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Supplying to Mercedes Benz Supplierbusiness IHS AUTOMOTIVE Supplying to Mercedes Benz SupplierBusiness 2015 edition supplierbusiness.com SUPPLYING THE OEMS Mercedes Benz Julian Buckley Principal Analyst SAMPLE IHS Automotive | Supplying Ford Contents Overview 6 – South Africa 55 Global market overview 7 – Mexico 56 Financial data 7 – India 56 Financial overview 8 – Russia 57 Internal supply network 57 Product Strategy 9 Modularisation strategy 58 Company history and strategy review 10 Supplier parks 59 Major model programmes 12 Cluster of reference 60 – Mercedes-Benz C-Class 12 Strategies for manufacturing efficiency 60 – Mercedes-Benz E-Class 15 – Mercedes-Benz Sprinter 18 Purchasing Strategy 62 – Mercedes-Benz A-Class 20 Purchasing strategy overview 63 – Mercedes-Benz GLK 22 Levels of vertical integration and outsourcing 63 – Mercedes-Benz M-Class 24 Purchasing offices 65 – Mercedes-Benz B-Class 27 – Daimler AG 65 – Mercedes-Benz S-Class 28 Key purchasing personnel 65 – Mercedes-Benz CLA-Class 32 Purchasing budget 66 – Smart fortwo 33 Supplier Selection 67 Vehicle Platforms 36 Supply base development 68 Platform strategy 37 Major and strategic suppliers 68 Major platforms 38 Supplier eligibility 73 – 1. MFA 38 Supplier evaluation criteria 74 – 2. W212 39 Working with Mercedes-Benz 74 – 3. MRA MID-SIZE 39 – 4. W204 40 Global Sourcing 75 – 5. NCV3 41 Policy and plans 76 – 6. W164/V251/W166 41 – EMEA 76 – 7. W222 42 – NAFTA 77 – 8. NCV2 43 – APAC 78 – 9. BR451; also Edison ( 43 – LATAM 78 – 10. Canter 44 Pricing Policy 80 Component sharing 45 Cost reduction strategies 81 Volume planning 46 Raw material price management 81 Production Strategy 47 Payment terms 82 Production strategy overview 48 Quality Management 83 Manufacturing network 48 Quality level 84 – Germany 48 Quality management systems 84 – United States 50 Supplier integration into product development 86 – China 51 SAMPLEManagement of suppliers and sub-suppliers 87 – Hungary 53 Supplier awards 88 – Spain 53 – France 54 IHS™ AUTOMOTIVE Copyright notice and legal disclaimer © 2015 IHS. No portion of this report may be reproduced, reused, or otherwise distributed in any form without prior written consent, with the exception of any internal client distribution as may be permitted in the license agreement between client and IHS. Content reproduced or redistributed with IHS permission must display IHS legal notices and attributions of authorship. The information contained herein is from sources considered reliable but its accuracy and completeness are not warranted, nor are the opinions and analyses which are based upon it, and to the extent permitted by law, IHS shall not be liable for any errors or omissions or any loss, damage or expense incurred by reliance on information or any statement contained herein. IHS and the IHS logo are trademarks of IHS. For more information, please contact IHS at www.ihs.com/CustomerCare. © 2015 IHS 2 2015 edition IHS Automotive | Supplying to Mercedes Benz Technology 90 – Bottom ranking: Cost overrules quality 108 Technological positioning 91 Profit potential 109 Areas of focus 91 – OEM level 109 R&D organisation 92 Organization 110 R&D spending 94 – OEM level 110 Access to supplier technology 94 Trust 110 Approach to alternative fuels, electrification and fuel – OEM level 110 cells 94 Pursuit of excellence 110 Special vehicle development 96 – OEM level 110 Outlook 110 Forward Model Programmes 97 – OEM Level 110 SuRe by region 110 Interviews 100 – North America 111 Rolf Geisel CEO, Friedrich Boysen 101 – Europe 111 Supplier Realtionship Survey 105 – Asia 111 Introduction to the SuRe Index 106 SuRe by company size 111 Methodology 106 SWOT Analysis - Mercedes-Benz 113 Executive summary 106 SWOT Analysis 114 Performance review – Mercedes-Benz 107 Global Footprint 114 2014 SuRe survey results 107 – Top of the ranking: Trust and future potential drive Forward Model Programmes 115 harmony 107 – Middle of the ranking: OEMs push cost reduction 108 Major Suppliers 117 Figures Figure 1: Global light vehicle production, 2009-2018 7 GLK compact SUV in late 2015 23 Figure 2: The first Mercedes-Benz logo, introduced in Figure 14: Mercedes-Benz GLE Coupé with the 4MATIC 1925 10 system 26 Figure 3: Mercedes-Benz SS sports car dating from Figure 15: The 2014 Mercedes-Benz B-Class B250 1928 10 4MATIC AMG Line 27 Figure 4: Dr. Dieter Zetsche, since 2006 chairman of Figure 16: The W186 ‘Ponton’ model was the first the Board of Management of Daimler AG and head of Mercedes-Benz to use power steering 29 Mercedes-Benz Cars, at the 2015 Smart Fortwo launch Figure 17: The battery pack for the Mercedes-Benz in China 11 S500 Plug-in Hybrid (S500e) is located over the rear Figure 5: Mercedes-Benz 190E 2.3-16 (W201 model axle 31 series) 12 Figure 18: The CLA45 AMG features a handbuilt Figure 6: The C-Class Coupé was unveiled at the 2015 2.0-litre engine claimed to be the most powerful of its IAA Frankfurt motor show 15 type 32 Figure 7: The saloon version of the Mercedes-Benz Figure 19: