1.1 Fleet consumption:
On the European level, DaimlerChrysler will contribute to the attainment of the voluntary ACEA target (25 percent reduction in CO2- emissions from 1995 to 2008, to 140 g CO2/km).

Goal changed, see the new CO2 reduction goal for Europe

According to estimates by the European Commission, the goals stipulated in the ACEA commitment will not be attained. The Commission has therefore submitted a strategy proposal that would require new vehicles sold in the EU to emit only 120g CO2/km on average by 2012. Improvements in vehicle technology are aimed at reducing average emissions to 130g/km, with a further reduction of 10g/km to be achieved with other measures.
A legal framework for this strategy is to be drawn up by mid-2008. DC will continue to reduce the emissions from its fleet in Europe independently of the stipulations of the proposal, which are still unclear.

Activities: Endeavors for reducing fuel consumption will be further intensified; downsizing and turbocharging will play an important role with regard to the engine; principal measures: launch of direct gasoline injection for the E-Class in 2007/2008 (consumption reduction potential ≈10 percent); introduction of start-stop system, initially in the smart (2007), followed by the A/B-Class (consumption reduction potential ≈ 5 percent); 4-cylinder gasoline and diesel engines with optimized consumption in 2008/2009 (savings potential 5-10 percent); development of the so-called Diesotto concept (consumption reduction potential 15-20 percent), 1st stage by 2012; improvement of energy management (5-10 percent), e.g. electrically powered auxiliaries, hybrids (see below).
Status: Compared with the reference year 1995, the average fuel consumption of Mercedes vehicles has been reduced by 20 percent as a result of various measures; this reduction rate is almost half as high again as the ACEA average.

Further development of the current consumption goals for Europe

DaimlerChrysler aims to be “best in class” in terms of the CO2 emissions of its vehicles. As of 2007, the Group will thus introduce at least one vehicle per year in each of the large-volume series (S, C, E, A/B and M-Class and smart) with a reduction in CO2 emissions of at least 8 percent, and with a reduction of at least 15 percent for the middle and upper segments. In the case of the C-Class and smart, this even applies in comparison to the newly introduced vehicles.

Activities: Technical measures for improving the efficiency factor of the drive train, also e.g. new combustion processes (stratified direct injection).
Status: The 2006 CLS 350 CGI with gasoline direct injection consumes 10 percent less fuel than does the predecessor model with conventional injection. The 2.4-liter World Engine in the new Chrysler Sebring consumes about 14 percent less fuel than the previous 2.4-liter engine model (measured in NEDC cycle).

Goal still applies

1.2 Market launch of hybrid vehicles:
U.S.: Introduction of a two-mode hybrid system at the beginning of 2008.
Europe: Market launch of a hybrid drive for rear-wheel-drive passenger cars in 2009.

Activities:
– An alliance has existed with General Motors and BMW since 2005 for the joint development of a hybrid drive system in the U.S.
– Since March 2007, the BMW Group has collaborated with DaimlerChrysler AG to develop a hybrid module for rear-wheel-drive passenger cars in the premium segment.
Status: DaimlerChrysler customers are already using Orion hybrid buses and Fuso Eco Canter trucks. DC is the world leader in hybrid buses.

New goal

1.3 Further development of fuel cell vehicles:
Increasing the vehicle range. Practical tests of second-generation fuel cell vehicles by customers.

Activities:
– Increasing the range of the fuel-cell passenger car trial fleet from 177km today to 400 km by 2010.
– Developing the second generation of fuel cell buses for use in further demonstration projects starting in 2009.
– Creation of a demonstration fleet, consisting of several hundred fuel cell vehicles based on the B-Class, in California by 2012.

Goal still applies

1.4 Reduction of CO2 emissions in production:
Reduction of the specific CO2 emissions in the Chrysler Group plants by 10 percent between 2002 and 2012.
Mercedes Car Group; Truck Group; and Van, Bus, Other: Steady reduction of specific CO2 emissions.

Activities: Data collection and evaluation was improved and the method for calculating CO2 emissions was standardized throughout the Group.
Benchmarking and savings projects have already led to substantial reductions in CO2 emissions at all business units. However, since developments are significantly affected by factors that cannot be influenced (e.g. weather, vertical integration, capacity utilization and changeovers), there does not seem to be any point in defining an overall reduction target for the other business units, as was originally planned. Instead, reduction targets have been defined for individual locations, and specific measures are listed in the environmental reports. We will continue to conduct systematic Group-wide feasibility studies on measures for improving energy efficiency as well as on other issues such as cogeneration, biomass, and photovoltaics.
Status: Between 2005 and 2006, CO2 emissions per vehicle manufactured changed as follows: Chrysler Group –5.9 percent, Mercedes Car Group –1.4 percent, Truck Group –1.8 percent. Specific CO2 emissions have, however, increased at Buses (+7.3 percent) and Vans (+11.1 percent), primarily due to production changeovers. Absolute CO2 emissions were down substantially (8.5 percent) for the Group as a whole.

Goal still applies

2.1 Reducing particulate emissions:
Introduction of diesel particulate filters as standard for diesel-powered Mercedes-Benz passenger cars sold in Germany, Austria, Switzerland and the Netherlands starting in summer 2005, and for all Group brands with DaimlerChrysler engines by the end of 2006.

Activities: Gradual introduction of these filters as standard equipment for all diesel models of the respective brands.
Status: Since mid-2005, particulate filters have been part of the standard equipment of all diesel-powered Mercedes-Benz passenger cars in Germany, Austria, Switzerland and the Netherlands. The smart fortwo cdi has also been available with a diesel particulate filter (open system) as standard equipment since the beginning of 2006. The Chrysler 300 C Diesel is also equipped with a particulate filter as standard. However, particulate filters are still not available for the Chrysler PT Cruiser 2.2 CRD.

Goal only
partly attained

2.2 Reduction of nitrogen oxide emissions, introduction of BLUETEC (commercial vehicles):
Introduction of SCR technology as standard for Euro 4 (BLUETEC 4) by mid-2006 and for Euro 5 (BLUETEC 5) by mid-2009 for Mercedes-Benz trucks and buses sold in Europe.

Activities: Gradual introduction of BLUETEC for Euro 4 and BLUETEC for Euro 5. Development of engines to further increase their efficiency and thus their fuel economy while retaining at least the same long service life.
Status: Starting with the Mercedes-Benz Actros, BLUETEC is now available in all commercial vehicle and bus models. More than 45,000 Mercedes-Benz trucks and buses equipped with the new exhaust-gas technology have been delivered to customers since early 2005.

Goal still applies

2.3 Reduction of nitrogen oxide emissions, introduction of BLUETEC (passenger cars):
Introduction of BLUETEC technology in the first Mercedes-Benz passenger car model in the U.S. in the fall of 2006 and in Europe in 2008.

Activities: Step-by-step introduction of BLUETEC technology in an initial group of Mercedes-Benz car models and enhancement of this technology for all model series.
Status: Market launch of the E 320 BLUETEC commenced in North America in October 2006. Three additional V6 BLUETEC models will be launched in the U.S. from 2008: in the R-Class, the M-Class and the GL-Class. In Europe, BLUETEC will first be introduced to the market in the E-Class in 2008.

Goal still applies