23 percent) and the Middle East (+90 percent). Unit sales fell, however, in the NAFTA region and in Ja-pan. The market recovery originally expected for the United States and Canada in the second half of 2008 did not occur due to the weak economic developments. The Trucks NAFTA unit was therefore unable to increase its sales as planned; instead there was a decrease to 104,300 units (2007: 119,000 units). Trucks Asia reached a record level and surpassed its prior-year unit sales by 5 percent, selling 197,700 vehicles. A particu-lar highlight for Daimler Trucks in 2008 was the unveil-ing of the third-generation Mercedes-Benz Actros, which is the world’s first truck for long-distance haul-age to be fitted with automated transmission as stan-dard. A few weeks after its premiere in March 2008, the market-leading truck was already entered in the Guin-ness Book of World Records as the world’s most fuel-efficient series-produced truck and world champion for low CO2 emissions following a test drive in Nardo, southern Italy.

Unit sales structure

Trucks

Europe/Latin America 36 %

Trucks NAFTA 22 %

Trucks Asia 42 %

Daimler Trucks

A-/B-Class 20 %

C-/CLK-/SLK-Class 35 %

E-/CLS-Class 14 %

S-/CL-/SL-Class/

SLR/Maybach 7 %

M-/R-/GL-/GLK-/G-Class 13 %

smart 11 %

Mercedes-Benz Cars


25 Economy

Daimler Financial Services’ business development was generally positive in the year under review. Its global contract volume of € 63.4 billion at the end of the year 2008 was 7 percent higher than the prior-year level. Several companies were consolidated for the first time during 2008, most of them in Asia and Eastern Europe. Without this effect and adjusted for exchange-rate effects, contract volume increased by 5 percent. New business increased by 7 percent to €29.5 billion, or by 6 percent when adjusted for the aforementioned effects. Once again last year, Daimler Financial Ser-vices was awarded leading positions in various indepen-dent studies of dealer and customer satisfaction, for example in Germany, the United States and the United Kingdom.

Mercedes-Benz Vans increased its market share in the segment of medium-sized and large vans and further extended its leading position. In terms of unit sales, the number of 287,200 vans sold in 2008 did not quite match the record prior-year figure (289,100) due to the difficult market conditions in the second half of last year. The Sprinter was again selected CEP Van of the Year in its class of vehicles weighing up to 3.5 tons. A jury composed of 30 experts from the CEP (courier, express, and parcel delivery) segment based its decision on criteria such as economy, functional-ity and vehicle handling. In the same competition, the Mercedes-Benz Vito was the third-time winner in the class of vans weighing up to 2.8 tons. The Mercedes-Benz Sprinter also took first place in the competition for Commercial Vehicle of the Year, underscoring its tremendous popularity with customers.

Daimler Buses also achieved record unit sales in the year 2008, selling 40,600 buses and chassis worldwide (2007: 39,000), and successfully defended its leading market position in the segment of buses above 8 tons. At the 62nd International Motor Show (IAA) for Com-mercial Vehicles the Mercedes-Benz Citaro G BlueTec Hybrid was presented; Daimler Buses is working hard to launch this vehicle on the market in the near future. With the Orion brand, we are the world market leader in the field of hybrid buses. To date, we have sold more than 1,700 hybrid buses and have received orders for more than 1,000 additional buses.

Daimler anticipates a significant decrease in business volume in 2009. From the starting point of the currently projected unit sales, revenue is likely to be lower than in 2008 in all of the vehicle divisions. We anticipate fur-ther substantial burdens on the earnings of the Daimler Group and its divisions. A more detailed statement onearnings will only be possible later in the year, when the development of the world economy and the automotive markets can be better assessed. With the help of our intensified efficiency-improving actions and the market success of our new products, we should be able to in-crease our earnings again in 2010.

Broad shareholder base

Daimler continues to have a broad shareholder base of approximately 1.3 million shareholders. At the end of 2008, the largest shareholder was the Kuwait Invest-ment Authority with a holding of 7.6 percent. In total, institutional investors held 69 percent of our equity and private investors held 24 percent. Approximately76 percent of our stock was in the hands of European investors and approximately 16 percent was held by U.S. investors.

After falling for several years, the number of private investors entered in Daimler’s share register increased once again in 2008.

More and more Daimler shareholders are going online. For several years now, Daimler has asked shareholders to support the company’s efforts to reduce the consumption of paper, fuel, and other valuable resources. Our primary goal here is to get shareholders to agree that invitations to the Annual Meeting be sent out via e-mail rather than mailed as paper documents. Daimler already operates a unique “e-service for Shareholders” at https://register.daimler.com where share-holders can also switch to e-mail delivery of their Annual Meeting documents. This service, which includes many other features, is available all year round to all shareholders. The number of “e-service” users has been rising over the past few years, and in 2008, some 80,000 shareholders received their Annual Meeting invi-tations, complete with the conference agenda, via e-mail. Daimler is taking steps to increase this number further in 2009.



3.0 The economic significance of the automotive industry

The automotive industry is an engine of growth, reve-nue, employment, and prosperity all over the world. Pas-senger cars are the basis of individual mobility, while trucks secure the global supply of goods. Automobiles enable people to live and work in remote areas by pro-viding a type of mobility and flexibility that would have been unthinkable a century ago. Consequently, the automotive sector — and therefore our company as well — impacts global economic activity in a variety of ways.

The automotive industry in Germany. The German automotive industry was once again one of the leading employers in Germany in 2008. In fact, it employed an annual average workforce of 756,500 men and women, or 12,000 more than in the previous year. The automo-tive industry employs more than 14 percent of the total number of industrial workers, and that figure has increased by over 3 percent in the past ten years.

In 2008 the foreign trade surplus of the automotive industry in Germany once again exceeded the €100 bil-lion mark and was twice as high as it was ten years ago. This sector exported goods valued at €180 billion and imported goods worth €78 billion.

The automotive industry in Germany is a major source of investment in the overall economy. The sector’s gross investment in plant and equipment increased last year by 8 percent to €11.5 billion, which amounts to approximately a fifth of the total industrial investment in Germany. Over the past ten years, more than €100 billion in total were invested in Germany. The German automotive sector invests more than €18.9 billion in research and development (R&D) each year, which cor-responds to around one third of the total R&D invest-ment of German companies — a contribution that’s far

2.0 The Daimler share in sustainability indexes

Our efforts to organize our strategy and operations also in line with the principle of sustainability were rewarded by external appraisals once again in 2008. Daimler’s stock was included for the fourth time in the Dow Jones Sustainability Index (DJSI), one of the world’s leading indexes of its kind. The Group’s commitment to sustain-ability was assessed in the areas of economics, ecolo-gy, human resources, and social responsibility. On the basis of this assessment, Daimler was placed among the top five companies in the automotive industry in terms of sustainability. Our ongoing listing in the DJSI is one of our accomplishments on the way to achieving more sustainable management. Daimler ranked behind BMW and Volkswagen in the Europe rankings of the Dow Jones STOXX Sustainability Index (DJSI STOXX), and was therefore no longer listed in this numerically smaller index in 2008.

Daimler is committed to intensifying its sustainability-related efforts, and is therefore hoping to rejoin the DJSI STOXX index next year. We are not represented in the FTSE4Good Index for formal reasons on account of our shares in EADS, which produces defense technolo-gy among other products. However, it should be noted that Daimler received favorable marks for its commit-ment to sustainability in 2008 from the sustainability rating agencies Oekom, Vigeo, and AccountAbility.

Sustainability rating agencies and indexes

Sustainable Asset Management (SAM) Evaluated (09/2007) Evaluated (09/2007)

Vigeo Evaluated (04/2006) Evaluated (04/2006)

AccountAbility Rating 10th place (11/2007) 10th place (11/2007)

Imug/eiris Evaluated (08/2006) Evaluated (08/2006)

SiRi (scoris) — automotive industry 11th place (12/2007) 11th place (12/2007)

Oekom research — automotive industry 5th place (06/2006) 5th place (06/2006)

Dow Jones Sustainability Index (DJSI) World Listed (09/2007) Listed (09/2008) www.sustainability-indexes.com

Dow Jones Sustainability Index (DJSI) STOXX Listed (09/2007) Not listed www.sustainability-indexes.com

ASPI Index Listed (04/2006) Listed (04/2008) www.vigeo.fr

FTSE4Good Index Not listed Not listed www.ftse.com/ftse4good/

Rating agencies 2006/2007 2007/2008

Indexes 2007 2008 Internet address


27 Economy

above average. The Daimler Group, for its part, invest-ed €4.4 billion in R&D activities worldwide in 2008 (2007: €4.1 billion).

Above and beyond our core business — the production and sale of automobiles — Daimler also benefits the economy and society in other ways. One example is offered by the Group’s provision of financial support to community projects and promotion of infrastructure services, for example, by building its own sports and athletic centers. I 3

The automotive industry in Baden-Württemberg. Daimler’s home state of Baden-Württemberg is the most important automotive region in Germany. The state offers automakers ideal conditions through a unique concentration of automotive supplier firms, research institutes, technology transfer centers, and specialized programs of study at its universities. Government statis-tics for automobile production in Baden-Württemberg in 2007 show that the state is home to more than 357 companies involved in some way in automobile produc-tion. In 2007, these firms employed some 234,000 men and women, and generated revenues of approximately €85 billion. The large majority of these companies are the automobile manufacturers and their supplier firms, all of which will continue to play a major role in the state’s economic development for years to come.

4.0 Global procurement

We employ a performance-oriented — as well as part-ner-based — approach in our dealings with suppliers, whereby we focus on the four value drivers of quality, technology, costs, and logistics. Social and environ-mental aspects are taken into account here as well, of course.

Our philosophy of cooperation with suppliers is based on mutual expectations and obligations: We understand that in order to achieve our goals, we need to work with reliable partners who share our view of sustainable cooperation. On the basis of the four value drivers men-tioned above, we assess the performance of our suppli-ers using our globally standardized External Balanced Scorecard, which converts our strategic goals — the global concentration of procurement volumes and thus the efficient shaping of processes, the operative and strategic management of our global supplier base, and the sustainable further development of an effective and efficient procurement organization — into measurable indicators. As a result, both our procurement employ-ees and our suppliers are able to carry out objective comparisons. Our expectations regarding ecological and social issues are formulated in our sustainability guidelines for suppliers. Key aspects here include the development of environmentally sound materials, utili-zation of environmentally friendly production methods, and respect for human rights. I 4, 5

Daimler communicates its principles and guidelines for suppliers at the Group’s Global Supplier Portal. The approximately 40,000 registered users of the portal also have access to online software applications, such as those for exchanging documents or evaluating sup-pliers. In addition, users can obtain all information rele-vant to their business relationships with the Group. I 6

Our expectations regarding our suppliers with respect to the issue of diversity are also stated in our Sustainability Guidelines. We categorically reject discrimination in any form, for example on the basis of race, gender, religion, age, or political beliefs. However, diversity means even more to us than that, and we’ve been nurturing it at the Group for a long time now. For example, we have been cooperating successfully with workshops for the dis-abled for more than 30 years. In South Africa we support the “Broad-Based Black Economic Empowerment” initia-tive, an economic development program that directly benefits disadvantaged groups, and are implementing related measures. Daimler also expects its suppliers to increase their procurement volumes from minority-run companies. I 7

Cooperation in difficult times. The earnings situation at many automotive supplier firms deteriorated sharply last year. We take our responsibilities here seriously. Within the framework of our supplier risk management system, we have therefore established processes aimed at not only identifying suppliers that are encoun-tering financial difficulties but also stabilizing the situa-tion. In some cases this is being done in cooperation with other automakers.

3 I Further information on our

social responsibility: p. 65

7 I Further information on our diver-

sity strategy for procurement:

sustainability2009.daimler.com:

sr/10

4 I Heinrich Reidelbach, Vice Presi-

dent Corporate Procurement

Services Daimler AG, explains our

Supplier Guidelines: Magazine,

p. 40

5 I Further information on our sus-

tainability guidelines for suppliers:

p. 20

6 I Further information on our Glob-

al Supplier Portal, including all

principles and guidelines:

http://daimler.covisint.com



Environmental protection, innovation, and safety. The effi-cient use of resources, the reduction of emissions, and the enhancement of road safety are key tasks on the path toward achieving sustainable mobility. Our pioneering spirit and innovative strength enable us to actively shape the future of mobility.

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29 Environmental protection, innovation, and safety

Dear readers,

We are currently experiencing a paradigm shift in the automotive industry: the trend toward vehicles with ever-lower emissions and ultimately zero-emission driving.

We are pressing ahead with this transformation, because only clean and fuel-efficient vehicles can safeguard individual mobility in the future and reconcile people’s need for mobility with the require-ments of environmental protection.

Daimler in particular is obligated to live up to this responsibility: As the inventor of the automobile we aim to also shape its future. As we do so, we are convinced that the path to sustainable mobility is best pursued not through sacrifice but through innovations. In our Green Technology Leadership Initiative, we are aiming at nothing less than the second invention of the automobile.

Of course when it comes to sustainable mobility, we’re still not where we want to be. But we’re making good progress. Our new generation of four-cylinder diesel engines is a good example of how it is still possible to further optimize the combustion engine. The C 250 CDI consumes only 5.2 liters per 100 kilometers (45 miles per gallon) — that corresponds to 138 grams of CO2 emissions per km (222 grams of CO2 per mile).

We’re also convinced that the consistent optimization of the combustion engine remains extremely important, as this is the only way to achieve significant short-term effects in our overall vehicle fleet. Our second focus is on hybridization. In October 2008 we became the first German automaker to present a series-produced hybrid model. The S 400 BlueHYBRID with a lithium-ion battery, which is the world’s cleanest luxury sedan, will be available to customers in mid-2009. Further hybrid passenger car models, including some with diesel engines, will follow. Incidentally, we’re already the world market leader when it comes to commercial vehicles with hybrid drive systems.

But our long-term goal is to eliminate emissions entirely — we aim to produce vehicles that operate emission-free at least on the local level. Here we are deliberately focusing on electric mobility based on battery-powered and fuel cell drive systems. Zero-emission driving with battery-powered drive systems will make a major

contribution to sustainable urban mobility. At the end of 2009 we will deliver the first electric vehicles equipped with lithium-ion batteries to selected customers as part of our e-mobility initiative.

In this initiative we can build on the practical experience and knowl-edge we’ve gained over almost two years from a trial with 100 first-generation smart ed vehicles in London.

But we also realize that from today’s viewpoint battery technology will be concentrated in certain vehicle segments due to the batteries’ limited capacity and the length of time it takes to recharge them. As a result, only limited ranges will be possible.

That’s why the fuel cell is the most appropriate drive technology for zero-emission operation over longer distances and for larger passenger car models. We’ve made significant progress in this area in recent years. For example, we have reduced the space required to house the fuel cells by 40 percent, increased their range by 100 percent, and boosted their performance by 30 percent. We have also improved their cold-start capability so that they can now be switched on at minus 15 degrees Celsius (five degrees Fahrenheit). These successes will enable us to take the next step toward commercialization and already begin the small-batch production of the B-Class F-Cell model this year.

We’ve put the facts together for you in this exciting report.Pleasant reading!

Dr. Thomas WeberMember of the Board of Management of Daimler AGGroup Research and Development Mercedes-Benz Cars

Prof. Dr. Herbert KohlerVice President E-Drive & Future Mobility in Group Research & Advanced Engineering , Daimler Chief Environmental Officer

Prof. Dr. Herbert KohlerDr. Thomas Weber



2 I Well-to-wheel analysis of pas-

senger-car drive systems’ energy

efficiency:


/sr/12

the consistent further development of automobiles that are increasingly economical and more and more environmentally friendly, without the need for sacri-fices in terms of safety and comfort. We take a holistic approach toward drive systems in order to conserve resources throughout the entire value creation process and minimize emissions. I 2

The road map for sustainable mobility encompasses three focal areas (see the chart “Daimler’s road map to sustainable mobility”):

1. Optimization of our vehicles with state-of-the-art internal combustion engines

2. Further efficiency gains through hybridization

3. Zero-emission driving with fuel cell and battery-powered vehicles

The internal combustion engine, with and without hybridization, will continue to play a key role on the path toward sustainable mobility. The innovations and technologies that are helping to further cut fuel con-sumption and CO2 emissions are summarized below:

– Optimized internal combustion engines. Gasoline engine. CGI (stratified charged gasoline injection). Second-generation gasoline direct injec-tion systems ensure optimal fuel utilization, thereby generating further fuel economy potential. In these systems, the exact dose of fuel needed for a par-ticular driving situation is sprayed into the cylinders, where it is almost completely burned. The CLS 350 CGI, which was introduced on the market in April 2006, was the world’s first vehicle to feature spray-guided direct injection. It was followed by the E 350 CGI in 2007 and by the C 350 CGI with direct gasoline injection in late 2008. Vehicles with the CGI system use around ten percent less fuel than the correspond-ing six-cylinder models with conventional duct injec-tion. We will begin converting four-cylinder gasoline

engines to direct injection in 2009.

NGT (Natural Gas Technology). The natural gas drive system is an alternative to conventional drive systems from both an economic and an ecological

1.0 Environmental protection in the product lifecycle

To safeguard our company’s future, our key aim is to shape sustainable mobility.

The key environmental concern for the public, politi-cal decision-makers, and the business community is climate protection, which involves reducing energy consumption and minimizing the emission of CO2. As a globally operating automobile manufacturer, we have a special responsibility in this regard, which is why we aim to steadily improve the environmental compatibility of our products and activities. To this end, we focus on the environmental impact of our products over their entire lifecycle, from development and production to service use and recycling. I 1

The following chapters review the individual stages of the product lifecycle and describe the measures we employ at each stage to conserve resources and mini-mize pollutant emissions.

2.0 Innovation, development, and safety

Achieving sustainable mobility is the chief aim of the activities at Research and Development. Key factors on the path toward attaining this objective include the reduction of emissions, the minimization of energy consumption during the production, use, and recycling of our products, and the further optimization of our vehicles’ safety features. Daimler has made significant progress in all of these areas in recent years, and it will continue to consistently follow this path in the future. About 18,900 employees currently work in these fields at our research and development departments, focus-ing in particular on further reducing the CO2 emissions of our products. The work they are doing addresses two areas: vehicles and powertrains on the one hand (core activities), and fuels on the other (support activities).

2.1 Sustainable mobility strategy and implementa-tion for passenger cars. The Group’s strategy involves

1 I Further information on climate

protection and CO2 reduction:


/sr/11

Product lifecycle

Research and

developmentSuppliers Logistics Production Sales Use End of life



point of view. Besides containing less carbon than normal gasoline or diesel fuel, another benefit of natural gas is that it also produces less pollutant emission during combustion. Our NGT vehicles are equipped with a bivalent drive system that can run on either natural gas or premium-grade gasoline. This technology has been available since mid-2004 in the Mercedes-Benz E 200 NGT, and it was intro-duced in another model — the B 170 NGT BlueEFFI-CIENCY — in the summer of 2008.

Diesel engine. Fourth-generation CDI (common-rail direct injection). In fall 2008, Mercedes-Benz launched the series production of the fourth-genera-tion common-rail direct injection system. It can adapt fuel injection even more precisely to the momentaryengine load and rev speed, which in turn helps to cut emissions, fuel consumption, and combustion noise. In a midrange model, the new 150-kilowatt (204-hp) drive system consumes only 5.2 liters of diesel per 100 kilometers (45 miles per gallon) (NEDC), which is 0.5 liter (0.13 USgal) less than the predecessor system. Even without any active denoxing system, the new diesel engine already meets the future Euro 5 emissions standard and will be available in a number of different Mercedes-Benz model series.

DIESOTTO. In the DIESOTTO, Mercedes-Benz has managed to combine the best features of gasoline and diesel engines to create a completely new engine concept: outstanding fuel economy and thus reduced CO2 emissions as well as lower emissions of nitrogen oxides (NOx). The technology it uses is based on the principle of operating a gasoline engine in certain situations with auto ignition, like a diesel. The DIESOTTO engine’s technology pack-age also includes direct injection, turbocharging, variable valve control, fewer cylinders, lower dis-placement, and an automatic start/stop feature. The DIESOTTO engine was presented for the first time in 2007 in the F 700 research vehicle. The F 700, which is similar in size and appearance to the current S-Class series, consumes only 5.3 liters of gasoline per 100 km (44 mpg), which corresponds to CO2 emissions of just 127 g/km (204 g/mile). Mercedes-Benz is now gradually incorporating the core elements of the DIESOTTO concept into its indi-vidual model series.