The first-gen Smart fortwo 34 W124 16 Figure 20: The latest version of the Smart fortwo was Figure 8: A long-wheelbaseSAMPLE version of the latest introduced in 2014 34 E-Class was unveiled at the Auto China 2013 show 18 Figure 21: The Smart fortwo cabrio will go on sale in Figure 9: An updated version of the Sprinter, here February 2016 34 exiting the production line in Düsseldorf , Germany, Figure 22: Structure of the MFA platform, as used in was introduced in 2013 19 the GLA crossover SUV 38 Figure 10: The W168 A-Class was introduced in 1997 21 Figure 23: Mercedes-Benz W212 E-Class Coupé - Figure 11: The latest W176 A-Class in production at the Material usage overview 39 Mercedes-Benz plant in Rastatt, Germany 22 Figure 24: The bodyshell of the W205 Mercedes-Benz Figure 12: The first GLK SUV produced in China rolling C-Class saloon is approximately 70kg lighter than that off the assembly line in 2011 23 of the out-going version 40 Figure 13: The Mercedes-Benz GLC will replace the Figure 25: The Hymer ML-I motor home and the © 2015 IHS 3 2015 edition IHS Automotive | Supplying to Mercedes Benz Sprinter chassis platform on which it is based 41 engine production plant 78 Figure 26: Lightweight construction of the latest Figure 39: The COMAND system interface in the new Mercedes-Benz S-Class saloon 43 S-Class saloon 87 Figure 27: The bodyshell of the 2014 Smart fortwo, with Figure 40: Mercedes-Benz GLC - PRESAFE PLUS 92 highlighted Tridion safety cell 44 Figure 41: MBRDNA centre in Sunnyvale, California 93 Figure 28: A European-built Fuso Canter, with factory- Figure 42: The Mercedes-Benz Advanced Design fitted tipper platform 45 Studio in Beijing, China 93 Figure 29: The bodyshop at the Mercedes plant in Figure 43: Refueling Mercedes-Benz Citaro FuelCELL Düsseldorf 50 Hybrid fuel-cell bus at the Karlsruhe Institute of Figure 30: In December 2014, Beijing Benz produced Technology 94 its 500,000th vehicle, a long-wheelbase C-Class 52 Figure 44: Germany’s first hydrogen filling station on Figure 31: CLA Shooting Brake production at the the autobahn was opened in 2015 95 Mercedes-Benz Kecskemet plant in Hungary 53 Figure 45: Mercedes-Benz Citan emergency Figure 32: The final assembly line at the Mercedes- ambulance from BSE 96 Benz Vitoria plant 54 Figure 46: The Mercedes-Benz F 015 concept offers a Figure 33: Aerial view of the Smart plant in Hambach, preview of future mobility solutions past 2030 98 France, with the cross-shaped assembly hall in the Figure 47: OEM Supplier Relations - Top of the Ranking centre 55 108 Figure 34: Compact car production at the Mercedes- Figure 48: OEM Supplier Relations - Middle of the Benz India Chakan plant 57 Ranking 108 Figure 35: Dr. Klaus Zehender, divisional board Figure 49: OEM Supplier Relations - Bottom of the member for Procurement and Supplier Quality at Ranking 109 Mercedes-Benz Cars (2nd right) at the Boysen plant in Figure 50: OEM Supplier Relations - North America 111 South Africa 60 Figure 51: OEM Supplier Relations - Europe 111 Figure 36: Dr. Klaus Zehender, Mercedes-Benz 66 Figure 52: OEM Supplier Relations - Asia 111 Figure 37: Test bench for 7G-DCT dual clutch Figure 53: Mercedes Benz global manufacturing transmission at Star Transmission 77 locations 114 Figure 38: Assembly line at the new Beijing Benz Tables Table 1: Key financial performance values for Daimler (by Sales Brand, Sales Nameplate) with segment AG 7 competitors 2010-2020 26 Table 2: Mercedes-Benz Top 10 best-selling global Table 8: Mercedes-Benz B-Class global sales (by Sales models (by Sales Parent, Global Nameplate) 2004- Brand, Sales Nameplate) with segment competitors 2009-2014-2019 12 2010-2020 28 Table 3: Mercedes-Benz C-Class global sales (by Sales Table 9: Mercedes-Benz S-Class global sales (by Sales Brand, Sales Nameplate) with segment competitors Brand, Sales Nameplate) with segment competitors 2010-2020 SAMPLE15 2010-2020 31 Table 4: Mercedes-Benz E-Class global sales (by Sales Table 10: Mercedes-Benz CLA-Class global sales Brand, Sales Nameplate) with segment competitors (by Sales Brand, Sales Nameplate) with segment 2010-2020 18 competitors 2010-2020 33 Table 5: Mercedes-Benz Sprinter panel vans global Table 11: Sales of the Smart fortwo, forfour and Renault sales (by Sales Brand, Sales Nameplate) with segment Twingo (by Sales Brand, Sales Nameplate) 2015 – 2020 competitors 2010-2020 20 35 Table 6: Mercedes-Benz GLK and GLC global sales Table 12: Daimler and Mercedes-Benz Top-10 most (by Sales Brand, Sales Nameplate) with segment used platforms (by year, Production Brand) 2004-2009- competitors 2010-2020 24 2014-2019 38 Table 7: Mercedes-Benz M-Class and GLE global sales Table 13: Breakdown of Mercedes’ European © 2015 IHS 4 2015 edition IHS Automotive | Supplying to Mercedes Benz component production (by plant): 64 Whom from SupplierBusiness) 72 Table 14: Magna - part deliveries to Mercedes-Benz Table 16: Beijing Benz production (by Sales Parent and 2014-2012 (specific vehicles covered in Who Supplies Manufacturer) vs.
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