Daimler-Sustainability Report 2005

Profitability
Environmental protection
Cultural diversity
Global citizen
Intercultural dialogue
Responsibility
Equal opportunities Securing jobs
DaimlerChrysler
Stuttgart, Germany
Auburn Hills, USA
www.daimlerchrysler.com
Vehicle safety
Social issues
Values
Human rights
DaimlerChrysler
Sustainability Profile 2005
Ecology
Economy Society
Sustainability
Sustainability Profile 2005
Reporting on our common future

Die ökologische Dimension
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Masthead
Publisher
DaimlerChrysler
70546 Stuttgart, Germany
Auburn Hills, MI 48326-2766, USA
For the publisher
Dr. Michael Inacker, External Affairs & Public Policy (EA/S)
Prof. Dr. Herbert Kohler, Research, Body and Powertrain (RPB), Chief Environmental Officer
Hartmut Schick, Communications (COM)
Coordination Concept and realization Editing and design
Ulrike Becker Matthias Steybe md kommunikation, Frankfurt am Main
Corporate Media (COM/CM) Corporate Public Relations (COM/MP) Design Hoch Drei, Stuttgart
Dr. Norbert Otten Dr. Wolfram Heger
External Affairs & Public Policy (EA/S) External Affairs & Public Policy (EA/S)
This Sustainability Profile is printed on CyclusPrint paper. The paper was made from 100% recycled paper in line with the RAL UZ-14
Blue Angel certificate and is also certified with the Nordic Swan (Licence No. 544.021). The manufacturer guarantees the ecological integrity of the CyclusPrint paper
production process, as 100% of production residues are also recycled and reprocessed.
© 2005 DaimlerChrysler
Reproduction in full or in part only with the publisher’s prior written approval and with photos and copy credited to “DaimlerChrysler”.
DaimlerChrysler | Sustainability Profile 2005 | Masthead

Sustainability Profile 2005
Reporting on our common future
2 | 3

Contents
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Editorial 6
Corporate Profile 8
Report Profile 10
Our Responsibility for Sustainable Activities 12
Sustainability Structures 16
1.0 Corporate governance structures 17
1.1 The corporate bodies of DaimlerChrysler AG17
1.2 Structures for the implementation
of corporate principles 19
2.0 Principles, rules of behavior, voluntary agreements 20
2.1 The principles guiding our activities 20
2.2 Risk management 20
2.3 DaimlerChrysler and the Global Compact 20
2.4 Principles of Social Responsibility 21
2.5 DaimlerChrysler Integrity Code 22
2.6 Code of Ethics for senior financial officers 23
2.7 The Environmental Protection Guidelines of the
DaimlerChrysler Group 23
2.8 Personal data protection 24
3.0 Dialogue with interest groups 24
4.0 Current topics of corporate ethics 27
5.0 Sustainability ratings, rankings, and awards 28
6.0 Sustainability communications in the company 29
DaimlerChrysler | Sustainability Profile 2005 | Contents
Economy 30
1.0 Our results in 2004 31
2.0 Business development in 2004 32
2.1 The world economy and the automotive industry 32
2.2 Development of unit sales in 2004 32
2.3 Revenues in 2004 33
2.4 Profitability 33
2.5 Income taxes 34
3.0 Shareholders’ equity and liabilities 34
3.1 Shareholders’ equity 34
3.2 Accrued liabilities 34
3.3 Financial liabilities 35
4.0 Performance measures 35
4.1 Management and control tools 35
4.2 Development of return on net assets 35
5.0 Expectations and challenges for the future 36
5.1 Outlook for revenues and unit sales 36
5.2 Product development and investments in the future 36
6.0 Global procurement 37
6.1 Supply chain management 38
6.2 Risk management in procurement 38
7.0 Our shareholders 39
7.1 DaimlerChrysler shares 39