– “BlueEFFICIENCY” package. Our “BlueEFFICIENCY” package of innovative measures is based on a holis-tic approach to vehicle optimization and the use of intelligent solutions for improving the fuel economy of our vehicles even further. All of the measures employed are optimally aligned with one another, thereby resulting in substantial fuel savings totaling approximately ten percent. I 3

– Model-specific hybrid modules. The combination of optimized combustion engines and customized hybrid modules enables further reductions in fuel consumption and CO2 emissions. The hybrid pos-sibilities include modules ranging from the start/stop function and boosting to recuperation and the fully electric driving function. The smart fortwo micro hybrid drive (mhd) with a start/stop function was launched on the market in October 2007, and the A-Class and B-Class with enhanced Eco start/stop function have been on the scene since the fall of 2008. We aim to launch at least one hybrid model per year in the future, including vehicles with diesel engines. I 4

– Zero-emission driving with fuel cell and battery-powered vehicles. Fuel cell. Hydrogen-powered fuel cell vehicles offer ideal conditions for achieving zero-emission mobility that conserves resources, especially if the hydro-gen is produced from renewable sources. Inside a fuel cell, the chemical reaction between hydrogen and oxygen generates electrical energy, producing only water vapor as a byproduct in the process. At the same time, the vehicle-internal efficiency of fuel cell drives is around twice as high as that of today’s combustion engines. The latest generation of hydrogen-powered vehicles — the A-Class F-CELL, fuel cell Sprinters, and Citaro urban buses — is now proving itself in a global testing program. As a result, Daimler operates the largest fuel cell-powered vehi-cle fleet of any manufacturer worldwide. Every day, these vehicles deliver vital data that will flow into the development of the next generation of vehicles and future fleet tests. From 2009, the company will be building a small batch of the first series-produced car with a locally emission-free fuel cell drive -

Mercedes-Benz B-Class F-CELL.

3 I More on BlueEFFICIENCY:


/sr/13

4 I Modular concept for hybridization

the entire product range:


/sr/14

Daimler’s road map to sustainable mobility

Optimization of our vehicles

through state-of-the-art

combustion engines

Further efficiency gains

through hybridization

Zero-emission driving with fuel-cell

and battery-powered vehicles

Clean fuels for internal combustion engines Forms of energy for emission-free driving

Energy for the future



5 I Further information on the S 400

BlueHYBRID: Magazine, p. 42 ff.

6 I Further information on electric

drive systems:

Magazine, p. 22 ff.

Battery operation. Electric drive systems with bat-teries form another integral part of our sustainable mobility strategy. With energy consumption of only 12 kilowatt-hours per 100 km (5.2 miles per kWh), the smart fortwo ed (electric drive) is currently the most economical and climate-friendly vehicle alternative for urban driving. The electric two-seater can travel approximately 115 km (71 miles) on a fully charged battery, and dead batteries can be recharged at least a thousand times using any 230-volt socket. Since 2007, the first batch of 100 smart ed vehicles has been taking part in a large-scale field test in London. The cars are equipped with sodium- nickel chloride batteries (see “Battery systems for hybrid and electric vehicles” on this page). With the assistance of the German federal government and the federal state of Berlin, Daimler and the energy supplier RWE launched “e-mobility Berlin” in Septem-ber 2008. The project is the world’s largest initiative for climate-friendly electric vehicles. RWE is respon-sible for the development, creation, and operation of a network of around 500 charging stations, and will also manage the power supply and the overall sys-tem. Daimler is contributing more than 100 electric automobiles from Mercedes-Benz and smart to the project and also services the vehicles. Together with Enel, Italy’s largest energy supplier, the company is now launching another electric mobility concept.

One of the project’s key innovations is a lithium-ion battery that was specifically developed for automo-tive applications. Lithium-ion technology offers major advantages over other types of batteries. These include their very compact dimensions, sub-stantially higher performance, short charging times, a long life, and a high level of reliability. Later this year, the lithium-ion battery will be introduced on the market for the first time in a hybrid passenger car: the S 400 BlueHYBRID. I 5, 6

2.2 Sustainable mobility strategy and implementa-tion for commercial vehicles. Experts are predicting that the global transport volume will have doubled from its 2000 levels by the year 2030. And as freight trans-port continues to increase, the flexibility of road trans-port means that it will account for a large share of the total transport volume. Ensuring that mobility remains the foundation of social development for future genera-tions as well will require us to use resources wisely, reduce emissions, and provide the highest possible levels of traffic safety. Daimler’s commercial vehicle division is helping to shape the future of mobility with clean and efficient drive systems and alternative fuels. Our efforts in these areas are combined in the “Shap-ing Future Transportation” initiative, whose basis is the road map to sustainable mobility (see the chart:“Daimler’s road map to sustainable mobility”).

– Optimized internal combustion engines. Diesel engine. Over the past several decades, the

Battery systems for hybrid and electric vehicles

– The lead-acid battery still is the most frequently used rechargeable battery in vehicles, and will continue to be used as a starter battery in the future. However, the lead-acid battery has a low energy density of around 30 watt-hours per kilogram, as well as a high material weight and a relatively low service life. That’s why it cannot serve as a source of energy for series-produced electric vehicles.

– Featuring a significantly higher energy density, the nickel metal-hydride (NiMH) battery is currently the most frequently used energy storage sys-tem in hybrid vehicles.

– The smart fortwo ed cars being tested in London are equipped with a sodi-um-nickel chloride (NaNiCl) battery. Although they have a high energy density (90 to 140 Wh/kg), they also have a high operating temperature. To ensure that the battery remains ready for operation, it must be heated even when the motor is switched off.

– Lithium-ion batteries have the highest energy density of all currently available rechargeable energy storage systems. Mercedes-Benz will be the world’s first automaker to introduce a high-voltage lithium-ion battery on the market in a hybrid car, the S 400 BlueHYBRID. Key advantages of this battery compared to conventional nickel-metal-hydride batteries are its higher energy density, higher electrical efficiency, compact dimensions, and lower weight. What’s more, the lithium-ion battery stands out by virtue of its high ampere-hour efficiency, long service life, and great reliability, even at very low temperatures. A lithium-ion battery is also used in the Sprinter Plug-In Hybrid, a prototype of which was recently presented to the media. The battery allows the vehicle to travel about 30 km (19 miles) at a stretch solely on electric power, enabling it to operate locally emission-free.

Further information on battery systems for hybrid and electric vehicles:

sustainability2009.daimler.com/sr/15



conventional diesel engine used in commercial vehicles has been transformed into a high-tech drive system. As a result, diesel consumption has been reduced by more than a third. The diesel technology known as BLUETEC increases efficiency and reduces pollutant emissions: it cuts fuel consumption by 2 to 5 percent, which corresponds to fuel savings of as much as 2,000 liters (530 USgal) per year and vehicle. This means that the trucks equipped with BLUETEC, which currently number far more than 200,000, save approximately 400 million l (105 mil-lion USgal) of fuel per year. We have also achieved further improvements in fuel economy by optimizing transmissions and powertrains.

NGT (Natural Gas Technology)/CNG (Compressed Natural Gas). Due to its limited cruising range, the main area of application for the natural gas drive is city driving, where it offers a good alternative to diesel engines. Compressed natural gas is a very low-emission fuel, producing far fewer particulate emis-sions than diesel. In addition, natural gas drives are very quiet and produce less CO2 than diesel engines. The disadvantages of natural gas vehicles that still remain are the complexity involved in storing their fuel in heavy pressurized tanks and the lack of a fuel infrastructure.

The new Mercedes-Benz Sprinter NGT with a biva-lent natural gas drive was introduced on the market in 2008. The Mercedes-Benz Citaro CNG is built as both a single and an articulated bus with a natural gas engine; there are currently more than 1,000 such buses in use worldwide. The Citaro CNG was the first urban bus with a natural gas drive to generate even lower emissions than the levels called for by the strict EEV (Enhanced Environmentally Friendly Vehicle) emissions standard. Like the Citaro CNG, the Mercedes-Benz Econic NGT generates lower emis-sions than the limits set by the Euro V or EEV stan-dards, and also stands out through its low noise emissions. Today, around 800 of these buses are in

use throughout Europe for delivery and collection services as well as for other municipal applications. Since 2000, Freightliner Custom Chassis Corpora-tion (FCCC) has produced 1,000 natural gas-powered vehicles based on the MT45 walk-in delivery vehicle. More than 300 additional units were ordered in 2008.

– Model-specific hybrid modules. Depending on the application and the vehicle type in question, our commercial vehicle division produces combinations of internal combustion engines and electric motors that can either be operated individually (serial hybrid) or in tandem (parallel hybrid). Irrespective of the vehicle’s size, trucks are equipped with a parallel hybrid drive, while buses use a serial system, like in the Citaro G BlueTec Hybrid. Hybrid drive systems display their superior fuel efficiency most clearly in city traffic. Depending on the topography involved, hybrid systems can also reduce the fuel consump-tion of vehicles on short-distance delivery runs and long-distance trips. For the future, Daimler is there-fore also considering testing hybrid operation in long-haulage trucks and travel coaches. I 7

– Zero-emission drive systems using fuel cells and vehicles with purely electric drives. In the world’s largest field test of fuel cell vehicles, 30 fuel cell buses based on the Citaro operated in ten European cities from 2003 to 2006. Three buses each were tested in Perth, Australia, and in Beijing. Six of these fuel-cell buses are still in regular day-to-day service. The vehicles have covered a combined distance of over two million km (1.2 million miles) and have been in operation for a total of around 135,000 hours. In the next phase, the Citaro G BlueTec Hybrid Bus will be developed into a Citaro fuel cell hybrid.

– BlueEFFICIENCY package. At IAA 2008, we pre-sented the BlueEFFICIENCY package, which is already available for passenger cars, in a Vito for the first time. The package will be available for the Sprinter from the fall of 2009 and for the Vito from the fall of 2010.

2.3 Fuels of the future: New fuels will replace fossil fuels. Improved fossil fuels and high-quality alternative fuels represent a further component in the effort to achieve an optimal environmental balance sheet for the overall drive system. Our path to the fuel of the future will take us from clean conventional fuels and first- and second-generation biofuels to the use of hydrogen for fuel cell drive systems.

Bioethanol, biodiesel, and hydrotreated vegetable oils as admixtures. The current practice of blending fossil fuels with bioethanol and biodiesel is already helping to enhance the environmental balance sheet for road traffic. Daimler has committed itself to supporting activities that consistently exploit the potential of bio-fuels. Daimler is initially creating the technologies

7 I Further information on hybrid

drives for commercial vehicles:


/sr/16

Vehicles Vehicles Vehicles Vehicles

with gasoline with diesel with hybrid with electric

engine engine drive2 drive3

Percentage share

1 0.4 percent of the vehicles produced for Europe in 2008 were

manufactured as natural gas variants.2 With more than 2,500 commercial vehicles with hybrid drive

systems currently in operation worldwide, Daimler is the market

leader in this area.3 Daimler operates the largest fuel cell vehicle fleet (passenger cars,

vans, and buses) of all manufacturers worldwide. 100 smart ed

vehicles are currently on the road in London.

Drive technologies from Daimler

NAFTA 70.0 30.0 x x

Europe1 33.3 66.7 x x

Japan 46.4 53.6 x x



Daimler’s fuel road map

1. Conventional fuels such as gasoline and diesel will continue to play a dominant role in the years ahead, which is why they must be con-

tinually optimized. The goal here is the worldwide use of sulfur-free fuel that contains low levels of aromatic compounds.

2. CNG (compressed natural gas) is, from Daimler’s viewpoint, a promising option for certain applications, because it contains less carbon

than gasoline and diesel.

3. GTL (gas-to-liquid) fuels are — beside BTL (biomass-to-liquid) fuels — the cleanest and highest-quality fuels for diesel engines. This is

because GTL diesel is free of sulfur and aromatic compounds — although it is not CO2-neutral — and can be adapted to meet the require-

ments associated with internal combustion engines.

4. Hydrogen is the energy carrier for fuel cell vehicles. In the fuel cell, hydrogen reacts with oxygen to form water. Global hydrogen require-

ments have until now been largely met through steam reformation from natural gas. However, since this process still gives rise to CO2

emissions due to the carbon content of the natural gas, suitable economically viable processes for H2 production from renewable sources

must be developed.

5. First-generation biofuels, such as bioethanol and biodiesel represent an intelligent option for the short to medium term, insofar as

negative effects on food production can be avoided and they can be blended with conventional fossil fuels in concentrations that are com-

patible with the operation of the vehicles. Because biodiesel has quality short-comings that can only be improved by means of suitable

standardization, the admixture of this fuel must, for technical reasons, be limited to a concentration of no more than 7 percent.

Hydrotreated vegetable oils (HVO) are low in emissions and are manufactured on an industrial scale. They are suited for use as an interim

solution until second-generation biofuels are introduced. HVOs can be mixed with fossil fuels at any level of concentration without restric-

tion.

6. BTL (biomass-to-liquid) fuels made from biomass will grow in importance as soon as they can be produced on an industrial scale. The

Group is currently working on ways to further the development and use of largely CO2-neutral synthetic biofuels. These fuels represent the

optimal use of biomass, contain no sulfur or aromatic compounds, and their production does not directly compete with the cultivation of

food or feed crops. In addition, they can be excellently matched to the requirements of internal combustion engines.

7. Hydrogen from renewable sources is the fuel of the future. In combination with the fuel cell it will guarantee mobility that is free of emis-

sions and CO2. Suitable production processes include electrolysis using electricity derived from renewable sources (hydroelectric, wind,

solar, and geothermal power) or from the gasification of biomass.


Regenerative hydrogen 7

5

2

6

4

1

Based on renewable energy

Based onbiomass

Based on natural gas

Based on crude oil

Second-generation biofuels (BTL)

First-generation biofuels (biodiesel, bioethanol, HVO)

Natural gas (CNG)

Improved conventional fuels

Low

er e

mis

sion

s

Less

CO

2

1 via steam reformation

Gas-to-liquid (GTL)

Hydrogen 1

3



which ensure that Mercedes-Benz passenger vehicles can run on fuels with up to 10 percent of biofuel admixtures. All of the gasoline engines in our current Mercedes-Benz and smart models can already operate with biogenic fuels containing up to 10 percent ethanol (E10). Most older Mercedes-Benz and smart models equipped with gasoline engines can also run on E10 fuel.

To also enable diesel vehicles to reduce the CO2 emis-sions from their fuel even more, the admixture of biodiesel (fatty acid methyl ester, or FAME) will be increased in Germany from 5 to 7 percent (B7) starting in January 2009. Extensive fleet tests of new and older vehicles from Mercedes-Benz Cars have demonstrated that B7 is suited for use while at the same time meeting the German quality standard DIN 51628. The admixture of biofuel above 7 percent would be possible through the use of high-quality hydrotreated vegetable oils (HVO). These HVOs are low in emissions and can be easily used as admixtures.

Biomass-to-liquid (BTL) — the second generation of biofuels. The testing of Mercedes-Benz diesel engines has shown that switching to synthetic fuels such as BTL would reduce particulate emissions by as much as 30 percent and cut emissions of carbon monoxide and hydrocarbons by up to 90 percent. BTL fuels can also be used with all current and future diesel engines with-out any need for retrofitting. BTL fuels are manufac-tured through the gasification of all types of biogenic replacement and waste materials, which means that their production does not compete with food and ani-mal feed crop cultivation.

Daimler and Volkswagen have been shareholders in CHOREN Industries GmbH in Freiberg, Germany, since October 2007. The company is pursuing the market introduction of climate-friendly second-generation synthetic biofuels. CHOREN developed SunDiesel® fuel, which has a high cetane number and thus delivers much better ignition performance than conventional diesel. The biofuel is completely free of sulfur and aro-matics. It can also be used without adjusting existing infrastructure and drive systems, while the fuel is large-ly CO2-neutral as well. The environmental balance sheet of SunDiesel® shows that, compared to conventional fuels, as much as 90 percent of CO2 emissions can be prevented during its cultivation, production, and use. Mercedes-Benz intends to fill the tanks of all new diesel vehicles leaving its production plants with SunDiesel® as soon as an adequate supply of the fuel is available.

CHOREN commissioned the world’s first commercially operated BTL production facility in the German federal state of Saxony in April 2008. The plant is currently being ramped up and will commence production dur-ing the course of 2009. The annual production capac-ity is 18 million l (4.8 million USgal) of BTL fuel, which is enough to operate around 15,000 passenger cars.

CHOREN plans to build further plants, each of which will be able to produce 250 million l (66 million USgal) of fuel per year. The first large-scale industrial facility could be operating as early as 2013.

Hydrogen — the fuel of the future. Before the fuel cell drive can be brought to market, progress has to be made regarding the production of hydrogen from renewable sources and the establishment of a suitable hydrogen supply infrastructure. Both of these tasks call for cooperation between political decision-makers, the oil industry, the energy sector, and other potential investors. In order to promote such an effort, Daimler is taking part in cooperative projects such as the Clean Energy Partnership (CEP) in Europe.

2.4 Environmentally responsible product develop-ment. The extent of a product’s environmental impact is already largely defined during the early development phase. Later corrections of the product design are only possible thanks to great cost and effort. The earlier environmentally compatible product development (Design for Environment, DfE) is integrated into the development process, the greater the benefits in terms of minimizing environmental effects and costs. As a result, environmental protection in processes and prod-ucts has to commence during the development phase. Later on, environmental effects can in many cases only be reduced by downstream, end-of-pipe measures.

The continual improvements made to the environmental compatibility of Daimler vehicles are already part of our development specifications. Serving as a cross-divisional team, the Group’s DfE experts are involved in all stages of the vehicle development process. Their job is to evaluate new component and vehicle concepts as part of a comprehensive audit.

Methodology of a comprehensive audit. The key factor affecting the improvement of a vehicle’s environ-mental compatibility is the reduction of the emissions and resource consumption during the vehicle’s entire lifecycle. Environmentally responsible product develop-ment begins with the selection of suitable raw materials and ends with recycling-friendly design and production processes. These make it possible to reuse or recycle used components at a later stage. Thanks to appropri-ate disassembly and recycling concepts, Daimler is now forced to dispose of fewer and fewer parts from end-of-life passenger cars and commercial vehicles. We close-ly examine more than 40,000 individual processes. The resulting analyses, calculations, and assessments are used to draw up a comprehensive ecological profile.

Environmentally responsible car development. In product development, the integration of environmen-tal aspects is regulated by ISO 14062. In 2005, the Mercedes-Benz S-Class became the world’s first auto-mobile to receive a TÜV environmental certificate for fulfilling this standard. The certificate was also granted



to the new C-Class and the new C-Class station wagon in 2007 and to the updated A- and B-Class in 2008, thus confirming that the models were developed in line with high environmental standards and have made great progress compared to their predecessors. I 9

2.5 Safety. Vehicle safety is one of our core areas of expertise and a key component of our product strat-egy. No other manufacturer worldwide invests more in the development of life-saving safety systems. For more than 60 years, Daimler’s developments have led the way worldwide in vehicle safety for passenger cars, trucks, vans, and buses. Daimler regards its com-mitment to enhancing road safety as a responsibility toward society that is in the interest of all road users. We are therefore consistently pursuing our “vision of accident-free driving” and gradually turning it into real-ity. These efforts will also serve to support the Euro-pean Union’s goal to cut the number of road fatalities in half in the period between 2001 and 2010, despite drastically increasing traffic volumes.

Mercedes-Benz Cars’ “integral safety philosophy” defines safety as a holistic goal and involves much more than meeting legal requirements and successfully completing standardized crash tests. The safety phi-losophy of Mercedes-Benz focuses on four phases:

1. Safe driving: Avoid danger, issue timely warnings, and provide assistance functions.

2. Hazardous situations: Act pre-emptively with PRE-SAFE®.

3. During an accident: Provide appropriate protection.

4. Following the accident: Avoid more serious follow-up accidents, provide rapid assistance.

Safe driving: Avoid danger, issue timely warnings, and provide assistance functions. Preventing acci-dents is the overriding goal of our safety philosophy — and systems like ASB, ESP®, Brake Assist (BAS), and PRE-SAFE® are already making an important contribu-tion to enhanced road safety. Our Adaptive Brake Light

Environmental profile of the Mercedes-Benz A-Class

Primary energy requirement. Calculations of the overall

lifecycle of the current A-Class yield a primary energy

consumption of 440 gigajoules — corresponding to the

atmospheric emissions of approximately 32 t (35 USton)

of carbon dioxide (CO2). If the production and operating

mileage of 150,000 km (93,000 miles) are taken together,

the current model causes around 8 percent fewer CO2

emissions than its predecessor at its market launch in

1998. The phase of utilization by the vehicle customer is

the key factor in calculating CO2 emissions and primary

energy consumption, as this phase accounts for around

80 percent of these parameters. I 8

Emissions:

Carbon dioxide: - 9 percent

Nitrogen oxides: - 13 percent

Sulfur dioxide: - 4 percent

Carbon monoxide: - 45 percent

Volatile hydrocarbons: - 53 percent

Recycling. According to the ISO 22628 calculation model,

it has been demonstrated that 85 percent of the material

from the current A-Class is recyclable and 95 percent is

reusable.

