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environmental report DaimlerChrysler on the road to sustainable mobility2002 editorial | masthead | contents |

Editorial 2

Interview “There’s no fast track to sustainability” 4 Herbert Kohler, Chief Environmental Officer of DaimlerChrysler, talks about new drive concepts, alternative fuels and the uphill road to sustainability.

Rio+10 The changing face of DaimlerChrysler 6 In the ten years since the Earth Summit in Rio de Janeiro a whole lot has changed at DaimlerChrysler. Ten years after Rio: DaimlerChrysler South Africa Positive signs in South Africa 16 In South Africa, DaimlerChrysler’s efforts to protect the environment are in full flow. The automotive group is also committed to promoting social progress and nature conservation. A promising balance-sheet Publisher DaimlerChrysler Energy for the future Communications With respect to the automotive technology of the future, DaimlerChrysler Filling up on sunshine 26 One way to meet the growing energy requirements of the future in has established itself at the head of the field through the development of fuel D-70546 Stuttgart, Germany Auburn Hills, MI 48326 2766, USA an environmentally acceptable way will be to tap into regenerative resources. cell and hybrid drive systems, as well as highly efficient internal combustion DaimlerChrysler is developing the required technology. engines. At the end of 2003, we will be supplying 30 buses to ten major For the publisher New products Hartmut Schick European cities – the first in the world to feature this drive system. Our first fuel The new E-Class is easy on the environment 36 cell passenger cars will follow in 2004. From the outset, the Design for Environment team played their part in Responsible for content the development of the new Mercedes-Benz E-Class. Our hard work and successes also brought us first place in the 2001 Prof. Dr. Herbert Kohler, The Vaneo – because every day is environment day 40 Chief Environmental Officer “Driving Sustainability” industry report published by consultants SustainAbility The new multi-purpose van is eco-compatible even before it hits the road – in conjunction with the United Nations Environment Programme [UNEP]. In the the production processes also take full consideration of the environment. Internet Dow Jones Sustainability Index, too, DaimlerChrysler is listed among the www.daimlerchrysler.com St. Louis Assembly Complex sustainability leaders of the automotive industry. Energy from the landfill 42 Contact One core challenge en route to sustainable mobility will lie in making the The two DaimlerChrysler plants in St. Louis use energy derived from waste, Dr. Udo Hartmann cutting their output of greenhouse gases by 30,000 tons a year. generation, supply and utilization of energy environmentally compatible. Environmental Protection For DaimlerChrysler that means continuing our intensive efforts to reduce Tel. +49.711.17 929 34 Concept cars emissions of carbon dioxide along the entire fuel/drive-system chain. Along Fax +49.711.17 942 11 CARE Car II – saving millions with recycled plastics 44 with our key task, which remains the continuous improvement of the efficiency Parts made of recycled plastics have made two Jeep® Grand Cherokees Wolfgang Scheunemann the prototypes of CARE Car II. of our drive systems, we also aim to help environmentally compatible fuels to Technology and Environmental Prof. Klaus-Dieter Vöhringer make a breakthrough in the market. Communications Supporting projects Member of the Board of Management, Fuel cells that run on hydrogen or methanol derived from regenerative Tel. +49.711.17 933 07 Living out social responsibility 46 Research and Technology Fax +49.711.17 943 65 In order to live up to its social responsibilities, DaimlerChrysler is backing resources win on both counts, combining a highly efficient drive system with environmental projects and social initiatives across the globe. the use of environmentally compatible fuels. Indeed, in our view, fuels from Project management In 1992, government representatives from 180 countries met in Rio de Janeiro regenerative resources open up substantial opportunities for fuel cell drive Helge Hinner Environmental initiatives Corporate Public Relations Good ideas make a difference 50 and made a commitment to respect the fundamental principles of “sustainable and internal combustion engines alike. Consequently, we are supporting the Tel. +49.711.17 952 52 Even the less spectacular improvements can prove a great help to the development.” Today, ten years later, it is time to take stock. In preparation for future-oriented research project being conducted by Choren Industries to Fax +49.711.17 952 22 environment. Often they originate in good ideas submitted by the work force. the Rio+10 follow-up conference in Johannesburg, we too have drawn up a develop fuels from organic waste. Concept and realization Supplier management balance-sheet of our progress. Just how that can be done – along with many other insights – is revealed on Schwerzmann+Team/Stuttgart Snowball effect in the tropics 53 Certified environmental management systems at the majority of our plants; the pages of this magazine, which was once again created by young journalists, in cooperation with DaimlerChrysler do Brasil inspects environmental standards at its a substantial improvement in the efficiency with which we use resources; and photographers and designers. In 2001, this concept won for the second time md Publications/Frankfurt and suppliers with great care – aiming to trigger a snowball effect. the increased use of renewable raw materials in the automobile production the Environmental Communication Award from the Society of Automotive Hass Assc./Ann Arbor, Michigan Recycling process are our cornerstone environmental achievements. In our development Engineers. Recycling and reusing 54 laboratories we have created new vehicles which consume less energy and The many projects and activities covered by this Report reflect the In Kokomo they’re not just out to build the best transmissions in the world. emit less carbon dioxide from one generation to the next. As a result, our responsible approach and environmental commitment of our employees across The DaimlerChrysler plant in Indiana would also be among the leading contenders in a recycling world championship. average fleet fuel consumption in Germany has fallen by more than 22 percent the Group. I would like to thank each and every employee for their personal since 1995. contribution. © 2002 DaimlerChrysler DaimlerChrysler Japan Printed on recycled paper and As early as 1999, we launched our first car capable of covering 100 kilo- Building a bridge to the future 58 certified with the Blue Angel seal of Conserving resources is a top priority at DaimlerChrysler Japan. meters on 3 liters of fuel – the smart cdi, with common-rail direct injection. This environmental quality. was far more than a symbolic gesture, as the sales figures confirm. The The making of smart cdi is far and away the market leader in this segment. But the concept Reproduction in full or in part only with A remarkable concept 60 the publisher’s prior written approval and Once again, the task of creating this year’s DaimlerChrysler of the smart stands for more than just economy. Designed from the outset with photos and copy credited to Environmental Report was tackled by a team of young journalists, to intermesh with other means of transport, this city coupe is also a product of “DaimlerChrysler” photographers and designers. our search for the mobility forms of the future. Prof. Klaus-Dieter Vöhringer

2  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmental Report2002  3 interview | “There’s no fast track to sustainability”

It is no coincidence that Herbert Kohler, who was appointed Chief Environmen- tal Officer of DaimlerChrysler a few months ago, also heads up the Group’s “Body and Powertrain” research unit. In an interview with Timo Pache, he explains why the unit’s fields of research also represent key action areas for the Group’s future environmental protection efforts. Our vision is to reach the point where emissions don’t even arise in the first place. Unfortunately, we won’t be able to manage this 100 percent. But history shows that many things which were once thought impossible can now be [ words timo pache photos tobias grill ] achieved thanks to technological progress. I expect the next ten years to see the advent of a number of technical solutions which we still regard as Herbert Kohler, how will your approach to your new environmental role be developing one-off show cars which only consume one or two liters per 100 impossible right now. influenced by your past research efforts? kilometers but which are of limited practical value or require prohibitively Vehicle research and drive technology are topics which are not only closely expensive technology. What really counts is the ability to actually sell cars with Can you give us any examples of how you could imagine interwoven with environmental protection but also of key importance for the good fuel economy in the relevant market segments, with the corresponding things developing? future. Fuel consumption and tail-pipe emissions are by far the most significant impact on overall fleet consumption. Thanks to the smart cdi, for example, we The major developments in the production sector are probably already research themes in the field of drive technology. In fact, over 50 percent of our are far and away the market leader in the segment of 3-liter cars – that is, cars behind us. Just consider the conversion of our paint shops to water-based entire research budget is devoted to these topics. that require less than 3.5 liters of fuel to cover 100 kilometers – in Europe. As as completely run-of-the-mill. But it’s not just a question of the technical paints or powder and powder slurry coatings. In the case of Mercedes-Benz this clearly shows, we have managed to establish a viable balance between compatibility of the materials. I know Belém and I’m always surprised when I cars, for example, these technologies have allowed us to reduce solvent emis- So what developments can we expect to see with regard to improved fuel economy on the one hand and market acceptance on the other. see how many people have been able to find a paid job thanks to this project. sions per vehicle by more than 80 percent since 1990. And although the biggest fuel consumption? It is a perfect example of how economic, ecological and social issues – the three challenges of tomorrow will be in the product sector, it is important to maintain We are taking a dual approach to drive technology research: First we are look- Apart from corporate average fuel consumption, which issues do you key elements of sustainable development – can be addressed together. the high standard which has been achieved in the production process and ing at alternative drive systems, which are quite rightly regarded as having great regard as being significant from an environmental protection point of continue to develop it intelligently – not least with an eye to cost-benefit consid- potential for reducing fuel consumption and emissions... view? Still on the subject of conserving resources, one key issue here is the erations. The way we use resources and the measures we can take to conserve them are world’s oil reserves and the way they are being used. What developments Systems such as fuel cells, for example. obviously of great importance as they concern every part of the organization can we expect to see in the area of alternative fuels? Ten years after Rio, this year’s follow-up conference is being held in ...I would certainly include fuel cells, but there are a number of other potential and have a bearing on the entire product life cycle – from production, through Alternative fuels and – above all – fuels which can be produced from renewable Johannesburg. What impact do you expect it to have? solutions. Hybrid drives are one option and we are currently looking at several the vehicle service life, right up to disposal. This area has been one of our preoc- resources play an important role in that they extend the options open to us. It’s It looks as if we will have to accept that progress in environmental protection variations on this theme. But the second angle of approach involves getting cupations for some years – if not decades – but the focus has shifted. In the true that, at the moment, oil shortages look unlikely to occur in the short and at a global level can only be made very slowly. But the conference will certainly more out of conventional gasoline and diesel engines. On the gasoline engine past, it was the production processes that were the central issue; today, the mid term, but we need to start thinking about alternatives right now. In the help to reinforce public awareness of the issue. One important topic in Johan- front we’re already pretty happy with emissions, but there’s still work to be products themselves and their life cycle are the focal point of our activities and Choren Project, which we’re currently running, we’re researching ways of nesburg will be the reduction of carbon dioxide output. The whole world needs done on fuel consumption. The new direct-injection gasoline engines which in the public eye. producing diesel fuel or methanol from biomass. I think that developments in to understand that something has to be done about this issue – and no-one has we’ll be introducing from 2002 onward represent an important step in the right the fuel sector over the next few years will follow the pattern set by the adop- a greater responsibility in this respect than the industrialized countries. direction. Take the new CLK with the 200 CGI engine, for example: We’ve How important are renewable resources in this context? tion of renewable resources in auto manufacturing. The whole issue of regen- improved its performance, yet it consumes almost 18 percent less fuel than its We established a sound basis for using renewable resources in our production erative fuels is also closely tied in with the question of drive technology. That’s You mentioned the Brazilian POEMA project. Are you planning any new predecessor. Diesel engines, on the other hand, already offer low fuel consump- activities when we set up the POEMA project in Belém, Brazil, ten years ago. why we take what we call a “well to wheel” approach: This means that we initiatives along similar lines this year? tion but we’re going to be implementing new measures to reduce emissions Using natural fibers such as coconut, flax or sisal is something we now regard consider everything from the oil well – the point at which the crude oil is extract- Over the past few years, we have succeeded in implementing a number of even further to comply with the EURO 4 standard. ed – to the vehicle drive system – represented by the wheel – in order to mini- natural-fiber projects in South Africa in cooperation with local suppliers and mize CO2 emissions arising from the combined “fuel/drive” system. We’ve farmers. Our suppliers are now able to produce a range of components from Can you put any figures on the extent to which DaimlerChrysler will be already found, for example, that the appropriate regenerative fuels can make a sisal fibers for our plant in East London where all the right-hand-drive versions reducing fuel consumption – in terms of its corporate average as well as significant contribution to reducing CO2 emissions, even when they’re used in of the new C-Class are built. We are currently looking at a number of other individual models – over the next few years? conventional internal combustion engines. That said, though, they still fall short regions of the world to determine whether similar projects could be imple- The European auto industry, which is represented by the ACEA organization, has of the kind of improvement we expect the fuel cell to bring. By contrast, we mented successfully there, too. But it’s not just a question of the availability of committed itself to reducing average CO2 emissions by 25 percent to 140 don’t regard using hydrogen in internal combustion engines as a valid way of natural fibers with the right technical characteristics; we also need a suitable grams of CO2 per kilometer during the period from 1995 to 2008. This corre- reducing CO2 emissions: Both the conventional production of hydrogen and its infrastructure of farms and suppliers if it’s going to be possible to supply the sponds to fuel consumption of less than six liters per 100 kilometers. The signif- use in an internal combustion engine offer relatively poor energy efficiency. components in sufficient numbers and to a sufficiently high standard for an icance of the contribution which DaimlerChrysler is making to attaining ACEA’s industrial manufacturing process. Creating the necessary structures is the real target becomes clear when you consider that we have already reduced our But it’s not just a question of preventing emissions from the end product; challenge here, as indeed it will be when it comes to using regenerative fuels. corporate average fuel consumption in Germany by more than 22 percent since there’s also the production process to consider. What are your main It’s going to be a long haul: There’s no fast track to sustainable environmental 1995. I have to say that I’m not a great believer in putting a huge effort into objectives in this respect? protection – it calls for perseverance and staying power. |

4  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  5 rio+10 

Partners in heating Of hot roofs and cold tests The changing face Pipes snake down from the ceiling of the tunnel, then switch from vertical to “Wild strawberries grow here in the summer. They’re delicious,” says Norbert horizontal and squirm off into the distance, vanishing from sight a couple of Hofste, energy officer for the Untertürkheim plant, as his gaze scans the land- hundred meters further on. Down here, the eye quickly loses all sense of scale scaped roof of the Bad Cannstatt plant. Peeping out from among the ground – the cozy warmth being perhaps partly to blame. The silver pipes, which are cover and moss, the little strawberry plants are a reminder of warmer days to carrying output water from the power station at the nearby DaimlerChrysler come. In fact it seems as if everything up here on the roof of the “factory of the of DaimlerChrysler plant to the Sindelfingen district-heating grid, blur and merge with the white- future”, which was constructed in the mid-1990s, is geared to summertime. A washed walls. The water, warmed to a temperature of 112 degrees Celsius, is total of 5,000 square meters of solar cells cover the roof like a giant coat [ words timo pache, alexander stirn, marcus stölb photos tobias josef grill, stefanie füssenich, gabriele neeb ] destined to provide heating for public buildings in the town of Sindelfingen. of armor, supplying power to the factory below. With a peak capacity of 435 Other pipes carry steam at various pressures, heading for a nearby semicon- kilowatts, the panels in theory ought to be capable of generating 350,000 kilo- watt hours of power a year, but unfortunately that goal has proved elusive. Even if it were met, however, the solar panels supply only a fraction – a mere one percent – of the plant’s total energy requirements. “The real point of this facility was to demonstrate our commitment to active environmental protection,” says It is now ten years since the Hofste. And as he points out, the photovoltaic system has attracted a steady United Nations Earth Summit stream of visitors since it came on-line in 1996. in Rio de Janeiro. The rallying Just a few hundred meters from the mossy roof, the scene could hardly be cry at that meeting of heads more different. Here on the test rigs of the Untertürkheim engine plant, the drone from the massed ranks of engines is never-ending. Before being allowed into a of state was “sustainability” Mercedes, every new engine model undergoes long and exhaustive trials. In the – the idea that natural course of these trials, the test engines can clock up hundreds of thousands resources should be used of kilometers each, far more than they will ever need to cover out on the to meet mankind’s needs road. There are well over a hundred test rigs in total, and on each rig the engines burn fuel and give off not only the greenhouse gas CO2, but also surplus energy. but without depleting them The engineers at DaimlerChrysler have tried various strategies over recent for future generations. The years to harness this energy. They ended up transforming the test rigs into mini concept of sustainability has power-stations. The engines have been hooked up to generators which use the revolutionized environmental surplus energy from the combustion process to produce electricity. For the test- ing of series production engines, a different approach is taken: In the future, practices at DaimlerChrysler. these engines will no longer blow hot but cold. With the introduction of cold The company has moved testing, fossil fuel consumption in engine testing will more or less cease. A pilot away from the previous em- project at the commercial vehicle engines plant in Mannheim last year showed phasis on end-of-pipe solu- that with cold testing, emissions can be reduced by up to 20 percent. Production-related environmental protection is only part of the picture in tions towards a preventive the automotive sector, however. The bigger challenge lies in the climatic approach focused on such relevance of the vehicles themselves, not least during their service lives. issues as resource conserva- In response, DaimlerChrysler is sparing no effort in the drive to improve the fuel efficiency of its products. tion, climate protection Those efforts are complemented by an ongoing drive to cut energy measures and environmental consumption on the production front. Over the last ten years, this has led to a The pipes heading for vanishing point belong to the public utility in Sindelfingen, drop in energy consumption per vehicle produced by some 46 percent at management systems. As the Germany. They carry hot water from the nearby DaimlerChrysler plant. Rio follow-up conference in Mercedes-Benz and by some 23 percent at the Group. | ductor plant. The town of Sindelfingen is investing over 10 million euros in what Johannesburg approaches, it is currently a unique partnership between the public and the private sectors. is time to take stock of what Eventually, an annual 100 million kilowatt hours of district-heating energy will has been achieved so far. be fed into the public grid, enough to warm some 5,000 detached homes. But Timo Pache, Alexander Stirn the greatest beneficiary of course is the environment: this public-private part- | and Marcus Stölb went fact- nership will reduce CO2 emissions by up to 13,500 metric tons a year. finding.

At right: Past and present: This comparison of two Mercedes-Benz E-Class and Dodge models reveals just how much more economical DaimlerChrysler vehicles have become.

DaimlerChryslerEnvironmentalReport2002  7 rio+10  A new beginning! Solved without solvents

Small, snow-covered mounds of earth glitter in the sunlight, interspersed with there were other obstacles too, like soil contamination due to gasoline, arsenic, Sometimes, environmental protection aspects are a minor part of an issue to page 30]. But over the past ten years, DaimlerChrysler has acted to cut pollu- chunks of concrete. Rusting and twisted steel rods raise their gnarled fingers iron, solvents and asbestos. The heavy metals were perhaps the least of the begin with – and yet the overall positive impact on the environment can be tant emissions not only in its production processes but also in its products, skywards. A little further on however, there are signs of life and color in this problems. The gasoline was treated with an oxidizing agent and oil contamina- enormous. This was the case in the early Nineties, for example, when Chrysler always complying with legal standards ahead of schedule by means of a variety industrial wasteland. Little red flags dot the muddy soil, marking the site of new tion was cleaned by thermal desorption. Solvents were extracted and absorbed looked at a fundamental restructuring of its painting processes. At the time, of technical measures [see chart]. | foundations, where excavators wheel and pirouette. A hundred meters away by “soil vapor extraction,” with a machine closely resembling a giant vacuum neither the customers nor Chrysler itself were satisfied with the standard of stand modern warehouse buildings – plain but functional. cleaner. Depending on the future use for which a particular part of the site was painting. Not only that, but the US government was in the process of bringing Ten years ago this 144 acre site in Highland Park, a suburb of Detroit, intended, the remaining contaminated soil was either properly disposed of, or a in new threshold values for hazardous air pollutants. In response, Chrysler Positive balance-sheet presented a very different picture. At that time it was home to the Chrysler protective barrier of concrete at least 20 centimeters thick installed. decided to take concerted action. It introduced a powder-based anti-chip coat, headquarters and Technology Center. But Chrysler needed more space and the To date, Rose and his team have reclaimed 17 sites. Three of these are still changed over to a water-based topcoat and phased out the use of chrome and New improved engines and efficient exhaust treatment systems have led to decision was made to move their headquarters to Auburn Hills. That was in owned by DaimlerChrysler, while the others are now sport superstores, condo- lead in its primers as part of an overall strategy to reduce volatile organic a substantial drop in emissions over the past ten years – as the following 1992. The company didn’t have a use for the site and Greg Rose and his team miniums or colleges. “We don’t believe in hanging on to sites just on the off compounds and hazardous air pollutants. comparison of Mercedes-Benz and Chrysler models shows. moved in. chance we might someday have a use for them,” says Rose. “But we do what At a time when other automakers were opting for filters and elaborate we can to help assure that an alternative use is found for and expensive end-of-pipe waste air treatment systems, Chrysler set Development of emissions the site that will help the local communities.” about tackling the problem at its roots by switching over to new materi- for selected Chrysler passenger cars 1992 – 2002, US test cycle

