November 2009 Daimler Sustainability Newsletter

2nd Daimler Sustainability Dialogue Contents in brief 3 billion euro investment: Daimler’s clear commitment to the » 2 Exchange of ideas and German locations Groundbreaking in Kecskemét: Production is set to commence in 2012 at » 3 dialogue with stakeholders the new passenger car plant in Hungary Daimler maintains dialogue with its stakeholders throughout the world. In early Employees: November, national and international stakeholders met up with representatives 2,300 young people commence apprentice - » 3 from Daimler at the “Daimler Sustainability Dialogue” for an exchange of ideas and ship – Web-based “Code of Conduct” training critical discussion in matters of sustainability. fortwo electric drive: Large-series production will start at the » 4 STUTTGART – By staging this event, it is for determining the Group’s position, and Hambach plant in 2012 Daimler’s intention to acquire practical in - – whenever necessary – as an incentive to sights for further enhancing its sustaina- undertake corrective measures.” Sprinter “BlueEFFICIENCY”: bility performance. The “Daimler Sustaina- New engines and transmissions for greater » 4 bility Dialogue,” established on a long-term The objective of last year’s Sustainability fuel economy and reduced emissions basis, serves to promote regular discussion Dialogue was to get to know the stakehold - Customers: with the Group’s stakeholders. Following ers and to become acquainted with their ex - Daimler opens a new Commercial » 5 the first event of its kind in 2008, the Dia - pectations and demands vis-à-vis Daimler, Vehicle Center – Premiere for logue was held for the second time this year. and thus to derive impulses for further the “TruckWorks” service scheme improving sustainability performance. In the “Economic, ecological, and social respon - dialogue with the stakeholders, key fields of Society: Daimler and UNESCO present the » 5 sibility go hand in hand at Daimler, and sus - activity were defined by Daimler and worked “Mondialogo Engineering Award” tainability is an integral component of our on throughout the year. “Much has already operations,” emphasized Dieter Zetsche, been achieved,” said Zetsche, “although we sues. In five individual working groups, var - Chairman of the Board of Management of are not yet where we want to be in all areas. ious key emphasis topics were discussed Daimler AG and Head of -Benz On the other hand, this is not surprising in and the outcomes formulated. Cars, in his opening address. He also called view of the high aims that we have deliber - upon all stakeholder groups to contribute ately set ourselves.” Working Group I was concerned with expertise of their own. “Sustainability is a environmental and climate protection . permanent issue,” said Zetsche, “and the The participants in this year’s “Daimler At the focus of attention here were above exchange of information and dialogue with Sustainability Dialogue” concentrated on all the topics of “green premium products” interest groups is crucial as an instrument specific topic areas and clearly defined is - ▸ Continued on page 2

Editorial views; and we took pleasure in continuing in Hungary. And we are of course invest - this dialogue with our stakeholders in ing a great deal in vocational training for 2009. You can find out more about the top - young people – no less than 2,300 ics under discussion and the conclusions trainees set out on their careers with us drawn by the various working groups in this this fall. This bears out the fact that we issue of the Sustainability Newsletter. stand by our principles of sustainable cor - porate management, even in times of cri - Our objective is clearly defined: We have sis. You can find out more in this issue of resolved to be one of the leading auto- our “Daimler Sustainability Newsletter.” motive manufacturers in matters of sus - I wish you interesting reading! Dear reader, tainability. Our sustainability strategy is Sustainability can only be treated in a ho - founded on a balanced blend of global and Thomas Weber listic manner; this calls for both open and local initiatives throughout all business direct dialogue among all parties involved. units. This is borne out to an equal extent Member of the Board of Management of With the Sustainability Dialogue, our com - by our commitment to Germany as an in - Daimler AG with responsibility for Corpo - pany established a new platform in 2008 dustrial location, for example, and by the rate Research and Mercedes-Benz Cars for a more intensive, open exchange of establishment of a new production plant Development