Material composition. Iron and steel account for more

than half (64.7 percent) of the weight of the current

A-Class.

Use of recycled materials. In the current A-Class, a total

of 54 components with a combined weight of 30.8 kilo-

grams (67.9 pounds) can be manufactured with a share of

high-quality recycled plastics. The mass of the recycled

components approved for this process has thus been

increased by 156 percent compared to the predecessor

model.

Renewable raw materials. The use of renewable raw

materials in automobile production has so far focused

on the vehicle interior. The natural fibers predominantly

used in the A-Class are flax, coconut, and cotton fibers in

combination with various polymers. In addition to applica-

tions in the interior, a natural fiber component has also

been used for the first time on the exterior of the current

A-Class. A component made of polypropylene (PP) thermo-

plastic and abaca banana fibers is used for the cover of the

spare-wheel well. A total of 11 components for the current

A-Class with a combined weight of 15.3 kg (33.7 lbs) are

produced using natural materials. The overall weight of

the components made from renewable raw materials has

thus increased by some 29 percent in comparison with the

predecessor model.

source:

Environmental Certificate Mercedes-Benz A-Class, 2008

8 I More information on the CO2

emissions of the current A-Class in

comparison to its predecessor:


/sr/17

9 I Information on the

Mercedes-Benz models with an

environmental certificate:


/sr/18

Material composition of the Mercedes-Benz A-Class according to VDA 231-106

in %

Steel/iron 64.7

Polymers 15.3

Other 3.8

Electronics 0.1

Non-ferrous metals 2.2

Service fluids 5.1

Light alloys 7.8

Process polymers 1.0

Special metals < 0.02



system helps prevent rear-end collisions by blinking rapidly to warn drivers who are following behind when a vehicle initiates an emergency braking maneuver. The Intelligent Light System incorporates five different light-ing functions, which are configured for typical driving and weather conditions and provide the driver with a significantly longer range of visibility and better illumi-nation of the road. The system thus helps reduce the higher risk of nighttime accidents in particular. Safety during night driving is also considerably enhanced with Night View Assist, which uses infrared headlights to illuminate a far larger area of the road ahead than is the case with low-beam lights. A further, newly developed assistance system from Mercedes-Benz provides even greater protection during lane changing. The system recognizes when another vehicle is driving in a paral-lel lane of traffic in the exterior mirror’s blind spot. In such situations, the system alerts the driver first with a visual signal and then by means of an audible warning if necessary.

The DISTRONIC PLUS proximity control system keeps the car at a predefined distance from the vehicle up ahead and engages the brakes in accordance with the traffic situation — until the car comes to a standstill, if necessary — and then accelerates to the desired speed when traffic begins to move again.

Hazardous situations: Act preemptively with PRE-SAFE®. A major focus of our safety philosophy involves the interaction between active and passive safety sys-tems. Brake Assist PLUS detects vehicles moving up ahead by means of radar. If the distance between the vehicles closes too rapidly, the system warns the driver and calculates the needed braking power, which Brake Assist PLUS immediately makes available when the brake pedal is depressed. If the driver fails to react to the warning, despite the high risk of an accident, the PRE-SAFE® brake can automatically initiate partial braking. In the new E-Class, this safety system provides another function: If the driver still does not react after the partial braking maneuver, the PRE-SAFE® brake activates maxi-mum braking power before an unavoidable collision can take place, thus greatly reducing damage or injury. With the help of sensors from vehicle safety systems, PRE-SAFE® prepares the vehicle for an impending accident.

The front seatbelts are tensioned in advance by elec-tric motors and, depending on the vehicle’s equipment and the driving situation, the side windows and sunroof can be closed and the front passenger seat adjusted to a more suitable position. If a collision is avoided, the driver can immediately continue his or her journey, since all of the precautionary PRE-SAFE® measures are reversible.

During an accident: Provide appropriate protection. In the development of new safety systems, Mercedes-Benz is guided by its many years of experience as well as by the data generated during 39 years of in-depth accident research. Our objective is “real-life safety” — in other words, vehicle safety that is relevant to the hazardous situations encountered in everyday road traffic. Mercedes-Benz also carries out a large number of different crash tests that go far beyond meeting the requirements of legislation and ratings. Mercedes-Benz models have attained an exemplary degree of safety over the years, thanks to the development of innova-tions such as the airbag, automated seatbelts, seatbelt tensioners, and seatbelt force limiters. Yet another spe-cial safety feature that is based on analysis of actual accidents is the crash-active NECK-PRO head restraint, which is offered in many Mercedes-Benz model series. The system is equipped with sensors that register rear-end collisions above a predefined impact force level. This step is followed by the release of pre-tensioned springs in the head restraints, which causes the uphol-stery in the headrests to shift forward and upward in just a few milliseconds. As a result, it is possible to sup-port the heads of the driver and the front passenger in time to prevent injury.

Following the accident: Avoid more serious follow-up accidents, provide rapid assistance. In the phase immediately after an accident, the focus is on prevent-ing extensive damage or injury and getting help to acci-dent victims as quickly as possible. To reduce the risks after a crash, a central control unit can separate certain areas of the onboard power network from the battery, turn off the engine, activate the hazard warning lights and the emergency lighting, unlock the doors, and roll down the side windows. Instructions for emergency rescue services are available on the Internet. I 10

10 I Rescue guidelines — passenger

cars:


/sr/19

Our safety strategy

Integrated safety Accident-free driving

Collision mitigation system

yesterday today tomorrow the day after tomorrow

Passive safety

Airbag, seat belt, safety cell

PRE - SAFE®

Accident prevention,

reducing severity of impact

Active safety

ABS, ESP® Brake Assist PLUS

Night View Assist

Telligent® Systems



tant. The Telligent® Lane Assistant (known just as Lane Assistant in buses) issues a warning when the truck is in danger of inadvertently leaving the lane it’s traveling in. Tailgating is prevented in trucks by Telligent® Prox-mity Control and in buses by the proximity-controlled cruise control system. If a rear-end collision seems imminent nonetheless, Active Brake Assist in trucks and buses initiates an emergency braking maneuver with maximum braking power. The Telligent® Stability Control (known as ESP® in vans and buses) prevents skidding within the limits imposed by physical laws. In buses, the continuous brake-force limiter prevents unintentional downhill acceleration.

Passive safety: Mitigate the effects of accidents.If an accident cannot be prevented, those involved in it should at least emerge as unscathed as possible. The survival zone must remain intact in a crash, which is why Daimler conducts extensive crash and roll-over tests to ensure that this is the case. Drivers are kept safely in their seats by the three-point seat belt (inte-grated in trucks and buses) and the adjustable head-rest. The passenger seats in the travel coach feature two-point seat belts and energy-absorbing backrests that provide optimal protection for passengers.

Rescue: Provide rapid assistance in emergencies. First of all, drivers who are properly buckled up will in most cases be able to exit the cabin themselves after an accident. If a driver needs to be freed by a rescue team, the rescue personnel will have help from the Daimler res-cue manuals for trucks, buses, and vans, which describe exactly how to stabilize crashed vehicles and lower the truck’s cab, and where and how rescue equipment should be used to open the cab or the rear of the van. These instructions, which are accessible at all times on the Internet, also provide specific information on how to disconnect the battery and find the fuel tank. I 11

While safety technology must be controllable for driv-ers, it should not divest them of their responsibility for safe driving. Safety is thus not merely a question of technology but also of training. For 40 years, Mer-cedes-Benz has therefore been offering training and

Many systems introduced on the market by Mercedes-Benz have subsequently been adopted by other auto-makers. The resulting widespread use of these systems has helped to prevent many accidents or to mitigate the effects of those that do occur, which has reduced costs to the overall economy as well. The innovative safety solutions from Daimler thus not only help to protect the Group’s own customers; they also benefit society as a whole over the long term.

Commercial vehicles. According to experts, Daimler produces the world’s safest vehicles in its commercial vehicle market segments for trucks, buses, and vans. Nevertheless, too few vehicles have been equipped so far with state-of-the-art safety systems, which is why Daimler is systematically promoting the widespread use of such technology. To this end, we have teamed up with the Allianz insurance company and the DEKRA technical inspectorate to launch the “Safetyplus Truck” and “Safetyplus Van” initiatives. These promote the use of the most modern assistance and safety systems — for example, by reducing the cost of insurance. And since 2008, employers’ liability insurance associations and other insurance companies also have been pro-moting the use of safety technologies in commercial vehicles. Improved road safety, reduced fatalities, and increased economy — attaining these ambitious goals requires the concerted efforts of many sectors of soci-ety. As the leading producer of commercial vehicles, Daimler has taken the initiative and created a broad foundation for achieving these goals with active and passive safety technology. As a result, the Group’s trucks, buses, and vans demonstrate the high levels of safety that are already attainable today. And Daimler will continue to put innovative safety systems into vehi-cles and on the road through its SafeDrive Technologies initiative.

Active safety: Prevent accidents. The aim of active safety systems is to prevent accidents from occurring. This is accomplished with features that provide func-tional operation, excellent visibility, an extremely stable chassis, highly reactive and effective brakes, the anti-lock braking system, Brake Assist, and the Start Assis-

11 I Information for rescue and

towing services:


/sr/20

Integrated safety approach

Driving with passive

information systems

Normal driving Accident prevention Protecting occupants and other road users

Active Safety

Warning

Automatic safety

systems

Activation of assistance systems

Extreme protection

(“soft” level)

Extreme protection

(“hard” level)

Passive protection against minor damage

Protection and rescue

systems after an accident

Passive Safety

Acc

iden

t

Stre

ss e

scal

atio

n

Rescue operation



driving safety courses for professional truck and bus drivers. In addition, the company offers buyers of new vans a safe driving course free of charge.

The social responsibility we bear as an automobile manufacturer. Daimler provides a wide range of ser-vices to encourage the responsible use of its products, thereby promoting sustainable mobility solutions.

Safe and environment-friendly driving. In training courses, Daimler demonstrates to its customers how they can make their own contribution to safe, environ-ment-friendly vehicle use:

Mercedes-Benz Cars. Mercedes-Benz has been offer-ing its customers driving safety courses for more than three decades. During this time, Mercedes-Benz per-sonnel have trained customers in over 20 countries. The programs are a significant element of our integrat-ed safety philosophy, and they play an important role in accident prevention. The Group also began augmenting its program in 1995 by offering eco-training courses in environment-friendly driving.

Commercial vehicles. For decades Daimler has been providing training courses in economical driving and safety worldwide. These courses, including special package courses for entire shipping companies, are attended by more than 65,000 professional drivers from 50 countries each year. Customers who purchase a new Sprinter, Vito, or Viano van receive a coupon that entitles them to take part in a special training course free of charge. In addition to teaching participants how to effectively use modern safety technology, the course also focuses on the development of an economical and anticipatory driving style. As a result of this expertise, the Group is certified as a trainer offering advanced

training courses for professional commercial vehicle drivers. These will be mandatory as of 2009.

Road safety. Although vehicle safety is one of Daimler’s core areas of competence, the company has nevertheless adopted an approach that extends far beyond basic vehicle safety:

– Daimler supports the European Road Assessment Programme (EuroRAP), which aims to make the entire road system safer — for example, by pointing out and eliminating accident hot spots.

– By means of numerous programs and initiatives based on sound scientific principles (e.g. the Global Road Safety Partnership, MobileKids, Road Ready Teens, Seat Check, Mothers against Drunk Driving), Daimler also prepares children for safe conduct in traffic, enhances parental awareness of safety,and stages road safety campaigns for the general public.

3.0 Suppliers

Daimler’s aim of making production operations as envi-ronmentally compatible as possible is not restricted to its own production facilities, but also applies to materi-als and components purchased from suppliers. The criteria for selecting materials and applying recycling standards are listed in the Mercedes-Benz Special Terms. Daimler conducts continual discussions with the supplier companies concerning these issues in a joint effort to ensure environmentally compatible production processes that conserve resources. Our suppliers com-ply with the ISO 14001 norm or are certified according to a comparable standard. I 12

12 I Further information:

p. 20 and p. 27

Safety technologies for commercial vehicles

Lane-Changing

■ Lane-Change Assistant

■ Blind Spot Warning

■ Blind Spot Monitor

Parking

■ Maneuvering Assistant

■ Backup Assist

■ Parctronic

■ Backup Camera

Directional Stability

■ Lane Monitor

■ Night View Assist

■ Active Lane Assistant

■ Electronic Stability Control

■ Active Lane Keeping Assist

Distance Control

Stop and Go Assistant ■

Emergency Braking

Assistant ■

Intelligent Cruise

Control ■

Brake Assist ■

Hill-Holder ■

■ Backrest with integrated head restraint

■ Integrated 3-point seat belt

■ Driver’s airbag incl. belt tensioner (optional)

■ Readily yielding materials in the interior

■ Crash-optimized cabs and front sections

■ Front, side, and rear underride guard

for heavy-duty vehicles

Passive Safety technologies

■ in series application

Active Safety technologies

■ in series application ■ available soon ■■ future development

Active Safety Passive Safety

The vehicle as a survival zone



4.0 Logistics

Vehicles that transport deliveries to and from Daimler production plants also have an environmental impact. Daimler’s goal in this area is thus to minimize the emis-sions they produce by optimizing the logistics systems involved — and including rail and ship transport. In 2008, approximately 4.4 million tonnes (4.9 USton) of commodities related to production in Daimler’s German car and commercial vehicle plants, and at the Group’s facility in Vitoria, Spain, were transported by trucks over a total of 158 million km (98 million miles) (not counting door-to-door deliveries). Based on the current handbook on emission factors for road traffic (HBEFA 2.1), this translates into approximately 139,000 t(153,000 USton) of CO2 emitted into the atmosphere, which corresponds to around 5 percent of the total CO2 emissions generated through production activities at all plants receiving such deliveries.

5.0 Production

5.1 A production-related environmental strategy. Daimler believes it has a duty to set the pace for envi-ronmentally compatible innovations in production and process engineering. In line with its third environmental guideline, the company aims to make all stages of pro-duction as environmentally sound as possible. The main environmental fields of activity in the production sector are climate protection, air pollution prevention, and resource conservation. In concrete terms, this means

– reducing direct and indirect CO2 emissions,

– reducing solvent emissions,

– raising resource efficiency, and avoiding the produc-tion of waste materials.

In order to reach these goals, Daimler has set up control processes that are embedded in the certified

Due to smaller quantitities of scrap materials, there has been a modest decrease in the total quantity of waste. The recycling rate for

non-hazardous waste increased to 77 percent (without scrap). Thanks to process changes in paint shops that have eliminated large

quantities of washing liquids, hazardous waste has decreased to 76 percent of total waste. (* 2008 figures are provisional)

2007 2008* Change in %

Total energy consumption GWh

of which:

electricity GWh

natural gas GWh

district heating GWh

heating oil GWh

LPG GWh

coal GWh

CO2 emissions 1,000 t

Emissions into the atmosphere

Solvents (VOC) t

Sulfur dioxide (SO2) t

Carbon monoxide (CO) t

Nitrogen oxides (NOX) t

Dust (total) t

Waste volumes

Waste for disposal 1,000 t

Waste for reuse (without scrap metal) 1,000 t

Scrap metal for reuse 1,000 t

Hazardous waste for disposal 1,000 t

Hazardous waste for reuse 1,000 t

Water consumption

Drinking water (externally supplied) mill. m3

Well water (derived on site) mill. m3

Surface water mill. m3

Costs related to environmental protection

Investments € mill.

Current expenditure € mill.

R&D expenditure € mill.

10,327 10,383 0.5

4,608 4,563 - 1.0

4,302 4,333 0.7

976 1,046 7.1

147 148 0.4

114 102 - 10.8

180 191 6.2

3,653 3,638 - 0.4

7,356 6,313 - 14.2

51 37 - 27.6

2,167 2,629 21.3

883 840 - 4.9

262 240 - 8.3

76 69 - 9.4

200 229 14.5

801 751 - 6.3

19 19 1.5

70 59 - 14.6

9.52 8.82 - 7.4

5.50 5.42 - 1.4

0.80 0.82 2.2

86 74 - 13.7

435 483 11.1

1,418 1,799 26.9

Group-wide data on production-related environmental protection



13 I In-depth overview of data

on environmental protection in

production:


/sr/21

14 I Further information on certified

environmental management sys-

tems at our plants:


/sr/22

15 I Details on environmental data

collection and presentation:


/sr/23

environmental management systems at its production plants. The production locations that have been certified according to the European EMAS system for environ-mental auditing publish certified annual environmental reports concerning their environmental policies, their targets and implementation measures, and their envi-ronmental data. Resource consumption, emissions and production waste are largely determined by production volume. For better comparison purposes, data is there-fore also evaluated for each vehicle produced. I 13, 14, 15

5.2 Energy and climate protection. To reduce energy consumption at its plants, and thus climate-damaging CO2 emissions, Daimler employs a dual approach that calls not only for ensuring the most environmentally sound energy supply possible for the production plants, but also efficient use of energy in production. The Group’s production locations are heated with natural gas, which is a low-carbon energy carrier, and one plant uses shredded waste wood to achieve nearly CO2-free heating. Coke is used only where technologically necessary, which means for smelting cast iron. Many production plants employ highly efficient cogeneration plants operated either by Daimler or by regional power companies. For its new construction, expansion and modernization projects, Daimler uses innovative low-CO2 energy supply concepts and electricity generated from renewable sources. In 2008, for example, almost 1,392 megawatt-hours of renewable electricity were produced by the photovoltaic facilities of the sub-plants in Bad Cannstatt, Mettingen, and Hedelfingen (all parts of the Untertürkheim plant) and the plants in Gaggenau and Sindelfingen. This corresponds to an increase of 55 percent on the previous year, while the area covered by solar panels rose by 22,950 square meters (247,000 square feet) in 2008. Daimler’s largest photovoltaic system commenced operation at the EvoBus plant in Neu-Ulm at the end of 2008. Covering around 18,000 m2

(194,000 ft2) on the roof of the bus assembly building, the system has a maximum output of 2.3 megawatts. At all of its locations, Daimler is now looking for suit-able roof surfaces on which to generate environmentally friendly electricity.

Daimler’s worldwide energy consumption totaled 10.38 million megawatt-hours in 2008, an increase of 0.5 percent from the previous year. The fact that this slight increase, which was a result of weather conditions, is still substantially less than the increase in production is thanks to a large number of different energy-saving proj-ects at the plants. We use especially innovative energy-saving concepts when constructing new buildings. In Neu-Ulm, for example, groundwater is used to cool the new computer center. We plan to channel the waste heat generated by the process into the heating circuits of other buildings. Depending on the load, this will reduce the amount of energy needed for cooling purposes by 60 to 75 percent, compared to conventional solutions. A fail-safe power supply is needed if the operation of the computer center is to be secure and reliable. Instead of a conventional emergency power system, Neu-Ulm has a highly efficient cogeneration unit that ensures power supply is secure. In normal operation as well, this unit generates electricity and heat to supplement the supply for covering the plant’s needs.

Besides production and IT, the heating and air con-ditioning of office buildings also account for a major share of the locations’ energy use. A good example of an innovative building concept is provided by a new five-story office building at the Neu-Ulm plant. This building is cooled in the summer by groundwater, which also supplies heat that is generated from the water by heat pumps. Pipes in the ceilings are used for both heating and cooling and ensure that the rooms are kept at a uniformly pleasant temperature.

The slight increase in total energy consumption (+ 0.5 percent) is offset by a 0.4-percent decrease in CO2 emissions. This is a result

of the partly weather-related increase in consumption of natural gas and district heating, accompanied by lower electricity use — the

latter leads to much higher indirect emissions of CO2 per energy unit. The values deviate slightly from previous calculations because

the conversion factors have been updated.

in 1,000 t

Direct and indirect CO2 emissions from production

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

Indirect emissions: ■ Electricity ■ District heating

Direct emissions: ■ Natural gas ■ Coal ■ Fuel oil ■ Liquefied petroleum gas (LPG)

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08



A new office building in Untertürkheim uses treated water from the Neckar River to flush its toilets. This measure alone can save up to one million l (264,000 USgal) of drinking water per year. In addition, an inno-vative lighting control system in the corridors and stair-cases reduces electricity use by around 20 percent, and a ventilation heat-recovery system saves around 70 percent of the energy used for heating, compared to conventional solutions.