On the other side of the Atlantic, meanwhile, als in the painting process itself. “This makes us more flexible, so that we can CO HC NOx DaimlerChrysler is confronted with an environmen- respond quickly if new limits are introduced,” says Patty Strabbing, Senior 10 1.50 tal challenge of a different kind in the shape of Ger- Manager, Air Compliance Program. “Our goal has always been to take the initia- 9 1.35 many’s “Recycling and Waste Management Act,” which tive, and not just react. Over the next twenty years it’s hard to see anything 8 1.20 specifies that companies have a duty to reuse or recycle causing us problems on this front.” The new materials and processes have also 7 1.05 certain types of production and product waste. ultimately helped bring down costs. Initially, material costs soared by 50 6 0.90 In 1993, three years before this law came into force, percent when the decision was taken to use powder coatings but today, thanks 5 0.75 the former Mercedes-Benz company had already set up to improved application techniques, larger purchasing volumes and efficient 4 0.60 the “Mercedes Recycling System” [MeRSy]. In the early recycling, the trend has been reversed and costs are actually lower than before. 3 0.45 days, this meant that workshops collected packaging But volatile organic compounds were not the only substances of concern 2 0.30 materials and a variety of used vehicle parts removed to Chrysler in the Nineties. Stricter limits were also being set for emissions 1 0.15 during repair work and sorted them by type. In the mean- of other hazardous organic compounds. To achieve the necessary reduc- 0 0 time, the system has been extended to include prelimi- tions, Chrysler took a close look at the solvents and cleaning agents used nary dismantling of entire end-of-life vehicles and segre- in its production process, all of them rich sources of volatile organic emis- gation of the various parts. Sorting plastics, brake fluid, sions. The analysis conducted in the early Nineties revealed that Chrysler was shock absorbers, tires and so on into their respective not using the same methods across the board, with each site taking a different Emissions [g/km] Emissions [g/km] Dodge Intrepid Dodge Intrepid Dodge Monaco Dodge Monaco Dodge Monaco Dodge Caravan Dodge Caravan Dodge Caravan Dodge Caravan Dodge Caravan Dodge Caravan Dodge Durango containers may not be a glamorous task, but it is a vital approach to emissions control. Different cleaning agents were used as manu- Dodge Durango Dodge Ramcharger Dodge Ramcharger one all the same. Because some of these parts will ulti- facturers’ sales reps sought to promote new products. Nor were there any stan- Dodge Ramcharger mately resurface in recycled form in new Mercedes dard procedures for assessing the products’ environmental performance. models, in underfloor panels or wiring harnesses, for Today, all that has changed. A new, standardized procedure has been Development of emissions example. Around 30 components in the new C-, E- and brought in which places strict controls on the consumption and use of solvents for selected Mercedes-Benz passenger cars 1992 – 2002, European test cycle Highland Park: 70 percent of the site has now been remediated S-Classes are based on recycled materials. and cleaning agents. The manufacturers of these products now bid for the supply

An important role in recovery and recycling is played contract which is awarded to the company whose products are economical and CO HC + NOx Particulates Rose has been looking after decommissioned Chrysler sites for more by a new plastics sorting plant co-developed by Christian Stollberg. Stollberg least harmful to the environment. At the same time, the chosen supplier also 1.0 0.45 than ten years. Each time the drill is more or less the same. As soon as the climbs a few steps on the outside of the machine and makes a shoveling gesture delegates an employee to work full time supervising the use of the products at 0.9 0.40 timetable for closure has been approved, the company’s real estate department with his arms. “This is where the plastics go in,” he calls down, then leans over the respective plants. Solvents are recycled and all the cleaning processes 0.8 0.36 assesses the site’s potential: Can it be reused? Would it be better to sell the the funnel and makes a rotating movement, mimicking the centrifuge inside the standardized. In this way a system of checks and balances has been deployed, 0.7 0.31 property? What remediation work is required? How can the financial and envi- capsule where the paint is stripped off the plastic parts. Paint removal is one of with responsibility for the products used vested in the hands of a single manager. 0.6 0.27 ronmental interests be squared? “It’s not always easy,” Rose concedes. “But to the biggest problems in plastics recycling. “If we can get rid of the paint, the “This approach has reduced emissions more sharply than ever before and 0.5 0.22 date we’ve always been able to balance all the conflicting priorities.” A plan is state-of-the-art infra-red sensors can do their job of sorting the plastic, and at the same time it cuts costs,” says Marvin Floer, Manager, Paint and Energy 0.4 0.18 drawn up, the buildings are demolished and decontamination work is carried then the recycling can start,” explains Matthias Schmidt, head of the Plastics Management. “It has also resulted in some thriving partnerships – not just 0.3 0.13 out. In some cases the site is then sold to a development company. Sorting project. If it’s not removed however, all that the sensors can detect is between the suppliers and Chrysler but also between the different suppliers. 0.2 0.09 Matt Gozdor’s Dodge Ram pickup churns its way across the Highland Park paint, and sorting becomes impossible. Schmidt and his team have spent three They are now exchanging best practices to the benefit of their customers.” 0.1 0.04 construction site. The geologist works for GZA GeoEnvironmental, which has years working on the new facility in the DaimlerChrysler Research Center. Now The company-wide adoption of standard procedures has led to a 30 percent 0 0 been involved in the reclamation project since 1994. He points off to his left: it’s up and running in Zwickau, Germany, and handles the sorting of all plastic reduction in emissions of organic substances. At the same time, the cost of the “The last time I was here, that building didn’t exist.” Redevelopment has already parts recovered from end-of-life DaimlerChrysler vehicles in Europe. The new materials used in the painting process has been cut in half. 90 D 90 D 90 D 200 E E 200 200 E E 200 S 320 S 320 1 1 1 300 SEL begun on much of the site. facility is part of the company’s response to the European Union’s End-of-Life At Daimler meanwhile, the changeover to water-based paints in car 300 SEL C 200 CDI C 200 CDI “One of our biggest headaches was the underground storage tanks,” says Vehicle Directive, which stipulates a recycling ratio of 95 percent by the production began in the mid Nineties. Now all Mercedes passenger cars are C 200 CDI

Gozdor. This site has been in industrial use since 1910, and so the existence of year 2015. | painted with water-based paints. While the conventional metallic paints pre- Emissions [g/km] Emissions [g/km] many of the tanks came as “a complete surprise” – despite intensive prior scruti- viously used contained 73 percent solvents, the water-based paints are 70 1992 2002 ny of aerial photographs, architects’ plans and reports by former employees. And percent water, with a solvent content of just ten percent [see Facts & Figures,

8  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  9 rio+10  “Sustainability Quality certified by luminescent bacteria A strong smell of the seaside pervades Sabine Adinolfi’s small mobile labora- tory at the Sindelfingen plant in Germany. Sabine’s job is to check the quality requires economic of wastewater at the plant, using luminescent bacteria. If these microscopic organisms give off a strong glow, that is a sign that everything is as it should be. If the glow becomes more feeble, the water is polluted. The bacteria require saline conditions to survive and thrive – hence the misleading tang of the sea. development” Adinolfi has been involved in environmental impact research aimed at moni- toring the effects of automotive production on the biosphere since the early Nineties. Her focus is not on compliance with legal standards but on assessing Mr. Töpfer, in late 2001 Daim- So the road to sustainable development leads via the theeffects of different combinations of substances on living organisms.“We have lerChrysler organized the second developed countries? been working in this field for the past ten years, but many questions still remain Magdeburg Environment Forum There is no doubt about it. It is in those countries that the unanswered,” says this doctor of biology, referring to the difficult business of in conjunction with the UNEP. latest technologies must be put into practice: fuel cells establishing reliable biological reference conditions.When can a certain situation How important are conferences in cars, hydrogen technology, solar energy. However, we be said to be ‘normal’? “Given that we are constantly influencing our environment, like this for sustainability? cannot wait for these eco-friendly developments to come that’s a tough question,” says Adinolfi as she gazes at the computer screen on They are very, very important – and I’m onto the market in the developing countries. We have to which glowing dots of light appear. The “complex production processes” which not saying that out of politeness,having develop them in the industrialized countries and then she often refers to could hardly be better illustrated than by the complex tangle been involved in staging that particu- export them – on favorable terms. And anyway, the so- of pipes and cables that surround her at the central wastewater treatment plant. lar event. We have to maintain contact called “developed” countries are by no means a model of DaimlerChrysler has taken a similarly unconventional approach at its plant with the private sector – after all, their sustainability. On the contrary, we are piling up environ- in Rastatt, Germany, where a comprehensive eco-system evaluation has been investments carry a great deal more mental costs for coming generations – and, in particular, conducted over recent years [see “A check-up for the eco-system,” page 52]. The weight than state development aid. for the developing nations. aim was to investigate – with the help of lichens – the effects of the production process on flora and fauna in the vicinity of the plant, which is located in an So business and sustainability are “Favorable terms” sounds good – but how do you get ecologically sensitive area not far from the floodplains by the Rhine. The study not contradictory? companies to look beyond their profit margins? concluded that the air quality in Rastatt is just as good as in the nearby spa town Sustainability is closely bound up People who have less than a dollar a day to live on do not of Baden-Baden. “We have found no evidence that the plant has had any signif- with economic development, with the buy cars. And so before you can do anything else you have icant environmental impact,” says Szabolcs Törgyekes. creation of economic opportunities to create the markets. Another issue is that prices must The fact that DaimlerChrysler was prepared to use such unconventional for young people in the world’s devel- reflect environmental costs more effectively, through methods is down to a sea-change in environmental awareness throughout the oping countries. And environment- taxes and duties – not as a money-making exercise, but in company. “At one time, environmental protection was focused on the friendly investments are crucial to order to change the way people act and to change the development of new technologies. Today, there is a new emphasis on achieving this goal. technologies. Then companies will realize that by saving forward-looking solutions and on the integration of environmental protec- energy they can make money. tion aspects into management processes,” explains Hans-Ulrich Hahn. In his Klaus Töpfer, 63, has been Executive Director of the United Nations Are you looking for financial investors? view, two events in particular triggered the new awareness: first of all the Cher- Environment Programme [UNEP] – based in Nairobi – since 1998. As I said, investments are vital for sustainable develop- Can you give us an example? nobyl nuclear reactor catastrophe of 1986, which he says shook people’s faith in The former German Minister of the ment, and so, therefore, is investment capital. But we Of course. It’s fascinating to see how industry has technology, and secondly the Earth Summit in Rio de Janeiro six years later. Environment is a high-profile proponent of sustainable development have to ensure that private-sector investments fulfill both moved towards closed-loop systems in its use of water – In training sessions and audits, Hahn, Adinolfi and their colleagues sharpen needs: creating jobs, but at the same time respecting and a key factor in this was the introduction of a water employees’ environmental awareness. Above all, the introduction of an environ- theenvironment. Which creates a direct link between discharge duty. Or how the emissions from automobile mental management system with its regular eco-audits is today a key driver of technology transfer and sustainable development. paint shops changed as soon as new regulations and environmental protection. “This gradually takes on a dynamic of its own, as duties were introduced. We provided a kick-start for a people aim to adopt higher and higher standards,” Hahn says, summing up his Do these kinds of contacts produce concrete completely new technology – and the companies saved experience with the employees in Sindelfingen. Following the initial validation of results? money under the new system. the Sindelfingen plant in accordance with the requirements of the EU Eco-Audit The older you get – and I’ve got quite a few years under my Regulation [EMAS] in 1995, all DaimlerChrysler’s European sites have now been belt now – the more experience teaches you that merely Taxes and duties are one thing – but can’t subsidies certified. Risk assessments have also been carried out in recent years at all exchanging opinions does not achieve a great deal. On the be used to change behavior, too? Mercedes-Benz car plants, covering such factors as emissions and the use of other hand, being prepared to question your own position Over the long term, all subsidies do is delay the necessary resources, in order to identify and reduce potential hazards as early as possible. is a basic requirement for progress. Concrete results can processes of change. I think we should go down the other These assessments are now being extended to other areas of the company. definitely result from these kinds of contacts – if those road, because it has a much more immediate impact. And The Chrysler Group presents a similar picture. Development of a formalized involved are also willing to take action together. it means that we’re making more effective use of that environmental management system began in 1997 with ISO 14001 [an inter- hugely under-used resource: the human mind. | national environmental management standard] designated as the target. The new environmental management system was also fully integrated with the A bright glow from the luminescent bacteria internal quality management system – an unprecedented step for a major US means the water quality is fine company. 

10  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  11 rio+10  The DaimlerChrysler Environmental Leadership Award ELA 2001: The Winners

The implementation of the environmental management system at the plants The ELA [Environmental Leadership Award] – where winners share both the follows strict guidelines drawn up at company headquarters. To begin with, the prize and the profits – is awarded not for individual achievements but for team- Category A environmental impact of the production process is assessed. Procedures are work. This joint initiative between Stuttgart and Auburn Hills was first offered established, and communicated with the employees, aimed at minimizing the company-wide in the year 2000 to recognize exemplary projects which promote The “Paint and Energy Management” project team from the environmental effects. Environmental goals are formulated and the workforce environmental protection within the company. Chrysler Group – together with partners PPG Industries and BASF Coating is informed. Initially, implementation of the goals is monitored internally, then “Our goal is to raise the profile of environmental issues within the Group as Division – succeeded in improving paint shop processes and materials at seven the entire system is certified by an independent institute. Every six months, the a whole, and thereby encourage as many people as possible to get involved,” American assembly plants in under eight years. As a result, less pollutants are auditors return to carry out follow-up inspections. Integration of the quality says Christof Nagel, a member of the ELA team. At the same time, the ELA is a now released into the atmosphere and less hazardous waste is generated. management system with the environmental management system makes for vehicle for spreading knowledge and expertise about model technologies and significantly more consistent and systematic internal processes. concepts. It also serves to encourage as many locations as possible to adopt The “Paint and Energy Management” project team from the In 1999, EEMS [Enhanced Environmental Management System] implemen- best practices – “in Europe and America, as well as in newly industrializing Chrysler Group also developed a partnership with suppliers Gage Products, tation began at four pilot plants. The following year, the experience obtained countries.” PPG-Chemfil and Henkel Surface Technologies with a view to standardizing the was incorporated into a five-step plan. The introduction of environmental The award is open to all DaimlerChrysler employees. In many cases, though, use of solvents and cleaning agents in the paint shops of all eleven assembly management systems has now been initiated at all 48 plants, and 30 facilities project teams will also include representatives of supply companies, local plants in the USA and Canada. The results are less waste, less hazardous emis- have already been certified. Implementation at the remaining Chrysler plants is authorities or universities, for example – a consequence born of the realization sions, lower costs, and higher product quality. scheduled to be completed by early 2003. “It’s a highly effective approach,” that corporate environmental responsibilities don’t end at the factory gates and says Lynn Drinan, Senior Manager EEMS and Compliance Assurance Audits. that environmental problems invariably have a social aspect. “This kind of Category B Not only does it enhance environmental awareness at the plants, it also cuts cooperation facilitates a process of exchange from which everyone stands to costs. According to initial estimates, environmental management can benefit,” says Nagel. “Without it, many of these projects would be impossible to A project team from Germany and South Africa developed a process produce savings of more than ten million dollars a year, says Drinan. realize.” which utilizes natural fibers in the manufacture of components and – in co- At the Kokomo transmission plant alone, [see “Recycling and Reusing,” page 54] Currently in the running for the cut-glass ELA trophies and the purse of operation with the Council for Scientific and Industrial Research [CSIR] – the savings amount to US$1.6 million. US$8,000 are projects which improve the environmental balance sheet successfully set up this process in South Africa. Notable successes include That kind of commitment has to be rewarded. The acronym “CHEER” is of the company’s production sites [Category A] or which contribute to the improvements to the environmental balance sheet for both vehicles and engraved on a rather plain, hexagonal glass sculpture in the cubicle of Pollution production and utilization of more eco-friendly products [Category B]. Since production operations, and social benefits for the community in which the Prevention Program Manager Doug Orf. “CHEER” stands for “Chrysler Honors 2001, a third trophy has been awarded [Category C], with a prize of US$4,000 plant is located. Environmental Excellence with Recognition”, a program which was launched for projects which lead to progress in the communication of environmental back in 1994. “CHEER gave us an opportunity to reward people for outstanding issues or bring about environmental improvements outside the factory gates. A Chrysler Group project team worked together with suppliers to develop environmental achievements beyond the call of duty,” recalls Orf. The CHEER In 2001, 108 project teams applied for an award, and the shortlist of ten a process for the re-distillation and recycling of engine coolant for the eleven program was originated by the former Chrysler Corporation, but since the merger finalists was finally whittled down to five winners. | US and Canadian assembly plants. As a result, coolant needs replacing less has been enhanced to a Group-wide program known as the “DaimlerChrysler frequently, and – measured over the entire vehicle life cycle – the quantity of Environmental Leadership Award” [ELA]. In the early years of CHEER, we ethylene glycol requiring disposal has been reduced by 27,000 metric tons a received less than fifty nominations per year. Since the first year of ELA, we have year, quite apart from the cost savings achieved. received over 100 nominations per year. Orf sees this as a positive develop- ment:“Now many managers are encouraging their people to get involved in ELA.” Everyone’s a winner Category C This environmental leadership at DaimlerChrysler has also spilled over into the public domain: Last year, for the second time round, the company One of the happy winners on the victory rostrum was Ralph Greiner from An international DaimlerChrysler project team and XCELLSIS organized an international Environment Forum in Magdeburg, Germany, the Production Technology Research Department in Ulm. Together with GmbH – in cooperation with the World Bank, Global Environment Facility this time in collaboration with the United Nations Environment team-mates Thomas Schlößer, Vic Matraiotti [DaimlerChrysler South Africa] [GEF], and United Nations Development Programme [UNDP] – developed initia- Programme UNEP [see interview, page 10]. 220 experts and politicians came and Boyse Pillay [Council for Scientific and Industrial Research], Greiner tives to improve urban air quality in newly industrializing countries. together to discuss issues such as biofuels, CO2 emissions and the future of played a decisive role in the “Sisal Fiber Technology Transfer Project.” The mobility. In DaimlerChrysler’s view, the conference was “a major milestone on aim of the project, described by Greiner as “tremendously exciting,” was to the road to Johannesburg.” The results of the Magdeburg forum will flow into implement the transfer and further development of natural fiber technology the preparations for the Rio follow-up conference, to be held in September 2002. – from plant selection through to component manufacture – from Germany, “We need an intensive dialogue between companies and government agen- where it is already common practice, to South Africa. “What we have cies,” says Klaus-Dieter Vöhringer from the DaimlerChrysler Board of Manage- achieved in six months in South Africa will make everyone a winner,” com- ment. “We must develop a better understanding of one another’s needs, fears mented Greiner. “The company stands to benefit from a profitable process. and responsibilities.” This is all the more important, according to Vöhringer, The environment will benefit because components made from locally culti- when one considers that the annual sales revenues of DaimlerChrysler exceed vated sisal and cotton fibers cut a better figure on the ecological balance the gross domestic product of countries such as Ireland or Norway. Matthias sheet – not to mention the fact that natural-fiber production requires only Kleinert, too, head of DaimlerChrysler’s External Affairs and Public Policy unit, one third of the energy needed to make glass fibers. And finally, the local pays tribute to what he calls the “creative partnership” between the business, communities will also benefit, because the industrial use of sustainable raw political, cultural and scientific spheres. “The Environment Forum set a bench- materials creates jobs in agriculture and in the supplier sector.” mark for the dialogue between economy and ecology, and provided important input for the Rio+10 conference in Johannesburg.” |