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Position and “CO 2 emissions.” The conclusion universities and the German Federal Em - reached by this group was that ecological ployment Office. products should not be defined in terms of “The Dialogue is a “renouncement”: Improved environmental Working Groups III to V examined soci - successful platform” performance must be positioned as a value- etal aspects. Group III discussed the mat - generating factor along with the long- ter of human rights . It was emphasized Martin Jäger, Head of Global External established product characteristics. In here that not even universally valid human Affairs and Public Policy at Daimler addition to product attributes typically rights can take effect if they are hindered associated with the automobile, such as by the respective political systems. Ad - Mr. Jäger, what does the Sustainabil - fuel economy, mobility concepts will also dressing this problem in a coordinated ity Dialogue mean to Daimler? play a significant role. Daimler’s aspiration manner, for example within the framework An enterprise such as is to position its products as the very best of the German Association of the Automo - ours does not oper - in their respective categories. With regard tive Industry (VDA), would be desirable. The ate in a sociopolitical to carbon dioxide, the participants in this group also discussed specific implemen - vacuum. Its world - group were in agreement that an all-en - tation initiatives to ensure human rights wide activities affect compassing approach must take into ac - compliance. Daimler will invite interested a wide variety of count so-called life-cycle analysis in addi - parties to a round-table discussion of coun - stakeholder groups, tion to a purely mileage-based assessment try-specific human rights issues. all of which in turn Martin Jäger of CO 2 emissions. Discussion also centered have diverse expec - on the matter of globally dwindling re - Working Group IV dealt with the ques - tations of Daimler. Our annual Sustain - sources, which – along with the supply of tion of sustainability throughout the ability Dialogue is a central instrument electricity from renewable sources – repre - supplier chain . While the participants for intensifying exchange of ideas with sents one of the major challenges facing agreed that Daimler had already made sig - representatives of politics, civil society, electromobility. nificant progress in this area, they found non-governmental organizations, and that even greater efforts must be under - the sciences – and also for discussion Working Group II dealt intensively with taken in future. One approach could be to of controversial topics. the company’s measures for securing em - develop and establish joint initiatives and ployment against the background of the standards in the automotive industry. An The first Sustainability Dialogue was economic crisis. In this connection, the par - important consideration for participants in held last year. What was new this ticipants dealt critically with the fact that this working group was that sustainability time round? these measures will not be sufficient to management in the supplier chain proves With the first Sustainability Dialogue we overcome structural transformations in the successful when all interest groups co- were breaking new ground and deter - automotive industry. All participants agreed operate and share responsibility. mining high-priority topics. The empha - that social responsibility and economic sis this year was on intensifying our success are not mutually exclusive. In the Community relations was the topic of treatment of these issues, with the aim second part of the workshop, the challenges Working Group V. The conclusion reached of formulating specific approaches to a arising from the demographic shift were here was that while industrial enterprises solution. Five working groups dealt with discussed and assessed on the basis of a cannot assume the role of municipal author - the subjects of the environment, em - practical example from the Bremen plant. ities, they can contribute start-up financing ployees, human rights, purchasing, and Topics such as qualification and training for new projects and assist in the search for community relations. From the outcome of junior staff were likewise discussed at cooperation partners. The aim is a win-win of these discussions we derive impor - Daimler; an agreement was reached regard - situation with mutual benefits for all part - tant principles for further developing ing the intensification of cooperation with ners involved. our corporate activities in a responsi - ble and sustainable manner. This dia - Markets logue with critical stakeholders is thus by no means a mere