Ecology 40
1.0 Environmental strategy and policy 41
1.1 Environmental structures and management 41
1.2 Group environmental protection structures 42
2.0 Product-related environmental protection 43
2.1 Our strategy for the sustainable mobility of the future 43
2.2 Research and product development 44
2.3 Products and product use 49
3.0 Production-related environmental protection 53
3.1 Our production-related environmental strategy 53
3.2 Air pollution control 53
3.3 Energy and climate protection 54
3.4 Waste prevention and recycling 55
3.5 Water protection 55
3.6 Soil conservation and remediation 55
3.7 Noise abatement 56
3.8 Delivery traffic and logistics 56
3.9 Suppliers and environmental protection 56
4.0 Important environmental goals 57
Society 58
1.0 Our employees 59
1.1 Employment trends in 2004 60
1.2 Staff turnover 60
1.3 Human resources planning and controlling 60
1.4 Good relations between workforce and management 61
1.5 Global Compact – principles for people and work
at DaimlerChrysler 61
1.6 Flexibility in the use of human resources
and safeguarding jobs 61
1.7 Performance and remuneration 61
1.8 Social security 62
1.9 Diversity management and equal opportunities 62
1.10 Vocational training and professional development 65
1.11 Executive development 65
1.12 Occupational health and safety 65
1.13 Aging workforce – the demographic challenge 67
1.14 Combating HIV/AIDS 67
1.15 Employee satisfaction 68
2.0 Our neighbors 68
2.1 Activities in the NAFTA countries 68
2.2 Commitment in Europe, Asia, South America, and Africa 69
3.0 Our customers 70
3.1 Responsibility for safety 70
3.2 Customer Relationship Management 72
4.0 Engagement in society 73
5.0 Important goals of the social engagement of
the DaimlerChrysler Group 77
External Statement 78
GRI Index 80
Addresses 83
4 | 5

Editorial
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DaimlerChrysler | Sustainability Profile 2005 | Editorial

Dear Reader,
Profitable growth and acceptance of our responsibility in respect of
the environment and society go hand in hand at DaimlerChrysler.
We also understand that sustainability is an essential element of
our corporate activities and necessarily contributes to the interests
of our customers, employees, shareholders, and society-at-large.
At the same time we align such activities with our global, international,
regional, and community undertakings.
We possess a greater knowledge than most companies of the
opportunities and challenges presented by globalization. For this
reason we have promised to provide products with the capacity to
enhance individual mobility as well as transport goods in such a
way that their usage by future generations will take place in stable
societies and environments.
We have committed ourselves to observing the principles of sustainability
by implementing our initiatives. But we know success
will only come if this spirit is merged with our core competencies
and economic interests. This means the proper integration of
social and environmental activities within our operating business.
As an automobile manufacturer we enjoy a wide-ranging spectrum
of influence, and we know that the manufacture and use of our
products make demands on the ecosystem. At the same time, however,
these products make indispensable as well as progressive
contributions to the freedom, growth, and affluence of any society:
– Our research makes vehicles safer and more efficient.
– The further development of environmentally-acceptable drive
concepts shows us the way towards tomorrow’s mobility.
– Our investments and our commitment to society create jobs
and stability.
Our stated objective is to prepare sustainable rather than shortterm
corporate and social initiatives. Transparency and open dialogue
with relevant interest groups is therefore central to this
process. Thus, for the first time in our Sustainability Profile we
have supplemented normal reporting procedures with additional
and extensive information on sustainability. In doing so, we have
brought ourselves into line with the internationally recognized
guidelines of the Global Reporting Initiative (GRI). However, our
Sustainability Profile 2005 is more than an important external publication.
Within our company it also supports efforts to identify and
then access real potential flowing from the steady improvement of
operating procedures, production processes and the products
themselves.
We have already accomplished a great deal. Not only do we
expressly support the UN Global Compact, our internal guidelines
require the explicit observance and execution of its principles.
Implementation of the Environmental Guidelines throughout the
group is also showing measurable success. Our rules of governance
are rigorously observed and monitored. Moreover, our longterm
commitment to society-at-large demonstrated through our
HIV/AIDS programme or through the development of a global
association of training facilities, particularly in crisis regions, has
long set international benchmarks. Indeed, our holistic approach
helps to create humane working and living conditions in domestic
and global markets without sacrificing corporate growth.
We realize, however, that the challenges ahead demand a continuous
learning process. In view of this we are looking actively for new
and responsible partners capable of operating at the interface
between politics, business, and society and who are able to help
with the joint development of future sustainability in a climate of
transparency and trust. In this regard we hope our Sustainability
Profile stimulates your full participation in open and constructive
dialogue.
Prof. Jürgen E. Schrempp
Chairman of the Board of Management of DaimlerChrysler AG
6 | 7

Corporate Profile
DaimlerChrysler AG was formed in November 1998 as a result of the merger
between Daimler-Benz AG and Chrysler Corporation. The Group can look back
on a tradition of more than one hundred years, featuring pioneering
achievements in automotive engineering by both of its predecessor companies.
DaimlerChrysler | Sustainability Profile 2005 | Corporate Profile