12  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  13 rio+10 story of passion | Little Renata was just eight months old when, in the run-up to the environmental conference in Rio, her village received an important visitor. Matthias Kleinert, Head of DaimlerChrysler’s External Affairs and Public Policy unit, was on a fact-finding visit to the model POEMA project. Today, ten years on, Renata has a school to go to, and the fact that her village on the River Amazon now has both electricity and clean water also owes much to the POEMA project. Spiegel editor Sebastian Knauer reports. [Opposite page] Matthias Kleinert and a skeptical-looking Renata 10 years ago – and a beautiful smile from Renata today

rested for a while under the shady branches of the big tree at the heart of Praia She has never been lulled to sleep by a musical toy, worn Pampers or played Grande. with Playmobil figures. Sweets are a rarity – a fact which goes some way, The little girl Suddenly, young Renata appeared on the scene. Always the consummate perhaps, to explaining her gleaming white teeth. She has the odd check-up now PR professional, Kleinert “took the baby girl into his arms, as politicians like to and again with a doctor, but here there is no such thing as regular medical visits do, and clasped a rather puzzled-looking Renata to his brightly-colored cotton for children. from the rain shirt” [Die Zeit]. Renata, her hair fastened back with a grip, grabbed at him with Renata never had need of a fenced-off playground to protect her from her outstretched fingers but otherwise behaved impeccably. No, she says, ten traffic roaring past her front door – the village is her playground. The family’s years on, of course she doesn’t remember the white man’s visit. Since then, in two sturdy bicycles are shared by all. forest the wake of the eco-tourism boom in Brazil, lots of white men have been to visit For Renata’s purposeful mother, Antonia Boveia, 41, the most important Renata’s village. changes over the last ten years have been the provision of “clean water and [ words sebastian knauer photos der spiegel ] The little girl from the rain forest is a symbol of a unique north-south pro- electricity.” ject. Today over 5,200 people representing 900 families depend for their liveli- Her father, Manoel, has built a house set on wooden piles on a piece of land hood on the link between coconuts and capital. Just three of these fibrous by the riverbank. The roof is stone-tiled. The smooth floor is of finest tropical Today is a big day for Renata, aged ten-and-a-half. She and her mother have spheroids provide sufficient raw material to make a modern head restraint, hardwood, the interior walls of simple boards. There is not a lock or key to be made sure of their seats in the front row. And all her friends from the village are while it takes no less than 24 to make a seat backrest and cushion for a Daim- seen anywhere in the house. “We have no use for such things here,” says there too. In Praia Grande [the name of the village means “large beach”] there’s lerChrysler truck or car. Manoel Batista. He is a father who stands no nonsense from his children. a celebration in the offing at the open-roofed community center. A steady, warm Sixty years ago, the US automaker Ford used wood fibers, hemp, sisal and Renata, like the others, must help with the domestic chores when she returns breeze drifts across from the muddy brown waters of the Amazon. At this point even straw in the construction of bodyshells, all of which were much lighter than from her four hours at the nearby primary school. the river seems as wide as the sea. The air temperature is at least 35 degrees steel. Today, Ford, the pioneer of fiber utilization, as well as General Motors, Renata shares the second room in the 40 square meter house with her five Celsius and humidity is high – real tropical heat. Honda and Volkswagen do Brasil are negotiating with POEMA over the purchase brothers and sisters. Her schoolbooks and a small doll stowed in a corner are Renata was born on September 6, 1991, on the world’s largest fluvial island, of modern components from the rain forest. Renata’s only personal possessions. “The children don’t get presents at Christ- just south of the Equator. The only midwife in the vicinity assisted at the birth, For the free-market-oriented automakers and eco-pioneers from Stuttgart/ mas,” says their mother, softly-spoken and self-assured. But there is always “a having traveled the few kilometers from her home in Ponta de Pedras, a river- Auburn Hills, this means that one of the basic conditions established at the little something” at the end of the year. The children’s friends in the next stilt- side village and mooring station for the wooden Amazon steamers. start of the project has now been fulfilled. “A project like this must be capable house along have a few toys. The clay path to its door passes between and And eight months on, this very mooring station was the point of disem- of supporting itself once the launch phase is over,” says DaimlerChrysler’s Chief beneath banana and manioc trees which help cover the Batista family’s basic barkation for Matthias Kleinert, then head of Public Relations at Daimler-Benz, Environmental Officer Herbert Kohler, 49. The globally active corporation needs. and until 1988 government spokesman for the Minister-President of Baden- spends a total of 1.5 billion euros a year on environmental protection, including The furthest Renata has ever been from home was a journey on the back of Württemberg, Lothar Späth. Today, at 63, he is responsible for DaimlerChrys- the research budget. a pick-up truck to the riverside village of Ponta de Pedras a few kilometers away, ler’s External Affairs and Public Policy unit. Moreover, the 9,300 hectares [23,000 acres] of newly planted forest in the and from there across the endless expanse of river aboard a wooden Amazon Back in Stuttgart-Möhringen the energetic Kleinert had once been asked by POEMA communities make a tangible contribution to the prevention of climate steamer. Her knowledge of the world beyond comes either from the television, Daimler works councilor and Brazilophile Willi Hoss, 72, to lend his support to change, since the tropical vegetation so valuable to the automobile designers which for three years now has been the family’s pride and joy, or from the tales a project to protect the rain forest. Now, in the run-up to the UN environmental also happens to absorb approximately 27,000 metric tons of the greenhouse her parents have told her.“My father has been to Belém,” she says proudly.This is conference in Rio de Janeiro, Kleinert was accompanying a group of scientists, gas carbon dioxide – a figure roughly equivalent to the exhaust emissions of the region’s major city, situated in the Amazon delta, a five-hour boat trip away. environmentalists, journalists and media hacks to measure the progress of the 10,000 vehicles. “Now that’s what I call sustainability,” says POEMA initiator But for Renata there is little reason to leave home. In a few years, perhaps, Group’s recently-launched model project, which was processing raw materials and professor of sociology at the University of Pará, Thomas Mitschein, 52. she will have joined the local dance group, and will entertain visitors with tradi- from the rain forest for use in automotive production. The German chancellor of Renata, though, has a different appreciation of this unwieldy term – to her, tional dances. She will go to the market, drink Coca-Cola, sway to the lilting the day, Helmut Kohl, even held out the prospect of a quarter of a billion dollars ‘sustainability’ means that her family has enough food to survive. Brazilian rhythms. By 2010, perhaps, she will be managing the computer-based to save the “lungs of the planet.” Renata’s father Manoel Batista, 42, is the foreman at the local coconut accounts system for the coconut fiber facility in Ponta de Pedras. And one day, The project ‘Poverty and Environment in Amazonia’ [Pobreza e Meio Ambi- fiber production facility. His take-home pay of approximately US$250 – she will flirt with the local boys and blossom into a fine young lady. ente na Amazônia – POEMA], set up by the University of Pará, was no older than generous by national standards [“somewhere between a single and a double Today, though, Renata is wearing a black top with V-straps and a pair of little Renata. UNICEF and other sponsors joined Daimler in making initial start- minimum wage”] – means he can also afford to send his children to school. dark-yellow cotton trousers, all made by her mother. up donations to cover the project’s first three years – one million US dollars “Education is the most important thing for our children’s future,” he says, a man Chilled Coca-Cola, beer and water are ready to be served behind the shut- coming from the automotive Group’s coffers alone. Over the next ten years this whose own origins lie hidden in a blend of Portuguese, African and Indian tered bar. And laid out in front is a buffet of yellow manioc, black beans, grilled figure was to rise to more than US$2 million. A drop in the ocean, perhaps, strains. fish, salads – and toothpicks straight from the box. One of the villagers slices for a global player which has just pumped more than 900 million euros into A hand-colored photograph of Renata’s grandparents hangs in the living open green coconuts with a practiced swing of his machete, the milk ready to developing the new E-Class. But it was evidently money well spent, given the room of the family hut. They originally came to the mighty Amazon as itinerant provide further refreshment. Garlands of tropical flowers hang everywhere, millions invested by international bureaucratic agencies in schemes to protect farmers to cut and burn an area of forest and till the land for a few years before along with coconut ropes and strange half-moon-shaped blanks molded from the tropical rain forest which have come to nothing. moving on. They now live in retirement close by. coconut and latex. They look like they would make good plant-pot holders, but Perspiring after his visit to the mixed forest, with its newly-planted groves The POEMA project has provided this Latin American family with a more one day they will be turned into head restraints for trucks and cars. of Brazilian chestnuts, pineapple, cacao and latex – all used in the production settled way of life. Renata grew up in a simple, hardworking farming family. She Full of anticipation, Renata sits in the front row and patiently awaits the of fibers and oils for a variety of industrial applications – Kleinert sat down and likes to laugh, but in the presence of strangers she is serious and withdrawn. imminent arrival of the visitors from Germany. |

14  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  15 south africa 

Ten years ago it was Rio, now it’s Johannesburg’s turn, and it is no co- incidence that the Earth Summit on environmental protection and sustain- ability is being held in South Africa. The last ten or so years have heralded in a new era in South Africa. The ongoing process of change is designed to give every South African a share Painting in water colors in the nation’s economic and social At the DaimlerChrysler paint shop in East London, development – making this land the water-based paints have been in use since 2000 great hope of the African continent. DaimlerChrysler has been active here for many years now. High tech and high standards of environmental protection are as common at the Group’s South African plants as in Europe or the USA. But the automaker is just as committed to promoting social advances and nature conservation. Positive signs in

[ words barbara helen schmidt-mattern photos marc breisinger ] South AfricaLeft: An employee in the paint shop, right: Time for a change of color

16  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  17 south africa 

Coming to grips with a mouse In Wesleyville, DaimlerChrysler is funding computer courses for students and teachers

Despite the high temperatures, there’s no shortage of activity in the schoolyard at Wesleyville School

18  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  19 south africa 

South Africa’s worst enemy Through education campaigns, medical programs and check-ups, DaimlerChrysler is fighting to stop the spread of Aids

Douw Swanepoel, Ranger in Krüger National Park

Green borders for peace A cross-border wildlife and nature reserve is taking shape in Southern Africa, thanks to the dedicated efforts of the Peace Park Foundation, supported by DaimlerChrysler

20  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  21 south africa 

Paint shop employees in East London “HIV is color-blind!”

Painting in water colors As they are well aware at DCSA, protecting the environment also has a posi- DaimlerChrysler commended for fight tive impact on the company’s image. Even the goal of getting as many vehicles against Aids This particular “beauty salon” is spread over a length of 5,047 meters. The as possible through the paint shop each day has an eco-friendly aspect to add “cosmetics” are applied in layers just one tenth of a millimeter thick and made to its economic benefits. “The more cars we paint a day, the more efficiently the In recognition of its commitment to the fight against Aids in South Africa, up, for example, of color pigments, glitter particles and – at the moment of paint shop operates, not least in terms of the energy consumed in the dryers,” DaimlerChrysler has received the “Award for Business Excellence in the application – 70 percent water. Since July 2000, the paint shop at the Daimler- explains Marlen Riddering. Since last fall, this engineering graduate has been Workplace 2002” from the Global Business Council on HIV/Aids [GBC]. Clifford Panter [38] coordinates Chrysler plant in East London, South Africa, has been using water-based paints. coordinating the establishment of an environmental management system in UN Secretary General Kofi Annan presented the award to Daim- the HIV/Aids Project initiated by For its production manager Niels Andersen, this is the preferred form of auto- East London, in line with the International Organization for Standardization’s lerChrysler Chairman Jürgen E. Schrempp in New York on June 12, paying DaimlerChrysler South Africa [DCSA] and motive “make-up.” ISO 14001 norm. tribute to the automobile group’s dedicated efforts and announcing GTZ, Germany’s government-owned By using water-based paints, DaimlerChrysler has opted for an eco-friendly “We’ve achieved a great deal over the last few years in terms of eco- Schrempp’s appointment as the new Chairman of the international initia- corporation for international cooperation. alternative to conventional coatings. The new water-borne variety contains friendly technology,” says Marlen Riddering. “In 2001, President Thabo Mbeki tive against HIV/Aids. The awards ceremony was organized by GBC Presi- between 70 and 80 percent less solvents. The company has been working on presented us with South Africa’s highest award for business and technological dent Richard Holbrooke and Bill Clinton in his role as Chairman of the the development of water-based paints since the Eighties and today they are in excellence in recognition of our technical, social and ecological performance.” Board of the International Aids Trust. use at its plants in various countries. To enable East London to apply water- Making sure that the project is a success calls not only for investments in The aim of the Global Business Council on HIV/Aids is to win corporate Clifford Panter, why is Aids such a big problem in Africa in particular? based paint in a way that would conserve resources, a new paint shop was built new eco-friendly technology but also for a change in attitude across the work partners for the battle against Aids and foster their commitment. Founded One reason is the mix of wealth and poverty, which creates the conditions for two years ago at a cost of 67 million euros. force. To foster the required spirit of environmental awareness and responsibil- in 1987, the GBC has since focused its activities on combating the immune the virus to spread rapidly. Because of the good infrastructure there are many Around 260 bodyshells for the right-hand drive version of the Mercedes- ity, DaimlerChrysler South Africa has even created its own maxim: “Our passion deficiency syndrome on the hardest-hit continents of Africa, Asia and Latin migrant workers traveling into the towns from rural areas. They have sex with Benz C-Class and the Mitsubishi Colt Pickup pass through the East London drives us to be the best.” | America. their wife at home, and with other women while they’re away. The epidemic is paint shop every day. “As far as the Mitsubishi is concerned,” says Paint Shop spreading among the poorer sections of the population in particular. Manufacturing Manager Niels Andersen, “this is the world’s first paint shop to South Africa’s worst enemy use water-based paints for two-tone vehicles.” Is Aids more of a problem for the black population than the white Water-based paints favor the use of closed-loop processes, which aligns well Aids has become a major problem for many companies with operations in South The medical unit at the plant also focuses on campaigns that seek population? with the concept of sustainability. Given the large amounts of water required in Africa, causing not only a great deal of suffering but also lost working hours and to raise awareness of what Aids means, how it can be transmitted, and how No. HIV is color-blind. True, at the moment there are more black people with HIV the painting process, DaimlerChrysler South Africa [DCSA] made closed-loop productivity losses. DaimlerChrysler South Africa [DCSA] is seeking to combat to live with the illness. There are still many myths to be dispelled: in South Africa. But if you compare the figures for the past two years, the systems a priority when the East London paint shop was designed, thereby the epidemic through a combination of awareness-boosting campaigns and “18 percent of employees at DCSA believe that sex with a virgin will heal Aids. number of Aids sufferers is growing at the same rate in both population groups. largely avoiding the production of wastewater. This was particularly important medical treatment. We often encounter such mistaken notions and they urgently need to be in a country like South Africa where water supplies are not exactly sumptuous, A mural entitled “HIV is everybody’s business” is splashed across several corrected,” says Clifford Panter, Director of the medical unit. What is DCSA doing to combat Aids? and where people are just beginning to develop an awareness of the need to square meters of wallspace opposite the medical unit. Located at the heart of Clifford Panter is coordinating a three-year project – a public-private We are conducting campaigns on specific topics. Then there are training protect the environment. the DaimlerChrysler plant in East London, the mural is a reminder, warning and partnership initiated in 2000 by DCSA and GTZ, Germany’s government-owned courses for shop stewards, managers and nurses. In addition, we have what Large amounts of wastewater are generated when the paint particles are encouragement. The picture shows a nurse, children playing, and a man corporation for international cooperation, with support from the German we call peer educators – employee trainers who can be approached by their rinsed out of the air in the spray booths. What remains is a mixture of water and engrossed in his newspaper, reading: “My friend with Aids is still my friend.” The Ministry of Development. Its main aims are to prevent new infections in the colleagues and who raise awareness in their own teams. sludge which is then broken down by a special treatment plant until all that is picture is framed with countless anonymous handprints – symbolizing the fact work force, to provide the best possible care for Aids sufferers, and to maintain left is a dry, gray mass which looks like clay. This inert residue is then properly that Aids affects all of the 4,000-plus employees at the company’s three plants the company’s profitability in South Africa. How does that work? disposed of as hazardous waste. in South Africa. According to an internal study completed in 2001, 9 percent of Yet Panter and his team in the medical unit have one key cause for concern: The peer educator is given 15 minutes to cover a particular topic with his team. The second end-product of the process is clean water, ready to be reused. the workforce in East London were HIV positive, while the figure for the whole “Only about two people a week take an Aids test, and that’s still far too few,” How do I use a condom? How can I live with the illness? Once a month they This is channeled back into the paint shop water cycle, closing the loop. “We’ve of South Africa was 13.6 percent. says Nurse Maxi Brady. Here in the medical unit, at least, HIV is everyone’s inform the project management of the results of their work. One of our tasks is only been able to separate the water from the paint sludge in this effective way Since the 1990s the company has been looking at ways of combating the concern. | to monitor the costs the company incurs through productivity losses, treatment since we set up the new paint shop,” explains Niels Andersen. “In the past, we virus – the main cause of death in South Africa. It had to develop an independ- and training costs. had to dispose of a percentage of the contaminated water as hazardous waste.” ent strategy because the Aids policy of the South African government had long At DCSA, the introduction of water-based paints is one of the main pillars been ineffective. Have you met with any success in your work yet – or is the future of the company’s commitment to the environment. It is all part of a change in DCSA has had an “HIV/Aids Workplace Policy” since 1996. One of its aims looking bleak? mindset which took place back in the mid Nineties “when we replaced the is to promote safe sex and hand out as many condoms as possible, another is We have a huge amount of work ahead of us. I believe that the number of Aids motto made in Germany with our new maxim: made by DaimlerChrysler,” says the treatment of sexually transmitted diseases and tuberculosis, which often sufferers in South Africa, and at DCSA, will increase. However – no-one receiv- Günter Butschek, Director of the East London plant. “That means we have to arise as a result of the immune system disorder. Tuberculosis is the most ing treatment from us with anti-retroviral therapies has died or become unfit for maintain up-to-date environmental standards at our plants all over the world.” common illness among those infected with HIV. work in the last three years. That alone is a great success! |

22  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  23 south africa |

Computer lessons at Wesleyville School

Indigenous plants have been reintroduced along the banks

Concrete link: A bridge in Krüger National Park built to cope with the floods in the rainy season

Coming to grips with a mouse Green borders for peace

At Nelson Mandela’s request, DaimlerChrysler South Africa financed a new The declared aim of the Peace Parks Foundation [PPF], founded in 1997, is to visitors a year. If the transnational park project is successful, the tourism building for a school in Eastern Cape, one of South Africa’s poorest regions. convert 300,000 square kilometers of open landscape spanning eight countries programs could be extended to include Limpopo. In the plans drawn up by the As part of its social welfare program, the company – along with its business in Southern Africa into cross-border conservation areas, not least with a view PPF and the government of Mozambique, two thirds of the park area would be partner T-Systems – is also sponsoring computer courses for both pupils and to boosting tourism in the region. The foundation’s name reflects its interna- set aside for the tribes and as a wildlife conservation area. teachers at the school. For many of them, these are their first steps in learning tional mission – to maintain peace among the various countries taking part. PPF DCSA has so far provided support to the tune of more than 1 million euros how to use a personal computer [PC]. founder member DaimlerChrysler South Africa [DCSA] sees its support for the for the PPF project. One of the beneficiaries is the Southern African Wildlife “Imfundo Sisibane Sanaphakade” proclaims the sign at the entrance to Foundation as part of its social responsibility toward its home country. College on the edge of Krüger Park, where future game wardens and park Wesleyville School – “Education is the light of life.” On this early Tuesday after- Once upon a time, this fence saved lives: Known as the “iron curtain,” the managers are trained. Once their training is complete, they can help people like noon, despite the high temperatures, there is a good deal of activity in the fence on the eastern boundary of South Africa’s Krüger National Park kept Swannie Swanepoel. Swannie himself is so pleased with the progress made schoolyard. Several dozen pupils in blue and white school uniforms are gath- the elephants from straying into neighboring Limpopo National Park in Mo- by the relocated elephants that plans are afoot to transfer another 1,300 from The DCSA offices in Pretoria are set at the heart of nature ered together, all visibly excited. zambique. Until 1998, civil war raged in Mozambique and poachers eager for Krüger to Limpopo this year. With similar plans in the pipeline for around 300 Soon most of them will be sitting in front of a computer for the first time in precious ivory and meat wiped out all the elephant herds across the park’s giraffes, 3,000 impalas, 1,500 common zebras and 400 buffalo and gnus, their lives, working with a mouse and learning how to print out a document. Operation oasis almost 2.5 million acres. Swannie, who so far has been running the show single-handed, will need all the Fifteen-year-old Nosiseko is already sitting in the classroom with her friend, The fence is still standing but fortunately there are many holes in it, because help he can get. | waiting with a mixture of shyness and impatience for the lesson to start. She is At DaimlerChrysler South Africa [DCSA] headquarters in Pretoria, the gardens today it would be a good thing for elephants to cross this particular border. The one of the few who have used a computer before: “I wanted to print out some- are watered with rainwater. Or else the gardeners use water from the two lakes elephant population in Krüger Park is booming to such an extent that, until thing for our church service, and it worked! Today I want to try and draw a at the heart of this green oasis. The office buildings are surrounded by water recently, there was a risk of overpopulation. Limpopo, by contrast, had no picture for my little sister.” and meadowland inhabited by countless plants and some 175 native bird elephants at all until the fall of 2001, when the PPF transferred 25 elephants Quiet descends outside the bright red-brick building, which was built in species. Natural landscape makes up more than two thirds of the 111-acre site. from Krüger Park. To help this initiative, DaimlerChrysler donated an off-road SAFRI: an economic initiative 2000, after the old schoolhouse was demolished. The younger pupils set off for Creating this biotope took a strong vision and a great deal of commitment. vehicle for warden Douw Swanepoel – known to everyone as Swannie – via the their homes, while 24 of the senior pupils begin their computer lesson. Initially the planners at DCSA made a virtue of necessity: Originally there were German-African business initiative SAFRI [see box]. Today, Swannie also gets to SAFRI stands for Southern Africa Initiative for German Business and Since last year the oldest of the school’s pupils [who number 400 in all] three lakes near the company’s headquarters, but in the summer of 2001, due fly over his elephants’ new home by helicopter, to check that they are settling encompasses fourteen member nations in Southern Africa, which have spent two hours a week learning how to use a PC. T-Systems donated to serious erosion, they had to be completely redesigned and the banks replant- in well. have joined together to form the Southern African Development twelve computers to the school – which doesn’t even have its own telephone – ed. That was a job for environment specialists and landscape architects, who This elephant relocation project is just one of many cross-border initiatives Community [SADC]. Together they form a region which looks set to as part of the Wesleyville School Project. And the teachers are being trained, were duly called in. with which the PPF is hoping to uphold peace and protect nature in Southern offer significant growth potential for the future. too, every Wednesday afternoon. “The idea is that they will be able to teach At the heart of the project, which was completed in early 2001, was the idea Africa. Apart from South Africa, the nations involved in the work of the PPF SAFRI is making targeted efforts to attract German investors and computer courses here themselves one day. Our aim is to help them to help of creating an ecosystem that would be as self-sustaining as possible. One key include Lesotho, Swaziland, Mozambique, Zimbabwe, Botswana and Namibia. is looking to develop and deepen relations between Germany and themselves, setting up a system that will run itself in the long term,” says aspect was the planting of native plant species around the lakes, but first, thou- In the past there was virtually no organized collaboration between these coun- Southern Africa. Project Manager Homi Kutar of T-Systems. In the meantime, the pupils and sands of trees and bushes had to be removed, including many species brought tries with a view to forming cross-border conservation areas. The Initiative was created in 1996 by the Africa Association [Afrika- teachers are being trained by IT students from Rhodes University in East to South Africa during previous centuries by the various colonial powers. Today, “We are building cooperation in an area where there were previously no Verein], the Federation of German Industry [BDI] and the Association London, 40 kilometers away. across the whole country, they threaten the development of native plant joint projects,” says Willem van Riet, Vice-Chairman of the Peace Parks Foun- of German Chambers of Industry and Commerce [DIHT]. Its Chairman On this particular afternoon, Hadray and Unathi, both in their early 20s, species by absorbing too much water from the soil. dation. Van Riet, a landscape architect, is responsible for the geographic plan- is Jürgen E. Schrempp, Chairman of the Board of Management of have come to Wesleyville. While Unathi writes words like “mouse” and Over the past year, 12,000 new plants have been planted around the lakes, ning of the parks and the implementation of ecological aspects of the project. DaimlerChrysler AG. “keyboard” on the blackboard, 24 inquisitive pairs of eyes are trained on and as many as 61,000 aquatic plants set in place along the banks. Because As a result he is constantly in contact with the park operators, but also main- Its most important undertaking is the Human Resources Develop- Hadray: “Today we are going to start by learning how to switch the computer South African winters can turn decidedly cold, the project designers took care tains a dialogue with politicians in the various countries. ment Project, which started in 1998 and is financed by Daimler- on and off,” he says, and holds up a keyboard. He asks the pupils what it is. The to select frost-resistant species. The plants also had to provide suitable nesting “It is no easy task, implementing this project,” explains van Riet – and here Chrysler via the SAFRI Chairman’s office. So far, in workshops entitled answer comes shyly, but from all corners of the classroom. “For most of them sites. he is referring not only to the difficulty of bringing the various countries togeth- “Excellence – the Key to Competitiveness,” more than 300 African here it’s like a kind of magic,” explains Unathi later, “but they are incredibly Quite apart from all the environmental advantages, DaimlerChrysler’s er around a table but above all to the tribes living in the relevant areas. They may entrepreneurs from small and mid-size enterprises have been trained enthusiastic when they can finally try things out for themselves.” employees also get to benefit from the new landscape design, enjoying the stand to profit from the tourist infrastructure in the future – but they would have in key aspects of business expertise. “Every year you must get a little The head of the neighboring primary school, too, is full of enthusiasm for beautiful scenery each morning as they drive to work through the grounds. | to accept a degree of resettlement. better. That’s the message we want to convey to our participants,” the project. He has already made an urgent request to Homi Kutar to provide Those affected include the 12,000 inhabitants of Limpopo National Park, says Project Manager Nina Mapili. | his school with even just one computer. With a little luck, the Wesleyville which is scheduled to be combined with Krüger to form a single transnational Project may turn out to be a lesson from which many others can learn. | park. There are no tourists in Limpopo as yet – while Krüger attracts one million