excuse for an event, but is a creative element of sus - Daimler invests in Germany tainable entrepreneurship. In 2009 and 2010, Daimler is investing about 3 billion euros in German passenger car plants, thus reinforcing its commitment to Germany as a production location. How will the stakeholders’ recom - RASTATT/STUTTGART – Daimler is now as setting the course for the future of the mendations be put into practice? further expanding its center of excellence Group in the compact automobile segment. On the basis of the discussion outcome, for compact automobiles by enlarging its “In addition, we will continue to invest in the responsible agents from the respec - Mercedes-Benz Rastatt plant with an in - our various locations in Germany – with tive sectors formulate steps to be taken, vestment of 600 million euros. A further about three billion euros in 2009 and 2010 which are implemented in the form of 800 million euros will be invested in a alone,” Zetsche continued. processes relevant to sustainability. new plant at the Hungarian location of The world of politics also praised the Some of the working groups have already Kecskemét. The Group’s total investments extension of the passenger car plant in agreed to meet again during the coming in these two locations thus amount to ap - Rastatt. Baden-Württemberg’s Finance months, in order to discuss some of the proximately 1.4 billion euros. Minister Willi Stächele: “The expansion is a initiatives even more intensively and to symbol of our state’s innovative capability maintain a constant exchange of ideas. Setting the course for the future and export strength. At the same time, it is The next Daimler Sustainability Dialogue Dieter Zetsche, Chairman of the Board of a signal to continue to invest particularly in 2010 will therefore once again be a Management of Daimler AG and Head of during times of crisis, thus maintaining and successful platform – that’s one thing Mercedes-Benz Cars, sees this investment creating technology jobs for the future.” I’m convinced of already today.

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Markets +++ News +++ News +++ News +++ +++ GmbH opens new build - ing complex. EvoBus GmbH has opened Groundbreaking at new car plant a new building complex in Mannheim. The new passenger car plant in Kecskemét, Hungary, will significantly boost the This project, involving an investment of Group’s competitiveness and will facilitate the tapping of new markets. 9.3 million euros, comprises an office building and a production hall. EvoBus is Production link with the Rastatt plant thereby uniting the development sectors Some 800 million euros are being invested of Testing and Prototype Construction in the new factory in Hungary, while the under the one roof. +++ ’s entry Rastatt plant is also being extended with an into the Puerto Rican market rein - investment in the triple-digit millions. Since forces NAFTA presence. Mitsubishi Mercedes-Benz will in future be repre - Fuso Truck and Bus Corporation, one of sented by four models in the compact ve - Asia’s leading com mercial vehicle man - The ceremony at the new Mercedes-Benz car plant hicle segment rather than the current two, ufacturers and a subsidiary of Daimler in Kecskemét, Hungary, in mid-October an additional capacity requirement has Trucks, has announced its entry into the KECSKEMÉT – In the presence of Hungar - arisen that cannot be covered by the Ras - Puerto Rican market. Fuso is also aug - ian Prime Minister Gordon Bajnai, the Chief tatt plant alone. menting its dealer network in North Operating Officer of Mercedes-Benz Cars America: The number of dealerships in Rainer Schmückle gave the go-ahead for Tapping new markets Canada is to be doubled, and further lo - construction work on Daimler’s new pro - “Our new production location in Hungary cations will also be established in the duction location. will significantly boost our competitiveness USA. +++ Daimler Financial Services in this price-sensitive compact premium extends its presence in the high- Production to start in Kecskemét in vehicle segment, and will also contribute growth Middle East region. Daimler 2012 to tapping new markets,” said Rainer Financial Services has announced the es - Compact vehicles from the follow-up gen - Schmückle. “Kecskemét offers the best tablishment of Mercedes-Benz Finance eration to the current Mercedes-Benz A- prospects from a commercial standpoint Middle East and Mercedes-Benz Leasing and B-Class series will be produced in and meets the stringent criteria for a suc - Middle East. These new companies, cen - Kecskemét from 2012. This plant will pro - cessful production site. At the same time, tered in Dubai, offer credit, leasing pack - duce the vehicles in conjunction with the Rastatt will remain a central proven com - ages, and vehicle insurance for both pri - German location in Rastatt, Daimler’s cen - ponent of our coordinated production net - vate and corporate owners of passenger ter of excellence for compact vehicles. work,” he continued. cars and commercial vehicles. +++