These examples show that Daimler is pursuing a holistic “Green Building” approach in all of its new office build-ings. In the construction and operation of buildings, our aim is to optimally combine climate protection and economy with the help of maximum energy efficiency, the use of renewable energy sources, the conservation of resources, and the prevention of waste. To document our successes, we are striving for certification by the German Sustainable Building Council (DGNB) or to be granted the U.S. LEED certificate (Leadership in Energy and Environment) by the U.S. Green Building Council.

CO2 emissions. Total energy-related CO2 emissions at all plants decreased by 0.4 percent to 3.64 million t(4.0 million USton) in 2008. The graph shows the emissions of the divisions in relation to the number of vehicles produced.

Emissions of other greenhouse gases, such as coolants, are negligible. When weighted for their impact on the cli-mate, these gases account for less than one, thousandth of Daimler’s total greenhouse gas emissions. I 16

5.3 Air pollution control. The production of vehicles at Daimler plants creates several air pollutants, most notably in the form of solvents (VOC) that are released from the paint shops. Other pollutants, such as sulfur dioxide (SO2), carbon monoxide (CO), nitrogen oxides (NOx), and dust, are emitted into the atmosphere pri-marily through combustion processes in furnaces and

at engine test rigs. It remains the company’s goal to maintain the low level of emissions achieved in recent years, and to reduce emissions even further wherever this is technically and economically possible.

The introduction of water-based paints had already reduced solvent emissions by some 70 percent at the passenger car production plants as early as the 1990s. Painting technology has since then reached a very high standard that makes it possible to achieve only minor additional reductions in emissions.

5.4 Waste prevention and recycling. When it comes to waste management, Daimler believes that prevention and recycling are better than disposal. Accordingly, the reconditioning and reuse of raw, process, and operating materials has been standard practice at the Group for many years now. Moreover, innovative technologies and environmentally friendly production planning processes are used in order to avoid the creation of waste from the outset.

5.5 Water protection. Daimler’s aim in terms of water protection is to use this precious commodity as spar-ingly as possible and to avoid contaminating water resources. In order to conserve water, resource-effi-cient techniques such as closed-loop systems are used. As a result, the specific water consumption per vehicle built at Daimler has fallen dramatically in recent years.

Most of the production plants do not channel their wastewater into lakes or rivers, but instead into local water treatment plants through the public sewer sys-tem. However, because of the multitude of possible materials contained in wastewater and the differences between local regulations, Daimler cannot compre-hensively document the materials channeled into the water. Detailed local figures can, however, be found in the environmental reports of the various production plants. I 17

16 I Details on how CO2 emissions

are calculated:


/sr/24

17 I Information on environmental

reports of the various production

plants:


/sr/22

New painting methods and technologies and the use of

low-solvent materials in 2008 led to a further reduction of

specific emissions of volatile organic solvents.

The reductions at Trucks, Cars, and Vans were 17 percent,

16 percent, and 22 percent respectively.

Compared to the previous year, Vans succeeded in reducing

specific CO2 emissions by 3.6 percent and Cars achieved a

4.1-percent reduction. These emissions increased at Trucks

(+1.6 percent) due to a decline in production in the NAFTA

region and a simultaneous increase in production in

Germany, where more energy is required for production.

in kg/vehicle

Specific CO2 emissions from production

6,000

5,000

4,000

3,000

2,000

1,000

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08

■ Trucks ■ Cars ■ Vans in kg/vehicle

Specific emissions of solvents

12

10

8

6

4

2

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08

■ Trucks ■ Cars ■ Vans



5.6 Soil conservation and remediation. Keeping soil and groundwater clean is one of the most important aspects of environmental protection at Daimler. The pri-mary goal in this area is to prevent any contamination from the outset. Because legal stipulations vary greatly worldwide, the Group has put together internal guide-lines that establish minimum standards for soil and groundwater protection at all of its facilities around the globe. Technical equipment such as catchment trays, double-walled containers, sealed floor coverings, and leakage warning systems help prevent water-polluting fluids from leaking into the ground.

5.7 Noise abatement. Daimler has set itself the aim of reducing as far as possible the noise levels to which its employees and the neighbors of its production locations are subjected. When planning new facilities, the Group’s noise abatement concepts ensure that noise is prevented to the greatest extent possible. Sound sources and levelsat Group production sites are closely monitored and re-duced where possible by the installation of sound-absorb-ing elements and noise abatement walls, for example. I 18

6.0 Sales

Daimler’s environmental guidelines also serve as a strategic framework for the environmental protection activities associated with the sale of our products worldwide. In Germany, it serves as the basis for the separate environmental policy of the German Mercedes-Benz Sales Organization (MBVD). This policy is pursued with great commitment by MBVD, which practices proactive environmental protection at its Berlin headquarters, company-owned sales and service outlets, and dealerships. As part of the MBVD envi-ronmental policy, company-owned sales and service outlets set their own local environmental targets and determine the activities required to reach them. A total of 20 MBVD centers with 54 outlets, as well as the organization’s headquarters in Berlin, have already had their operations officially certified in line with the Euro-pean Eco-Management and Audit Scheme (EMAS).

19 I EU legislation for reduction of

CO2 emissions in Europe:


/sr/26

7.0 Product use

7.1 Fuel consumption and CO2 emissions. Daimler has already made substantial progress in reducing fuel consumption and CO2 emissions in both its passenger cars and commercial vehicles through the optimization of the internal combustion engine. Further fuel savings and reductions in CO2 emissions within the Daimler vehicle fleet were achieved in 2008 through innovations and measures such as the start/stop function and the BlueEFFICIENCY package.

Reduced fleet consumption. Daimler has reduced the fuel consumption of its fleet of newly registered pas-senger cars and station wagons in Germany by more than 32 percent since 1990. In 2008, fleet consumption declined by 0.3 percent compared with the previous year, to 6.98 l/100 km (33.7 mpg). The fleet’s average CO2 emissions fell to 173 g/km (278 g CO2 /mile).

The CO2 emissions of Daimler’s fleet in Europe have declined by more than 23 percent since 1995; this reduction is nearly 50 percent higher than the aver-age decrease achieved by all European manufacturers. Overall average CO2 fleet emissions in Europe totaled 176 g CO2 (283 g CO2/mile) in 2008 (Mercedes-Benz Cars, including vans). I 19

These savings were made possible by measures such as the systematic introduction and refinement of CDI diesel technology and second-generation gasoline direct injec-tion, downsizing concepts with superchargers, and the seven-speed automatic transmission 7G-TRONIC. Fur-ther reasons for the specific reduction in 2008 included the introduction of the BlueEFFICIENCY vehicles, which have a substantially higher fuel economy than compa-rable automobiles in their respective segments.

The implementation of our measures and technologies for achieving sustainable mobility (see Section 2.1) will help us further reduce the fuel consumption and CO2 emissions of our fleet. I 20

In the U.S., the Corporate Average Fuel Economy (CAFE) standards set the legal framework for improving energy

18 I Further information on our noise

abatement measures:


/sr/25

and Magazine, p. 52 f.

20 I Information on the Group’s

passenger car models:


/sr/27

in l/100 km

Passenger cars and station wagons of Mercedes-Benz Cars

Fuel consumption in Germany 1990 – 2008

10.0

9.5

9.0

8.5

8.0

7.5

7.0

6.0 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08

1990 – 1995 European 3- way cycle/new measurement

method as of 1995: New European Driving Cycle (NEDC)in g/km

Development of CO2 emissions for the European Daimler fleet (average) 1995 – 2008

1995 2001 2007 2008

CO2 emissions acc. to New European Driving Cycle

300

250

200

150

100

50

230199

181 176

- 23.5 %

We succeeded in reducing the CO2 emissions of our European

vehicle fleet by 2.7 percent in the period from 2007 to 2008.

Various special factors played

a role in the small reduction in

fleet consumption compared

with the previous year. The

most significant factors were

the above-average drop in sales

of the A- and B-Class relative

to overall sales, declining

smart sales, and the fall in the

proportion of the fleet with diesel

drives.



21 I Information on the Corporate

Average Fuel Economy (CAFE) stan-

dard in the U.S.:


/sr/28

efficiency. According to these standards, manufacturers’ passenger car fleets are weighted in line with sales. For model year 2008, they must have average values below 8.6 l/100 km (27.5 mpg) for cars, and 10.6 l/100 km (22.2 mpg) for light trucks. Standards for both passenger cars and light trucks have been tightened in the U.S. in recent years. As a result, fuel consumption limits will gradually be decreased in the period between 2011 and 2020 to an average of 6.7 l/100 km (35 mpg). I 21

The average fuel economy for each model year is deter-mined by the number of vehicles sold and the respec-tive fuel economy values. Manufacturers who fail to achieve the set economy value must pay U.S.$5.50 for every 0.1 miles per gallon they fall below the standard. Legislators are currently discussing the possibility of increasing the penalties. For the 2008 model year the company had to pay penalties totaling almost U.S.$29 million for vehicles imported into the U.S.

In Japan, the “Top Runner” concept has fixed binding upper limits for fuel consumption from 2010 on for nine passenger car classes grouped according to gross vehicle weight. This standard will be extended to 16 car classes in 2015. The targets for 2010 have already been achieved by Daimler in two vehicle classes.

With long-distance trucks like the Mercedes-Benz Actros, for example, Daimler has been leading the field for years in terms of fuel economy. Refined and even more efficient engines, improvements to tires and aerodynamic properties, variable axle drive ratios, and the introduction of BLUETEC technology have all led to substantial reductions in the fuel consumption of our commercial vehicles over the last few years. In a test drive, the new BlueTec Actros featuring standard equip-ment and carrying a payload of about 25 t (28 USton) consumed only 19.44 l/100 km (12.1 mpg) at an aver-age speed of 80 km/h (50 mph). The tests also showed that under optimal conditions vehicle technology can only influence about 60 percent of the fuel consump-tion of a 40-ton truck, while the remaining 40 percent

are influenced by traffic conditions, topography, vehicle configuration (semitrailers, body types, trailers), main-tenance, and driving behavior. I 22

Impact of driving style on fuel consumption. Studieshave shown that when a driver attempts to anticipate events and drives with economy in mind, he or she can achieve fuel savings of as much as 10 percent over the long term. Exploiting such savings potential is the goal of the Eco training courses offered by Mercedes-Benz todrivers of both passenger cars and commercial vehicles. I 23

7.2 Airborne emissions. Besides carbon dioxide and water vapor, automobile exhaust emissions include car-bon monoxide (CO), nitrogen oxides (NOx), and hydrocar-bons (HC). Diesel vehicles have the same emissions plus particulates. Vehicle emissions have a significant impact on air quality, especially in cities with heavy traffic. In recent years, Daimler has significantly reduced the vari-ous types of emissions across its entire passenger-car range with the help of improved engines and highly efficient exhaust treatment systems. Since 1995, for example, the NOx emissions of our diesel vehicles have been cut by about 70 percent (with BLUETEC that figure is over 95 percent) and particulate emissions by more than 95 percent. Over the course of the past decade, the Group has also succeeded in dramatically reducing emissions of nitrogen oxides, hydrocarbons, and particu-lates in its commercial vehicles by improving the control of combustion processes in engines and by optimizing carburetion. The aim now is to apply state-of-the-art technologies to achieve further reductions and thus be able to comply as far in advance as possible with future emission limits in Europe, Asia, and the U.S. I 24

Low-emission passenger cars. The EU regulation gov-erning the Euro 5 and 6 emission limits went into effect in July 2007. The Euro 5 standard will become valid for new models on September 1, 2009 and for all new vehi-cles on January 1, 2011, and will have more stringent particulate and NOx limits for new passenger cars and vans. Euro 6, which sets significantly lower limits for NOx emissions from diesel vehicles, will come into force for new models on September 1, 2014 and for all new vehicles on September 1, 2015. Daimler has drawn up a multi-stage plan that combines all of the technical solu-tions for minimizing emissions from diesel vehicles into a sensible package and includes the following points:

– Optimized engine and combustion processes reduce raw emissions to the greatest extent possible. This includes the use of electronic engine control systems, four-valve technology, fourth-generation common-rail technology with piezo injectors, turbo-charging with variable geometry, and exhaust gas recirculation systems.

– Oxidizing catalytic converters minimize emissions of carbon monoxide (CO) and uncombusted hydrocar-bons (HC).

22 I Further information on savings

potential in commercial vehicles:


/sr/29

23 I Further information on the

Eco training courses:


/sr/30

24 I Development of the European

emissions limits:


/sr/31

25 I Further information on BLUETEC

technology at Daimler:


/sr/32

mpg

Daimler CAFE* values for passenger cars and light trucks 1996 – 2008 in the U.S.

27.5

26.5

25.5

24.5

23.5

22.5

21.5

20.5

19.5

18.5 96 97 98 99 00 01 02 03 04 05 06 07 08

* CAFE = Corporate Average Fuel Economy

Light Trucks

Passenger Cars – Import Fleet

Model year

The figures for the 2008 model

year only include the Mercedes-

Benz vehicles sold in the U.S.

Until the 2007 model year, the

fleet of light-duty commercial

vehicles also included Chrysler

LLC vehicles not belonging to

the SUV segment.



– Diesel particulate filters reduce particulate emissions by up to 98 percent. As a result, such emissions are significantly lower than the current Euro 4 particulate limits and already meet the Euro 5 and Euro 6 lim-its. The current emissions standards in the U.S. are also met in combination with the BLUETEC exhaust treatment system. Since the summer of 2005, all Mercedes-Benz diesel passenger cars sold in Ger-many, Austria, Switzerland, and the Netherlands have been equipped with particulate filters as standard equipment. In addition, Mercedes-Benz now offers maintenance-free retrofitting systems that help to reduce particulate emissions in all A-, C-, and E-Class models with four-cylinder diesel engines, as well as in M-Class models with five-cylinder diesel engines. We also offer retrofitting solutions for nearly all CDI models in cooperation with a partner.

The new smart fortwo cdi already complies with the legal requirements of Euro 4, even without a diesel particulate filter. In addition, the smart fortwo cdi is being equipped with a diesel particulate filter (open system) as standard in Germany, Italy, and Switzerland. Starting in 2009, the smart fortwo cdi will also be offered with a closed sys-tem, whose incorporation into the engine control system basically permits an even higher reduction of particulates in the exhaust gas than an open particulate filter system.

The new four-cylinder diesel engine produces fewer raw emissions than its predecessor. Even without any active denoxification, the new engine already meets the future Euro 5 emissions limit.

BLUETEC is helping us achieve our goal of making diesels as clean as gasoline engines with regard to emissions and thus ready for future emission limits worldwide. In the BLUETEC system, Daimler brings together various technical features for reducing all rele-vant emission components in diesel passenger cars and commercial vehicles. The system includes optimized combustion engines, an oxidizing catalytic converter, and a particulate filter. It also uses innovative technolo-gies to reduce nitrogen oxide emissions (either a DeNOx adsorber catalyst with an SCR system, or the latter plus injection of an additive known as AdBlue). I 25

In October 2006, the world’s first BLUETEC passenger car — the Mercedes-Benz E 320 BlueTEC (with a DeNOx adsorber catalyst and an SCR system) — was launched on the North American market. It was followed in December 2007 by the E 300 BlueTEC in Europe. BLUETEC models of the GL-, M- and R-Class were introduced to the U.S. market in June 2008. Vehicles with AdBlue injection meet the extremely stringent Bin 5 and ULEV emission standards in the United States. Mercedes-Benz is thus the first manufacturer that is able to offer diesel SUVs in all 50 U.S. states.

Low-emission commercial vehicles. Thanks to BLUE-TEC, Daimler commercial vehicles already comply with

car2go — the urbanmobility of the future

The increasing amount of traffic is creating great challenges for cities and con-urbations. A pioneering response to these challenges is provided by the new mobility concept known as car2go, which has been undergoing initial testing in Ulm since October 2008. For this pilot project, 50 smart fortwo cdi cars are being made available throughout the city, where they can be used by employ-ees working at Daimler Research in Ulm. Registered users can book the vehi-cles for as long as they want either in advance or on the spur of the moment by just getting into the car. Access to the vehicles is granted by an electronic seal that is attached to the user’s driver’s license. The car door opens after a windshield-mounted reader records the data on the seal. Once the driver has entered a personal identification number, he or she can immediately drive off. Customers are charged 19 euro cents per minute, with the price also covering the costs of fuel, insurance, and taxes. A service team is under way in the city to maintain and clean the vehicles and ensure that they are refueled. Users are not charged any basic fees or membership dues, as is usual with other carshar-ing models.

A special feature of the system is its flexibility for the user. Drivers can immedi-ately rent the vehicles wherever they are found and leave them after use at any free-of-charge parking space within the city limits. Ideally, customers will have to walk five minutes or less to the next vehicle. Drivers who want to make sure they get a car can locate an available smart on the Internet or call the central office. As an alternative to renting a car on the spur of the moment, customers can also book one on the Internet or by phone up to 24 hours in advance.

In spring 2009, the number of vehicles available in Ulm will be increased to 200 so that other inhabitants of the city and visitors will also be able to take advan-tage of the system. How soon the program can be expanded to other cities and conurbations will depend on the results of the pilot project. Various cities have already expressed their interest in car2go.



the Euro V emission limits that will go into effect in October 2009 for new vehicles. With an enhanced ver-sion of this technology along with engine modifications and particulate filters, Daimler commercial vehicles will also be ready for the next phase of emission legislation — Euro VI. Thanks to this technology, our commercial vehicles and buses comply with the stringent emission limits that will soon go into effect in the NAFTA region and Japan (EPA 10 and JP 09, respectively).

The foundation for BLUETEC is provided by additionally optimized engines featuring higher peak pressure and compression ratios that result in cleaner combustion, fewer particulates, and — depending on the engine vari-ant — higher output. Such engines also consume up to 6 percent less fuel than those in Euro III vehicles. Once exhaust gases leave the engine, AdBlue is sprayed into the hot exhaust gas flow, where it reacts to form ammo-nia. Exhaust treatment in the SCR system transforms the nitrogen oxides in the exhaust into harmless nitro-gen and water. To do this, around 1 liter (0.26 USgal) of AdBlue is required for 25 liters (6.6 USgal) of diesel. The AdBlue can be refilled at regular filling stations. Starting with heavy-duty long-haulage trucks, we have gradually expanded our range of BLUETEC 5 vehicles right down to light trucks for short-range distribution. More than 200,000 commercial vehicles equipped with BLUETEC have been handed over to customers since the integra-tion of BLUETEC technology into the series production of commercial vehicles at the end of 2004. I 26

In many commercial vehicle categories, Daimler will begin offering vehicles that meet the Enhanced Environ-mentally Friendly Vehicle (EEV) standard in 2009. The EEV standard is based on voluntary agreements and is the most stringent emission standard for commercial vehicles in Europe. EEV-compliant trucks and buses outperform the Euro V standard, which will apply to all newly registered trucks and buses from October 2009. One out of two city buses sold by Daimler in Europe is already EEV-compliant.

7.3 Noise emissions. Many of a vehicle’s parts influ-ence noise emissions, among them the engine and the powertrain. However, at a speed of about 50 km/h (31

mph) and above, the primary sources of noise are the airflow and the rolling of the tires on the road. Fruitful cooperation between aero-acoustic experts and vehicle body and engine developers has led to a reduction of both interior and exterior noise emissions in Daimler vehicles. The problem of traffic-related noise cannot be solved by measures affecting the vehicles alone, however. Other key factors that must be considered are increasing traffic density, construction along roadways, driving habits, the surfaces and conditions of roads, and tire properties. In general, the main factors con-tributing to commercial vehicle noise are the tires, the vehicle bodies, and the loads onboard. Key parameters that Daimler can directly influence are low-vibration design, optimal engine encapsulation, and aerodynami-cally efficient cabs. The Group also works closely with body manufacturers to reduce noise emissions to a minimum.

8.0 End of life

MeRSy conserves resources. Our recycling manage-ment system MeRSy helps to ensure that a growing num-ber of end-of-life parts are recycled on a voluntary basis, thus reducing the volume of waste. Old vehicle fluids are also reprocessed. In 2008, for example, Daimler recycled around 616,000 liters (163,000 USgal) of coolants and 671,000 liters (177,000 USgal) of brake fluid. MeRSy also manages the collection and recycling of auto parts and end-of-life materials from passenger car and commer-cial vehicle service centers for the Mercedes-Benz and smart brands. What began in a few workshops in 1993 is today well established throughout Germany, Austria, and Switzerland. In 2008, MeRSy collected 17,855 t (19,682 USton) of end-of-life parts and materials for recycling.