24  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  25 energy for the future 

More and more people want to be more mobile, but if this ever-increasing desire for mobility is not to be fulfilled at the expense of the environment and future generations, new regenerative sources of energy are going to have to be tapped. DaimlerChrysler’s engi- neers are already on the trail of the eco-compatible energy forms of the future. They are busy developing future-oriented automotive technologies and actively promoting their appearance on the roads of many countries around the globe. And they’ve also come up with several new approaches to stationary energy generation. Filling up on sunshine

[ words gina fay damron, ulrich pontes, daniel stolte, kristen tuinstra photos felix brandl, dirk brunicki, jeremy herliczek ]

Mankind needs mobility – ask any mother who drives her children to soccer practice. Wanting to change one’s location is a fundamental human trait which has not only brought an endless succession of new challenges, but also ultimately triggered the dawn of technological progress within our civilization. Mankind’s mobility options have been constantly expanding and with them the human need for mobility. There is no end to this global trend in sight. Modern communications technology may make individual journeys unnecessary, but even in advanced countries traffic densities are still rapidly increasing. In its Green Paper “Towards a European Strategy for the Security of Energy Supply,” the European Union predicts 19 percent growth in passenger transport and 38 percent more freight traffic by 2010. One key factor in the global growth picture is that developing countries have a lot of ground to make up. Mobility may be a blessing but the immense amount of energy it needs comes at a high price. Fuels today are almost exclusively produced from carbon-rich petroleum, the burning of which releases the greenhouse gas CO2. The transportation sector consumes large amounts of petroleum. In both Europe and the United States, two-thirds of all oil becomes gasoline and diesel fuel for motor vehicle, aircraft and marine engines. Our dependency on petroleum creates other problems, too. Some experts fear that, in 10 to 15 years, oil production will no longer be able to keep pace with global demand. The shortfall could be offset by the expensive extraction of oil from deep-sea regions or oil sand or shale. But production 

26  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  27 energy for the future  from these sources consumes roughly four times as much energy as that needed to extract oil from conventional sources – which also means that four times as much CO2 is produced. Then there are the political issues for the Western industrialized nations, as a result of the unequal distribution of resources. In the next few years, the market share commanded by the OPEC states is set to grow rapidly, marking an implicit increase in their power to control the price and availability of oil. This is why, in its Green Paper, the EU calls transportation “the biggest unknown factor of the future on the energy policy front,” and is aiming to speed the advent of alternative fuels. For the same reason, in January 2002, the US government launched its “FreedomCAR” program in which Daimler- Chrysler is involved. The initiative targets “a new approach to powering the cars of the future.” In technical terms, FreedomCAR has two core objectives: to boost efficiency as fast as possible, i.e. to extract more transportation performance from every kilowatt-hour of energy; and to replace oil as the prime mover of transportation with renewable energy resources.

CHALLENGES EN ROUTE TO A RENEWABLE FUTURE Renewable energy is energy that is constantly supplied by the sun. This can come from the direct conversion of sunlight, by exploiting the redistribution of air and water masses driven by the sun, or by transforming the solar energy stored in plants into heat, power and motion. Unlike fossil fuels, all of these THE MAXIM: TAKE THINGS A STEP AT A TIME measures have no impact on the climate: Either no CO2 is produced, or only The greatest challenge, though, lies in producing hydrogen or methanol in an as much as plants used in renewable energy generation use during their environmentally acceptable way. Most hydrogen is produced from natural gas growth phase. Renewable energy forms also can be tapped at source, reduc- – which in environmental terms puts it on a par with gasoline and diesel fuel. ing the need for imports. The changeover to hydrogen produced from renewable resources or bio- At present, however, renewable energy resources are only a fraction of methanol implies completely revamping the fuel supply infrastructure. So in the market – and their share of the transportation sector is minimal. In the EU, order to make the transition as ecologically beneficial and economically feasi- bio-fuels such as biodiesel or ethanol have a market share of just 0.15 percent. ble as possible, the maxim has to be: Take things a step at a time by exploiting In the US, they account for one percent. The market with the largest propor- niches – not least in the bus transport and local delivery segments. tion of bio-fuel by far is Brazil, where 15 percent of fuel requirements are met For the present, it is well worth exploiting the fuel economy potential of by alcohol distilled from sugar cane. existing technologies, not least by using electric motors to assist internal As they target the long-term, widespread use of renewable energy combustion engines. Hybrid vehicles of this kind are almost ready for series resources coupled with low fuel consumption, the leading automakers – like production [see “Smart teamwork”, page 31]. We should also strive to make the US government with its FreedomCAR initiative – are banking on the fuel rapid progress with the introduction of fuel cell technology, to the extent that cell. Fuel cell powered vehicles are driven by high-torque, almost silent elec- this is feasible without a widespread network of refueling facilities – e.g. wher- tric motors. The power to drive the motors is generated from hydrogen on ever vehicles regularly return to a central depot, as in the mass transit and board the vehicles. Today’s prototype fuel cell systems are already twice as urban delivery sectors [see “Anne, the van with a difference,” page 31]. This may fuel-efficient as conventional internal combustion engines, which are con- not have a critical impact on the global environmental balance sheet as long demned by their operating principle to convert approximately three quarters as most hydrogen is still generated by conventional means, but it brings of the fuel into heat, rather than motion. And the fuel cell systems’ only waste substantial local benefits and will help us acquire valuable experience. products are water and heat. On the fuel front, the changeover can begin gradually – even with existing What is stopping the fuel cell coming onto the market on a grand scale is gasoline and diesel engines – by increasing the proportion of renewable fuels not the concept itself. Fuel cell powered cars and buses are almost ready for that we use. Ethanol, for example, can readily be added to gasoline with no large-scale production. The bigger problem is creating the required fuel supply harmful effects, and in the United States this is already common practice. infrastructure. Storing hydrogen, which is normally gaseous, is no easy matter Moreover, diesel fuel can be produced from biomass – as is currently the case and the requirements are not readily compatible with the facilities at existing using oil-containing plants and will hopefully soon be possible through the gas stations. Then there is the limited operating range, because even highly gasification of organic waste [see “Fuel from waste,” page 32]. | compressed hydrogen contains far less energy per liter than gasoline. The range problem can be defused by liquefying the hydrogen at minus 253 degrees Celsius, but the cooling process itself consumes roughly one third of the energy that the hydrogen ultimately contains. One way around the problem could be to store the hydrogen as a chemical compound – methanol, for example – which is then split into hydrogen and CO2 by an on-board item of equipment called a reformer.

28  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  29 energy for the future  Sodium borohydride: Fuel cell buses for Europe Safe, clean power for the fuel cell The finishing touches and filling stations are It looks like a regular , with the normal Town & still missing, but field trials are set to begin Country-style interior. But the Natrium – the Latin Anne, the van with a difference Smart teamwork in 2003. That’s when Mercedes-Benz Citaro fuel word for sodium – is the Chrysler Group’s latest fuel Hydrogen power: A fuel cell Mercedes-Benz van Quicker off the mark than a conventional cell buses will start carrying passengers around cell vehicle, running on hydrogen generated by a is handling parcel deliveries for Hermes Versand smart but easier on fuel: that’s the smart hyper ten European cities – with zero emissions. reaction of sodium borohydride [NaBH4] and water. Service in Germany with hybrid drive

With the presentation of a prototype in Vancouver, Canada, at the end of last To power the vehicle, these basic ingredients combine in a catalytic reaction to Anne is quite an eye-catcher. Her name appears over her front fender, and a The environmentally responsible driver, so we’ve always been told, should be year, the project entered its final phase prior to the field trials. After test driv- produce hydrogen, which is then fed into the fuel cell to produce electricity. decal with fleecy clouds and little flowers runs round her body – reflecting the prepared to sacrifice a bit of fun and keep that right foot in check. After all, the ing the environment-friendly bus, transport operators have already given it the What’s left is a slurry of sodium borate, which remains with the vehicle and can growth potential of the nascent fuel cell technology. At the front and on the big more you rush, the more fuel you’re likely to consume. But the engineers at thumbs-up. “If I close my eyes, I couldn’t tell it isn’t a diesel bus – except that later be recharged with hydrogen, starting the process over again. Sodium door at the side she sports a large “H” and a small “2” – the chemical symbol DaimlerChrysler have a habit of questioning conventional wisdom – which led it’s a lot quieter,” said a representative of the public transport operators from borate is chemically similar to borax, which is commonly used in laundry deter- for hydrogen. Otherwise, Anne looks like any other Mercedes-Benz Sprinter van. them to develop the smart hyper. As the name indicates, this latest hybrid Porto in Portugal. gent. It is found in regions of the world where oil is not. Ulrich Vollmer, technical vehicle supervisor at DaimlerChrysler in Nabern, prototype puts the accent on performance. DaimlerChrysler and fuel cell manufacturer Ballard Power Systems of “The biggest unresolved issue is not the fuel cell, but the fuel. Most auto- near Stuttgart, climbs behind the wheel and turns on the ignition – revealing In the smart hyper, an electric motor has been paired with a diesel engine, Canada are currently working on refinements, then the first ever [limited-series] motive manufacturers agree that ultimately hydrogen is the best choice in order in an instant that Anne is anything but “just another van.” There’s no charac- in a concept designed to eliminate the trade-off between fuel economy and fun fuel cell vehicle production run can begin. In the course of 2003, Amsterdam, to have true zero-emission vehicles,” said Christian Mohrdieck, Senior Manager teristic diesel “knocking,” and instead of a cloud of smoke, the exhaust emits at the wheel. The hybrid accelerates from 0 to 100 kph two seconds faster than Barcelona, Madrid, Hamburg, London, Luxembourg, Porto, Stockholm, for Fuel Cell Systems, who led the Natrium project. just a few drops of water. Somewhere in the van there’s a low humming noise. its standard counterpart. It also comes out ahead on fuel economy. That’s

Stuttgart and Reykjavík will each take delivery of three fuel cell buses. With Like the Jeep® Commander 2, the Natrium minivan is a fuel cell hybrid Ulrich Vollmer steps gently on the gas pedal and Anne glides off, accompanied because an ingenious central electronic control unit switches back and forth support from the EU, the transport operators will pay 1.25 million euros per with a 35 kW Siemens AC induction motor, powered by a 55 kW Ballard fuel by a sing-song whistle. This is the tune played by the compressor which supplies between diesel and electric operation, using both to best advantage. vehicle – four times the price of a conventional diesel bus. cell system and a 55 kW SAFT Li-Ion battery. Acceleration is similar to the air to Anne’s “heart” – a fuel cell in which oxygen from the surrounding air When the hyper is standing at a red light, for example, an automatic The buses have a range of at least 200 kilometers on one tank of fuel – Chrysler Group’s full-size all-electric minivan, the EPIC: 0-60 mph in 17 seconds. reacts with hydrogen. The reaction generates an electric current which powers stop/start system shuts down the diesel engine. When the light turns green, enough for a whole day’s operations. The fuel cells – which have an output of Projected fuel economy is at least 30 mpg – less than 7.3 liters per 100 km. The a motor. At the rear of the van, meanwhile, all that emerges from the tailpipe is the driver doesn’t have to go scrabbling for the ignition key but simply steps on over 200 kW – require refueling with hydrogen gas compressed to 350 atmos- driving range is 300 miles – comparable to a gasoline-powered vehicle. pure water vapor. the gas. Instantly, the 27 hp electric motor propels the smart hyper forward pheres. Consequently, the transport operators are currently working with part- All the powertrain components – traction motor, battery, fuel cell package, Before she sets out on her rounds, Anne is filled up with hydrogen. On one until the diesel engine has found its stride and automatically takes over. All the ners from the energy sector to develop a hydrogen supply infrastructure and sodium borohydride fuel storage and processing system – are stowed away tank of fuel she can cover more than 100 kilometers. The electric motor has driver notices is a change in sound. Gearshifts are handled by an automatic complete with filling stations. under the vehicle’s floor. There is no cabin intrusion. In the event of a crash, an output of 75 kW, giving the van a top speed of 120 kph, although it rarely transmission, and here the hybrid smart has another trick up its sleeve. At the In most cities the hydrogen will be produced locally, in 40 percent of cases the fuel and the waste product are non-flammable and non-toxic. In fact, the reaches such speeds. It’s in the nature of Anne’s work to stop every few point during the gearshift when the diesel engine can’t transfer power to the using electricity from renewable sources, while the remainder will be mainly differences between the Natrium and the standard Town & Country are only minutes. She may be a very special member of the 3,000-strong fleet operated wheels, the electric motor maintains the momentum. If the driver lets up on the generated from natural gas. The field trials will allow the ten cities to acquire evident underneath the minivan. “That’s what we are really proud of,” said by Hermes Versand Service, but like all the rest, her job is to deliver parcels to accelerator or hits the brakes, the electric motor acts as a generator and uses valuable practical experience not only with the vehicles themselves, but also Mohrdieck, “the customer is able to have a fully usable vehicle.” the customer’s door. the braking energy to recharge the battery. with hydrogen production, storage and fueling. After all, development of a Before a fleet of Natriums hit the road, there are several challenges to using Anne is the only fuel cell van in the company’s fleet. She’s a prototype based In order to make the most effective possible use of the hybrid drive system hydrogen supply infrastructure is the biggest hurdle en route to more fuel cell the sodium borohydride system that need to be addressed. Together with its on the Mercedes-Benz Sprinter, and has been operating in the Stuttgart area out on the road, the electronic control unit monitors a range of parameters, vehicles on our roads. | partners, the Chrysler Group set up a work plan to solve the technology and since September 2001. In the course of its two-year field trial, the van will also including gas and brake pedal position, and engine speed. It also registers the design issues: be used in the Hamburg area, where Hermes is based. With its large fleet of hyper’s speed, whether it is traveling uphill or downhill, and the battery charge – Design the vehicle’s cooling system to better dissipate waste heat vehicles, Hermes recognizes its responsibility toward the environment and is level. Fast switching between the different power sources helps the smart hyper – Reduce the alkalinity level of the aqueous solution of sodium borohydride keen to try out alternative drive concepts. The company is also aware that to outperform the fuel economy of a conventional cdi smart by about 13 by looking for stabilizing agents to replace sodium hydroxide the time will doubtless come when fossil fuels are much more expensive. “We percent, returning consumption of less than three liters per 100 kilometers. Of – Find an alternative to the rare and expensive ruthenium by moving believe the fuel cell is the shape of things to come,” says Managing Director course, since hybrid drive systems are more expensive to produce, they must From left to right: A Citaro fuel cell bus out and about to a cobalt-based catalyst Wolfgang Fürwentsches. For local delivery operations, fuel cell drive is already have more to offer than models with just one drive system. In the smart hyper, Exceptional minivan: the Chrysler Natrium – Improve catalyst durability a feasible option, because the vans regularly return to a central depot where that adds up to more fun on less fuel. | The Natrium development team Test driving the Mercedes-Benz Sprinter – Work out the details of the waste product recycling process, they can fill up with hydrogen. This is important because an adequate network A special Sprinter for Hermes parcel service Filling up with hydrogen including the ‘well-to-wheels’ efficiency and cost. of hydrogen filling stations is still a dim and distant prospect. The smart hyper’s hybrid prime mover In December 2001, DaimlerChrysler presented four fuel cell vehicles at the A purring noise signals Ulrich Vollmer’s return to the depot. That and a few California Fuel Cell Partnership. Each ran on a different fuel: gaseous hydrogen, drops of water on the concrete floor are the only sign that Anne is very much a liquid hydrogen, methanol and sodium borohydride. But whatever the final fuel van with a difference. | may be, much development work has to be done before fuel cell vehicles are ready for mass production. “It will take at least another decade,” concluded Mohrdieck. |

30  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerDaimlerChryslerEnvironmentalReportEnviromentalReport2002  31 energy for the future 

Ideal for short runs: The Global Electric Motorcar

GEM makes short trips easier and more eco-friendly As a leading builder of electric vehicles for use on public streets, DaimlerChrysler has improved on an already good and clean vehicle in the 2002 model The biomass gasification plant at Choren in the German state of Saxony of its zero-emission Global Electric Motorcar.