Employees Employees 2,300 trainees start with Daimler Web-based Code of Once more this fall, a large number of young people commenced training with Conduct training Daimler. The number of trainees almost matched the level registered last year. STUTTGART – To ensure compliant con - duct on a sustained basis also in econom - STUTTGART – The most popular technical ically difficult times, the Board of Man - vocations are automotive mechatronic engi - agement has approved a new web-based neer and manufacturing mechanic. Business Code of Conduct training program. The administrators are at the top of list in the course uses practical examples to guide commercial sector, followed by automobile Daimler employees worldwide from this sales personnel. At the University of Coop - year on through the key content of the erative Education, Daimler offers a total of Daimler Integrity Code – in about 40 min - eleven courses of study in the technical and utes and with a changing focus each year. administrative fields. The most frequently The Code of Conduct Training is the chosen course is mechanical engineering. our social responsibility, as well as secur - most extensive online training project at The proportion of female trainees in the in - ing expertise for our talented youngsters Daimler so far: Within only a few weeks, dustrial and technical fields reached last and thus ensuring our entrepreneurial suc - more than 100,000 Daimler employees year’s level of around eleven percent, while cess.” in about 50 countries participated. The some 30 percent of the students at the Uni - As part of the Pact for Training Future rollout as a web-based training scheme versity of Cooperative Education are women. Specialists, Daimler also gives young peo - has the advantage of free time allocation Daimler’s Human Resources Board mem - ple who have not been able to secure an and enables the participants to choose ber Wilfried Porth emphasized the great apprenticeship the opportunity to undergo between twelve languages. Together with significance given to vocational training in vocational pre-qualification at German pro - another online training module on cor - times of crisis. “We offer young people a duction and sales locations. Daimler cur - ruption prevention and classroom train - vocational perspective, and this year too we rently provides training for some 7,000 peo - ing for certain employees selected by are providing training above and beyond our ple overall in Germany, corresponding to management, this course unites previ - own requirements,” said Porth. “With our 40 percent of all apprenticeships offered ous training measures on the Standards commitment to training we are living up to by the German automotive producers. of Business Conduct.

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+++ News +++ News +++ News +++ Environment +++ Daimler receives eSafety Award from the EU Commission. The EU Commission has presented Daimler AG smart electric drive production with an eSafety Award in the “Industry & From a pilot project to production for customers in just five years: Large-scale - Technology” category. This prize was series production of the smart fortwo electric drive is set to begin in 2012 in Ham - awarded for the company’s longstand - bach. ing commitment and its pioneering role HAMBACH – Daimler has announced that Large-series production as of 2012 in the introduction of vehicle technolo - it has selected the location for future se - From 2012 onwards, the smart fortwo elec - gies for enhanced road safety, for exam - ries production of the smart fortwo electric tric drive will be produced in significantly ple ABS, ESP ®, PRE-SAFE ®, and ATTEN - drive. This vehicle, equipped with a state- larger volumes in order to meet the lively TION ASSIST. +++ “F-Cell Award” for of-the-art lithium-ion battery, will leave the demand that has already been registered. application-oriented fuel cell tech - as sembly line at the Hambach plant in large- This vehicle will be a regular part of the nology. This innovation award, which scale production in 2012. smart product portfolio and will be sold is donated by the State of Baden-Würt - through the smart sales network. smart is temberg in recognition of application- Small-series production is under way thus emphasizing its pioneering role on the