DaimlerChrysler –
a global company
DaimlerChrysler is a leading supplier of superior passenger cars,
sport-utility vehicles, minivans and pickups, and the world’s largest
manufacturer of commercial vehicles. In addition, DaimlerChrysler
holds a 33 percent interest in the European Aeronautic Defence
and Space Company (EADS), one of the world’s leading companies
in the field of aerospace and defense technology.
With its strong brands and a comprehensive portfolio of automobiles
ranging from small cars to heavy-duty trucks, supplemented
by tailored financial services along the automotive value chain,
DaimlerChrysler is active in nearly all countries in the world. The
Group has production facilities in a total of 20 countries. The
worldwide networking of research and development activities and
of its production and sales locations gives the Group considerable
potential to enhance efficiency and gain advantages in an internationally
competitive environment.
Of DaimlerChrysler’s total revenues of €142.1 billion in 2004,
33 percent was generated by the Mercedes Car Group, 35 percent
by the Chrysler Group, 23 percent by Commercial Vehicles, 8 percent
by the Financial Services division and 1 percent by the Other
Activities segment.
The products supplied by the Mercedes Car Group range from
the high-quality small cars of the smart brand to the premium
vehicles of the brands Mercedes-Benz, Mercedes-Benz AMG and
Mercedes-Benz McLaren, and the Maybach luxury sedans.
The Chrysler Group develops, produces and distributes passenger
cars, minivans, sport-utility vehicles and light trucks of the brands
Chrysler, Jeep® and Dodge.
Within a worldwide network, DaimlerChrysler’s Commercial
Vehicles Division develops and produces trucks, vans and buses
under the brands Mercedes-Benz, Freightliner, Sterling, Western
Star, Setra, Thomas Built Buses, American LaFrance, Orion and
Mitsubishi Fuso. The product range covers small vans, medium
and heavy-duty trucks for local and long-distance deliveries and for
construction sites, as well as tourist, urban and overland buses.
It also supplies special-purpose vehicles, for fire services for example,
as well as the Unimog multi-function vehicle.
The Financial Services division supports the sales of the
DaimlerChrysler Group’s automotive brands in 39 countries. Its
product portfolio mainly comprises tailored financing and leasing
packages for dealers and customers, but it also provides services
such as insurance and fleet management. In addition to its automotive
financial services DaimlerChrysler Bank offers investment
products and credit cards.
The Other Activities segment includes our shareholding in the
European Aeronautic Defence and Space Company (EADS) as well
as the DaimlerChrysler Off-Highway business unit. DaimlerChrysler
Off-Highway produces and markets ship and train engines as well
as local electricity generators.
Corporate facts
Company Ownership: European, U.S. and other international
investors are shareholders of DaimlerChrysler.
Approximately one billion shares are circulating.
Global Stock: The DaimlerChrysler-share is traded on the world’s
key stock exchanges, among them New York, Frankfurt and Tokyo.
Chairman: Prof. Jürgen E. Schrempp
Management Board: Consists of 10 members, including the
Chairman and the heads of the operating and functional divisions.
Supervisory Board: Consists of 10 shareholders’ representatives
and 10 employees’ representatives. The Supervisory Board
appoints the Board of Management and approves important corporate
decisions.
Market Capitalization: About €35.7 billion (December 31, 2004)
Total Revenues: 2004: €142.1 billion (US$192.3 billion)
Investments: In the planning period of 2005 through 2007,
the Group plans to have total investment expenses in property,
plant and equipment of total €38 billion.
Automotive Sales: 4,006,700 passenger cars
712,200 commercial vehicles (in 2004)
Employees: At year-end 2004: 384,723
Products Sold In: Nearly every country in the world
8 | 9