Take-back network for end-of-life vehicles. Daimler is establishing a take-back network for end-of-life vehi-cles in cooperation with local importers and national disposal companies in all EU countries. This ensures that the Group’s customers can dispose of their vehi-cles easily and conveniently. It also guarantees the high quality of all recycling operations and their compliance with the applicable laws.

26 I Further information on BLUETEC

technology at Daimler:


/sr/32

Percentage share of Mercedes-Benz and smart passenger cars sold in Europe in 2008 that meet mandatory and planned emissions standards

Percentage share of

HC + NOx NOx Particulates Mercedes-Benz and smart

in g/km in g/km in g/km passenger cars that meet

Diesel Gasoline Diesel Gasoline Diesel the respective limit values

1 The Euro 5 limits are binding for all

new vehicles as of January 1, 2011.

Euro 5 type approval has been

available since August 2008. Type

approval according to Euro 5 has

only been possible since August

2008

Euro 4 0.30 0.08 0.25 – 0.025 99 percent

Euro 51 0.23 0.06 0.18 0.005 0.005 1 percent



The Group’s environmental protection goals are an expres-sion of our determination to continually launch trendsetting, environmentally focused products featuring cutting-edge technology on the market, and to further improve the envi-ronmental soundness of our production operations. These goals serve as an internal guide and an external controlling

instance for our business partners and the public. Once goals have been attained, new ones will be formulated that build upon established achievements (e.g. introduction of BLUETEC technology to passenger cars). Individual targets are also given further scope or expanded should new legis-lation or technology trends make this necessary.

Our environmental commitment: Activities and goals

Goals

Passenger cars: Reduction of the CO2

emissions of our new-vehicle fleet in

Europe to less than 140 g/km

(225 g/mile) by 2012, which would cor-

respond to a nearly 40 % decline since

1995

Passenger cars: Daimler aims to be

“best in class” in terms of the CO2 emis-

sions of its vehicles. As of 2007, the

Group thus plans to introduce at least

one vehicle per year in the large-volume

series (S-, C-, E-, A/B- and M-Class, and

smart) with CO2 emissions significantly

lower than those of the respective pre-

decessor model. Reductions are to total

at least 8% for the small-car segment

(smart, A/B-Class), and at least 15% for

the mid- and upper-range segments

Passenger cars, beginning in 2007:

Introduction of various hybrid solutions

to be offered individually or in combina-

tion, depending on vehicle class, type of

use, and customer requirements

Commercial vehicles: Reduction of the

fuel consumption of our trucks (N3) in

Europe by an average 20 % per ton-kilo-

meter by 2020

Goal attainment

Goal still applies

— goal formula-

tion was expand-

ed in comparison

to the previous

year

Goal still applies

Goal still applies

New goal

Page

30 ff.

43

30 ff.

31

32 f.

44

Activities/status

Our efforts to reduce fuel consumption will be further intensified. Principal mea-

sures include:

• Second-generation gasoline direct injection in the CLS 350 CGI, the E 350 CGI

and — since 2008 — the C 350 CGI. This technology will be rolled out in four-cylinder

gasoline engines starting in 2009 (approx. 10 % lower consumption) • Start-stop

systems in the smart mhd and the A- and B-Class (approx. 8 % lower consumption)

• Introduction of the S 400 BlueHYBRID in June 2009 (approx. 20% lower consump-

tion) • Introduction of the new four-cylinder diesel engine in the fall of 2008

(approx. 13 % lower consumption) • Introduction of optimized four-cylinder gasoline

engines starting in 2009 (approx. 5 to 10 % lower consumption) • Development of

the DIESOTTO concept (approx. 15 to 20 % lower consumption), first stage until

2012 • Better energy management starting in 2008 (5 to 10% reduction).

Compared with the reference year 1995, the average CO2 emissions of our passen-

ger cars in Europe (M1 vehicles) have been reduced by more than 23 % as a result of

various measures.

Here, we are employing technical measures for further improving powertrain effi-

ciency — e.g. innovative combustion processes. The high injection pressure and

newly developed seven-hole injectors of the CDI engine introduced in the new gen-

eration smart fortwo in 2007 made it possible to reduce fuel consumption by about

13%. Introduction of our BlueEFFICIENCY models enabled us to reach our reduction

targets in the mid-range segment as well, and in some cases we significantly

exceeded them. The C 200 CDI BlueEFFICIENCY, which became available in April

2008, boasts CO2 emissions 17 % lower than those of the predecessor model, while

the C 180 KOMPRESSOR BlueEFFICIENCY launched in 2008 achieves a CO2-

emission reduction of 15 % as compared to the predecessor model. The new

E-Class will meet the targets set for the upper-range segment.

• Launch of series-produced hybrid passenger cars in June 2009, beginning with

the S 400 BlueHYBRID; • market launch of the smart mhd (micro hybrid drive)

equipped with a start-stop system took place in October 2007 (approx. 8 % lower

consumption); A- and B-Class models have also been equipped with a start-stop

feature since September 2008.

• Further development and optimization of the powertrain, for example by reducing

friction losses • Introduction of new weight-optimized and more fuel-efficient

engines • Improvement of the aerodynamics of both the cab and the entire vehicle;

• Introduction of brake energy recovery systems • Launch of additional hybrid

models; the diesel consumption of conventional commercial vehicle diesel engines

has been reduced by more than one-third over the past few decades, although

transport volume has increased at approximately the same rate. Recently, our new

BLUETEC diesel technology has led to major progress in the form of 2 to 5 % lower

consumption, which, depending on type of use, translates into 1,500–2,000 fewer

liters (400–530 USgal) of diesel per truck and year.

CO2 emissions of new-vehicle fleet



PageGoals Activities/StatusGoals

Commercial vehicles, beginning in 2007:

Introduction of various hybrid solutions

to be offered either individually or in

combination, depending on vehicle

class, type of use, and customer require-

ments

Our goal is to continually reduce fuel

consumption and emissions leading up

to zero-emission driving with battery-

electric and fuel cell vehicles. The key

aspect here is to quickly make such vehi-

cles suitable for series production, par-

ticularly with regard to vehicle range and

battery life

Continual reduction of specific CO2

emissions from production operations,

to result in 20 % lower emissions in 2015

as compared to 2007

Passenger cars: Reduction of nitrogen

oxide emissions through the series-pro-

duction launch of BLUETEC technology

in the first Mercedes-Benz passenger car

model in the U.S. in the fall of 2006, and

in Europe in 2008

Passenger cars: Introduction of addition-

al BLUETEC models in 2009

Commercial vehicles: Reduction of nitro-

gen oxide emissions through series pro-

duction of BLUETEC technology in

Mercedes-Benz trucks and buses sold in

Europe, and advance compliance with

the Euro IV emission standard (valid

from October 2006) with BLUETEC 4

vehicles, and Euro V (valid from October

2009) with BLUETEC 5 models

Goal attainment

Goal still applies

Goal still applies

— goal formula-

tion was expand-

ed in comparison

to the previous

year

Goal still applies

Goal attained

New goal

Goal still applies

Page

33

31 f.,

33

41 f.

45

45

45 f.

Activities/status

• Market launch of the Freightliner M2 Hybrid and the Freightliner Walk-in Van

equipped with a hybrid drive • Delivery of Mercedes-Benz Citaro G BlueTec Hybrid

city buses to customers at the end of 2009.

There are currently nearly 2,500 Daimler hybrid trucks and buses on the road in day-

to-day service. Along with Orion hybrid buses, our customers are using Fuso Canter

Eco Hybrid models (over 500 units sold), and second-generation Fuso Aero Star Eco

Hybrid buses.

• Pilot projects with the smart fortwo ed (electric drive) in London (100 vehicles on

the road since 2007), Berlin (100 vehicles, starting at the end of 2009), and Rome,

Pisa, and Milan (more than 100 vehicles beginning in 2010) — preparation of addi-

tional projects with battery-electric vehicles from smart and Mercedes-Benz as part

of the second stage of pilot testing scheduled to begin in 2009 • Battery-electric

vehicles to become available for customers to operate in 2012 • Extension of the

range of the fuel cell passenger car test fleet from just under 200 kilometers (125

miles) today to 400 km (250 miles) by the end of 2009 • Launch of small-batch pro-

duction of the B-Class F-Cell in 2009 • Further development of the Citaro G

BlueTec Hybrid bus into a Citaro fuel cell hybrid model.

Daimler has the largest fleet of fuel cell vehicles (passenger cars, vans, and buses)

of any manufacturer in the world.

Data collection and evaluation have been improved, and the method for calculating

CO2 emissions has been standardized throughout the Group. Benchmarking and

savings projects at all business units have already led to success. A project that has

been launched for Mercedes-Benz Cars is designed to boost energy efficiency and

thereby also reduce CO2 emissions. Similar projects are also under way at our other

divisions. A comparison of the years 2007 and 2008 shows that CO2 emissions per

vehicle manufactured declined by 4 % at Mercedes-Benz Cars, and by the same

amount at Mercedes-Benz Vans. Specific CO2 emissions at Daimler Trucks rose by

almost 2 % during the same period. This increase was mainly due to a sharp decline

in production in the NAFTA region, and simultaneous higher production at German

plants, whose more extensive vertical integration results in higher specific CO2

emissions. Absolute CO2 emissions throughout the Group were reduced by only

0.5 %, largely due to the high heating requirement brought about by the very cold

winter in Germany at the end of 2008.

Step-by-step introduction of BLUETEC technology in an initial group of

Mercedes-Benz passenger car models, and enhancement of this technology for

all model series. Market launch of the E 320 BlueTEC took place in North America

in October 2006. The E 300 BlueTEC was then introduced to Europe in September

2007. The ML 320 BlueTEC, the R 320 BlueTEC, and the GL 320 BlueTEC have been

available in the U.S. since the fall of 2008. All of these vehicles meet the stringent

Bin-5 and ULEV emission limits in the U.S.

Introduction of at least four additional BLUETEC vehicles in Europe in 2009.

Gradual introduction of BLUETEC for Euro IV and BLUETEC for Euro V. Refinement

of engines to further increase their efficiency and thus their fuel economy, while

retaining at least the same long service life. Following the launch of BLUETEC in the

Mercedes-Benz Actros, the technology is now available in all commercial vehicle

and bus models. More than 200,000 Mercedes-Benz trucks and buses equipped

with the new exhaust-gas technology have been delivered to customers since early

2005.

Energy consumption and CO2 emissions from production operations

Pollutant emissions of the new-vehicle fleet



External statement

Christian Hochfeld is Member

of the Executive Board

Öko-Institut e.V.

Öko-Institut e.V. is one of Europe’s

leading independent research and

consulting institutes for a sustain-

able future.

More information:

www.oeko.de

Global warming remains a major challenge! The global financial and economic crisis is on the minds of everyone around the world. However, even though auto-makers are facing a particularly difficult challenge in the face of dramatic sales declines, that’s no reasonto forget about the environment. After all, the earthcontinues to get warmer, despite the crisis. In short, Daimler cannot afford to delay investment in climate protection until it believes that an economic recovery is imminent. The fact is that failure to invest appropriately now in reducing greenhouse gas emissions will resultin higher expenditures later, when limiting the damag-ing effects of climate change will cost even more. In any case, deferring investment in climate protection certainly won’t result in the short-term positive effects that politicians are hoping for with their incredibly huge economic stimulus programs.

Ultimately, our global climate is “deeply in the red” and the figures simply express in another currency what economists are telling us every day: “Business as usual equals the death of business.” — So what do we do now? — Kill ourselves because of our fear of death? — This was exactly the impression many had last year when the decision was made to let a few more valuable years go to waste by taking a lax position on CO2 emis-sion limits for passenger car fleets.

It is therefore all the more pleasing that Daimler this year became the first automaker to set itself a firm CO2 emission target of less than 140 grams per kilometer (225 grams per mile) by 2012 for its new-vehicle fleet in Europe. This target corresponds to a more than 20 per-cent reduction in average emissions from 2008 levels through vehicle-internal measures over the next four years. The result will be an average emission level near-ly equal to that required by the European Commission — but without the controversial “phase-in” element up until the year 2015. It’s nice to see someone being am-bitious here! We also view as ambitious the reduction target of 20 percent for the commercial vehicle fleet(N 3) by 2020.

However, only when these targets are achieved will Daimler be able to turn this dual crisis into an opportu-nity, because climate change is the driver of innovation for the 21st century. The cardinal rule for sustainable business activity is that any company that wishes to make a profit in the future will need to have green pro-ducts in its portfolio — a view shared by Dieter Zetsche. Such companies will also have to operate without be-queathing an ecological debt to coming generations.

Has Daimler already implemented all the measures nec-essary to achieve a climate-friendly “reinvention of the automobile?” Unfortunately, this is not yet the case:

– To be best-in-class and a leader, it is no longer enough to bring to market only a few select highly efficient models. Instead — and the new E-Class is showing the way forward here — “climate packages” must become standard equipment. This is some-thing we’ve been demanding for years.

– Any automaker that wants to move up to a higher class must redefine the premium segment, and it appears that this gentle hint, which we made in last year’s commentary, is now being increasingly acknowledged throughout the Group. Achieving greater efficiency despite higher levels of output and dynamic performance can only be the first step. How about increased driving enjoyment and com-fort, despite a lower level of output? This apparent contradiction actually points the way forward.

Daimler is coming under increasing pressure. Electric mobility has the potential to make a key contribution to a system of long-term climate-friendly mobility. How-ever, the road to zero-emission mobility will likely be a rough and long one. The initial enthusiasm for and sub-sequent demonization of biofuels has underlined the problem of focusing on the next cure-all fuel. Instead, we should be engaging in a rational debate regarding how and when electric mobility can make a measurable contribution to climate protection. Daimler’s contribu-tion here must also go beyond the vehicles themselves.

Climate protection in general — and electric mobility in particular — involves not only a climate-friendly product portfolio but also a business model that will lead to suc-cess over the long term. That’s why we’re very excited about Daimler’s “car2go” project, which marks a new attempt at also developing mobility services that pro-mote multimodal mobility.

The Group’s product portfolio, business model, and economic success have now truly reached a cross-roads. Over the medium and long terms, Daimler will be able to get on the green track if the Group doubles its efforts to simultaneously address the challenges of both the sales crisis and climate change. This is the opportunity that lies in the crisis — and there is no alter-native but to seize it.

Christian HochfeldBerlin, March 2, 2009



Employees. Our sustainable human resources policy focus-es on safeguarding the future, ensuring effective health management and occupational safety, and promoting diver-sity throughout the Group. We seek to achieve top perfor-mance in these areas — and thus present Daimler as an attractive employer.

090305_F_Mitarbeiter_ENG_RZ_neu.indd 50090305_F_Mitarbeiter_ENG_RZ_neu.indd 50 13.03.2009 11:29:11 Uhr13.03.2009 11:29:11 Uhr

Employees

Dear readers,

More than 272,000 men and women work for our Group all over the world. Through their commitment and innovative strength they are generating sustainable success for Daimler. And we are providing them with the corporate structure required. Our social responsibil-ity begins with our employees.

To remain fit for the future, we will once again make major investments in 2009 in order to secure a new generation of talented employees at every level. We will maintain our high standards for the training programs at Daimler, and together with our employee representatives we have taken steps to make these programs an even firmer part of our basic policy. Daimler employs approximately 8,000 trainees in Germany alone, and almost 40 percent of all trainees in the German automotive industry work at Daimler.

In addition, thanks to our ongoing CAReer program approximately 500 college graduates will receive top-class entry-level positions in 2009 to kick off their careers. We will also hire about 500 college graduates and early professionals directly. Most of these direct hires will be engineers. In spite of the generally tense situation on the labor market, a large number of highly qualified young people — many more than we need — are applying to work for our company. This shows us that we remain a very attractive employer.

Our sustainable approach can be seen not only in our investments in new employees but also in what we do for our existing work-force. We offer our employees the opportunity to further develop their intercultural and personal skills in line with our needs and future prospects. We manage diversity issues in a proactive manner, thus promoting optimal cooperation among our employ-ees. In the process we pay particular — though not exclusive — at-tention to issues related to internationality, gender, and genera-tions. The diversity of our employees provides us with a key competitive advantage as a global player.

We’re also striving to help our employees reconcile career and family responsibilities. In 2009 we plan to open seven “sternchen” (Little Star) childcare centers, thus raising the number of placesfor children of Daimler employees from the 350 originally planned to 569. Our standards of quality are setting benchmarks not only

for the BDA (Confederation of German Employers’ Associations) but also for the legal measures taken by the German government.

Our restructured corporate retirement program makes us a pioneer in German industry. The successor of the Daimler-Benz pension plan, the Daimler Vorsorge Kapital program, is even more reliable and more independent of external fluctuations. Through this program, we have responded to the requirements created by demographic developments and by changes in the legal framework. As a result, our corporate pension plan remains at the center of our Group’s employee benefits program. All of this goes to show that we are fulfilling our responsibilities toward our workforce and recognizing their commitment by providing them with additional benefits. Through these measures we aim to support our employ-ees’ personal financial security plans for retirement, which recent events have made less reliable than was previously the case.

The fulfillment of our obligations to our employees and society at large is closely linked with our corporate success. Through these measures we are taking on responsibility for our society and our future.

Günther FleigMember of the Board of Management of Daimler AGDirector of Human Resources and Labor Relations

51

Günther Fleig



1.0 Workforce

1.1 Workforce development. On December 31, 2008, Daimler had 273,216 employees worldwide (2007: 272,382). Of these, 167,753 were employed in Germany (2007: 166,679), 22,476 in the U.S. (2007: 24,053), 15,490 in Japan (2007: 16,303), and 14,107 in Brazil (2007: 13,828). The number of trainees in 2008 was 9,603 (2007: 9,300).

The development of workforce numbers varied among the individual divisions in 2008. Staff levels were down at the Mercedes-Benz Cars, Daimler Trucks, and Mercedes-Benz Vans divisions, while the number of employees at Daimler Buses rose by 5 percent due to positive business developments there. Higher head-counts at the sales organization and the Financial Ser-vices division were primarily a result of additions to the consolidated Group.

New Management Model successfully concluded. As planned, the end of 2008 marked the conclusion of the project phase of the New Management Model, which was launched in 2006. Among other things, the program has integrated and structurally optimized administrative functions around the world, and also standardized processes. Associated workforce adjust-ments proceeded on schedule as well. To ensure that the restructuring program’s success will be sustained over the long term, there will be further implementation of initiatives for continuous improvement and standard-ization of processes in the line organizations.

1.2 Fluctuation. The Group’s worldwide employee fluc-tuation rate in 2008 was 6.5 percent, a decrease of 0.6 percentage points from the prior year. The fluctuation rate in Germany was 3.2 percent (2007: 3.6 percent), while in the U.S. it was 18.9 percent (2007: 17.8 per-cent), and in the rest of the world 9.4 percent (2007: 10.9 percent). These figures include human resources measures such as early retirements, voluntary sever-ance agreements, part-time early retirement contracts (especially in Germany), and layoff contracts in the U.S. The worldwide fluctuation rate for female employees fell by 0.6 percentage points last year, to 8.5 percent.

1.3 Flexible use of human resources. The sharp fluc-tuations in orders over the course of the year neces-sitated a high level of flexibility in work assignments. Measures here included flexible work-time accounts, the use of temporary workers and limited-term employ-ees, and short-term shift cancellation and creation. In the interest of safeguarding jobs, flexible work-time accounts continue to be given the highest priority. As such, time credits were gradually eliminated toward the end of the year through days off, and in some cases negative balances were created. This instrument was employed at administrative departments as well. Due to weaker demand, particularly in the fourth quarter, it was also necessary to terminate the employment of temporary workers and those with limited contracts. Since the beginning of 2009, reductions of working hours have been applied to varying degrees at pas-senger car and van plants in Germany. Differentiated work-time structures offer a further response to the current economic situation, which is why the number of part-time employees at the Group’s German locations has increased significantly. Whereas a total of 8,006 employees worked part-time in 2007, that figure rose to 9,453 in 2008, amounting to 6.1 percent of Daimler’s total workforce in Germany (2007: 5.2 percent).

Total workforce by region

North America with

Mexico: 29,178

Latin America:

16,466Australia: 1,279

Africa: 7,190

Asia: 20,071

Europe: 199,032,

of which in Germany: 167,753

273,216 employees (status December 31, 2008)

Mercedes-Benz Cars

Daimler Trucks

Daimler Financial Services

Vans, Buses, Other

Sales Organization

Total workforce by division

Year- end 2007 and 2008 2007 2008

97,526 97,303

80,067 79,415

6,743 7,116

39,968 40,255

48,078 49,127


53 Employees

A special governance structure controls the Group’s worldwide pension plans, and any Group company wishing to change an existing pension plan or introduce a new one must obtain approval to do so from the Global Pension Committee.