Like many Latin American cities, Santiago de Chile suffers from chronic air pollution GEM, a Neighborhood Electric Vehicle [NEV], already provides quiet, conven- Fuel from waste ient, inexpensive and environmentally-friendly transportation in settings such DaimlerChrysler and Choren Industries of Freiberg as planned and gated communities, resorts, military bases, university and in the German state of Saxony are currently Getting together to improve urban air Intercontinental “leapfrogging” – college campuses, industrial parks and city centers. Now, DaimlerChrysler has involved in a joint project looking at ways of The inhabitants of many Latin American mega-cities with fuel cell buses unveiled its 2002 models, offering luxury seating, a new, upgraded 5-horse- converting wood and other organic waste into fuel. have to breathe polluted air. Now a World Bank High-tech for developing countries: Fuel cell buses power motor and optional doors. The first fuel to come on stream from this uncon- initiative is out to improve matters. promise to provide a means of easing the burden As of March, 2002, GEMs are legal in 38 states. They are certified as zero ventional source will be methanol, which can power on the environment in poorer countries by putting emission vehicles in California and other mandate states. fuel cells. That will be in mid-2003, and diesel will state-of-the-art technology on the streets. They can be driven on streets posted up to 35 mph but operate at a follow in the course of the year. As the five million inhabitants of Santiago de Chile are well aware, their city can comfortable 25 mph top speed. Operating range, a hurdle for many electric present two different faces. On some days, a thick, yellowish-gray haze blankets vehicles, is not an issue for a GEM since it can be plugged into any standard 110- an endless urban sprawl. On others, the Andes and the coastal mountain range The telecoms sector in China provides a fine example of what can be achieved: volt household outlet between uses to keep the battery “topped off.” Operating This amazing transformation is achieved by gasification and catalytic synthesis. tower up around the city, looking close enough to touch. Sadly, it is the first face One minute virtually no one in China has a phone line, the next minute every- continuously, the vehicle has a single charge-range of between 30 and 35 miles The first step in the process resembles charcoal production: At temperatures which tends to be the norm – the mountain panorama is only revealed when the one’s using cell phones. China has simply skipped the stage of developing a and is able to recharge in about eight hours. over 400°C, the biomass is converted into coke and carbonization gas contain- rain has briefly washed the smog away. landline network. This is what development experts refer to as “leapfrogging.” “With more than 12,000 vehicles built, GEM has entered a vital market with ing tar. Next, the tar too is converted into combustible gas and other problem- In other major Latin American cities too, air pollution is an all-too-familiar Now this same approach is to be taken with fuel cell technology, offering untapped potential,” said Larry Oswald, Director Hybrid and Electric Vehicle atic substances are removed. Now the gas can be used as fuel in a stationary problem, leading not just to poor visibility but also to massive health problems. poorer countries direct entry to the state of the art currently practiced by more Product Team at DaimlerChrysler and CEO of the GEM division. “Innovative and engine without causing any problems. In a test facility, Choren Industries have This prompted the World Bank to launch its Clean Air Initiative in 1998, a technologically advanced nations. Brazil, Mexico, Egypt, India and China should useful options for new and existing customers make these vehicles even more been generating electricity in this way for several months now. program which brought together politicians, environmental organizations and see the first buses equipped with this climate-friendly power source taking to appealing.” The next step in the project is to synthesize the gas into liquid fuel – by gearing national and international companies in a bid to debate the problems and their the road in something like three years’ time. “This handful of buses will promote Oswald said DaimlerChrysler expects the market to grow significantly and thegasification process closely to the downstream synthesis stage.The processes causes and decide on appropriate action. This action is then implemented using the establishment of a new industry and help open up the global market,” that the company will continue to be the leader in this still-emerging technology. involved here are already familiar in principle, so the main focus of the trials will money from development aid or development credits, and everyone involved in explains Monica Saraiva Panik, who is also project coordinator at Daimler- “There is no question that numerous global factors show that DaimlerChrysler be on producing a detailed energy balance-sheet.This will help to answer a variety the initiative is expected to play an active part. Chrysler’s partner Ballard AG. DaimlerChrysler and its partner companies must continue to investigate the feasibility of future technology and be able to of questions related to energy efficiency. For example, there is the question of In the meantime the Clean Air Initiative has been so successful that it has provided input and advice throughout the planning phase, which is now deliver on it when called upon. Environmental, political and alternative fuel the best location and distribution of gasification plants. If the biomass is trans- become a model for other continents as well. Workshops in Mexico City, Lima, complete. issues prove that GEM development fits perfectly in our business strategy.” ported long distances to large plants, this could consume more fuel than is ulti- São Paulo, Rio de Janeiro, Buenos Aires and Santiago set the ball rolling. The In financial and organizational terms, the way for the pilot project was GEMs are produced at the Fargo, North Dakota, facilities of Global Electric mately generated. Small, distributed plants on the other hand would offer lower Initiative has survived changes of government and has prompted intensive prac- cleared by the Global Environment Facility, which was set up at the Rio Earth MotorCars LLC, a subsidiary of DaimlerChrysler. Four models are available: efficiency. DaimlerChrysler and Choren would be very satisfied if the fuel produc- tice-sharing, for example via a website devoted to information about eco-friend- Summit, and by the UN Development Programme. The countries involved must two- and four-passenger cars, and short-and long-bed utility vehicles. tion process achieved an energy efficiency of between 40 and 50 percent. lier buses and truck technology. 500 people have taken part in distance learn- now finalize the details of their own financial contribution and then tenders will “GEM vehicles are clean and quiet, but also have a real impact on air quali- Biomass gasification has lots of advantages to offer, not least because the ing courses on air quality management. Monica Saraiva Panik, who represents be invited for the supply of the buses. In Brazil, the financial details have already ty because they replace conventional vehicles for the most polluting trips – waste materials required – besides wood these could include old tires and the DaimlerChrysler Group in the steering group, is impressed: “At the start, been worked out, and Ballard AG is now preparing a tender. Overall, this is not starting a cold vehicle for a short drive,” said Oswald. “And they cost just organic waste – are already generated in huge quantities. Farmers in develop- private industry and governments were miles apart. Now everyone is pitching in a matter of simply importing the technology wholesale from Europe or North pennies per mile to operate.” | ing countries could use land where crop cultivation is impossible due to erosion together and there is a real will for change.”| America. As Saraiva Panik stresses, the aim is to come up with a strategy which to “cultivate” biomass instead. At the same time, gasification provides a way of local manufacturers will be able to implement: “If you’re going to get success- neutralizing toxic heavy metals by binding them in non-toxic slag. | ful commercialization, you have to think national.” |

32  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  33 energy for the future |

Power from Pooled resources At the Rhön-Klinikum hospital in Bad Neustadt, Germany, a high-temperature fuel cell hydrogen: the fuel cell built by DaimlerChrysler subsidiary MTU Friedrichshafen is supplying clean power and heat.

On the blue-tiled bottom of the former swimming pool at the Rhön-Klinikum Although the HotModule has already proved its serviceability, this field trial hospital in Bad Neustadt stands a silver cylindrical tank. Stainless steel pipes will allow the MTU engineers to gain valuable new experience. Via data link, snake in and out of the tank, over the edge of the pool and away into the wall. information is continuously exchanged between the HotModule in Bad Neustadt Only a few years ago the pool would have been full of sanatorium guests swim- and the MTU plant at Ottobrunn near Munich, where the high-temperature fuel ming sedately. Since September 2001 however, it has been turned over to the cells are developed and built. Here, the MTU engineers can monitor the activity HotModule, the Clinic’s new, clean source of energy. The heart of this mini- of the HotModule at all times. Conversely they can also intervene to alter the power station is a stack of 350 fuel cells, each constructed in sandwich form. power plant’s operating parameters. The fuel cells generate power and heat from natural gas with unrivaled effi- The field trial also helps the developers to monitor how the fuel cell reacts ciency and negligible pollution. to fluctuating power demands, for example. The aim is to identify potential oper- “The term ‘fuel cell’ doesn’t give a great deal away,” says Martin Scherer, ating problems and to gain the experience that will make it possible to get the electrical engineer at the Technical Controlling department of the Rhön- HotModule into commercial production as quickly as possible. At present, every Klinikum. “The natural gas consumed by the HotModule is not combusted as is HotModule is still a one-off, hand-built product. By the start of industrial-scale normally the case with a fuel, but broken down chemically into carbon dioxide production, which is scheduled for 2005, it is hoped that manufacturing costs and hydrogen. An electrochemical reaction then takes place between the will have been brought down sufficiently to make the HotModule competitive hydrogen and oxygen from the ambient air to produce water.” In the fuel cell, with other combined heat and power plants currently on the market. Everyone this reaction is managed in such a way that it generates an electrical current at MTU is confident that their cost targets will be met, given that the high oper- and heat. The only waste products are water vapor and carbon dioxide. That’s ating temperatures of the HotModule’s fuel cell stack mean that there is virtu- why the engineers speak, with a certain pride, of ‘waste air’ rather than ‘emis- ally no need for expensive noble-metal catalysts. What’s more, no new produc- sions.’ Unlike conventional combined heat and power plants, which use internal tion technologies are required. combustion engines or gas turbines, the fuel cell produces only negligible emis- The Rhön-Klinikum first started to think about using stationary fuel cells The finite nature of our oil reserves and possible climate changes due to green- sions of nitrogen oxides, carbon monoxide and sulfur oxides. back in the mid Nineties. Several aspects ultimately made the HotModule their The fuel cell was invented almost house gases could now help the fuel cell to make a belated breakthrough.The The HotModule at the Rhön-Klinikum is a field trial being carried out by first-choice solution. First of all, the principle of the molten carbonate fuel cell is half a century before Gottlieb finite nature of our oil reserves and possible climate changes due to greenhouse the DaimlerChrysler subsidiary MTU Friedrichshafen. Compared with conven- less susceptible to malfunctions. Secondly, the simple design reduces mainte- gases could now help the fuel cell to make a belated breakthrough. tional combined heat and power plants, a high-temperature fuel cell like the nance, repair and operating costs over the long term. Thirdly, and this ultimately Daimler, Wilhelm Maybach and Fuel cells operate at a higher efficiency than internal combustion engines HotModule derives 30% more electricity from the same quantity of natural gas, tipped the balance, the HotModule features compact dimensions, despite the Karl Benz presented their first and have no moving parts, which makes them quiet and less susceptible to while the total energy efficiency [electricity and heat] works out at up to 95%. fact that the reforming of the hydrogen from natural gas takes place internally. wear. The only problem is that energy first has to be expended to generate the More than half this energy is used as electricity in the hospital grid – the small- Since the fuel cell has no moving mechanical parts it operates silently, apart petrol-engined vehicles in 1886. required hydrogen fuel. The hydrogen can be obtained from natural gas or oil, scale power plant has a peak capacity of up to a quarter of a megawatt under from the whirring of the fans which circulate the fuel gas and air through the or from the electrolysis of water. If a fuel cell is able to use hydrogen generated full load. The rest is given off as heat. Thus the fuel cell power station operates vessel and cool the electrical switchgear mounted on the swimming pool wall. For a long time this electro- using hydropower, solar power or wind energy, then its overall pollutant impact on the combined heat and power principle, which is becoming increasingly popu- This is where the direct current supplied by the fuel cell stack is converted into chemical device in which hydrogen is zero. Even if the hydrogen is derived from a hydrogen-rich hydrocarbon lar in times of scarce resources and increasing worldwide energy consumption. alternating current before being channeled into the hospital grid. Outside the like natural gas, the fuel cell’s environmental performance is still better than Under full load conditions, the temperature inside the vessel of the HotMod- hospital walls, meanwhile, the only sign that a new era has dawned in the old is used to generate electricity, that of an internal combustion engine. It obtains more energy from the same ule reaches between 600 and 650°C. The high operating temperature means swimming pool is a thin plume of white steam spiraling up over the roof. | heat and water vapor, was more or quantity of natural gas, with a corresponding reduction in emissions of carbon that no external reformer is needed to extract the hydrogen fuel from the dioxide. Fuel cells can be used to supply power in a wide range of applications natural gas. Also, at 400°C, the waste air from the HotModule is hot enough less ignored. from laptops, camcorders and vehicles to combined heat and power plants. The to produce process steam. “We use this hot steam to sterilize our medical twentieth century was the century of the internal combustion engine. Maybe instruments,” says Martin Scherer. And there is still enough heat left over for the twenty-first will be the century of the fuel cell.  water heating. Another bonus of the fuel cell power plant is that it can deliver an uninterrupted supply of electricity in the event of a power cut.

The assembly shop in Munich-Ottobrunn HotModule data on screen The HotModule in the Rhön-Klinikum’s former swimming pool

34  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  35 new products 

The new E-Class is easy on the environment [ words susanne lang photos dominik von winterfeld ]

For a good 50 years now, E-Class models have been fast, safe and economical. Today, they’re all of that and intelligent to boot, with their state-of-the-art electronics. Over the years, the various E-Class models, from the classic slab-sided and

Bumper with polypropylene pellets tailfinned series to the more angular autos of the ’70s and the model that be- came the classic German taxi, were invariably two cars rolled into one: the solid middle-class sedan, and the stuff of legend, spiced with cult status. The latest model, the W211, has gone one better, joining the secret service for a drive-on role in the second “Men in Black” film.

Life Cycle Engineering works back from disposal to development ATC dryer plant Another feature of the E-Class – less trumpeted but ever-pres- created in their production. Inputs and outputs are ent – is luxury, naturally at its eco-friendly best. It’s a blend of precisely recorded. All of the energy and material qualities which, in 2002, both customers and manufacturer flows entering the system and all of the products and take almost for granted. emissions leaving the system are taken into account. For the first time in the history of the E-Class, the In the case of the new E-Class, the Design for Design for Environment [DfE] department was involved in Environment department steered the project in an the development of the W211 from the initial stages of environmentally compatible direction from the outset. conceptual design, long before the specifications had An overall balance-sheet was drawn up, plotting primary been compiled, let alone the production process begun. energy requirements against the service life of the vehicle According to Bruno Stark, who heads up DfE, this was a and drawing a revealing comparison with the figures for the decisive factor: “The earlier we opt for the ideal solution in predecessor model. technical, economic and environmental terms, the lower If primary energy requirements are only considered up to the the cost of corrective action will be later on.” All the more point where a vehicle leaves the assembly plant, the W210, the previous so since large-scale retooling is not a realistic option once model, is more efficient. However, over its estimated total useful life of 155,000 the development process itself gets under way. miles [250,000 km], the W211 soon emerges as the clear winner. After just At DfE, Life Cycle Engineering decides whether a design 40,000 miles [65,000 km], total primary energy requirements are already lower. proposal is environmentally compatible. The task of the pro- Over its entire service life, a W211 uses about 95,000,000 BTU [100 GJ] less gram, installed on the computer of team leader Matthias energy than its predecessor, equivalent to roughly 570 gallons of gasoline. Finkbeiner, is to compile a Life Cycle Assessment [a kind of envi- The environmental benefit becomes clear when we consider that it takes ronmental balance-sheet] for the entire car. “just” 152,000,000 BTU [160 GJ] to build the W211. So by the end of its useful Life Cycle Assessments [LCA] take not only development and life, a W211 has saved more than half the energy required to produce it in the production but also the service life and disposal of the vehicle into consid- first place. Or to quote Matthias Finkbeiner, “From the DfE angle, the new model eration. Matthias Finkbeiner knows the value of Life Cycle Engineering: “What works out far better than the old one.” an LCA gives us is a comprehensive, objective assessment of environmental In the course of the development process, the Design for Environment team compatibility.” In contrast to conventional environmental impact assessments, took a critical look at a number of specific design options in the creation of the this program looks beyond the factory gates and traces all the materials that new E-Class model and made their influence felt. Several examples are set out go into a vehicle back to source, considering all the environmental burdens below. 

36  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  37 new products  Material selection: Secondary raw materials: Renewable resources: Permanent lubrication: ALUMINUM OR STEEL? TURN OLD INTO NEW – ALL RESOURCES ARE FINITE – A WELL-OILED PROCESS FROM START TO FINISH – THE ANSWER IS “YES” AND PUT IT BACK IN THE CAR! APART FROM RENEWABLE ONES EVEN WHEN IT’S TIME TO RECYCLE THE NEW E-CLASS

The objective: To develop a tenable compromise between primary energy The objective: To use recycled auto parts in our own automobiles and not just The objective: To conserve resources and make increasing use of renewable The objective: Operating fluids must be easy to remove and dispose of. consumption and weight savings. in park benches or bird houses. materials such as flax or sisal fibers. The background: The European End-of-Life Vehicle [ELV] Directive calls for all The background: Unfortunately, it is not always true that lower fuel con- The background: To ensure that the environmental balance-sheet for Daim- The background: Apart from being inexpensive and light, natural fibers are operating fluids to be removed from ELVs to prevent a detrimental impact on the sumption brings net environmental benefits. When assessing the environmen- lerChrysler products charts a continuous upward curve, the Group’s Environ- also easy to recycle. Even if they leave the industrial material cycle, they have environment. tal compatibility of a vehicle, you also have to take the energy needed for its mental Protection Guidelines call for an increase in the proportion of recycled no overall impact on carbon dioxide levels. When incinerated, they only release The solution: Sometimes a tiny plug can make a world of difference in a production into consideration. And while a car with an all-aluminum body will materials used in passenger car production. The aim is to pre-empt statutory the carbon dioxide which they absorbed from the atmosphere during growth. car. The quality of operating fluids, especially oils, has now improved use less fuel because it is lighter, building that car calls for more energy and requirements calling for specific recycling rates. From 2006 onward, 85 The result: More than 50 components of the new E-Class are produced either to the point where they can survive the entire useful life of a generates more emissions. So what is the answer? “Think hard!” grins Bruno percent of an end-of-life vehicle by weight must be recycled. From 2015, that in whole or in part from renewable materials, corresponding to a total weight vehicle and drain plugs are no longer required. However, Stark. Together, his engineers and the body development team had to invest a figure will be 95 percent. of some 30 kilograms. As in the predecessor model, DaimlerChrysler is one of when a vehicle reaches the end of its useful life, the considerable amount of thought before they came up with the ideal solution. The solution: Concentrate on thermoplastic materials. This is the obvious the leading users of renewable resources. There has been an increase in the operating fluids have to be removed as quickly and Over 18 months, they put six or seven different designs through full virtual approach because plastics are produced from crude oil share of renewable resources in large components from 12 percent to approx- completely as possible. This is why the shock testing. The variants tested included all-steel and all-aluminum bodies and a and are coming to account for an increasing imately 15 percent. For example, the lining system developed for the trunk absorbers of the new E-Class feature innovative number of combinations with individual parts made from the different proportion of every passenger car. Plastics is made up of several layers of sisal fibers with a recycled plastic binder to markings indicating the point where they can metals. And the entire bodyshell, with all its modules, was subjected recycling helps conserve crude oil. improve material properties. be pierced and a newly developed extraction to a Life Cycle Assessment. The result: In his search for suitable Conclusion: Here too, we must weigh up the requirements of the production unit connected, to drain the oil by a special The solution: “Intelligent lightweight design” including both plastics [polypropylene materials], process, material properties, cost and weight-saving potential, as in a Life Cycle vacuum process. Another new technical aluminum and steel. Dieter Liebhart, the man responsi- Assessment. And as Bruno Stark says: “In the new E-Class, we’ve maintained refinement makes it easier to drain off the The result: Structural components such as floorpan modules ble for recycled materials on the our high standards.” windshield washer fluid. In the case of and frame-type integral supports are made of steel. Aluminum is DfE team, worked primarily with thenew E-Class, it would be difficult to not ideal for these components because they cannot be fully recycling firms who process used remove the tank for conventional drainage dismantled during disposal and are therefore shredded – and batteries with plastic cases. The because it is no longer installed in the shredders are specially designed to separate out iron and steel. recycled battery cases were ini- engine compartment but in a space-saving While advanced downstream processes may be available for tially tested in the production of configuration between the compartment The front wheel-arch liners are made removing aluminum, they are not entirely effective and cannot interior trim and door brackets. The Tanks for the operating fluids and the fender. entirely of recycled material distinguish the different aluminum alloys. Apart from its recycling main problem was embrittlement and Gasoline drainage The result: A small nipple has equipment advantages, steel also offers a number of benefits during production. If, fracture at low temperatures. “We came been provided on the bottom of An employee for example, floorpans are made of aluminum rather than steel, a consider- at those problems from a strategic and prac- the tank which can be cut off or checks the shock absorber draining wrench able volume of aluminum stamping waste is generated which cannot be tical angle,” Liebhart explains. “Our main concern punctured with a screwdriver and used in the auto manufacturing process. More complex production was not to mix new raw material into the blend the fluid drained into a container. processes were also the decisive factor in material selection for the but instead to recycle old plastics to the Conclusion: Dispensing with plugs frame-type integral supports. Although advanced processes are now greatest possible extent.” So the answer was brings a slight reduction in production costs. available for recycling both steel and aluminum, the additional primary simply more recycled materials – this time elas- At the same time, operating fluids can be removed energy needed to produce aluminum parts is only justified if the weight tomeric plastics which were added to improve in accordance with environmental requirements. The saving compared with steel is at least 30 percent. In the integral supports, low-temperature impact resistance. These came new E-Class meets the required fluid removal target of 95 that was not the case. The result of the overall assessment was therefore that from old bumpers, some of which were supplied percent. | high-strength steels should be used, which still mean clear weight savings by the Mercedes Recycling System [MeRSy]. Following a compared to the previous model, plus lower primary energy requirements. number of trials, since September 2000, E-Class models have been fitted with On the other hand, aluminum is the material of choice for body components front wheel-arch liners made from recycled materials. By the spring of 2002, such as hoods and fenders. These are easy to dismantle and can be recycled 1,000 metric tons of polypropylene had already been saved. In separately to produce high-grade aluminum, in contrast to aluminum scrap view of the planned production run of the new E-Class, this from shredding processes which can only be used in aluminum casting alloys. innovation will ultimately reduce the amount of virgin Preparing to drain off the In the case of the hood and fenders, the weight saving was the decisive factor plastic required by some 4,800 metric tons. Gasoline drainage equipment shock absorber fluid because over the vehicle’s entire service life it will more than offset the greater Conclusion: The wheel-arch liners in the new amount of energy required to produce the aluminum. The weight of the E-Class are one of the few examples of closed mate- aluminum hood is about 30 to 40 percent below that of its steel counterpart. rial cycles in the automobile industry. Dieter Lieb- Given the long service life of an E-Class, in this case aluminum certainly pays. hart knows how important such progress is: “Recy- Conclusion: In the ideal solution, the right quantity of the right material will cled car components are being made into new car be used in the right place in the right vehicle. Bruno Stark is convinced that this components – that’s a pretty rare occurrence to is the best method: “There are good reasons why we decided not to produce an date.” In all, more than 35 components containing Dieter Liebhart all-aluminum body. That said, though, if the new E-Class hits its production over 25 kilograms of recycled materials have been is the expert on volume targets, we will still be the leading user of aluminum among European approved for use in the latest E-Class model. secondary raw materials in the automakers.” DfE team