Report Profile
This report provides an overview of DaimlerChrysler’s strategies,
activities and progress in the field of sustainability. It complements
the three other Group publications which report in full detail on
the Group’s performance in the various dimensions of sustainability
(Annual Report, Environmental Report and Corporate Social
Responsibility Report). The report brings out the relevance to sustainability
reporting of the facts presented.
Geared to the guidelines of the Global
Reporting Initiative (GRI)
The 2005 Sustainability Profile and the integrated website on the
topic of sustainability, which you can find at www1, take their
lead from the international guidelines of the Global Reporting Initiative
(GRI). We understand and acknowledge the guidelines of the
Global Reporting Initiative as an important aid to orientation. For
this reason, in 2004, we began to gradually gear our regular reporting
of issues relating to sustainability to the GRI guidelines. With
our first Sustainability Profile, we have now extended our reporting,
at the same time achieving a stronger focus. The reporting period
is the year 2004. As this is our first report of this nature, some
sections have been supplemented with information relating to the
past.
www2
Our objective is to further enhance sustainability reporting in
future. To achieve this we have set ourselves the following goals:
– to make more comprehensive statements on topics with a
bearing on sustainability;
– to indicate concrete goals and measures for the further
improvement of our sustainability performance and reporting;
– to optimize our data acquisition systems in view of the
scope of the report;
– to involve additional relevant expert opinions and assessments
in our reporting.
DaimlerChrysler | Sustainability Profile 2005 | Report Profile
Scope of reporting and data
acquisition methods
Economy. The information on economic affairs in the current
Sustainability Profile is based on data from the 2004
DaimlerChrysler Annual Report. The Management Report and
Notes sections used for this report were audited by KPMG
Deutsche Treuhand-Gesellschaft Aktiengesellschaft and certified
with their unqualified opinion.
Ecology. DaimlerChrysler began systematic compilation of key
environmental data from its German plants in 1992. In 1997 and
1998, data acquisition was gradually extended to include production
plants outside Germany in which the DaimlerChrysler Group is
the majority shareholder. Since 2002, the acquisition and analysis
of the data has been handled with the aid of a database which can
be accessed across the Group on the company intranet. The data
in this report reflects the structure of the Group in financial year
2004 and include all relevant production plants, except those of
Mitsubishi Fuso Truck & Bus Corporation. To ensure comparability
with data for previous years as far as possible, the data for the
entire period covered does not include those parts of the company
in which DaimlerChrysler is no longer the majority shareholder.
As this is the first year in which the MTU Aero Engines location in
Munich, Germany, which belonged to the Group until 2003, is no
longer considered in our reporting, the published figures for successive
years may vary from those in earlier publications. In the
year under review, the environmental data relate to 81 sites or
parts thereof.
New parts of the company have been included from the time at
which they become part of DaimlerChrysler. Details on the calculation
of specific values for resource consumption and emissions,
and on the calculation of direct and indirect CO2 emissions can be
found on the Internet at
www3

Society. The facts and figures from the Human Resources area
are based on the 2004 DaimlerChrysler Annual Report. Data
acquisition was primarily by means of the “eCorps” electronic
management system, which only employs data from consolidated
companies within the DaimlerChrysler Group. This information
was complemented by data acquired with the aid of the electronic
human resources system “e-people” or acquired separately.
Furthermore, in the copy and diagrams in the “Our Employees”
section, it is indicated whether the data relate to the entire Group
or only to specific segments.
Liability disclaimer
The compilation and processing of data in this report has been carried
out with extreme care. Nevertheless, errors cannot be entirely
excluded. Insofar as, in addition to a review of financial year 2004,
this report also contains forward-looking statements, these are
based on data currently available and on assumptions founded on
current forecasts. Although such projections are drawn up with the
greatest care, a great variety of unforeseeable factors may lead
to deviations. As a result, any forward-looking statements made in
this report are not to be taken as statements of fact.
The content of the report was examined and released by the
responsible professional staff. There was no examination by a third
party. Rather, recognized sustainability experts were involved in the
process of drafting, designing and aligning this report.
The editorial deadline for this report: June 17, 2005.
Additional information (indicated by the www symbol and an index number)
is available online at:
www.daimlerchrysler.com/sustainability
You can also find this and other publications of DaimlerChrysler
on the Internet at:
www.daimlerchrysler.com/sustainability
10 | 11

Our Responsibility for Sustainable Activities
The commercial success of DaimlerChrysler is founded on the trust of the people in
all countries where our company is active. Consequently, we have anchored economic,
ecological, and social responsibility firmly in our corporate strategy. Our vision is of
sustainable development – worldwide.
DaimlerChrysler | Sustainability Profile 2005 | Our Responsibility for Sustainable Activities