oriented development centered on the In November 2009, the plant is initiating way to locally zero-emission individual mo - fuel cell, has been presented for the production of a small series of about 1,000 bility for major cities. ninth time. Daimler re ceived the “F-Cell units of the smart fortwo electric drive. In a Award” for its innovative appli cation of first step, these vehicles will be provided to France supports Hambach investment fuel cell technology in the emission-free customers participating in various mobility Daimler will invest a double-digit million and practically silent Citaro FuelCELL- projects in major cities in Europe and the euro sum at the Hambach plant in the next Hybrid urban bus. +++ Fuso delivers USA, in order to generate additional feed - generation of the smart fortwo electric series-produced Hybrid trucks to Eu - back from use under everyday conditions. drive with lithium-ion battery. On the oc - rope. Mitsubishi Fuso Truck & Bus Cor - “The smart fortwo electric drive demon - casion of an official visit to the smart pro - poration (MFTBC) has sold ten hybrid strates that emission-free driving in an ur - duction plant, French President Nicolas trucks to an Irish company. The Fuso ban environment is already possible today,” Sarkozy announced that the French gov - Canter Eco Hybrid is the first series-pro - said Dieter Zetsche, Chairman of the Board ernment would support the project through duction hybrid truck to be sold in Eu - of Management of Daimler AG and Head its PAT (Prime d’aménagement du terri - rope. The Irish Government has granted of Mercedes-Benz Cars. toire) program. a special operating permit for these Japanese trucks. MFTBC is planning to expand its hybrid trucks business into Environment further selected export markets starting in 2010. +++ New Freight liner Coro - “BlueEFFICIENCY” Sprinter models nado with greater fuel economy. Daimler Trucks North America has pre - Sprinter van models are now available with “BlueEFFICIENCY.” This package is sented two new heavy-duty Class 8 characterized by newly developed four-cylinder engines and transmissions. trucks: the updated Freightliner Coro- nado for on-highway use and the transmission is characterized by a wide Freightliner Coronado Severe Duty (SD) ratio spread, with a ‘short’ first gear and a for municipal applications and the build - sixth gear designed to yield lower engine ing industry. These vehicles, which meet speeds. The engine speed range has been the future EPA 2010 emissions standard considerably reduced in favor of a lower with their BlueTec diesel technology, fuel consumption, with resulting enhanced deliver a fuel economy improvement of economy. The result: reduced exhaust up to five percent compared to the pre - and noise emissions, and greatly enhanced vious EPA 2007 engine generation and ride comfort. reduce nitrogen oxide emissions by STUTTGART – The key component of the more than 80 percent. +++ Daimler BlueEFFICIENCY Sprinter models are their ECO start-stop function saves fuel enhances commercial vehicle safety. highly efficient four-cylinder OM 651 diesel The ECO automatic start-stop function de - Daimler has delivered the 10,000th Mer - engines. Available in three power ratings ploys its savings potential above all in city cedes-Benz truck equipped with Active from 70 kW to 120 kW, they cater to prac - traffic, especially when the vehicle is sta - Brake Assist for emergency braking. tically all demands that can be made of a tionary in traffic jams or at red lights. Even When acute danger of a rear-end colli - van. Along with these engines, further fea - if the vehicle is stopped for just three sec - sion arises, e .g. when a vehicle ahead is tures that reduce fuel consumption and onds without a gear engaged, the ECO au - moving very slowly, this active safety emissions are the new transmissions, an au - tomatic start-stop function cuts out the system initiates emergency braking au - tomatic start-stop function, and individual - engine. A touch of the clutch pedal or re - tomatically if the driv er fails to react in ized measures such as auxiliary equipment leasing the brake and rolling off to a start time. Active Brake Assist, the only sys - control in keeping with a customer’s wishes. is sufficient for the engine to cut in imme - tem of its kind in existence, is offered for diately once more. Mercedes-Benz trucks and for touring “ECO Gear” six-speed transmission This makes for average fuel savings of coaches of the Mercedes-Benz and Se - The “ECO Gear” was specially developed up to eight percent. Noise emission is also tra brands . +++ for use in vans. This six-speed manual reduced when the engine is deactivated.

