Dr. Dieter Zetsche is
confident that the Daimler Group's R&D spend—€5.6 billion last
year—is sufficient to counter rivals' technology advances.
Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz
Cars, is blunt and brief on the subject of how his company will tackle
the ever more challenging difficulties of emissions reduction: “With a
lot of technology—and a lot of technology which is costly!”
Important though it is, the vexing
subject of emissions is just one of the diverse areas of technology that
any OEM and supplier must embrace and master. And most of that, too, is
very, very costly.
In the world of industrial automotive
might, Mercedes may be a major player but increasingly it faces the
threat or actuality of rivals expanding to massive proportions—with
equally massive R&D capabilities. The overarching European example
is the Volkswagen Group, now with Porsche’s capability to add to its plethora of brands with the ability to cross-link on everything from powertrains to pedals.
Can Mercedes keep up with the R&D power of VW, Toyota, and General Motors?
Zetsche is coolly confident that it can—and will: “As a Group
(Daimler), we had €106 billion in revenues in 2011 and as a proportion
we run R&D at 5%-plus of that (€5.6 billion), with Mercedes’ Cars
accounting for €3.73 billion," he told AEI. "I do not know of any car company, whatever their sales volume, that would compare favorably with such high figures!
“It doesn’t matter if a company sells
three times as many small cars as another; it matters what kind of
revenues you generate. We are second to none as far as our technological
resources and capabilities are concerned.”
But with the arrival of the latest
compact A-Class and B-Class ranges, Mercedes itself is arguably in that
small-car sector. “We have to make sure that the smaller cars are more
profitable than they used to be,” he stressed.
Zetsche stated that the new A-Class
would achieve significantly higher volume than the previous model, a
broad product mix, and would be built in three centers—Germany, Hungary,
and Finland—to achieve lower labor costs on average. He is convinced
that Mercedes will have top profitability in the segment.
The overall volume of cars with a
Mercedes badge in the compact sector? “We have a cash commitment to more
than 400,000 units, and we are investigating production in China,” he
said.
While some companies are considering
more shuttering of factories, the bullish Zetsche (an electrical
engineer whose career is founded on R&D and who has been running
Daimler since January 2006), said: “We are looking for ways and means to
expand the production capability we have at Rastatt and Kecskemét.” The
A-Class will also be assembled by Valmet in Finland.
However good prospects may look,
pan-industry technology and commercial cooperation are an increasingly
rational course. Mercedes has a close relationship with the Renault-Nissan Alliance, and Nissan’s Decherd, TN, plant will build Mercedes four-cylinder engines for Infiniti
and Mercedes from 2014. Installed capacity is 250,000 units per annum,
and the facility includes crankshaft forging and cylinder block casting
operations. It will be a major source of supply and logistics for
Mercedes’ Tuscaloosa, AL, plant. Zetsche confirmed that Mercedes is
discussing what he refers to as “quite a number of other very promising”
potential cooperations but says that it is essential not to get “too
collaborated.”
Maintaining focus on product progress
and identity sees Zetsche spending at least an hour every week in his
company’s design studios: “I see every car from the first drawing to the
final styling freeze—and I get involved.”
He is also pushing his R&D
specialists (there are 15,600 in Mercedes alone; 23,200 in the Daimler
Group) to follow his own and the Board’s vision of emissions- and
accident-free driving, both of which represent high-level technology
directions. Other technology priorities are the emerging markets’ needs,
being green, and being "digitalized." The latter concerns a whole gamut
of areas including mobility concepts, connectivity between customer and
car, and car to car.
Autonomous driving he regards as not
being a big deal technologically, but legal aspects are a concern: “You
prevent 99 accidents happening, but one occurs when a vehicle is being
driven autonomously and you may get into deep trouble with just that
one. Our general philosophy is that we want to keep the driver in
control; to build a safety net around the driver so that he or she does
not pay for any wrong decisions. But that doesn’t say that, in stop-go
traffic, a driver can’t read a book.”
What worries Zetsche, though, is the
threat of hackers intervening with the operation of autonomous cars:
“These are nasty scenarios. And you can also think about governments
regulating whatever they want—speeds limits and even levels of
acceleration. We don’t like this prospect. So we are not striving for an
entirely autonomous car.”
An on-going technology issue is the fuel
cell. Zetsche is a believer in it, and the new B-Class with a
half-sandwich floor and energy storage area was designed to take the
system or other electric solutions. “Technically, I think we’re there.
We can now offer a car to a customer that is reliable and that has
similar characteristics to a combustion engine vehicle—and that can be
enjoyed. Cost wise, though, we are not there. But I believe in 3-5
years, fuel-cell cars will be in showrooms to be bought.”
Meanwhile, improvements in
combustion-engine design are very much in the frame, including some
technology that has been seen in the concept DiesOtto engine—notably
variable compression ratios. The engine demonstrates the convergence of
diesel and gasoline technologies.
The various curves of diesel and
gasoline performance are closing or crossing. Emissions legislation is
now making diesel engines very expensive items, said Zetsche. The
minimum number of cylinders is likely to be four.
As boss of one of the most
technology-led auto companies in the world, Zetsche’s response to the
question of the importance of an engineer running it is again blunt and
brief: “It’s not a must—but neither can it hurt!”
No comments:
Post a Comment