38  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  39 new products  Diesel engines: The Vaneo – because every day is environment day The new Mercedes-Benz mobility concept combines environmentally compatible production processes with environment- friendly products. The Vaneo is not only an innovative multi-purpose vehicle which is equally ideal for families and clean and efficient commercial users. It is also the result of an approach to environmental management that gives top priority to the environ- mental compatibility of the product from start to finish, from development right through to dismantling. The second generation of economical common-rail direct injection [CDI] engines for the new E-Class features lower consumption and even more power. We asked Gerhard Hauschulz, Senior Manager Support Product The busy robots in hall 24 still have a lot to do before the body can be finally In the assembly hall, everything is ready for the body to be united with the Environment in the Transport, Environment and Business department, united with the chassis. At the moment, all you can see of the Vaneo is a collec- chassis. While bolt after bolt is tightened and the Vaneo approaches the end three questions about diesel engines. tion of silvery steel parts. A loud howling sound fills the air, sparks fly and the of the production line, Jörg Altenburg is already thinking about disposal. Hold- towering high-tech welders jerk rhythmically into position. Step by step, the ing up a headlamp, he points to the joint between the transparent plastic lens 60 percent of E-class automobiles on the market have diesel engines – computer-controlled robots at the Ludwigsfelde plant weld and join the floor- and the black housing and explains: “Our innovative clip system means that why is that? pan, sides and roof into a new bodyshell. Only when the bodyshell has been the headlamp can be dismantled quickly and easily when the vehicle reaches Direct injection diesel engines offer significant advantages, especially for high- painted can it finally join up with the chassis, engine and transmission. the end of its useful life.” mileage users. The fuel consumption of these engines is up to 35 percent lower than The 1,500 employees at the plant have good reason to take pride in their But just as important as fast and easy dismantling is the optimum that of comparable gasoline engines. And in the new E320 CDI we improved fuel product, the Vaneo, not least on account of an integrated environmental recyclability of the individual components. One of the main objectives is economy by about 1.8 mpg (0.9 liters per 100 km) compared to even its predeces- management system which puts the spotlight on environmental compatibility to minimize the quantity of waste which is difficult to recycle. A detailed list sor. Advanced diesel engines have a major role to play in reducing the carbon diox- from the production stage onward. According to Jörg Altenburg, “The of the materials employed is essential in ensuring that each material ide emissions of road vehicles. In addition to their low consumption, some versions body shop was specially designed for the production of the is channeled into the right recycling loop. In the Vaneo, the of our CDI engines boast an efficiency of almost 40 percent. These new common-rail Vaneo, taking all the relevant environmental aspects into materials used are indicated on the modules themselves power plants bear no resemblance to the sluggish diesel engines of the past. Today consideration. Today it’s one of DaimlerChrysler’s and the ease of dismantling of all modules has been they can in some cases even outperform their gasoline-powered counterparts. most advanced production facilities.” Jörg is respon- tested. sible for environmental protection at the plant and Mercedes-Benz has a long tradition of dis- DaimlerChrysler does not offer particulate filters for the new E-class. So he points to the shiny pipes leading from each mantling tests for commercial vehicles. With what makes this model range so environmentally compatible? production bay to the roof of the hall. “All the experts looking on, the dismantling operations All our diesel engines are environmentally compatible because of their low fuel consumption. emissions are extracted immediately,” he are timed, components are weighed and the We comply with all the statutory emission limits. Over the past 12 years, we have succeeded explains. And you can sure smell the result: results are analyzed. These analyses provide in reducing NOx output by 92 percent and particulate emissions by 81 percent. The focus of our The air inside the hall is just as clean as the basis for the development of specifica- efforts is on designing our engines in such a way that particulate matter is outside. tions and guidelines for future model series. not generated in the first place. That way, we can combine low exhaust emissions with low The other reason why staff at the plant can With the Vaneo, Mercedes-Benz took a further fuel consumption. Only when we can no longer outperform very low emission thresholds by send the Vaneo onto the road with a clear step forward. For the first time, the project means of such primary measures will we consider using particulate filters in conjunction with conscience is the environmental compatibility of management team decided to commission an NOx adsorption catalysts. Incidentally, the detrimental effect of soot particles on human health the vehicle itself. Minimal environmental impact independent institute to remove the operating has yet to be scientifically proven. was a key requirement in the material selection and fluids, dismantle the vehicle and document the tests – design brief for the engineers at Ludwigsfelde. They with outstanding results: All the environmental targets In the future, diesel engines will have a significant part to play in reducing wrote about 50 specifications for different assemblies, defining set for the Vaneo were attained. carbon dioxide emissions and fuel consumption. What does this mean the environmental requirements for each individual module, including The floorpan design of the Vaneo was an aspect which came in for future developments in diesel engine technology? components bought in from suppliers. In view of the Group’s own internal regu- for special praise. A similar approach had already been used for the A-Class. When the new Euro 4 emission limits come into force, from 2005 onwards, we lations and the European End-of-Life Vehicle Directive, metals and materials Easy-to-dismantle plastic trim panels mean that underseal is not re- will have to fit a new exhaust system. Compliance with the new NOx limits that make for easy thermal or mechanical recycling are used wherever possi- quired to protect the floorpan. The insulation fitted to the trim panels is will not only call for new catalytic converters. The oil companies will also ble. As Christoph Peter, Head of Vaneo Series Engineering, explains: “Only a made of a similar material and is also designed for easy removal. This reduces need to offer improved sulfur-free fuels. We will only be able very small proportion of the total weight of the vehicle still has to be landfilled.” the volume of bulky waste to be shredded and has a positive effect on the to introduce the new technology required if these fuels are As they leave hall 24, the bodyshells are prepared for the next stage in recycling rate. In addition, environmental protection during production is im- actually available. In our opinion, governments should not the production process. An electronically controlled conveyor system feeds proved as there is no undersealing process to give off emissions. enact laws requiring the use of specific technology such as the bodies to hall 313, the paint shop. After passing through e-coating dips The design of headlamps, trim panels and bumpers was also praised particulate filters but focus on imposing emission targets and computer-controlled spray booths, the bodies emerge resplendent in for the way in which it takes account of the fact that one day they will need and limits. | blue-metallic, red or silver. Environmental compatibility is a key concern in this recycling. Although safety requirements and customer needs still take priority part of the plant. Water-based paints are used and a complex system of dif- over environmental protection in some cases, Christoph Peter confidently ferent coats of paint ensures not only an immaculate finish but also a long claims that “when this vehicle finally reaches the end of its long service life, service life for the Vaneo. “Comprehensive series of tests have shown that the you can be sure that disposal will be both environmentally compatible and Vaneo not only meets but even outperforms the applicable corrosion protec- inexpensive.” tion and environmental requirements,” reports Christoph Peter. “Even the Nevertheless, it will be a long time before the shiny new Vaneo, which is protective clearcoat – the only coat which is still solvent-based – is processed just coming off the production line, is up for dismantling. Before then, with in an environmentally compatible way. The solvent vapor given off is used to its highly efficient space concept and its economical power plant, it will be fuel an afterburner system, supplying heat energy and minimizing pollutant helping to protect the environment by conserving oil resources and reducing emissions. emissions. |

40  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  41 st. louis |

[ words kristen tuinstra photos jeremy herliczek ] SLAEnergy fromplant the landfill

The Chrysler Group has two manufacturing plants in St. Louis, known as the the landfill’s core, sending it off to a compressor station built on the landfill site. St. Louis Assembly Complex. Dodge and Chrysler are built in the The methane is then separated and piped to the St. Louis Assembly Complex. South Plant; the newly designed 2002 Dodge Ram trucks are manufactured in Don Kaneski, a Chrysler Group Paint and Energy Management Environ- the North Plant. Both plants make strong efforts to be environmentally respon- mental Specialist, projects that in 2001, methane used at the plant replaced sible and use new sources of renewable fuels. almost nine tons of oxides of nitrogen [NOx] emissions that would have resulted Instead of relying solely on natural gas, the St. Louis Assembly Complex had natural gas been used. A conservative estimate for NOx emissions in 2002, uses methane from a nearby landfill to provide a source of fuel for two of the Kaneski said, is a reduction of 18 tons. complex’s four 100-million BTU boilers. These boilers produce steam which Superior Oak Ridge Landfill isn’t sitting dormant with any chance of running provides a significant amount of the St. Louis Complex’s heating and cooling, out of methane. The facility receives roughly 1,500 tons of waste a day, of which as well as generating the steam used in the paint spray booths and in the phos- 65 percent is municipal solid waste. It is 4.3 miles away from the St. Louis phate application process. complex and routing gas pipes from the landfill to the complex had proven a The St. Louis Complex burns about two million cubic feet of methane per challenge. Nonetheless, the initial US$1.2 million investment is expected to pay day. “We’ll use as much as the landfill can send us,” landfill project manager for itself in natural gas savings over a two-year period. Denis Hagedorn [photo, left] said. Hagedorn works at the St. Louis North plant. The substantial replacement of natural gas, coal and other fossil fuels with RECYCLING BENEFITS landfill gas [LFG] at the St. Louis plant is expected to be duplicated at other The use of LFG to supplement natural gas in the complex is one environmen- DaimlerChrysler facilities in the United States. “We’re looking to continue tally friendly way to cut costs. Recycling is another form of savings within the increasing shareholder value through environmentally responsible solutions St. Louis complex. 25 percent of every vehicle assembled at the complex is such as renewable fuels whenever possible at our other facilities,” said Dave made using recycled steel, plastic and foam. By using recycled materials, the Lyons, Energy Planning Manager in the Chrysler Group’s Environment and plant expects to save about US$5 million from 1999 to 2001 in a one-time lump- Energy Planning Office. sum tax rebate, with annual recurring tax savings of more than US$1.5 million. Landfill-gas-to-energy projects provide both local and global environmental Kenneth Peebles, Environmental Coordinator for the St. Louis North plant, benefits. Recovering LFG methane causes a sizeable reduction in emissions of said a team of plant environmental coordinators and financial advisers has been methane gas, which is thought to be a contributor to the “greenhouse effect.” working with the state of Missouri on two tax rebate projects. These have the Unburned methane is 21 times more potent a contributor to the greenhouse potential to result in significant refund checks and energy tax exemptions for effect than carbon dioxide. the St. Louis plants, while encouraging the use of recycled components in The use of landfill gas at the St. Louis facility is expected to reduce green- vehicles. house gas emissions by some 30,000 tons per year of carbon dioxide equiva- The first project is the Missouri Utility Sales Tax Exemption, which has the lent by the direct displacement of natural gas and LFG methane destruction. potential to result in a refund on sales taxes paid over the past three years on This carbon dioxide reduction is the same as that achieved by planting almost electrical usage. In order to qualify for this refund, the Chrysler Group provided 9,000 acres of trees a year! In addition, burning methane also greatly reduces data to the State of Missouri certifying that its minivans and trucks are made of the volatile organic compounds [VOCs] within methane. at least 25 percent recycled material. With the burning of LFG, which is piped from the nearby Superior Oak Ridge The second project is the Missouri Material Recovery Processing Sales Tax Landfill, the energy costs of producing new Dodge Ram pickups and Dodge and Exemption, which has the potential to result in a refund on sales taxes paid over are reduced by between US$500,000 and US$800,000 per the past three years on items such as oils, chemicals, and natural gas, because year. At the same time, the use of cleaner-burning, less expensive LFG offsets the products manufactured at the plants use recycled materials. the burning of 450 to 650 billion BTUs of natural gas each year. The St. Louis Assembly plants are turning out two top-selling vehicle lines in the Dodge Ram truck and the Dodge and Chrysler minivan. Using recycled HOW IT WORKS material and renewable fuels in the manufacture of these products reinforces Decomposing garbage in landfills converts into landfill gas containing about 50 the company’s commitment to sustainable manufacturing. | percent methane and 50 percent carbon dioxide. Gas wells squeeze gas from

DaimlerChryslerEnvironmentalReport2002  43 concept cars | CARE Car II What can be done with the plastic in end-of-life vehicles? The most environmentally friendly and economical way to recover usable material from an end-of-life vehicle [ELV] is to run it through an automated process.

[ words kristen tuinstra photos jeremy herliczek ]

Gerry Winslow supported DaimlerChrysler as consultant and project manager in the CARE Car project Shredded plastic parts previously ended up on the landfill. In the CARE Car II, a high proportion can be reused in new components Cutting waste, saving millions with recycled plastics

Seventy-five percent by weight of a modern car or light truck is made up of CARE Car program, the Chrysler Group used the automated materials separa- Another key part of the program was to work with the supplier community verted polyurethane foam into a superior-performance carpet underlay, dem- metal. At the end of their useful lives, most vehicles are destroyed. Most of tion system to more effectively recycle three of the most widely used plastics from the outset to ensure that the recycled plastics meet the same materials onstrated in the CARE Car II. the steel and aluminum in end-of-life vehicles [ELVs] is returned to the manu- in automobiles – ABS [acrylonitrile butadiene styrene resin], polyurethane foam specifications as the Chrysler Group’s production parts. This goal was achieved As Bernard Robertson said, “This project demonstrates that the industry facturing process. Metal recycling companies across the US and Europe are and polypropylene. before recycled plastic automotive parts were ever molded and produced. An can care for the environment while protecting the bottom line. Automobiles are busily recycling steel and other metals back to the manufacturers. But typically, Economics is a significant CARE Car II consideration. “We recognized at the additional objective of the program was to make sure the recycled plastic was already some of the most recycled products on the planet but this technology 25 percent of a car currently becomes shredder residue and is landfilled. start that if we were to dismantle these plastic parts from ELVs by hand, that molded in the normal production process, so that suppliers would quickly reach presents the first real-world solution to recycle the remaining 25 percent of a This 25 percent is the focus of a demonstration project at the Chrysler would push up the cost of the dismantling process substantially. Also, the pile an appropriate level of confidence in using the recycled material. vehicle that still goes to a landfill.” | Group. “We’re concentrating on recovering plastics from the shredder residue of polypropylene parts taken from a vehicle would contain other materials. Ulti- In addition to the supplier firms that made significant contributions to the in the CARE Car II program,” said Gerald Winslow, Care Car Program Manager mately, hand dismantling would cost more than using virgin materials in the CARE Car II research and development effort, two metal recycling companies for the Chrysler Group. “The CARE Car II program has the potential to reduce manufacturing process,” Winslow said. also invested in the research aspect of the program. the amount of material going to a landfill and put it back into new automobiles.” The program’s focus now is to make the bottom line the driver for the use Chrysler Group supply partners played many different parts in the demon- An air induction system made of recycled polypropylene is just as heat-resistant as an induction system made with virgin polypropylene DaimlerChrysler estimates the process eventually will help increase vehicle of recycled materials. “We want to make it financially worthwhile for our parts stration project. One company developed headlamp mounting modules made recyclability from 75 percent to 95 percent by weight. suppliers to use recycled plastic,” said Bernard Robertson, Chrysler Group from recycled plastic gloves and bottles, reducing materials costs by 15 per- The CARE [Concepts for Advanced Recycling and Environmental] Car pro- Senior Vice President of Engineering Technologies and Regulatory Affairs. cent. One plastic moldings supplier developed a recycled-content version of ject involves a proprietary flotation technique that automatically separates, “Whether it’s altruism or economical, recycling is something we have to make the body flaring/skirting. Another helped develop and test the fender liners extracts and dries different types of plastic residue from ELVs at a current rate work,” he said. “And with landfill costs going up, recycling costs are eventually for CARE Car II from material directly recovered from the materials separation of up to 1,500 pounds of residue per hour. The recovered plastic is melted and going to come down.” process. formed into plastic pellets which are then mixed with virgin plastic to create the By using its proprietary automated technology, the company can cut the Polyurethane foam was incorporated into the CARE Car II program as a new vehicle parts. As an added bonus, the machines extract not only plastic but cost of the recycled plastic to as much as 30 percent below that of virgin plas- direct result of work and research performed by other Chrysler Group sup- foams and residual metals. tic. In fact, the process is so cost-effective that DaimlerChrysler estimates this pliers. One firm developed a way to turn polyurethane foam from shredder

The CARE Car II program worked with 27 suppliers to retrofit two Jeep® process could conservatively save the automotive industry roughly US$320 residue into compression-molded materials in various shapes which exhibit Grand Cherokees with 54 recycled plastic parts. In this second stage of the million a year. excellent thermal and noise insulation properties. Another company con-

44  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  45 Living out social respo nsibility supporting projects  [ words kristin kaiser photos stefanie füssenich, gabriele neeb ] Corporate groups are influential players. The larger they are, the more influence they can exercise. If this influence is put to good, responsible use, everyone stands to gain: the company itself and society at large. DaimlerChrysler is out to live up to its responsibilities as a good corporate citizen. That’s why the Group is promoting environmental projects and social initiatives. And giving full account of its activities. u Eco-sponsorship

Not just a green fig leaf Environmental sponsorship is For the environmental organiza- Astrium satellite technology, for ex- Philippines for an international their unusual length, they could also environmental organizations and to include the local people in our DaimlerChrysler’s involvement with about more than just financing tions, the long-term nature of their ample, whole areas of countryside workshop, co-sponsored by Daim- be used in components subjected to provides a forum for the exchange of thinking,” says GNF committee mem- the Global Compact, an initiative set ecological projects. “With our tech- partnerships with DaimlerChrysler is can be mapped. But the Group also lerChrysler. Delegates were able heavy loads. “This ‘endless fiber’ can knowledge and information. Work- ber Jörg Dürr-Pucher. Consequently up by UN Secretary-General Kofi nological expertise we are able to very important. “Without a long-term provides Euronatur with financial to find out more about the latest be as long as the component itself, shops have proved ideal to this end, one aspect of the Living Lakes pro- Annan, the Clean Air Initiative [see help environmental groups solve commitment it is impossible for us to support, not least within joint nature research into natural fibers and which means that any forces applied as have the bi-annual Lakes Confer- ject has been to develop an initial “Getting together to improve urban air” some of their problems,” explains gain the confidence of people living and wildlife conservation projects in discussed alternative ways of making to the component can be transmitted ences, for which DaimlerChrysler model for sustainable tourism. page 33] and the World Childhood Uli Kostenbader, Head of Corporate in the regions where our projects are the Bremen Basin in Germany, in the sustainable use of cleared areas of from one end to the other.” provides local transportation. More- Collaboration with Euronatur and Foundation [see “Give children a Sponsorship. Of primary importance realized,” says Gabriel Schwaderer, Alban Hills in Italy or on the Drava rain forest. Sustainable development is also over, the GNF recognizes the political GNF represents only part of Daimler- chance” page 48]. The focus will be on is the credibility of the Group’s director of the European Natural and Mur rivers that border Austria, There are many such areas in the a top priority for the Living Lakes advantages to be gained from a glob- Chrysler’s nature conservation activi- South Africa. Along with journalists, achievements in environmental Heritage Foundation [Euronatur]. The Slovenia, Croatia and Hungary. Philippines and environmentalists are partnership, established in 1998 by al project like Living Lakes, compared ties. The company has long been the symposium’s participants will protection. But as he readily admits, foundation, whose declared aim is “We act as an information-gather- keen to re-establish authentic rain the Global Nature Fund [GNF]. The with local and regional initiatives. working closely with the World Wide include representatives of NGOs, as sponsorship is also part of the corpo- the preservation of cultivated and ing service for DaimlerChrysler,” ex- forest there. Related to this, a feasi- network is made up of 20 lakes on The network of lakes brings Fund for Nature [WWF], for example, well as customers and employees. rate image-building process and natural landscapes, is currently plains Claus-Peter Hutter, President bility study is looking into possible every continent with the exception of multinational corporations, affected in addition to its multiple commit- The aim of the symposium is “to commercial considerations do enter managing some 50 projects. Within of Euronatur. The foundation informs industrial applications of the Abaca Australia. Rooted in cultivated land- communities and experts to the ments in the social sector. This will present DaimlerChrysler’s involve- into the equation. Eco-sponsorship, Euronatur’s “Naturally Mobile” cam- the Group of regions where commer- fiber. “It is extremely light and elas- scapes with a rich history, these conference table to find workable be made clear at the “Challenges of ment to a wide circle of multipliers, Uli Kostenbader says, “is an impor- paign, DaimlerChrysler is putting its cial and environmental activities can tic, yet it also has a high tensile stretches of water are important sustainable developments. “At Lake Sustainable Development” workshop helping to reinforce the image of an tant and independent part of our expertise in transportation infrastruc- usefully be combined. strength,” explains Ralph Greiner freshwater reservoirs and stopovers Baikal, for example, there would be to be organized by the Group in the innovative, environmentally friendly environmental communications activ- ture planning and satellite technology In March 2002, for example, a of DaimlerChrysler. He is initially for migratory birds. no point in us simply defining conser- run-up to the “Rio+10 Conference” in and socially responsible corporation,” ities, which in turn constitute a com- at the service of environmental delegation of scientists, environ- thinking of using the fibers in interior The Living Lakes partnership has vation areas and closing down the Johannesburg in summer 2002. says Sieglinde Jocham, from Corpo- petitive factor affecting our image.” protection. With the data supplied by mentalists and politicians met in the trim components for cars, but given brought together 25 local and regional two local cellulose factories. We have Topics for the symposium include rate Sponsorship. |

