Table Speech

“New Clean Diesel Reduces CO2 Emission”

August 29, 2007

DaimlerChrysler Japan Holding, Ltd.
Mr. Hans Tempel,
President and CEO
Dr. Friedemann Bruehl,
General Manager,
Technology Compliance

 The share of passenger cars with diesel engines exceeded 50% of the overall new passenger car registrations in Europe last year. The automobile industry in Germany reduced 12% CO2 during 10 years since 1995. A modern diesel passenger car today needs 2 liters less fuel per 100 kilometers than 15 years ago. The harmful substances from diesel passenger car emissions have been reduced drastically since 1990.

 The diesel engine was invented in 1897 by Rudolf Diesel. His goals were superior energy efficiency and superior durability and reliability, Mercedes-Benz was the first to apply diesel engines to passenger cars in 1936. Modern diesel engines have kept their traditional advantages, and have realized high output due to direct injection turbo engines.

・Modern Diesels
 Various innovative technologies have been developed and are still evolving to realize the cleanest diesel engines.

 Diesel engines have realized more energy efficiency and higher output by new technology including common rail direct injection engines and turbo chargers. Simultaneously, cleaner diesel fuel with lower sulphur became available worldwide solving the smell and the negative impact to the catalyst.

 These technologies include internal engine measures for clean and efficient combustion. They were able to clear the severe emissions regulations by further reducing harmful substances included in the emission gases with processing after treatment measures such as oxy-catalytic converters, diesel particulate filters (DPF) and the BLUETEC technology with the selective catalytic reduction system reducing NOX with urea application. The primary strength of diesel is economy. Comparing the running costs of gasoline and diesel consumed by Mercedes-Benz, due to the price differential between gasoline and diesel and the fuel consumption, the running cost for diesel is 50% lower for car owners who drive approximately 15,000 km annually. The difference in the initial cost can be covered in roughly two years.

 In the year 2005 in Texas USA, 3 E-Class Diesels were driven for a 30 day marathon with an average speed of around 225km/hr covering the distance of 100,000 miles each which is equivalent to driving four times around the world. They set a world record for a diesel engine. Even after this extreme use, the emission gas was just as clean as when it came off the production plant.

In October 2006, there was another diesel marathon, the longest of all time, starting from Paris to the goal of Beijing. 36 E-class diesel vehicles participated in the transcontinental rally and all vehicles completed the course. The best fuel efficiency was 13.9km/L (7.19 l/100 km) and the average was 12km/L (8.32 l/100 km).

・Comparison with Other Technologies
 The current hybrid engines on passenger cars are a combination of motors and gasoline engines. So they show their advantage in congested traffic with heavy start/stop driving, namely in city areas. On the other hand, Diesel has greatest benefits under highway conditions, namely the suburban area. When we compare the European compound model combining highways and ordinary roads, the hybrid cars recorded 12.6 km per liter whereas the diesel powered cars achieved 13.1 – 13.6 km per liter.

・Future Outlook
 JD-Power and Associates predicts the share of Diesel passenger cars in Japan will become 15% in the year 2015. The reason for this is the recognition of Diesel engines being economic and eco-friendly due to the low CO2 emissions. In order to achieve this level, the currently unjustified bad public image in Japan must be overcome, tax/incentive-related issues need to be further improved, co-operational initiatives by key players (government, oil industry, OEMs) to introduce clean Diesel technology in the Japanese market are needed, and support for the urea infrastructure is required for NOX reduction.

・Sustainable Mobility
 We will continue to spare no efforts to realize sustainable mobility. As a first stage we are further improving efficiency with the current engines and power trains. The second stage is the wide -spread use of high-grade and alternative fuels. The third stage is zero-emission motoring with fuel cells or with battery drives. We will further pursue environmentally friendly automotive technology. We appreciate your understanding and support of the new clean diesel.

Dr. Friedemann Bruehl,
General Manager,
Technology Compliance