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Customers From the editor’s desk Reader survey: Modern Commercial Vehicle Cen ter Your views count! On a 62,000 square-meter site in Berlin, Daimler has opened Europe’s most mod - ern Commercial Vehicle Center, which is directly oriented to customers’ needs. Since July 2008 you have regularly been receiving the Daimler Sustainability E-Newsletter, which extends the scope of our comprehensive sustainability re - porting . We would like to carry out a reader survey, so as to be in an even better position to cater to your expec - tations and integrate your wishes and ideas into future issues . You can inform us of your views by participating in the online survey. This will allow us to match the form and con - BERLIN – Conveniently located on the A113 The new “TruckWorks” service concept tent of our regular sustainability report - autobahn and near the Berlin Brandenburg The opening of the Commercial Vehicle ing with your assessments and interests . International Airport, the new Commercial Center also marked the launch of the new This questionnaire will take you only five Vehicle Center is oriented to commercial service brand “TruckWorks.” This stands minutes to complete. Special Internet vehicle customers. The most important in - for excellently qualified all-round service skills are not required, since the ques - novations include the 24-hour service op - under the one roof for vans, trucks, and tionnaire follows standard survey logic erations and the 100-percent mobility guar - tractor-trailer combinations. The range of and you can answer the questions with an tee for service customers. For Andreas services – which also encompasses manu - a simple mouse-click. A free text field is Renschler, the Board member with respon - facturer-quality care for trailers, semitrail - provided for your responses to the open sibility for Daimler Trucks, the new Com - ers, and bodies – provided by the initially questions . mercial Vehicle Center is a statement for 80 and by year-end 100 certified Mercedes- The data acquired will be used for the future. “The markets are still on the de - Benz Commercial Vehicle Centers is of uni - internal purposes only. Participation is cline, but things are looking up for Daimler formly high quality throughout Germany and of course on an anonymous and volun - Trucks. We believe in the German location includes guarantee and goodwill work along tary basis . and are making investments here,” said Ren - with care, service, and maintenance. We would greatly appreciate your schler. “We are setting out to demonstrate State-of-the-art technology, extension support and welcome your requests and that even top service still provides room for of service capacities, and the diversity of suggestions . improvement. And although the crisis has services offered will in future reduce down - brought about many changes, our claim re - time and waiting times for customers and Here is the direct link to the survey: mains the same: We offer ‘trucks you can thus save costs, with no compromise in the ▸ http: //www2.daimler.com/survey trust’,” he added at the opening ceremony. accustomed Mercedes-Benz quality.

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Published by: Daimler AG “Mondialogo Engineering Award” Communications Global Corporate Media & Marketing, Thirty teams of engineering students have been given the “Mondialogo Engineer - External Publications ing Award” by Daimler and UNESCO in recognition of their promising ideas.

STUTTGART – For their innovative ideas in Lanka, who received this recognition for Responsible on behalf of sustainable development, climate protec - their simple, cost-effective solution for the the publishers: Mirjam Bendak Project manager: Matthias Steybe tion, and the alleviation of poverty, thirty in - purification of drinking water. Twelve Silver Editor: Benjamin Oberkersch ternational student project teams received and ten Bronze Awards were presented, E-mail: [email protected] prizes in the Mercedes-Benz Museum in along with two Special Awards. early November. The “Mondialogo Engineer - “Mondialogo,” established by Daimler Subscriptions can be canceled at the e-mail address www.daimler.com/sustainability/newsletter/unsubscribe ing Award,” which comes with a purse of and UNESCO in 2003, sets out to arouse 300,000 euros, was presented in the three enthusiasm among young people for inter - Further information is available at categories Gold, Silver, and Bronze. cultural exchange and to promote knowl - www.daimler.com/sustainability The eight Gold Award winners included edge transfer between institutions of higher students from the Technical University of learning. The Engineering Awards were pre - Munich with their partner team from Sri sented for the third time this year.

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