In the Philippines they are looking for ways of making sustainable use of cleared areas of rainforest Lake Baikal forms part of the Living Lakes network. Fishermen catch muskrats near the banks. But industrial effluent is polluting the “pearl of Siberia” u Environmental communications

Automotive Group receives Environmental Communication Award Credible, original and effective: DaimlerChrysler’s environmental publications DaimlerChrysler has won the 2002 Environmental Communication Award. journalists and environmentally active individuals or groups. policy of open information in matters of environmental commitment. “This is intranet, DaimlerChrysler’s environmental communications activities also include This international prize, presented for the first time this year, is awarded by The jury of nine chose DaimlerChrysler “because the Group put forward a not just about winning the trust of the consumer. Pursuing a policy of open an ongoing program of eco-sponsorship, which formed the basis of the Group’s the European Natural Heritage Foundation [Euronatur] and the Bellagio Forum convincing concept, which was at once credible, original and effective,” said communications creates a snowball effect which ultimately brings home to application for the award. The goal of the company’s environmental communi- for Sustainable Development for achievements which raise knowledge and Euronatur’s President Claus-Peter Hutter. other companies the long-term economic benefits of an eco-friendly approach,” cations is to pursue a dialog with representatives from the fields of science, awareness of ecological, economic and social issues through the media. The Klaus Töpfer, Director of the UN Environmental Program [UNEP], agreed to Töpfer explained. politics and society, as well as maintaining internal communications through prize is awarded for corporate achievement and – in two further categories – to become patron of the award on account of the way in which it encourages a In addition to its conventional advertising and press work, Internet and electronic and print media and discussion groups.|

46  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  47 | u World Childhood Foundation supporting projects

Give children a chance

Every child should have the right is backing the foundation to the tune Russia and the Baltic states in lerChrysler’s involvement with the successful if we play our part in more than 70,000 euros for the to a carefree childhood and the of US$1 million. particular. In 2001, the foundation WCF and he explains the thinking society.” foundation, while a charity chance to grow into a self-confident WCF gives financial support to contributed US$800,000 to a total of behind the globally active corpora- DaimlerChrysler has also organ- opera performance raised over and independent adult. Such is organizations involved with street 37 projects. Among the benefi- tion’s commitment: “Along with our ized charity concerts to raise money 50,000 euros. | the cause supported by the World children and young mothers, for ciaries were orphanages, schools moral obligation towards society for the WCF. Last October, 600 Childhood Foundation [WCF], example, or children who are the and hospitals. and future generations in particular, employees took up their musical established in 1999. As one of victims of physical or sexual abuse, Matthias Kleinert is charged there is also an economic obli- instruments to entertain an audi- eleven co-founders DaimlerChrysler with attention focusing on Brazil, with looking after co-founder Daim- gation. Because we can only be ence of over 6,000 and brought in H.R.H. Queen Silvia of Sweden, founder of the World Childhood Foundation, and Matthias Kleinert, head of External Affairs at DaimlerChrysler u Road safety initiative

In a TV spot, Formula 1 stars Mika Häkkinen and David Coulthard help to set a good example OnSammelbildunterschrift: the Mokitown Internet MobileKids,page, kids can www.mokitown.net earn points playing – hier by the lernen rules Kinder, dass es cool ist, Regeln zu beachten

“MobileKids” campaign promotes road safety for children

Mika Häkkinen is out on the racetrack; ten-year-old Thilo is on his bike, on his Dieter Hohenadel is editor of the German-language road safety journal general knowledge. Correct answers earn points, which can be collected “Fit for a Kid” campaign makes child seats safer way to school. Mika revs up his Silver Arrow and rockets away. Thilo spots two “Verkehrserziehung” and has been a regular advisor to the campaign. “For and exchanged later at the virtual hairdresser’s, cell phone store or cycle shop. Another national initiative is up and running in the USA, where the “Fit for a Kid” of his buddies up ahead and pedals faster. Suddenly the lights at the intersec- many children, learning road safety is like cleaning your teeth: You do it because Of course, points can also be deducted if Moki should ever neglect his road project was set up by DaimlerChrysler in 1999 in cooperation with the National tion change to red. As Thilo brakes and comes to a stop, he loses sight of his you have to, but without much enthusiasm. This attitude is what needs chang- safety rules. Safety Council. This was the Group’s response to the fact that more than eight friends. Likewise, Formula One driver Mika is stopped by a red light at the ing.” Instead of teaching the rules of the road with a wagging forefinger, From early 2003, a 3D animation series called “Traffix” is scheduled to be out of ten child safety seats were found to be fitted incorrectly – even though end of the pit lane. Seconds later, Thilo is joined by another cyclist – David campaign organizers are putting the emphasis on fun, games and practical broadcast on television. An initial series of twenty-six 13-minute episodes have 96 percent of all parents questioned were convinced they made no mistakes in Coulthard – who gives him an approving nod for observing that red light, just experience. “That way, the kids take the rules on board almost without notic- been planned for distribution worldwide. The series is set in a distant galaxy in fitting and using the seats. like Mika. Then the lights turn green and all three are on their way again. ing,” says Hohenadel. an imaginary world inhabited by the race of Nimbols. As in the real world, the “Fit for a Kid” offers parents a chance to get in touch with one of 1,500

The storyline comes from a 60-second TV trailer made for the DaimlerChrys- DaimlerChrysler’s TV trailers – each between 30 and 60 seconds long and Nimbols all have different abilities and characters. “That way there’s a broad selected Chrysler, Jeep® and Dodge dealerships via a free service hotline or ler “MobileKids” campaign which was launched in June 2001. The aim of the void of any advertising messages – are broadcast free of charge by TV stations. enough spectrum for the children to identify with,” explains Jocham. Everyone website [www.seatcheck.org]. Here, cars of all makes can be checked to make campaign is to sensitize children to the dangers of road traffic and to train their They draw on the fame and popularity of sports stars to achieve the desired has to spend a certain amount of time on the industrialized planet Traffix, to sure they are safe for transporting children, including looking at whether the intuition in the hope that they will make the right decisions, if or when the need impact: Häkkinen and Coulthard in Europe, NBA basketball star Kobe Bryant in learn about basic ethics, environmental protection, how to flirt and, of course, child seat and seat belts are properly adjusted. The check takes 20 minutes. arises. The project’s central message –“Beware – Be aware!”– will be communi- the USA. “We were looking for role models whom children look up to. If the film the rules of road safety. The message is: It’s cool to play by the rules – and the In another “Fit for a Kid” initiative, in 2000 alone, DaimlerChrysler provided cated not just on TV but also via the “Mokitown” website, a cartoon series, and shows Mika and David playing by the rules,” says project sponsorship manager better you know them, the more you are allowed to do on planet Traffix. The 15,000 new child seats free of charge to hospitals in Miami, Detroit, San Diego, other initiatives. UNESCO has assumed patronage of the project. Sieglinde Jocham, “kids will start to copy them.” The messages of the short reward principle is the same as in Mokitown. McAllen and San Antonio. “Many families simply can’t afford child safety The key idea behind this DaimlerChrysler campaign is “our vision of acci- films featuring Häkkinen and Coulthard are clear, simple and easy to recall: DaimlerChrysler’s German sales organization is currently on the road with seats,” says Matt Reynolds, former Director of Safety Compliance at Daimler- dent-free driving,” explains Uli Kostenbader, Head of Sponsoring. “And we can Always wear a helmet; always think before you act; always stop at a red light. its MobileKidsTour, designed to sharpen children’s senses. To this end, the Chrysler, “or they use second-hand ones which are damaged.” | only begin to realize this vision if we target the safety of all road users.” The The “Mokitown” website [www.mokitown.de; www.mokitown.net] is the organizers have created four “sensory spheres” using films, video animations, “MobileKids” campaign was set up in recognition of the fact that children are initiative’s catch-all platform, and in its first year the site’s virtual town for kids simulations and recorded dramatizations. “In this 800-square-meter discovery particularly at risk. Every year some 10,000 boys and girls die in road has been visited by over 14,000 youngsters. Visitors to Mokitown can create park, children are given a chance to experience simulated traffic without accidents in Europe alone. “MobileKids” specifically targets eight to twelve- their own little cartoon character called Moki, with whom they can explore the having to confront the dangers of real-life situations,” explains Dieter year-olds, because increasingly, children in this age group now use the roads town – and meet up with other Mokis. Or they can head straight for “Quizzy- Hohenadel. In 2001, over 10,000 children in Germany made the most of the unaccompanied – on their way to and from school, for example. Robot,” the flying quiz-master, who asks questions about road safety and opportunity.

48  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  49 eco-initiatives 

this recovered polypropylene,” said WTAP Environmental Specialist Sandi The first job, though, was to find out just how many such potential cyclists Lopez. The Neon is built at the Chrysler Group’s Belvidere Assembly Plant there were at MTU. It turned out that more than 1,300 staff could easily use a in Illinois. bicycle to get to work. At the time of their investigation, just 600 employees The idea was a cooperative effort between Warren plant employees, were coming to work by bike, so they handed out a questionnaire to discover rigorous filtration and refining process,” Bailiff explained. The additive package is vendor Mobile Fluid Recovery Inc. and its representative David Briggs. “To be what was stopping so many people using their bikes. The main findings were: more stable in the re-refined oil, resulting in better performance over time. able to implement a program such as this in a large corporation like Daim- the lack of up-to-date bike racks and stands, and the lack of changing facilities Good ideas Validation testing is conducted by the oil companies that refine the product, lerChrysler you have to have a lot of support from key people within the at the plant. although similar testing is also done in Chrysler Group manufacturing facilities. organization. We had outstanding support,” Briggs said. The cycle club has since dealt with one of those issues: In July 2000 a new Robert Kainz, Senior Manager of Pollution Prevention and Life Cycle Programs, The centrifuge, which is explosion proof and self-balancing, spins the cycle park was set up at Plant 2, and by year’s end those twelve bikes were make a founded the program. He said the Chrysler Group started looking at re-recycled mate- rags at forces roughly equivalent to 1,200 times the force of gravity. The available for hire at the main gates of Plant 1. Here, too, improvements were rials back in 1983. “Some of the early products tested were filtered oil products, not re- procedure extracts the solvent from the rags in 3 to 4 minutes with no heat made to the cycle parking facilities which were provided with a roof and had refined, and they did not perform as well as we would have liked,” commented Kainz. source, while a regular dryer would take around 30 minutes, require heat, CCTV installed – protecting bicycles from the weather and from would-be difference “We had to prove to our plants that the re-refined oil which we use today is of the same and release large quantities of VOC emissions to the air. After the rags go thieves. The cycles have proved very popular: On most days they are all hired The key to protecting the environment lies or better quality than virgin oil and available at a lower cost.” through the centrifuge they are densified and molded into vehicle parts. out fifteen minutes after the lunchbreak starts. The cycle club’s voluntary activ- in the details. They may not be spectacular, Today, through education and testing, our manufacturing facilities are seeing the MFR brings the centrifuge to WTAP monthly, processing 2,500 to 3,000 ities have received full support from MTU’s management and works council. but all those minor changes can make a big value of this product to the environment, the customer and the bottom line. | pounds of rags each visit. Already the Jefferson North Assembly Plant in Neither the cycle club in Friedrichshafen nor Willi Gay at Ebersbach-Weiler difference for the environment in the final Detroit and the Sterling Heights Assembly Plant in Sterling Heights, Michigan convey the impression that giving up their free time for voluntary activities is a WTAP: solvent-soaked rags are destined for the centrifuge. have adopted the centrifuge program and it will be rolled out at plants in sacrifice. Quite the opposite, in fact. When Willi Gay, a maintenance engineer event. Very often, such moves result from the In the past they had to be disposed of as hazardous waste suggestions and ideas of our employees. St. Louis and Toledo in the near future. | with DaimlerChrysler at Untertürkheim, talks about his voluntary activities Here are five stories – five good examples. Far left: The originators of the bikes-for-hire idea take a spin Below: Willi Gay and his team of eco-minded youngsters [ words marcus stölb, gina fay damron ≥ photos gabriele neeb, stefanie füssenich ]

Re-refined oils Centrifuge takes center stage in Warren Truck Rather than using virgin oil, some DaimlerChrysler plants have Plant recycling been using quality, re-refined oils. These oils meet the same stan- dards for performance and composition as their virgin counter- Each month, outside the Chrysler Group’s Warren Truck Assembly Plant [WTAP], a his eyes light up and a proud smile spreads across his face. For the last 16 years parts. centrifuge device operating in the back of a standard-sized work truck makes it possi- Company cycles hit the road – he has looked after the youngsters at the local anglers’ club in Ebersbach-Weiler The Transmission Plant in Kokomo, Ind., the Stamping Plant in ble to turn rags into vehicle parts. and kingfishers move into nesting tubes near Stuttgart – young people like 12-year-old Matthias. This afternoon Twinsburg, Ohio and the Engine Plant in Kenosha, Wis. have all The centrifuge allows waste polypropylene from WTAP production processes to Matthias is making his way along the banks of the Kirnbach stream, picking up instituted cost-saving programs which use re-refined oils. become a portion of the wiring harness that goes into every new Dodge Neon vehicle. Just before midday at the main gate of the MTU plant in Friedrichshafen, Rober- garbage. Not the kind of activity you can get kids enthusiastic about. But, as The program is expected to save the company around And on the way, it cuts overall waste at the plant and saves costs considerably. to Clerici swings himself onto a green bicycle and pedals off for a sunny lunch- Matthias explains, “It’s good for the fish.” His friend Florian agrees: “Of course US$500,000 the first year and US$3 million the second. Addi- The centrifuge was the response to disposing of solvent-soaked rags that were break. “It’s a brilliant idea,” he calls out with an enthusiastic grin as he cycles it’s not as good as actually fishing – but it does help the fish.” tional products can be converted to re-refined oil with the poten- subject to regulation as hazardous waste under the federal Resource Conservation and off into the distance. The “brilliant idea” Roberto is so happy about was “What I really want to do is inspire these youngsters with a love of nature tial for further cost savings. Recovery Act [RCRA]. Each year WTAP uses about 4,000 cases of solvent-soaked poly- dreamed up by his colleagues in MTU’s cycle club. For the last two years, and encourage them to live an environmentally-aware life,” says Willi, describ- There are 18 approved re-refined products in the non-produc- propylene rags to wipe off trucks in the paint shop and for various cleaning operations. employees at MTU Friedrichshafen have had access to a pool of twelve bikes ing what motivates him most. In recent years he has started up two major tion system now, with more being created every day, said Jody By separating the solvent from the rags with the centrifuge, the rags are exempt for short-term hire. The only conditions are that they have to show their staff projects which have earned his group a number of awards. In one of these proj- Bailiff, Senior Specialist for Non-Production Materials with the from RCRA because they become recycled textiles. The only reason they had been clas- ID card and bring the bike back on the same day. ects, the young anglers built some breeding sites for the stag beetle, a species Chrysler Group. “There are certain oils that cannot be made into sified as hazardous was because of the flammable solvent in the rags and in the contain- There’s no need to re-invent the wheel, thought the members of MTU’s now rare in Germany. The “incubator stacks” are five cubic meters in size and re-refined products. For example, a lightweight oil is not an ers they are stored in. The solvent extracted from the rags is used in fuels blending and cycle club four years ago when they got this project under way – all we have to are made of oak sawdust. The stag beetles adopted them, and now it will take acceptable candidate for the re-refined oils program.” recycled, rather than being thrown out. do is make more use of it. The “Cycle to Work” project which had been started eight years for their eggs to be transformed into fully-grown 7 cm adult beetles. “The re-refined base stock oil is made from used oil,” said The centrifuge began its separating work in March 2000 and over the next year in Friedrichshafen as part of the Local Agenda 21 initiative provided the inspi- For their efforts, the young environmentalists were presented with the presti- Bailiff. “The supplier takes back our oil, as well as waste oils saved WTAP US$561,000 in disposal and materials costs. It also reduced waste by ration for their scheme. Since then, a number of steps have been taken at MTU gious Sven-Simon environmental award – with a prize of over 1,500 euros. from other sources, removes the heavy metals, hydro-treats the around 60,000 pounds and eliminated approximately 24 tons of airborne volatile to persuade the more skeptical employees to switch to this eco-friendly mode Two years later they notched up another success. This time Willi Gay’s team oil, removes the water, and processes it through a petroleum organic compound [VOC] emissions. The device has become a key part of WTAP’s of transport. built nesting tubes for kingfishers. They embedded four plastic nesting tubes refinery.” goal of reusing all the plant’s waste polypropylene – from rags to parts and scrap “We never painted the issue in black and white,” is how shop steward into the riverbanks – and the kingfishers moved in straight away, encouraged The refinery tower is used to refine the waste oil into re- and other sources – in the manufacturing process. Michael Presser explains the success of the scheme. It never occurred to the by the food supply that the young anglers had laid on in the Kirnbach: Brown refined oil. This is an identical process to the refining of crude oil The wiring harness component molded from the recycled polypropylene has been plant’s cyclists to pigeon-hole their fellow commuters as “good” or “bad.” trout, bullheads and gudgeon now live in what was once an almost lifeless into industrial products. “The re-refined base stock is actually part of the instrument panel of every Dodge Neon since May 2001. “In addition to the Instead they focused on the benefits of cycling and tried to deal with some of stream. This project, too, won the Sven-Simon environmental award. Willi proud- cleaner than the virgin base stock because it goes through a harness now used in the Neon, other parts for other vehicle models will be made from the obstacles holding back potential cyclists. ly displays the certificate – and there’s that grin again, lighting up his face. |

50  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  51 eco-initiatives | supplier management | Brazil’s “Lei de Crimes Ambientais” [Environmental Crimes Act] commits the government to taking A check-up for the eco-system responsibility for the protection of the country’s ecosystems. However, the effectiveness of these strict environmental regulations is still frequently compromised by problems with compliance and enforcement. Snowball effect in

the tropics [ words marcus stölb ] No one knows this better than DaimlerChrysler do While there is no danger of this happening to a Only once did the team from DCBR find them- Brasil [DCBR], only a minority of whose suppliers company like DCBR, the loss of a key supplier and selves confronted with a sight so appalling that all are capable of taking sufficient account of envi- the resultant interruptions in production would pose dealings with the supplier had to cease immediately. ronmental factors in their production processes. a problem for São Bernardo do Campo and other As far as potential suppliers and service providers DCBR’s response has been to set up an environ- sites. The problem would be compounded by the are concerned, last year the EQA vetoed involvement mental assessment program for suppliers. Run from high degree of vertical integration at the site, which with 21 companies. That said, the Group is actually São Bernardo do Campo, which has been home to not only assembles commercial vehicles, but also very much committed to maintaining relationships DCBR for 45 years, the program encourages Daim- manufactures components for the industrial sector. with companies which still have environmental