In 2008 the latter body confirmed the compatibility of the new Daimler Vorsorge Kapital pension system with the Global Pension Guidelines. As of January 1, 2009, the corporate pension plan for employees subject to col-lective bargaining agreements, which consists of pen-sion accounts and annual modules, was restructured in line with future requirements.

1.6 Demographic challenges. The majority of Daimler AG employees today are between the ages of 35 and 50. The average age is 42 — but demographic develop-ments will cause this average to increase to 47 over the next ten years, at which time the unequal distribution in the Group’s age structure will lead to a situation in which more than 50 percent of Daimler employees will be over 50 years old. In addition, at some Group loca-tions over 70 percent of employees will be over 50.

1.4 Employee satisfaction. Regular surveys of employ-ee satisfaction are a proven instrument of organization-al and management development at Daimler. The most recent Group-wide survey was conducted in December 2007. This survey utilized a globally standardized method and representative samples to evaluate our employees’ feelings of commitment to, and identifica-tion with, the company. It also measured employees’ satisfaction with their work situation and supervisors, as well as their general knowledge of our corporate val-ues and compliance regulations in connection with their daily work. Special attention was paid to feedback from executives concerning these legal and ethical issues. The very high level of our managers’ identification with compliance regulations throughout the world demon-strated their strong ethical awareness. In addition, the results of our survey showed that all of our employees are taking these regulations into consideration in their daily work.

Employee commitment is measured through the HR Scorecard system, with values ranging from 0 to 100. The Employee Commitment Index (ECI) value of 58 from the latest survey (2007/2008) indicates a relatively homogeneous result that corresponds to the average in external comparisons. The results of the survey section on satisfaction with work situations and supervisors were generally positive. I 1

1.5 Retirement benefits. A sound financial base, cou-pled with adequate risk assessments, form the founda-tion of Daimler’s provisions for a secure retirement, or for the event that employees become unable to work any more. Our “Global Pension Guidelines” outline the way in which the related goals should be achieved.



/sr/33

Promoting individual responsibility

Areas of activity for addressing demographic challenges at Daimler AG

Safeguarding expertise

(HR Resource

Management)

Severance

models

Human resources

development,

qualifi cation and training

Work organization,

staff assignments

Health management,

ergonomics

Firm incorporation of demography into HR strategy

Corporate culture

in € billion

Provisions for retirement benefits and health care

5

4

3

2

1

All data acc. to IFRS

2007 2008

€ 3.9 billion € 4.1 billion



ing these goals involves a combination of short and long-term remuneration components and additional bonuses.

In general, Daimler rewards its employees’ work by means of demand-based and performance and success-oriented compensation in line with local condi-tions. Binding Group-wide guidelines are utilized for the remuneration of employees assigned abroad, as well as for retirement benefits. This system ensures that we remain competitive and attractive in diverse markets, without having to sacrifice the use of standardized con-trol instruments.

A uniform worldwide system is used for the remunera-tion of managers. Monetary remuneration consists of both base and variable elements, with the rate of the variable compensation growing in line with a manager’s increased level of responsibility. I 3

Remuneration for employees subject to collective bar-gaining agreements is based on regional or national agreements such as labor contracts. All of the Group’s employees covered by collective bargaining agree-ments also receive full compensation for their manda-tory and completed overtime.

In 2007 Daimler adopted ERA, a new and modern remu-neration system that was originally developed for staff in the metalworking sector in Germany. The new system eliminates the distinction between hourly and salaried employees. With ERA, the base wage determined by collective bargaining agreements is supplemented by a performance-based component that is also covered by the collective bargaining agreements, and which can reach 15 percent of the base wage. The exact amount of the performance-based component is determined in an annual review carried out within the framework of our new NAVI leadership assessment process, which relies on more in-depth dialogue between managers and their staff members. I 4

In a situation marked by difficult market and competi-tive conditions, Daimler reached a Group-wide agree-ment with the General Works Council in 2008 that addresses the goal of safeguarding the future of Group sales outlets — i.e. the part of our sales network owned by Daimler AG. The agreement outlines measures for improving the long-term competitiveness of such deal-erships and protecting the jobs they currently offer.

Among other things, the measures call for all employ-ees at the dealerships to help boost efficiency. In return, Daimler has agreed to forego job cuts and to guarantee that existing Daimler AG dealerships will remain within the Group even after the “Safeguarding the Future 2012” agreement expires.

2.3 Management development. All of our managers worldwide and about half of our employees subject to collective bargaining agreements in Germany are

Daimler has recognized the challenges associated with this development, which is why the issue of demo-graphics was made a firm component of our HR strate-gy in 2008. We have also identified actions that need to be taken to address problems associated with changes in the workforce age structure. Two strategic initiatives were developed as a result. One of these, “HR Resource Management,” will help us identify potential future risks related to employees’ work capacity and aging. The second initiative involves preventive measures to pro-mote better health, ergonomics, and integration man-agement in order to safeguard our ability to perform effectively in the future, even in the face of a changed workforce structure. I 2

2.0 Workforce and management relations

2.1 Dialogue with employee representative inter-est groups. Daimler cooperates closely with employee representatives in works councils and trade unions. The most important bodies here are the World Employee Committee (WEC), which was formed in 2002, and the European Works Council, which dates back to 1996. In accordance with German co-determination law, ten members of the Daimler AG Supervisory Board repre-sent the Group’s employees in Germany, more than 90 percent of whom are subject to collective bargaining agreements. Several Group companies in Germany are not required to adhere to collective bargaining agree-ments in their industries. Whenever a works council is created, its members represent the interests of work-ers at the facility in question in line with German co-determination law.

Daimler recognizes the right of workers to organize themselves in trade unions in accordance with the labor laws of each country. The Group also ensures that free-dom of association is guaranteed at its facilities, even in countries that do not explicitly grant such freedom. All of these policies are laid out in our Principles of Social Responsibility, which were updated at the begin-ning of 2008 and now also include all ten principles of our Global Compact.

Daimler reports regularly to the WEC on any viola-tions of these principles. In 2008 we restructured the procedure for dealing with complaints regarding viola-tions of the principles, and we also redefined areas of responsibility with the Procurement department, which we inform of any such violations on the part of our busi-ness partners. We also expect our business partners to implement similar principles of social responsibility.

2.2 Performance and remuneration. We believe in offering a remuneration policy that is both efficient and attractive — one that’s in tune with the times but doesn’t blindly follow short-term trends. Our approach to achiev-



/sr/34

3 I More on remuneration for

managers:


/sr/35

4 I More on ERA and NAVI:


/sr/36


55 Employees

ing architectures based on uniform Daimler standards. The consolidation of all activities in the Daimler Corpo-rate Academy also expands the range of programs on offer, while significantly reducing the outlay required for external service providers.

Some 4,500 managers at more than 60 locations par-ticipated in leadership qualification programs in 2008, while some 11,000 employees took special courses in Finance, Human Resources, and Procurement. An additional 18,000 or so received training in Compliance. Approximately 3,500 interdisciplinary qualification events in Germany attracted more than 24,000 partici-pants. The Daimler Corporate Academy plans to make the issue of sustainability one of its focus areas in 2009 and 2010 by incorporating sustainability topics into its course program for managers.

Manager qualification programs are an integral ele-ment of human resources development. Each year, the Daimler Corporate Academy offers a globally inte-grated overall program, which means that regardless of their location, all managers can participate in training programs with identical content and quality, though some of the programs are offered in local languages.

For example, the roughly 900 managers promoted to Level 4 positions each year participate in the same standardized program to prepare them for their new roles and assignments. At the same time, regional con-siderations and division-specific issues continue to be taken into account within the framework of “Division Day” events, thereby ensuring that the benefits of the previous programs conducted specifically at the divi-sions and at headquarters are retained. The programs in question provide information relevant to the issues of diversity, the corporate values, and compliance, thus ensuring that newly appointed managers are especially well versed in such matters.

The Daimler Corporate Academy is a member of the Globally Responsible Leadership Initiative. Our involve-ment with this initiative is helping to further develop requirements and learning concepts that will increase the next generation of leaders’ sense of global respon-sibility. Our consistent application of this approach in our Daimler leadership programs benefits the Group and ensures future-oriented executive education in our company. I 8

Another example of our new approach is our worldwide coaching pool, which consists of internal and external coaches. The pool ensures rapid global availability of coaches, standardized quality assurance, and greater transparency regarding contractual conditions. Despite the centralization, contact partners at the various local human resources departments remain available.

annually provided with assessments and career devel-opment proposals as part of the LEAD management development process. These measures help us develop managers who possess the business and personal skills that are required for their leadership tasks at all levels of the Group. I 5

2.4 Vocational training and advanced professional development. Vocational training and advanced pro-fessional development are strategically important fac-tors for sustained corporate success. For this reason, Daimler conducts various activities that promote life-long learning for its employees. Measures here begin with vocational training and promotional programs for students and college graduates, and extend to pro-grams that provide further education and training to our specialized employees and managers. In 2008 we invested € 270 million in training and qualification mea-sures in Germany (2007: € 213 million). Each employee received 4.4 days of training on average throughout the year. On account of a change in the method used for cost registration, a comparison with last year’s figures is not possible at this time.

At the end of 2008 Daimler had 9,603 trainees world-wide (2007: 9,300). We accepted 2,500 trainees in Ger-many last year (2007: 2,600). In order to help meet the strong demand for traineeships in Germany, Daimler continues to train more young people than it actually needs. In 2008 we introduced the DAS training system, which will help us improve the quality of our training programs and eliminate any differences that remain between various locations. In 2008 we also developed in cooperation with our workforce the “Basic Principles for Vocational Training at Daimler AG” and formally adopted them. In addition, our “CAReer” program offered about 400 college graduates worldwide a first-class start to their professional careers at Daimler. I 6

Human resources development at Daimler is a process that accompanies an individual’s entire career at the company. Managers and staff members are jointly responsible for ensuring that the knowledge and skills they need in order to fulfill their needs and goals can be obtained and refined in line with their specific perfor-mance capability. This enables both employees and the company to achieve the flexibility they need for taking on new challenges. Our “Learning as Needed” approach is supported by globally utilized high-tech learning sys-tems like our PLS Production Learning System. I 7

Daimler Corporate Academy. The Daimler Corpo-rate Academy combines programs for leadership and management qualification at all levels worldwide, with specialist qualifications for the corporate functions of Finance, Global Procurement, and Global Human Resources and Compliance. It also offers interdisci-plinary qualification programs in Germany. It has thus become possible to provide education and training to our employees around the world using efficient teach-

6 I More on CAReer and DAS:


/sr/37

5 I Further information can be found

on p. 19

8 I For more information on the GLRI:

www.grli.org

7 I For further information on PLS:


/sr/38



Specialized qualification programs worldwide and interdisciplinary qualification programs through-out Germany. The results of a strategic analysis of our requirements were used in 2008 to draw up an overall program for employees and managers from the Finance, Procurement, Human Resources, and Compli-ance functional units who were to receive training. The international scope of the program, which is available in several languages, will be expanded in 2009, when finance, procurement, and human resources training will be offered to more and more employees in Japan, China, and the U.S.

2.5 Occupational health and safety. Daimler manage-ment and the World Employee Committee have devel-oped standardized principles for occupational health and safety at all Group locations worldwide. These prin-ciples are based on legislation in each country and on the International Labour Organization’s (ILO) guidelines for occupational health and safety (ILO/OSH-MS 2001).

Our Group-wide Health & Safety unit is responsible for ensuring that the principles are adhered to. The Health & Safety unit addresses all issues related to main-

Daimler wins 2008 Company Health Award

In 2008 Daimler AG was presented with the “German Company Health Award” for the second consecutive year. The award is issued by the BKK Bundesver-band health insurance association and the European Commission within the framework of the “Move Europe” campaign in order to honor exemplary health management systems. Some 600 companies from all over Germany participat-ed in the award competition, with a total of 11 receiving a special certificate for “Healthy Employees in a Healthy Company.” Daimler’s director of Health Man-agement and Occupational Safety, Ursula Spellenberg, accepted the awardon behalf of the company on December 2, 2008 during the “Competitive Edge through Good Health” conference in Cologne. “This award confirms thatwe’re on the right track with our health management strategy,” said Ursula Spellenberg.

The award jury focused mainly on anti-smoking programs and those that pro-mote good nutrition, physical exercise, and mental health. Prof. Elisabeth Pott, director of Germany’s Federal Center for Health Education, had the following to say in her laudatory address: “By concentrating all health-related activities at its Health & Safety unit, Daimler has laid the foundation for a holistic approach to this issue.” Pott especially praised the company’s “Mobile Strength” project, in which a mobile strength-training unit visits employees at their place of work and offers them opportunities to strengthen their back muscles through simple exercises that take little time. “Programs like these enable our workforce to remain competitive,” said Daimler Human Resources and Labor Relations direc-tor Günther Fleig at the award ceremony. “Good employee health is important for improving employees’ professional performance capability, especially in a situation marked by an aging workforce. It thus makes a direct contribution to corporate success.” The importance Daimler places on good employee health is also demonstrated by preventive activities such as the company’s “Mental Stress Risk Assessment” project, in which Daimler and the Department of Occupational and Organizational Psychology at Heidelberg University are studying working conditions with regard to mental and emotional stress.

More information on the Mental Stress Risk Assessment project and other Health &

Safety programs can be found at:


Key health management figures

2007 2008

Health training courses offered:

– Shift workers

– Management staff

– Senior management staff

Offers for periods of preventive

treatment:

– Shift workers

– Management staff

– Senior management staff

1,296 984

645 396

140 128

250 263

200 166

50 15

Company health promotion programs

Office hours

Preventive medical check-ups by

the corporate medical service

31,015 31,408

44,043 43,277

Corporate medical service

Social counseling contacts

Corporate social counseling

BKK members

SG Stern members

158,400 164,556

33,000 34,540

Other

4,600 4,770


57 Employees

9 I Our Health & Safety Report, and

key related data:


/sr/40

taining and promoting good health (i.e. occupational medicine, occupational safety, company programs to promote better health, ergonomics, social counseling, and integration management).

The unit’s annual “Health & Safety Report” describes in detail the occupational health and safety activities carried out throughout the year. The publication also contains all key health data for the year, as well as information on Group-wide health and safety measures and reports from national subsidiaries. I 9

Within the framework of the “Move Europe” campaign, ourhealth management system received the “Company HealthAward” from the BKK Bundesverband health insurance association and the European Union in 2008, after having been presented with the same award in 2007. To streng-then our position in this field, we will further expand our health-related activities and obtain scientific and practical support from universities and other relevant institutions.

In addition, our international health management sys-tem was used to further network our locations world-wide and generate an exchange of best practices.

Occupational accidents. Daimler has significantly reduced the number of accidents at its locations in Germany over the past few years. Despite the launch of many new vehicles that require production start-ups involving new work processes and therefore a higher risk of accidents, the figures for accident frequency have declined by 14 percent and for accident severity by 11 percent since 2004.

2.6 Diversity. As a globally operating company, Daim-ler values the diversity of its employees and the variety of their personal skills, talents, and capabilities. Our diversity management system is designed to exploit such employee differences for the success of the company. Our goal is to become one of the most highly respected automakers with regard to diversity manage-

Global Diversity Offi ce (GDO): Initiatives since 2005, outlook

Goal for 2010

“To become

one of the top

automakers

with regard to

diversity manage-

ment”

Goal for 2020

“20% women in

senior manage-

ment positions”

2005 2006 2007 2008 2009 2010 2020

Aspirational guidelines & logbook

LEAD process & criteria

Flexible working arrangements

Promotion of employee networks

Diversity

workshops

Annual HR

Diversity

Conferences

Diversity

Report &

Trendbook

Internal/

external

articles on

diversity

TANDEM

mentoring

for women

managers

Training

Networking

“sternchen”

daycare

0–3 years

old,

14 locations

Internationalization

Best practices

Diversity assessment

Retention

GDO initiatives to date New initiatives GoalAnalysis

of the

diversity

require-

ments

Gender

International scope

Generation management



ment by 2010. We are also seeking to increase theproportion of women in management positions to20 percent by 2020.

For Daimler, diversity management means appreciating employee differences and variety, and ensuring that the promotion and utilization of diversity become more firmly anchored in our corporate culture. To this end, we analyze pertinent data and facts, define strategies, and develop appropriate measures for their implemen-tation. Our initial focus here is on promoting women to management positions. With this objective in mind, we decided to focus initially on promoting women in management positions. At the same time, demographic developments, a longer working life, the necessity for cross-generational cooperation, and the international nature of our business will all lead us to pay more attention in the future to generational management and our position as a globally operating organization. In par-ticular, this will require us to hire more employees with international experience. In order to achieve our goals, we are implementing a broad range of activities that include initiatives for all managers, as well as special programs for women only. I 10, 11

3.0 Human rights

Daimler is committed to human rights, which is why we actively support efforts to ensure that such rights are upheld. Wherever possible, we also support the increased recognition of such rights at our business locations.

The Group’s actions in this area are based on the ILO’s Tripartite Declaration of Principle and the OECD Guide-lines for Multinational Enterprises. Much of the content of these documents has been adopted in Daimler’s own guidelines for conducting business. As a founding mem-ber of the UN Global Compact, Daimler is also a signa-tory of that organization’s ten principles for upholding human rights.

We employ various instruments to monitor and ensure adherence to human rights. For example, all employees can report any alleged violation to a central compliance office. Any employee or external individual who learns of what they believe to be unethical behavior at the company can also file a report — anonymously if they wish — with our Business Practices Office (BPO).

Daimler expects its suppliers to act in an ethically correct manner as well. That’s why the global Daimler supplier portal contains reference texts, as well as our “Sustainability Guidelines for Daimler AG Suppliers”, about which we provided information to all of our sup-pliers in 2008. These guidelines clearly formulate the expectations we have of our suppliers and their supplier chains with regard to working conditions and ethical behavior. We address any suspicion regarding human rights violations within our supplier chain through close cooperation with our World Employee Committee. Sys-tematic investigation of such cases is ensured here by a jointly defined procedure. I 12

10 I More information on individual

diversity management activities:


/sr/41

11 I More information on diversity in

procurement: p. 27

12 I More information on the

Sustainability Guidelines for our

suppliers: p. 20

Workforce

White-collar

Trainees

Commercial-technical apprentices

Level 4 management

Proportion of women employees at Daimler AG

in % Dec. 31, 2007 Dec. 31, 2008 Target corridor of the Target corridor of the new

previous company agreement company agreement

(2000–2005) (2006–2010)

12.0 12.2 12.5–15 12.5–15

24.0 24.1 – –

19.4 20.2 18–20 20–24

10.6 11.2 09–11 11–14

10.6 11.2 08–12 10 -14


59 Employees

Goals

Safeguarding the recruiting and pro-

motion of talented new employees.

Increasing the share of women in

senior management positions through-

out the Group by one percentage point

per year, leading to a 20% share of

women in such positions by 2020.

Increasing the proportion of women in

management positions.

Increasing the proportion of women in

management positions.

Improving the ability to balance the

demands of career and family.

Improving from 5th to 4th place in the

rankings among engineering gradu-

ates, and from 10th to 8th place in the

rankings among business graduates.

Goal attainment

Goal still applies

New goal

Goal still applies

Goal still applies

Goal still applies

Goal attained

Page

55

57 f.

57 f.

57 f.

57

54 f.

57 f.

Activities/status

Hiring of 500 trainees worldwide within the framework of the CAReer program in

2009. Communicating with young talents, particularly from technical fields,

while simultaneously taking into account gender diversity. Achieved in 2008:

38 % women (target was 35 %).

Mentoring programs for supporting women in management positions with their

career planning. Diversity workshops for raising gender diversity awareness

among all managers.

Achieved in 2008: Women occupy about 8 % of senior management positions.

Mentoring programs for female office staff. Targeted recruitment of women for

CAReer. Company agreement with a target corridor of 10 –14 % share of women

by 2010. Achieved in 2008: 11.2 % (2007: 10.6 %) women in mid-level manage-

ment positions (Level 4).

Announcements at marketing and information events that applications from

young women are encouraged. Clear communication with young women via mar-

keting materials. Recruiting events for college graduates. Girls Day and Girls

Weeks for generating interest in technical fields among girls and young women.

Internal and external communication of all of these measures.

Achieved in 2008: Increase to 12.2 % share of women in the workforce (2007:

12 %), and to 20.2 % share of women among trainees (2007: 19.4 %). Target corri-

dors for 2010 as stated in the company agreement: Total workforce: 12.5–15 %;

trainees: 20–24 %; technical trainees: 11–14 %.

Creation of 569 child care slots at Daimler’s German locations by 2012. Flexible

working-time models; boosting the acceptance of such models through associ-

ated measures and sensitization of managers.

Greater focus on target group-specific appeal and marketing events where specifi-

cally necessary. Implementation of a larger number of in-house recruiting events

like Daimler CAReer Day and Daimler Engineers’ Day. More extensive presence in

external media. Further expansion of cooperation with universities. The 2008

Universum study found that the desired improvements were achieved.

Our responsibility as an employer: Activities and goalsAs a globally operating automotive company, Daimler is active in a market that presents a variety of challenges. More than 272,000 people around the world trust and depend on us as their employer, which means we bear a great deal of responsibility.

We invest substantially in our employees’ development to improve their abilities and intercultural and personal skills in a manner that meets current needs and also addresses

future challenges. This is the only way to ensure thatDaimler will remain competitive and successful.

Another key aspect of our responsibility as an employer is to productively address the issue of diversity without prejudice, which among other things involves taking into account and appreciating the differences in age among our workforce (age management). We also have a special obli-gation with regard to occupational health and safety.

Diversity: Focus on women

Attractiveness as an employer



Improving employee commitment

Planning of assignments for older

employees

Transparent analyses of needs and

capabilities

Greater consideration of demographic

issues in our corporate culture and

leadership processes

Evaluation of implemented measures

Group-wide fulfillment of country-

specific requirements regarding occu-

pational health and safety

Introduction of a Group-wide accident

reporting system

Implementation of measures to pre-

vent the most common accidents

The fight against HIV/AIDS

Development of a standardized inte-

gration management system

Goal still applies

Goal still applies

Goal still applies

New goal

New goal

Goal still applies

Goal attained

Goal still applies

Goal still applies

Goal still applies

Page

Periodic updates of the Employee Commitment Index (ECI).

Definition of divisional ECI targets.

Implementation of measures derived from the results of the 2007 employee

survey (GECS).

The survey scheduled for May 2009 has been postponed by the Board of

Management until 2010 due to a lack of planning security in the wake of the

financial crisis.

Integration of older employees into existing processes through analysis/creation

of assignment options that take into account the effects of aging.

Systematic analyses of capacity risks resulting from demographic developments

(HR Resource Management); implementation and evaluation of measures

derived from the results of such analyses.

Stronger incorporation of demographic issues into our corporate culture and the

leadership processes (e.g. in discussions with managers regarding further train-

ing or personnel career development).

Development of methods and tools for assessing the impact of implemented

measures, and making such assessments more transparent.

Adoption and utilization of best practices at Health & Safety in order to improve

controlling and comparisons. Analysis and planning phase in 2008, implementa-

tion beginning in 2009.

Determination of a standardized definition of key accident figures (database,

calculation base).

The first surveys were carried out in 2008 in four pilot units in the U.S., South

Africa, Brazil, and Argentina.

Implementation of the “Changes in Attitude and Behavior for Ensuring Work

Safety” (EVA) program at selected production locations in Germany by

2008/2009.

Focus on raising awareness and providing information in countries with only

moderate rates of infection. Concentration on prevention in countries where the

number of infections is rising. Comprehensive workplace programs in countries

with a high rate of infection.

Concept for optimizing the assignment of employees with health problems (com-

parison of the job requirement profiles of the positions with the ability profiles

of the employees in question).

Goals Activities/status Goal attainment

52 f.

53 f.

54

53

54 f.

56 f.

56 f.

56 f.

56

56 f.

Health & Safety

Demographic change


61 Employees

External statementSustainability is a high-priority issue at Daimler AG today. In 2008 the Group established its Sustainability Board, which combines and coordinates the activities of top management representatives and implements them at the level of daily operations. The first Sustain-ability Dialogue on November 4, 2008 kicked off a critical dialogue between the Group and its external stakeholders in the areas of the environment, human resources, and society. The experts participating in the “Human Resources” workshop discussed the topics of talent management and demographic change, which are crucial to the Group’s economic sustainability. To ensure that Daimler AG’s sustainability strategy is high-ly credible and effective, I recommend that the Group not neglect its social responsibility toward its employ-ees in the further discussion of these challenges. One prerequisite for this is the development of a shared basic understanding of sustainability that is accepted throughout the company. The Sustainability Dialogue was a good initial step in this process. One of the goals for 2009 should now be to enhance this shared basic understanding and deepen it.

The extent to which Daimler AG’s publicly formulated obligations are regarded as binding will be the measure of the future credibility of the Group’s sustainability strategy. Against the background of the noticeable downturn in orders that is resulting from the financial crisis, the management’s public statements will be subjected to a credibility test. In spite of the uncertain future, the Group’s management now has to make statements that are as concrete and understandable as possible to all of its stakeholders. What measures is Daimler AG committing itself to in order to achieve eco-nomic, social, and ecological sustainability, and HOW does it intend to implement them? Which expectations of its stakeholders — including its employees — will the Group NOT be able to meet?

In 2008 the Group’s management and the General Works Council reached a mutual agreement concerning the restructuring of the corporate pension plan. One praiseworthy aspect of the restructuring is the fact that Daimler AG is managing the transition to the new pen-sion plan without requiring either the existing work-force or future new employees to make any financial sacrifices. This is a positive difference between the Group and other automakers.

The discussion between the General Works Council and the management concerning the restructuring of work organization, in particular for group work in the produc-tion areas, has not yet been concluded. There are diverging assessments regarding the consequences of appointing a “group coordinator” with a high degree of responsibility and expertise. From the viewpoint of the

General Works Council, it is feared that the group mem-bers will be given less responsibility and that their level of experience and skill will deteriorate. But from the management’s perspective, increased efficiency and quality are indispensable to Daimler’s efforts to cope with price pressure.

The aging workforce in the production plants repre-sents a challenge that has not yet been mastered. Par-ticular measures have been developed in response to specific health problems, but no comprehensive solu-tion has yet been developed to organize work in ways that are appropriate for older employees. In both of the areas named above — group work and the structuring of work for an aging workforce — we need sustainable solutions that make it possible to balance short-term economic efficiency, long-term qualifications, and par-ticipation in society.

When it comes to implementing the principles of social responsibility, the General Works Council and manage-ment are successfully cooperating to process com-plaints from the supplier chain. Direct contacts between the procurement department and suppliers have been used more effectively for this purpose since 2008. However, a lack of transparency in the supplier chain abroad still makes it difficult to monitor social standards at the suppliers on the second and third lev-els. The efforts made to date by Daimler AG to solve this problem deserve recognition, but they need to be expanded.

Dr. Beate FeuchteDüsseldorf, March 2, 2009

Dr. Beate Feuchte is a member of

the CSR project team at the Hans

Böckler Foundation.

The Hans Böckler Foundation deals

with co-determination, research

linked to the world of work, and the

support of students on behalf of the

Confederation of German Trade

Unions (DGB). The foundation pro-

motes co-determination as a key

principle of a democratic society

and seeks to expand the scope of

co-determination where possible.

Further information is available at:

www.boeckler.de



Customers and society. Our customers’ satisfaction is our top priority. In addition, as an active member of society, we feel an obligation toward many other stakeholders as well. Through our active commitment to society, we want to help and support people all over the world.

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Customers and society 63

the premium segment by the end of this decade, and to thereby to show our customers how much we value their loyalty. It includes consistent controlling and planning instruments. CSI No. 1 combines all the initia-tives that improve customer care by means of direct contact or through measures related to systems and processes.

Securing the top position in the premium segment is a challenging goal. In order to monitor it, Mercedes-Benz already commissions regularly scheduled external and internal customer surveys. This standardized approach to measurement and controlling is the basis for CSI No. 1. Depending on the initial situation and national requirements, a market-specific CSI action plan con-sisting of a number of individual measures is drawn up, and its implementation is then monitored. Since the launch of CSI No. 1, we have already succeeded in sub-stantially improving our competitive position in sales and service in nearly all markets. I 2

1.3 Customer relationship management at Mercedes-Benz Trucks. In increasingly difficult times for transport companies, our customers expect — more than ever before — vehicles that offer the highest levels of quality and reliability. Our brand pledge “Trucks you can trust” is precisely targeted to this goal, and we intend to fulfill this promise to our customers every day. This is why our managers and employees in develop-ment, production, sales, and service in particular bear the big responsibility for ensuring that we always pro-vide top-quality products and services. After all, each and every employee stands for Mercedes-Benz Trucks, and their actions influence the customers’ perceptions. Our most important goal is to fulfill our brand pledge, ensure that our customers experience the performance behind “Trucks you can trust,” and thereby create a long-term relationship based on trust.

In addition to vehicle price, the purchasing decisions of shipping companies are influenced by operating costs and resale value. Ultimately, the crucial factor is therefore the sum of all costs incurred throughout the vehicle’s life cycle (total cost of ownership). As a result, customers will only accept as partners those manufac-turers who can show that an investment in their vehicle will be an economical one, and who can make offers precisely tailored to individual customer needs.

1.0 Customers

1.1 Improving and maintaining customer rela-tions. A key goal of our company is to ensure that the customers of all of the Group’s products and financial services are fully satisfied. Accordingly, the wishes of our customers are taken into consideration throughout the entire product life cycle — from product develop-ment and service right up to the environmentally com-patible disposal and recycling of end-of-life vehicles. Through its customer relationship management (CRM) system, the Group has created an effective framework and developed key figures that enable us to evaluate customer satisfaction. This system takes full account of customer-specific and region-specific brand require-ments. In addition, all of the business units have developed programs and measures that are aimed at systematically improving customer satisfaction. I 1

1.2 Managing customer relations at Mercedes-Benz Cars. The objective of integrated customer relation-ship management at Mercedes-Benz and smart is to win over new customers and permanently maintain the loyalty and emotional attachment of existing customers to the brands.

In August 2006, we therefore launched the CSI No. 1 program to increase customer satisfaction with our sales and service. The aim of this program is to attain the top position worldwide for customer satisfaction in

2 I Further information on our

measures for improving customer

satisfaction at Mercedes-Benz Cars

is provided in the table of goals

on p. 69

1 I Further information: p.69

Focus on the customer at Daimler

Customer

Customerrelationship

Sales Aftersales

Strategy

Brandproducts

Vehicledevelopment

Marketresearch

Financial Services



approach. Our objective here is to become the number one automaker in terms of customer satisfaction by the end of 2010. To this end, we use specific criteria to measure customer satisfaction, and we apply this data to derive and implement measures for improvement. To improve relations with internal customers, we held workshops for executives from all management levels in 2008. During these one-day workshops, the partici-pants developed improvement measures for processes as well as for individual needs. The measures are sub-sequently implemented and closely monitored. I 4

1.7 Customer relationship management at Daimler Buses. The customer is the focus of all of the activities of Daimler Buses and its Mercedes-Benz, Setra, and Orion product brands as well as of its service brand Omniplus. Customer profiles and business strategies can vary widely in the bus business, depending on the product and the region in question. One thing is common to all of them, however: Business success depends on maintaining sustained customer relations that include direct contact with the bus companies and the operators. In close cooperation with our customers, we configure the buses in line with individual prefer-ences and the respective applications. To achieve this, development and production must be very flexible. In addition, we have great expertise in assisting cities and municipalities in planning and establishing flexible passenger transport systems that do not require rail lines. We have successfully provided assistance regard-ing such concepts to major cities in Europe and Latin America and also supplied the appropriate buses.

We use a variety of different parameters to measure the satisfaction of our customers in regular studies that also analyze corporate image and brand quality. For our premium brand Setra we also maintain a specially trained service team that provides customers with assistance immediately after a vehicle is delivered. The team teaches customers how they should best employ their vehicles, as this has a big effect on the buses’ economy. The aftersales unit also provides optimal sup-port to customers that have their own bus workshops. An online link to our spare parts system ensures that repairs are performed quickly and efficiently. Thanks to the spare parts logistics center opened by EvoBus in Neu-Ulm in 2007 and the comprehensive network of bus-specific services provided by Omniplus in Europe,

1.4 Customer relationship management at Daimler Trucks North America (DTNA). We also strive to fully satisfy the customers of our U.S. commercial vehicle brands Freightliner, Western Star, Thomas Built Buses, and Detroit Diesel. In close cooperation with our deal-ers, we therefore launched the Customer First Program in 2007. The aim of this program is to intensify the customer focus of all areas and processes and estab-lish a culture of continuous improvement so that DTNA can become the leading company in the industry with regard to customer service and customer satisfaction. Customer surveys have shown that we are on track toward achieving this goal. I 3

1.5 Customer relationship management at Mitsubishi Fuso Truck & Bus Corporation. Since fall 2007, Mitsubishi Fuso Truck & Bus Corporation (MFT-BC) has used the slogan “All for you” to underscore our objective of becoming number one in customer satis-faction in our market segment. In order to achieve this goal, MFTBC incorporates customer requirements into the development process for new models from the very beginning, thereby ensuring that we can always offer the right products to those who need them.

The products themselves are subject to stringent qual-ity checks within the framework of the Fuso Product Development System. Based on the global standards of Daimler, this system ensures the punctuality and excellent quality of deliveries. Following their purchase, customers are supported by a comprehensive service network worldwide. In Japan, Mitsubishi Fuso also offers mobile service repair shops known as “Moving Pits,” some 100 of which are currently on the road to provide rapid assistance in the event of a breakdown.

In October 2007 MFTBC restructured its sales organiza-tion in a manner that enables its 11 regional centers to implement brand initiatives more rapidly. The new structure also makes it easier to assign service special-ists to the 11 centers so as to ensure that qualified service can be provided at all times.

1.6 Customer relationship management at Mercedes-Benz Vans. Mercedes-Benz Vans aims to continuously and sustainably improve the satisfaction of its external and internal customers with the help of a comprehensive customer satisfaction management

4 I Further information on our mea-

sures for boosting customer sat-

isfaction at Mercedes-Benz Vans

can be found in the table of goals

on p. 69


sures for boosting customer satis-

faction at DTNA can be found in the

table of goals on p. 69


65 Customers and society


www.omniplus.de

8 I Further information regarding

the individual projects in the vari-

ous areas:


/sr/43

spare parts are readily available to all Mercedes-Benz and Setra customers even many years after a model series has been discontinued. I 5

1.8 Customer relationship management at Daimler Financial Services (DFS). The Financial Services divi-sion makes a vital contribution to boosting customer loyalty to the Daimler Group and its vehicle brands. The financial services business covers key areas of the automotive value chain. DFS cooperates closely with the vehicle divisions to establish an important link between Daimler’s product brands, dealers, and customers.

One of the areas in which financial services play a crucial role is customer relationship management. In cooperation with dealers and the vehicle divisions, Daimler Financial Services is using its close and regular contact to vehicle customers and its knowledge of the consumers’ mobility needs to ensure that customers are served as effectively as possible.

For us, long-term customer retention is a key strategic issue. That’s why we are pursuing the Captive #1 strat-egy with the objective to become the best automotive financial services provider in terms of CSI and DSI. I 6

2.0 Social commitment

Daimler is a globally operating company, and we regard this as an opportunity and an obligation to actively shape our social environment and help foster dialogue and understanding between different cultures. In our capacity as a business enterprise, we aim to create value for all of our stakeholders.

Since 2007 we have reorganized the decision-making processes regarding our social and cultural projects and established structures for creating more transpar-ency. Among other things, we have set up a donations and sponsoring committee that decides on all major projects and we’ve created a database for all of the Group’s activities in this area. I 7

In our social and cultural projects, we distinguish between four types of support: donations, sponsoring, the promotion of foundations, and practical support,

such as the volunteer work of our employees and pass-ing along our know-how. To a varying extent, we use these types of support to promote projects in areas we have specified for our social commitment: the promo-tion of education, science, environmental protection, culture, sports, and health, as well as support for chari-table projects, including disaster relief.

2.1 Donations. One particular focus of our donations is the promotion of science, which accounts for a large share of our total donations in Germany. It is followed by education, charitable projects, and disaster relief. I 8

The following is a selection of the projects for which we provide donations:

– Daimler AG is one of the largest supporters of the Stifterverband für die Deutsche Wissenschaft (Founders’ Association for German Science), for which it maintains a separate Daimler Fund to assist programs such as the German Future Prize present-ed by the German president.

– In 2008 our donations made it possible to set up a new chair for vehicle electronics at the Chinese-German Graduate School of Tongji University in Shanghai.

– In the state of Baden-Württemberg, Daimler pro-vided the Nature and Biodiversity Conservation Union (NABU) with a natural gas-powered Mercedes Sprinter for use as a mobile unit that provides infor-mation about the biosphere. The unit offers various educational modules, including “discovery stations” at which users can obtain information about nature, art, technology, and the regional economy.

– Mercedes-Benz also supports the MST project in selected economically disadvantaged communi-ties in the North West and Eastern Cape provinces, South Africa, where it promotes the further training of teachers and provides targeted career planning for students.

– “Each Girl Is a Star” is a program designed to get Turkish girls interested in technical professions. The program is run by Mercedes-Benz Turkey in coopera-tion with the Turkish organization CYDD.

7 I Further information on how we

select projects for support and

how decisions are made: p. 16


sures for boosting customer satis-

faction at DFS can be found in the

table of goals on p. 69 and at:


/sr/42



– For more than 20 years now, we have been support-ing highly talented young musicians through the Ger-man Music Council.

– In 2008 we donated €100,000 to the Stuttgarter Kindertaler aid foundation, which assists disadvan-taged children and invests in programs aimed at promoting education.

– Mercedes-Benz is a founding partner of the Laureus Sport for Good Foundation. Since 2000, this charity initiative has been supporting more than 60 social sports projects designed to help with major chal-lenges facing society, including poverty, violence, discrimination, illness, and drug abuse. Using the universal appeal of sports, Laureus Sport for Good provides children and teenagers with hope and social integration. To date, the projects have helped far more than 750,000 young people.

– Since 2006, Daimler Financial Services and the non-governmental aid organization CARE have together supported programs that provide microloans to peo-ple in developing countries and emerging markets so that they can set up their own businesses.

– Rapid, active disaster relief: In 2008, we provided assistance to the victims of the earthquake in China and of Cyclone Nargis in Burma.

2.2. Sponsoring. Through our sponsoring projects we maintain long-term partnerships with various groups of society. The aim is to promote sustainable development in areas that are of importance to us. Besides supporting professional and mass-participation sports and fashion-related events, we particularly promote education, envi-ronmental protection, art, and culture at our locations worldwide. I 9

The following is a selection of the projects we sponsor:

– Since 2007 Mercedes-Benz has served as the general sponsor of the Integration Award, which it presents in cooperation with the German Foot-ball Association (DFB) to worthy sports clubs and schools. The annual award is presented for espe-cially successful examples of soccer-inspired social integration.

– For twelve years now, Daimler has served as the only commercial partner of the IOC’s “Olympic Soli-darity” development program, which supports chil-dren and youths who are engaged in sports as well as Olympic athletes from poorer countries.

– Daimler and Richemont are co-founders of the Lau-reus Sport for Good Foundation, which supports more than 50 sports projects worldwide that help promote social integration and combat HIV/AIDS, drug abuse, violence, and racial and religious dis-crimination.

– The Daimler Automotive Academy is a global net-work of training centers for automobile manufac-turing. Run as public-private partnerships, these centers are located in a number of towns and cities, including Kabul, Afghanistan; Perm, Russia; Hoed-spruit, South Africa; and Beit Sahour, Palestine.

– In cooperation with UNESCO, we support the Mon-dialogo project, which provides ideas for combating climate change and poverty. The project consists of two international competitions for high school and college students, as well as an Internet portal in five languages.

– The aim of the MobileKids initiative is to provide playful and entertaining instruction for boys and girls all over the world to make them aware of the dangers of road traffic and teach them how to behave with proper caution.

– Since 2000, Daimler has made ten Mercedes-Benz Vito vans available to support the “DeutschMobil” campaign organized in France by the Federation of German-French Cultural Centers. The goal of the campaign is to bring people in the neighboring coun-tries of Germany and France closer together.

– Since 2008, Daimler Financial Services North America has sponsored a bright yellow Thomas Built bus that serves as a school on wheels. It is equipped with a digital production studio and travels through the U.S. to introduce students to the world of art.

– Mercedes-Benz is assisting the internationally renowned Instituto Tomie Ohtake in São Paulo,

9 I Further information regarding

the individual projects in the vari-

ous areas:


/sr/44

10 I Further information on the indi-

vidual projects in the various areas:


/sr/45



Brazil, in organizing four exhibitions that willrun until 2010. These exhibitions depict the differ-ent creative directions in which Brazilian artis moving.

– Mercedes-Benz also sponsors the Chinese National Center for Performing Arts. Between September 2008 and December 2009, the center is staging a series of concerts of classical music by European composers.