Above: Project leader Szabolcs Törgyekes and lerChrysler suppliers to bring their operations into The completed questionnaires are evaluated problems. “We get positive feedback about Daim- Environmental Officer Wolfgang Winkelbauer, and [right] the Rastatt plant line with the country’s environmental regulations. by the “Engenharia Qualidade Ambiental” [EQA], lerChrysler’s commitment to environmental issues With more than 3,600 domestic suppliers on its to build up a more accurate picture of the environ- from many of these suppliers,” comments Frithof books, DCBR has a well-established assessment mental significance of each supplier. Companies are Punke, head of the purchasing department. It’s now ten years since the first Mercedes came off the production lines at a new facility process. The first stage involves the “Estratégia, initially categorized as in Rastatt, Germany. Designed to bring life to a region lacking in industry, the plant initially Procedimento e Resultados Compras” [EPC] depart- having either low or high had environmentalists up in arms. Why the fuss? Because the new factory was built in an ment sending out questionnaires to selected suppli- pollution potential. Those ecologically sensitive location, just a stone’s throw from the floodplains by the Rhine. ers in order to gather information about their opera- with high pollution po- Aware of the issue, from the outset the company made it a priority to eliminate the tions – such as whether they produce industrial tential go through to the potential impact on local plants and wildlife. Over the past two years, Wolfgang Winkel- effluent and if so, how it is disposed of or treated. next stage of the process bauer, Environmental Officer in Rastatt, and his team have joined forces with the Environ- Information is also sought about emissions, indus- which involves fixing a mental Monitoring and Simulation department at DaimlerChrysler Research to carry out a trial residues – ranging from hydraulic fluid to date for an environmental comprehensive eco-system appraisal of the site. sludge from physico-chemical wastewater treat- audit. This on-site assess- “We’ve designed this study to enable us to hold our own in the debate with critics and ment plants – and sections of sites which have been ment, which allows the scientists at a high level,” says Winkelbauer. Among those consulted were leading re- contaminated to a greater or lesser extent by chem- EQA team to judge the searchers from four universities in the region, as well as from the Steinbeis Environmen- icals used in manufacturing processes. environmental situation tal IT Transfer Center. The resultant report concludes that locating the plant here has had A means of measuring But that is not to say that the DCBR environ- of a company for them- the impact of heavy DCBR staff at a supplier audit no negative impact whatsoever on the local flora and fauna. metals on air quality mental managers rely solely on the completed ques- selves, usually results in Lichens proved a useful assistant in the researchers’ studies. With their slow growth tionnaires. They also require suppliers to prove that a list of shortcomings. It is then up to the supplier The strength of this commitment is underlined and correspondingly slow metabolism, these plants make good indicators of air quality they have the relevant licenses, ranging from the to submit a plan indicating when and how these by the fact that some 400 DCBR people have al- over a longer period of time. Selected lichens were repeatedly studied at 18 locations in Licença Prévia [preliminary license] to the Licença environmental weak points will be eliminated. This ready been trained as environmental specialists. the factory grounds and in the immediate vicinity. “The air in Rastatt is just as healthy de Operação, the operating license. Even details of “progress plan” has to be approved by the EQA, And a look at the statistics confirms that the envi- as in the nearby spa town of Baden-Baden,” confirms DaimlerChrysler project leader recent fines imposed by the environmental authori- which also checks the implementation of the pro- ronmental assessments are set to continue for a Szabolcs Törgyekes, summing up the findings. ties must be submitted. posed measures. long time to come. According to the Environmental The quality of the water in the redirected Ried canal was determined with the aid of Obviously, this process is not without its diffi- What this can mean in practice is illustrated by Quality Index [EQI], of the 500-plus suppliers audit- duckweed and luminescent bacteria, and an expert opinion on ecological water quality culties. “Many businesses simply don’t have anyone Tamaran de Metais, a company which uses a casting ed to date, only 23 are categorized as “very satis- was drawn up. The rapid spread of the duckweed clearly showed that the arrival of the on the staff who knows about environmental issues, process to extract lead from DCBR batteries. As factory” or “satisfactory.” But Guilherme Heinz, factory has not harmed the aquatic environment either. The researchers also planted so it can take us hours just to explain the system to recently as mid-1999, Tamaran de Metais still had no head of Quality, Environment and Industrial Health standardized grass cultures and spiderwort [tradescantia] plants with which the genetic them,” says Alessandra Costa, who is responsible suitable storage facility for waste batteries – a failing and Safety at DCBR, is certain that the message is toxicity of air pollution can be determined. for coordinating environmental audits at suppliers’ which could result in contamination of the soil. This getting across: “Everyone who wants to work with “Using standardized methods of eco-system appraisal makes sense from both econom- sites. But DCBR regards this as time well spent, as shortcoming was noted in the EQA audit and the us knows that there is a minimum environmental ic and ecological viewpoints,” confirms Törgyekes, while Winkelbauer is hoping that the it is ultimately in everyone’s interest to comply with company was asked to submit a progress plan. No standard which they have to meet.” Alessandra model they’ve come up with in Rastatt can be used across the Group. | the Brazilian environmental regulations. “We know sooner said than done. And checked, as Alessandra Costa is similarly upbeat about the prospects for an On the banks of the Ried canal that the authorities are very rigorous about check- Costa recalls: “When we returned a few months environmental snowball effect: “We’re helping to ing compliance,” she adds, and points out that, in later, we were able to see for ourselves that the improve the situation right down the line in Brazil, as extreme cases, licenses could be withdrawn and company had taken appropriate measures to comply our suppliers often apply our standards to their own chief executives arrested. with the legal regulations.” suppliers in turn.” |

52  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002 53 recycling 

From the top: Recycling enthusiasts: Members of the PQI Recycling Team at KTP Aluminum cans heading for recycling

A hydraulic press crushes the cans

Granulated plastic from which protective caps and transmission covers are made

Used protective caps are collected at KTP,

Reusing washed, sorted and returned to the cycle

+ [ words and photos gina fay damron ] Kokomo Transmission Plant institutes several recycling initiatives

Because its No. 1 goal is to build the best vehicle transmission in the world, number of cans available at the plant for recycling. But, along with newspaper recycling doesn’t seem as if it would be a priority. But after recycling between and office paper boxes, aluminum can drop off areas can still be found through- 50 and 76 percent of the nearly 200 million pounds of waste it generates annu- out the plant. Moore said employees continue to bring cans and other recy- ally, the Kokomo Transmission Plant [KTP] has proven otherwise. clables from home. Through a recycling program headed by volunteers, plant employees at the KTP also has been recycling aluminum chips for the past few months. The Kokomo, Ind. facility have made noticeable efforts to save DaimlerChrysler plant is using a compactor, which works as a hydraulic press to squeeze the money, help physically and mentally challenged people and preserve landfills – chips and extract much of the machining oil that coats them. The process all by reusing and recycling materials. produces aluminum bricks and reduces the metal scrap volume at the plant by The plant’s most dedicated volunteer recyclers form the Product Quality a factor of eight. Improvement [PQI] Recycling Team, which started its program in 1993. Environmental Specialist Rocky Beem said this has made the plant’s “I do it because it’s something I really, truly believe in,” said Team Leader vendors happy, because now only 1/8 of the number of trucks have to make Montie Moore, who serves as both the plant’s and PQI’s carpenter. “When it the trip to the plant. The vendors still have to clean and dry the bricks to remove first started, the original members were people like myself.” any remaining machining oil before Moore said there’s no lack of people who want to join the program, which they can remelt them. However, KTP “108 applicants, keeps tabs on recycling throughout the 3.1 million square-foot plant that is working on a program to remove employs around 6,000 people. all the oil from the bricks. Any oil that and KTP was among The team, which has seven members, won Indiana’s Governor’s Award is recovered on site is reused at the the four finalists!” for Excellence in Pollution Prevention and was a finalist for DaimlerChrysler’s plant. Environmental Leadership Award. Disposal has also been a concern at KTP, and the plant has made concert- “That’s a very prestigious award,” Moore said. “I think there were 108 ed efforts to reduce its dependence on landfills. Last year, KTP avoided send- applicants this year and we were among the four finalists in our category ing 25 percent of its solid wastes to the landfill; this includes 10,000 tons of

Recycling [recycling].” Moore said it is amazing that KTP can recycle as much as it does. concrete, 240 tons of cardboard and 7,500,000 pounds of wooden shipping In 1998, the plant recycled 12 tons of cans. But recently, the plant’s cafe- pallets. Pallet waste actually dropped from approximately 650,000 pounds to teria service introduced 20 oz. plastic soda pop bottles, which reduced the 91,000 pounds per month. 

54  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  55 recycling |

The physically and mentally handicapped people at Bona Vista like working for the recycling program

One of the team’s largest initiatives is a plastics recycling project with a local “It’s a big thrill when they get their paycheck,” said Brenda Stipes, head non-profit organization that helped generate some favorable visibility in the program supervisor, who’s been with Bona Vista for 16 years. “It’s just a really At the Bona Vista workshop for the handicapped, a community. KTP worked closely with the DaimlerChrysler Waste Minimalization big thing to them that they make their own money.” dedicated team sorts, cleans and repackages plastic parts and returns them to the Kokomo plant. Team to develop this initiative. Keeping with its helping ways, KTP has also been involved with Make-A- Since about 1996, KTP has been reusing protective plastic nose-cone caps Wish Foundation, which grants wishes for terminally ill children. Make-A-Wish and pan covers used in the transmission manufacturing process. The plant recently honored the plant with The Perpetual Award. For the past eight years, sends the plastic caps and covers in large boxes to Bona Vista, a non-profit KTP has been donating aluminum can revenue to the foundation. “The biggest organization that employs handicapped people at its locations in Kokomo and reason we wanted to give it to a charity is it’s a good thing to do, and it lets the nearby Peru, Ind. employees on the plant floor see what can be accomplished with the cost At Bona Vista, physically and mentally handicapped adults wash, sort, savings from recycling,” Moore said. The Kokomo plant is also working on a repackage and return the plastics to KTP for reuse. program that would generate rev- “The nose cone cap is a very durable part – I’m sure some of those caps enue from the sale of pallets, instead “It’s just a really have been through the system 40 times,” Moore said. “Not only is it a cost of the plant having to pay to have saving to our plant, as well as the landfill avoidance savings, it has also created them removed. This money would big thing to them five to seven jobs at Bona Vista.” Overall, he said, this program has saved the also go to Make-A-Wish. that they make plant US$6,000 per year. But however positive the plant’s Cheryl Morgan, general manager at Bona Vista, said the program teaches environmental and social perform- their own money.” the adults skills so they can enjoy a feeling of accomplishment as members of ance may be, as Rocky Beem pointed the community. out, it’s important that KTP should always include the community in its deci- Some of the workshop’s workers have been in the program for 25 years. sions. “KTP is in central Indiana and there’s a lot of fishermen and hunters Morgan, who’s been an employee of Bona Vista for 21 years, said supervisors around here and people that just enjoy the outdoors, so the environment is part time-study the workers to figure their wages. She said that each worker has of our culture,” he said. “You go swimming, you go fishing, you want to be able goals and each is paid according to the number of parts he or she cleans, sorts to do that in clean water. If you live here, you want to breathe clean air. We have or packages. a responsibility to this community.” |

56  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  57 japan | [ words and photos shuji nagai ] DaimlerChrysler’s environmental activities are not confined to its production and development processes. For proof, look no further than DaimlerChrysler Japan [DCJ]: The company responsible for automobile imports, sales and after- sales service in Japan has adopted a focused and pioneering approach to Building a bridge protecting the environment. to the future What better way to learn about VPC’s inspection and servicing into refuse-derived fuel, and finds and plastic bags. These may all be attempting to both reduce waste simple, and at first glance some introduced a variety of regulations in the collection and destruction DCJ’s environmental activities than procedures bring these ‘packaged’ anew use as a co-firing material for essential to maintaining product and maintain product quality. Take don’t seem to be making a decisive covering energy conservation, waste of as much as 470 kg of R12. by taking a look at its distribution DaimlerChrysler vehicles to life. And combined heat and power plants. quality but once their job is done cushioning material, for example. impact. But ultimately, people management/recycling, and control In Japan, no other company in centers which inspect, service, and the moment an imported vehicle Turning the film into heat energy they become waste. And with land- If product quality is your main like these PDC employees, working of pollution by chemical substances. this industry can boast a similar manage imported vehicles and arrives, DCJ’s environmental meas- is effective recycling: It helps fills nearing capacity, Japan risks concern, you will feel better using hard in a little corner of a small New laws also protect the ozone achievement. parts, and its Aftersales Marketing ures swing into action. reduce waste and conserve energy being swamped in trash. plenty of cushioning material. island nation, are preserving a beau- layer. In June 2001, Japan enacted But because the retrofit cam- Department which plans and All imported vehicles are resources. For the people at the PDC, But that means generating more tiful natural environment for future the ODS [Ozone-Depleting Sub- paign is voluntary and not free, it is runs after-sales service for DCJ washed prior to inspection and serv- Not being involved in production however, these discarded materials waste. Use insufficient cushion- generations, and steadily building stances] Recovery and Destruction vital that vehicle owners be made customers. “When it comes to the icing. Formerly, vehicles were waxed or development activities does not are not “waste” but “new re- ing and you put quality at risk. the future. Act, which requires that chloro- aware of the problem. Asked about

Cardboard boxes are reused for onward The Toyohashi Parts Distribution Center A new car with its protective film Polystyrene foam is thermally recycled Packaging foil equals heat energy A final polish for the pristine paintwork The same special pallets are used by several different firms shipments

environment, DaimlerChrysler’s to protect the bodywork during ship- prevent DCJ from looking even sources.” PDC Manager, Shinichiro To reconcile maintaining quality “Act, don’t react. We must always fluorocarbons [CFCs] from end- the key to the campaign’s success, stakeholders are all of humanity, ping, but from an environmental beyond the Environmental Protection Miyata, who takes pride in the with reducing waste, PDC proceeds aim to be pioneers.” of-life automobiles be properly Yoshio Hirose, manager of the including future generations, and angle this was far from ideal. Organ- Guidelines of the DaimlerChrysler center’s cutting-edge environmental by increments and arrives at the That was how Hitoshi Isomura, DCJ recovered and destroyed. Ten years Aftersales Marketing department, all plants and animals.” Like the ic solvents were needed to wash Group. In full accord with group measures, says they are the result right balance by experience. Vice President in charge of environ- before this law was enacted, Daim- offered this explanation: “It’s im- importance of protecting the envi- off the wax on arrival in Japan, and policy, the Japanese company of endless trial and error, creative The third approach is to mental affairs, described DCJ’s envi- lerChrysler had already triggered portant to enlighten customers and ronment, this simple maxim is the washing process generated makes its own exhaustive efforts thinking and innovation. “request cooperation” to hit targets ronmental policy. So what makes a efforts to use CFC substitutes that our dealer network about the en- deeply ingrained into DCJ. hazardous emissions and effluents. and provides feedback which The PDC has left no stone which the PDC couldn’t achieve in pioneer? One answer lies in the DCJ do not affect the ozone layer. And in vironment. Nevertheless, what’s The company operates several To make matters worse, hazardous can ultimately benefit the group as unturned in its efforts to cut waste, isolation. When you are part of a campaign on the after-sales service 1994, DCJ began its own campaign most important is a steady, persist- large distribution centers – the Vehi- gases were given off when the a whole. applying three distinct approaches. product supply chain, working front. to retrofit air conditioners, some- ent effort.” cle Preparation Centers [VPC] and resultant waste was disposed of. The first is “creative thinking and together with your partners up- Thanks in part to the United thing no automotive company in the DCJ’s pioneering campaign has the Parts Distribution Center [PDC] To mitigate this environmental Experience is the best teacher innovation.” Cardboard boxes that stream and downstream is essential Nations Conference on Environment world had ever done before. driven the formation of CFC de- – in Toyohashi and Hitachi. Here, burden, DaimlerChrysler came up As part of its after-sales service contained imported parts are if you are to really cut waste. The and Development [the Earth struction routes by industry groups, vehicles are imported, inspected with the idea of applying body activities, DCJ sends out parts to reused for onward shipments. Poly- PDC asks its associates upstream Summit] held in Brazil in 1992, over Pioneering acts are based on and encouraged other companies and prepared, before being sent to protection film to vehicles for ship- customers through its dealer styrene foam is melted and recy- to switch to reusable materials and the last 10 years a growing sense of a critical awareness that others to begin their own retrofit programs. dealers around Japan. The distribu- ment and reducing the use of wax. network. The Toyohashi PDC was cled. Plastic bags are either reused collaborates with its partners critical awareness of environmental don’t yet have But while developing such wide- tion centers provide a rich source of In response to this effort, DCJ established to ensure that those or taken to Hokkaido and used as downstream in the use of special problems has finally begun to The campaign is aimed at vehicles spread critical awareness is impor- examples of environmental meas- decided to implement its own com- parts are supplied quickly and reli- fuel in thermal recycling. The exam- pallets. emerge in Japan. It has become a built before 1991 which use con- tant, it is still only one step along ures which directly reflect Daim- prehensive package of environmen- ably. Every month, as many as ples are endless. In sum, PDC Reinforcing this three-pronged national mission to seriously “recon- trolled CFCs in the air-conditioning the road. In our efforts to build the lerChrysler’s environment policy. tal measures. 27,000 parts arrive at the PDC, applies ideas and innovation to approach, Manager Miyata takes an sider the mass-production, mass- systems, and replaces the CFC R12 future, it is crucial to translate that When vehicles arrive in Japan, packed separately for each order. transform wasteful use into useful uncompromising stance and proudly consumption society” which has with the HFC R134a – a hydrofluo- awareness into action, to sustain the Beyond the call of duty the protective film becomes waste. Parts must be packed with great waste. explains the center’s ultimate aim of prevailed until now, and to switch to rocarbon which does not affect the pace of action, and to persevere. | Located on the Pacific coast, the The VPC wondered if there wasn’t care to ensure they arrive in working The second approach is “trial “cutting packaging waste to zero.” and facilitate “a sustainable, cyclical ozone layer. In the process, the Toyohashi VPC is the first point of some way to recycle it and ulti- order after their long journey. Un- and error.” This starts by question- All aspects of PDC’s activities show society.” In 1999, the Japanese CFCs are safely recovered and then call for new vehicles, which sit mately opted for thermal recycling. packing the parts creates a mountain ing existing methods which are full consideration for DaimlerChrys- government enacted the Basic Law destroyed. By December 31, 2001, wrapped in body protection film, Used film is now collected and of cardboard boxes, piles of poly- otherwise taken for granted. Em- ler’s environmental stakeholders. for Establishing a Recycling-Based the refrigerant in some 6,000 vehi- awaiting onward shipment. The reprocessed by recyclers styrene foam cushioning material, ployees try out various ideas while In themselves, the activities are all Society, and at the same time Japan cles had been replaced, resulting

58  DaimlerChryslerEnvironmentalReport2002 DaimlerChryslerEnvironmentalReport2002  59 the making of |

Team 2002

Barbara Schmidt-Mattern checks in at DaimlerChrysler South Africa Reporters Verena Hruska [Coach], Gina Fay Damron, Kristin Kaiser, Susanne Lang, Shuji Nagai, Timo Pache, Ulrich Barbara on assignment on the beach Pontes, Barbara Helen Schmidt-Mattern, Alexander Stirn, Marcus Stölb et al. The editorial kick-off meeting took place in Munich Alexander Stirn, Marcus Stölb, Daniel Stolte, Kristen Tuinstra Photographers Klaus Demuth [Coach], Felix Brandl, A remarkable Marc Breisinger, Dirk Bruniecki, Stefanie Füssenich, Tobias Grill, Jeremy Herliczek, concept Grabriele Neeb, Dominik von Winterfeld Designers Stephan Redel [Coach], TheDie „Macher““makers” ofdes the DaimlerChrysler DaimlerChrysler Umweltberichts Environmental Denise Cura, Christina Senft Project Rsindeport keine are PR-Profis,not the PR sondern professionals engagierte you might junge eLeute,xpect fürbut die a dedicated Nachhaltigkeit crew eineof young Option people auf die for Team Schwerzmann & Team whomZukunft sustainability bedeutet. represents a door to a brighter Paul Boothroyd, Mona Dirnfellner, future. Mark Hass, Roger King, Michael Klenke, Julia Rische, Kurt Schwerzmann, The project unfolds at the kick-off meeting Dirk Bruniecki Barbara Schmidt-Mattern and Marc Breisinger – far right – handled the South African angle Ute Vogt Project Team Daimler- Coach Klaus Demuth [left] Chrysler Dr. Udo Hartmann, Helge Hinner, Silke Grüttke, Marion Püning, Kazutaka Nagatomo, Matthias Steybe Briefing Partners Dr. Udo Hartmann, Helge Hinner, Dr. Gerhard Isenberg, Sieglinde Jocham, Masato Kanari, Christoph Nagel, Karl-Ernst Noreikat, Daniel Rheinhardt, Marlen Riddering, Monica Saraiva-Panik, Karl-Heinz Schlaiss, Dr. Hans-Peter Schmid, Bruno Stark Verena Hruska [r.] coached the reporters Teams and topics were matched up in Munich Above: Christina Senft, below: Denise Cura Tobias Grill

Kristen Tuinstra makes notes for her article on the St. Louis Assembly Complex

Kristin Kaiser and Stefanie Füssenich The 2002 DaimlerChrysler Environmental Report is the product of 21 young men and women from Germany, The virtual hub of the process this year was once again Japan and the USA. They wrote this magazine, took the our editorial web site. This is where all of the various photos and designed the layout. How did that come threads came together and where everyone involved about? Well, it was no easy matter, with so many differ- could check out the latest state of play – from the ent viewpoints and levels of experience to take into initial drafts to the final layout. account. But that was just what we were after. Below: Marcus Stöbl consults his notes Above/below: first impressions The outcome is a rich and colorful magazine that Above and below left: Daniel Stolte gets to know the HotModule Pensive looks in Munich The young people are all students of journalism, bears the hallmarks of the generation with the greatest photography or design at the Deutsche Journalistenschule interest of all in environmental protection and sustain- [DJS] and the Fachakademie für Fotodesign in Germany, ability. The outcome may not be perfect, but any flaws Michigan State University and Wayne University in the are more than offset by the commitment of its makers USA, and Keio University in Japan. Stewarding their and the original nature of their contributions. progress was a 50-strong team including a number of Maybe that’s why the Society of Automotive Engi- experts from DaimlerChrysler who acted as briefing neers has now twice selected our Environmental Report partners for the students. for an Environmental Communication Award. |

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