– Thanks to the assistance of the companies Daimler, Würth, and UBS, visitors are being admitted to the freshly renovated old part of the State Gallery in Stuttgart free of charge from December 13, 2008, to June 1, 2009.

– In 2007 and 2008, Mercedes-Benz also sponsored the Positive Rocks concert in South Africa. The con-cert features African bands that are trying to raise people’s awareness of HIV/AIDS.

2.3 Volunteering and other activities for the com-mon good. A well-functioning community benefits our employees and our neighbors, as well as our company as a whole. That’s why we cooperate closely with local authorities and nonprofit organizations in the places where we have business locations. For example, we are committed to the expansion of childcare centers close to our plants and to the promotion of education and training programs.

We can count on our employees’ voluntary involvement in numerous projects, in which they invest their time in promoting causes for the common good. I 10

The following is a selection of the projects we support:

– Numerous Daimler employees took part in the Day of Caring, during which they provided hands-on assistance for a socially relevant project (see also “Daimler employees are lending a hand”).

– The engine production plant in Kölleda, Thuringia, MDC Power GmbH, supported several projects in its own region. Inspired by the motto “We are the engine of Germany,” the company’s employees worked for a day without pay in 2008.

Daimler employees are lending a hand

During Daimler’s Day of Caring in 2008, employees in Mexico, Romania, Berlin, and Stuttgart provided help for the people in their communities.

Social responsibility means more than just donating money, which is whyDaimler allows its employees to take a day off work during the Day of Caring in order to take part in community projects.

In Mexico (see picture), the Day of Caring was held this year for the first time. Around 250 employees from various Daimler business units came together to renovate an elementary school on the outskirts of Mexico City. In mid-Novem-ber, Mercedes-Benz Financial Services also organized the first-ever Day of Car-ing in Romania. Together with colleagues from Hungary, 50 employees helped to renovate 35 apartments in a residential area near Bucharest. The employees worked together with the aid organization Habitat for Humanity (HFH), which builds apartments and houses for needy families worldwide. Meanwhile, 60 Daimler Financial Services (DFS) employees in Singapore worked to build hous-es for needy people on the Indonesian island of Batam. HFH also served as the partner in this project. The employees spent two days building houses for peo-ple who had lost their homes in earthquakes or floods.

In Germany, employees took part in the Day of Caring at two locations. At the end of October, more than 100 employees of Mercedes-Benz Bank renovated the JimPazzo children’s and youth center in Stuttgart. Back in May, 200 employees from Daimler Financial Services renovated the Naunyn Ritze youth and culture center in the Kreuzberg district of Berlin. Social responsibili-ty projects were carried out at around 30 Daimler locations in 2008, with many locations doing such work several times during the course of the year.

Further information on the Day of Caring: Magazine p. 56 ff.



2.3 Foundations. In order to ensure that our funding is used for clearly defined long-term purposes, we have established our own foundations in several countries. These foundations support diverse activities ranging from research and education to the promotion of cul-ture, health, and international understanding. In some countries our foundations serve as the center for all of our activities related to our sense of social commit-ment. (see table). I 11

3.0 Public policy

Daimler maintains a continuous dialogue with political decision-makers on all issues that affect the Group’s operations. Our activities here are based on our Guide-lines for Responsible Lobbying, which were drawn up in 2007.

Our dialogue with political decision-makers focuses on a range of issues, including:

– Climate change, pollutant emissions, and environmental protection

– Transportation policy

– Road and vehicle safety

– International trade and investment issues

– Issues related to the implementation oftechnical innovations

– Intellectual property rights

– Global harmonization of standards andregulations

– Economic development discussions

Along with political dialogue at the national level, Daimler also endeavors to make a contribution to the promotion of international, above all transatlantic, cooperation. To this end Daimler became a partner in the German Marshall Fund’s Brussels Forum in 2006. The forum comprises a series of meetings for political, business, and social leaders. Daimler also supports the publication of an annual study of the transatlantic economy by the Center for Transatlantic Relations in Washington D.C., as well as programs at numerous other think tanks worldwide.

3.1 Supporting the democratic process. When it comes to making contributions to political parties, Daimler maintains strict compliance with legislation and with the Group’s internal guideline on political contribu-tions, which was introduced in 2006. In 2008, the Board of Management authorized payment (only in Germany) of contributions totaling € 425,000 (2007: € 400,000) to the German political parties CDU, CSU, SPD, FDP, and BÜNDNIS 90/DIE GRÜNEN.

In the U.S., contributions of corporate funds to federal politicians or political parties are not allowed. However, voluntary donations by management staff may be made via political action committees (PACs) for the purpose of financing campaigns, and this practice is widely employed by companies with a strong business pres-ence in the country. Participation in a PAC is completely voluntary, and the company ensures that employees may refuse to participate without reprisal. Up until the sale of Daimler’s majority interest in the Chrysler Group, the “DaimlerChrysler PAC” made campaign contributions to political parties and candidates in the U.S. Now known as the “Chrysler PAC,” this commit-tee is no longer open to Daimler employees. Options for establishing a Daimler PAC in the U.S. are currently being explored.

11 I Further information on our sup-

port for foundations:


/sr/46

Foundations

Gottlieb Daimler and Karl Benz Foundation Funding science and research in the fields of €1.6 million

(1986) mankind, environment, and technology (2007: €1.5 million)

Daimler Fonds im Stifterverband für Sponsoring the research, training and €1.59 million

die Deutsche Wissenschaft (1975) international collaboration of science (2007: €1.38 million)

and technology students

Daimler Foundation in Japan (2002) Supporting cultural programs and ¥ 25,000,000

philanthropic activities (2007: ¥ 25,000,000 )

Mercedes-Benz France Foundation (1986) Promoting intercultural understanding between € 80,000

France and Germany, support for up-and-coming (2007: € 81,500)

young artists, communal projects

Foundation Focus of activities Funds 2008



Our responsibility to our customers: Activities and goalsAs an automaker and provider of vehicle-related services, we believe that good customer relationships based on mutual trust are an essential basis of our business. Our customers demand the highest standards, and they have a right to expect us to make the pledge contained in our

brands a tangible experience. That’s why we aim to be the leader in six specific areas: quality, safety, comfort, design, environmental friendliness, and customer satisfac-tion with our sales and service. I 12

N.b.: For legal reasons, Daimler may not disclose external customer satisfaction data that is of relevance to the management of the company. Due to prob-

lems of comparability, we also refrain from presenting internal customer satisfaction data (e.g. competitor benchmark studies).

12 I Further information on the goals and measures of all divisions: sustainability2009.daimler.com/sr/47

Goals

Mercedes-Benz Cars:

Achieve the highest level of customer

satisfaction worldwide in the premium

segment by 2010

Mercedes-Benz Trucks:

Fulfill the brand pledge

“Trucks you can trust”

Daimler Trucks North America (DTNA):

Fulfill the pledge “Customer First”

Daimler Vans:

Achieve the highest level of customer

satisfaction by the end of 2010

Daimler Buses:

Fulfill our brand pledges

Daimler Financial Services:

Become the best automotive financial

services provider in terms of CSI

and DSI

Goal attainment

Goal still applies

Goal still applies

Goal still applies

Goal still applies

Goal still applies

Goal still applies

Activities/status

Among other things, the CSI No. 1 program that was launched in 2006 revised pro-

cedures for contact between sales and service personnel and customers, adopted

behavior standards for customer support, and standardized workshop and logistics

processes. More than 150,000 employees received training. The competitive posi-

tion was substantially improved in nearly all markets. Mercedes-Benz also achieved

top marks in the workshop tests conducted by the publications Auto-Bild,

Autozeitung, ADACmotorwelt, and auto, motor und sport.

The wide range of activities related to the “Trucks you can trust” pledge increased

the product and service quality of Mercedes-Benz trucks, thus ensuring maximum

vehicle availability. As a result, Mercedes-Benz Trucks significantly improved its

rank in a Germany-wide survey of customer satisfaction between 2005 and 2007.

The measures of the Customer First program are aimed at ensuring quick service

and the rapid availability of spare parts. Dealers can take part in the Service and

Parts Experience program, which has increased the satisfaction rating for the

DTNA network from 6.5 to more than 8 points out of 10 since August 2004.

In 2008 we implemented a concept for improving customer satisfaction in 14

European markets. Among other things, this concept requires headquarters and

MPCs to conclude annual agreements and calls for the creation of initiatives for

increasing employee and dealer motivation. We regularly conduct internal studies

to check how satisfied our customers and dealers are.

On behalf of our brands, we regularly conduct studies regarding customer satisfac-

tion, image, and brand quality. Our Omniplus brand offers a wide range of services

in Europe, extending from driver training all the way to around-the-clock roadside

emergency assistance. We provide cities and municipalities with advice on imple-

menting bus transport concepts (Bus Rapid Transit).

The Captive #1 program aims at an integrative customer relationship management

which implies close cooperation between the financial service provider, the manu-

facturer, and dealers. The successes are reflected in the company’s performance

in numerous indices of customer and dealer satisfaction (CSI/DSI).

Page

63

64

64

64

64 f.

65

Attain the top position in customer satisfaction at all divisions



Social responsibility: Activities and goalsEvery company is a part of the society in which it operates. Business decisions often affect many people; at the same time, developments in society can have an impact on busi-ness success. It is therefore in Daimler’s best interest to be a good corporate citizen that actively contributes to society. Our objective is to consistently strengthen our commitment in our area of influence by employing our expertise as an international manufacturer of motor vehi-cles. Our activities focus on our social commitment at our production and sales locations; volunteer work on the part of our employees in the communities where our plants are

located; traffic safety education for children; and the pro-motion of education, training, and scientific research — particularly in relation to the natural environment and technology. In addition, we are engaged in intercultural dialogue and support cultural and sports activities. We provide funding based on clear criteria in order to ensure that our activities are addressing the right issues. One of the biggest challenges at present is the broadening of our dialogue with our stakeholders. To this end, we plan to improve our transparency and openness in order to strengthen our relationships on a basis of trust.

Goals

Intensify the dialogue with

stakeholders

Restructuring of stakeholder contacts,

especially in the NAFTA region

Donations and sponsorships: registra-

tion of financial expenditures world-

wide

Expansion of the Daimler training net-

work in the emerging markets

New approach for Daimler corporate

volunteering

Goal attainment

Goal partially

attained;

goal still applies

Goal still applies

Goal attained

Goal still applies

Goal still applies

Activities/status

- In November 2008 Daimler conducted its first Sustainability Dialogue with

interest groups. The dialogue will be continued in this form in 2009.

– Focal areas were identified in the Environment, Employees, and Society work-

ing groups of the Sustainability Dialogue. These focal areas will be addressed

in 2009.

– Through its Sustainability Newsletter, Daimler intensifies its regular communi-

cation with stakeholders. The quarterly e-newsletter has been providing infor-

mation on the company’s sustainability activities since July 2008. Daimler

plans to increase the newsletter’s frequency in 2009.

The restructuring of the stakeholder contacts in the NAFTA region commenced in

line with the changed corporate priorities. In addition to a broad-based review of

the situation and various stakeholder activities in the key areas of environment,

employees, and society, the company has also taken initial steps to systematize

and further intensify the dialogue with relevant interest groups.

Decisions on all major donations and sponsorship requests worldwide are made

by the Board of Management’s donation and sponsorship committee. All activities

are recorded in a Group-wide database that has also covered the NAFTA region

since 2008. These measures have created transparent structures and established

clear decision-making processes.

In regions where a contribution to social and political stability is needed, facilities

that have been established since 2006 were enhanced (Palestine, South Africa)

and new ones created. Examples from 2008 include the launch of a training mod-

ule in Erbil in the Kurdish region of Iraq. The training facilities are to become fully

independent after about three years.

The realignment commenced in 2008. The company registered and evaluated

activities worldwide and identified the areas in which further action will be

required (see p. 67 and Magazine, p. 56 ff.). Plans are now being drawn up to fur-

ther expand the activities.

Page

21

21

16 f.

66

67

Stakeholder involvement and dialogue

Commitment to society



Report profile

The report 360 DEGREES — Facts on Sustainability 2009 (Facts 2009) provides an overview of Daimler’s activities with respect to sustainability. The period under review is the finan-cial year 2008.

Facts 2009 takes its lead from the guidelines of the Global Report-ing Initiative (GRI), which Daimler joined in 2006 as an organiza-tional stakeholder. In accordance with the GRI guidelines Version 3.0 (G3), the information and data contained in this report were compiled in line with the principles of balance, comparability, accu-racy, timeliness, reliability, and clarity. Facts 2009 has been classi-fied as a Level A+ report in line with the G3 definition, as assessed and confirmed by the GRI.

A comprehensive version of the Daimler GRI Index can be found online at sustainability2009.daimler.com. This website con-tains a list of all the GRI indicators, as well as detailed information and explanations of all indicators. The website also contains a GRI Global Compact Index, which cross-references the “communica-tion on progress” as specified by the Global Compact with G3 reporting.

Scope of reporting and data acquisition methods

Economy. The information on economic interrelationships pre-sented in Facts 2009 is essentially based on data from the 2008 Daimler Annual Report. The Management Report and Notes sec-tions, from which we have quoted in this report, were audited and confirmed without reservation by the financial auditing firm KPMG Deutsche Treuhand-Gesellschaft AG. Further information: Annual Report 2008, p. 143.

Ecology. Daimler has been systematically compiling key environ-mental data from its German plants since 1992. In 1997 and 1998 its data acquisition was gradually extended to include production plants outside Germany. Since 2002, the acquisition and analysis of the data has been handled with the aid of a database. The data in this report reflect the structure of the Group in financial year 2008 and include all relevant production plants and the German sales locations. To ensure comparability with data for previous years as far as possible, the data for the entire period covered do not include those parts of the company in which Daimler is no longer the majority shareholder. For this reason, the timelines may differ from those of previously published data. New parts of the company have been included from the time at which they became part of Daimler. The environmental data for 2008 refer to a total of 63 entire or partial business locations.

Employees. The facts and figures related to the Employees sec-tion are based on the 2008 Daimler Annual Report. The reporting on human resources data is primarily conducted by means of the

“HR ePARS” electronic human resources planning and reporting tool, which employs data from all consolidated companies within the Daimler Group. This information is complemented by data acquired with the aid of the “ePeople” electronic human resources management system. In the texts and diagrams in this section, it is indicated whether the data relate to the entire Group or only to parts thereof.

Liability disclaimer. The compilation of the data in this report has been carried out by Daimler with extreme care. Neverthe-less, errors cannot be entirely excluded. Insofar as Facts 2009 contains forward-looking statements, these are based on data cur-rently available and on assumptions founded on current forecasts. Although such projections are drawn up with the greatest care, a great variety of unforeseeable factors may lead to deviations. The content of the report was examined and released by the respon-sible professional staff. There was no examination by a financial auditing firm.

Daimler published the last sustainability report in July 2008 under the title Facts on Sustainability 2008.

Editorial deadline for this report: March 2, 2009



Graphic index

Daimler Group — key fi gures

Locations of the Daimler Group

Further graphics on the Internet:

– Daimler Group — business portfolio

More information on the company:


The company Page

8

10

Sustainability governance structure

Corporate governance at Daimler

Framework

Corporate organization — environmental protection

HR management scheme — integrated HR functions

Global Human Resources Scorecard — success factors

and key performance indicators (KPIs)

Stakeholders at Daimler — two-way relationships

More information on managing sustainability:


13

14

15

17

18

19

21

Managing sustainability Page

Product lifecycle

Daimler’s road map to sustainable mobility

Drive technologies from Daimler


Materials used in the A-Class according to VDA 231-06

Our safety strategy

Integrated safety approach

Safety technologies for commercial vehicles

Group-wide data on production-related environmental

protection

Direct and indirect CO2 emissions from production

Specifi c CO2 emissions from production

Specifi c emissions of solvents

Fuel consumption in Germany 1990 – 2008

Development of CO2 emissions for the European Daimler

fl eet (average) 1995 – 2008

Daimler CAFE values for passenger cars and light trucks

1996 – 2008 in the U.S.

Percentage share of Mercedes-Benz and smart diesel

passenger cars sold in Europe in 2008 that meet

mandatory and planned emissions standards


– Climate change

– Mercedes-Benz BlueEFFICIENCY models: An overview

– Battery systems for hybrid and electric vehicles

– Comparison of the carbon dioxide emissions of the

current A-Class and its predecessor

– Energy consumption

– Specifi c energy consumption

– Greenhouse gas emissions

– Specifi c carbon dioxide emissions

– Solvent emissions

– Specifi c solvent emissions

– Sulfur dioxide emissions

– Nitrogen oxide emissions

– Carbon monoxide emissions

– Dust emissions

– Waste — scrap metal for reuse

– Waste

– Water consumption

– Specifi c water consumption

– Wastewater

– Specifi c waste disposal

30

31

33

34

36

37

38

39

40

41

42

42

43

43

44

46

Unit sales structure

Sustainability rating agencies and indexes


– Consolidated revenue by division

– Consolidated revenue by region

More information on economy:


24

26

Economy Page

Environmental protection, innovation, and safety Page

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73 Graphic index

– Key corporate medical service fi gures for Germany

– Key personal counseling fi gures for Germany

– Additional fi gures for the Health & Safety unit in Germany

More information on employees:


Total workforce by region

Total workforce by division

Provisions for retirement benefi ts and health care

Areas of activity for addressing demographic challenges

at Daimler AG

Key health management figures

Global Diversity Offi ce (GDO): Initiatives since 2005,

outlook

Proportion of women employees at Daimler AG


– Previous projects and results of HR Resource

Management at Daimler

– Trainees

– Holistic approach to lifelong learning at Daimler AG

– Percentage of working time lost to illness in 2008:

Germany and selected national subsidiaries

– Key occupational safety fi gures for 2008 — Germany

and selected national subsidiaries

– Key health management fi gures for Germany

52

52

53

53

56

57

58

63

68

Our user-friendly specific online report“360 DEGREES – Facts on Sustainability 2009”offers you both the content of the printedversion and numerous supplements:


More information on sustainability at Daimler:

daimler.com/sustainability

– Specifi c hazardous waste disposal

– Investments related to environmental protection

– Expenditure related to environmental protection

– R&D expenditure related to environmental protection

– EU proposal for limiting mean CO2 emissions

of the European new car fl eet to 130 g/km

– CAFE standards for passenger cars and light trucks in the U.S.

– Savings potential in commercial vehicles

– Development of the EU emissions limits for

diesel-powered cars

– Development of the EU emissions limits for

gasoline-powered cars

– Development of the EU emissions limits for trucks

and buses (heavy-duty commercial vehicles)

– BLUETEC technology at Daimler

– BLUETEC with DeNOx storage catalytic converter

– BLUETEC with AdBlue

More information on environmental protection,

innovation, and safety:


Environmental protection, innovation, and safety Employees

Focus on the customer

Foundations

More information on customers and society:


Customers and society Page

Employees Page

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PublisherDaimler AG 70546 Stuttgart, Germany

For the publisherMirjam BendakDaimler AG70546 Stuttgart, Germany

Overall coordinationUlrike Becker, Dr. Udo Hartmann, Dr. Norbert Otten

Project coordinationMatthias Steybe, Dr. Wolfram Heger

Responsible in departmentsErwin Bacher, Sabine Brändle, Dr. Manfred Buck,Carsten Freund, Alexander Ghazivian, Dr. Ulrich Leitner,Sina Marek, Dr. Ulrich Müller, Michael Reinhold,Heike Schulze

Concept, features, and designSLau Konzepte & Kommunikationdesign hoch drei GmbH & Co. KG

ReproductionDr. Cantz’sche Druckerei GmbH & Co. KG

PrintingBechtle Druck & Service GmbH & Co. KG

Ordering serviceUwe HaspelFax + 49 (0) 711 17-790-59185Email: [email protected]

ContactCommunicationsGlobal Corporate Media & Marketing External PublicationsFax + 49 (0) 711 17-790-95251Email: [email protected]

Further informationwww.daimler.com/sustainability

Reproduction in full or in part only withthe publisher’s prior written approval andphotos and copy credited to “Daimler AG”.

© 2009 Daimler AGISSN 1865-6218

IMPRINT/CONTACT

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The reports 360 DEGREES Magazine and Facts on Sustainability 2009 are printed on natural paper, specifically Planoart (cover) and Maxioffset (text). These types of paper bear the quality certificate of the global certification organization Forest Stewardship Coun-cil (FSC). This quality label certifies not only compliance with stringent criteria for the responsible cultivation of forests (preventing unregulated logging, no violations of human rights, and no environmental pollution) but also observance of a catalogue of criteria applying to the processing of wood, including verifiable proof of the product’s chain of custody.

http://www.fsc.org

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Daimler AG Stuttgart, Germanywww.daimler.com

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