DaimlerChrysler –
global group and global citizen
As a globally active automobile group, DaimlerChrysler bears farreaching
responsibility. Several hundred thousand people are
involved in manufacturing and marketing our products around the
world. Our vehicles are part of the street scene in almost every
nation on earth. They meet people’s need for mobility, safety, and
innovation and provide a flexible means of freight transportation.
Thus they lay the foundations for personal flexibility and independence,
and represent an important basis for modern societies and
economies. At the same time, the production and use of our vehicles
also consume natural resources, and our business activities
have a wide-ranging influence on society.
As a multinational corporation we take our worldwide responsibility
towards our customers, shareholders, and employees just as seriously
as our responsibility towards socio-political institutions at
local, regional, national, and international level. We are convinced
that commercial success and social responsibility are two sides of
the same coin, and that any value-added activity presupposes
value-based activities in a social context. Our business can only
succeed if we gain the trust of the people of the countries in which
we operate. As a result, social and ecological responsibilities
are part and parcel of our corporate strategy – responsibilities we
meet by drawing on all our competencies.
A vision of sustainability. In order to safeguard the future of our
company and maintain and reinforce its acceptance in society,
we have made a commitment to a vision of sustainability which
comprises three dimensions of responsibility:
– We bear responsibility for the economic performance and the
long-term business success of the company.
– We bear responsibility for the sparing use of the resources available
on our planet and for maintaining an intact environment –
for present and future generations.
– We bear responsibility for the people involved in or affected by
the business activities of our company, and for society – which
the company sees itself helping to shape.
Economic responsibility. With high-quality products and sophisticated
technologies we anticipate and drive the market trends of
the future. This way we not only boost our competitiveness but
also extend our global lead among automobile manufacturers.
Extensive investments in research and development enhance our
market opportunities. By fostering innovation we stabilize and
strengthen our market and earnings potential, thereby assuring the
long-term success of the company and its sites at home and
abroad. For only those companies that safeguard their success
and strive for lasting and sustainable growth in shareholder value
will master the future challenges of global competition.
12 | 13

Ecological responsibility. Through a wealth of different activities
we prepare the ground for the further enhancement of the environmental
compatibility of our products. In the process we focus
on the environmental impact of our products over their entire life
cycle, from development and production to their service lives and
recycling. As we do so, we do not restrict our activities to our
own proprietary operations but aim to continue to play our part
further on in realizing improvements in the overall road traffic
scenario, even beyond the scope of our immediate sphere of
responsibility. With reference to reductions in fuel consumption
and CO2 emissions, this means for example that one prime focus
of our acitivities is on the further improvement of the conventional
internal combustion engine but also the development of new,
alternative drive systems, such as the fuel cell. But we also promote
and support the development of environmentally compatible
and largely CO2-neutral fuels. Through the application of innovative
technologies we also reduce emissions during the production
of our vehicles as well as during their service lives. Finally, by taking
environmental aspects into consideration from the design
stage onwards, we help conserve resources and promote the use
of renewable raw materials. This applies equally in our home markets,
in industrialized countries, and in developing markets.
DaimlerChrysler | Sustainability Profile 2005 | Our Responsibility for Sustainable Activities
Social responsibility. We enter into and shape political and social
dialogue and contribute to the resolution of social issues at local,
regional, and global levels. By supporting governments and global
institutions such as the United Nations in their efforts to create fair
framework conditions for the global economy we are helping to
build social stability – one of the key prerequisites for commercial
success and growing prosperity. By integrating the principles of the
Global Compact into our Social Responsibility Guidelines we have
underlined our commitment to maintaining appropriate social standards
worldwide. We always consider relations with our employees
and our engagement in society at large not simply as an obligation
but also as an investment in the future of our company.
By fostering economic growth we are helping to reinforce democratic
structures, weaken political extremism, and open up dialogue
across religious and cultural boundaries. Through our
vocational training activities we are helping to establish an active
middle class within society, not least in the emerging and developing
countries in which we are active. And by involving emerging
economies in international value chains we are helping to make
world trade a more democratic process. In this way we strengthen
civilized societies and, with our legal, social, and economic standards,
act as a beacon in countries where such standards are not
yet in place.

Global sustainability network
In addition, we focus on social and ecological projects in which we
can directly apply our competencies as an automaker. The framework
for these activities is provided by the global sustainability
network that we have created in order to promote renewable raw
materials and alternative fuels, and foster sustainable development.
For example, in our POEMA project in Brazil we make seat
upholstery out of coconut fiber; in India we are developing a
process that will generate biodiesel from the seeds of the Jatropha
plant; in the Philippines the Abaca project is producing natural
fibers for use in three-door Mercedes-Benz A-Class models; and in
Freiberg, Germany, we are working on the production of synthetic
fuels from biomass. In all of these projects, economic considerations,
environmental protection, and the creation of local professional
workplaces go hand in hand.
Alliances for a sustainable global economy
Sustainable development means pursuing a vision against which
not only the activities of companies but also of politicians and
social groups such as associations or interest groups are measured.
If we are to master the challenges of the 21st century, the
political, business, and social sectors must join forces to create
common sustainable framework conditions for the future.
DaimlerChrysler is convinced of the benefits of globalization: open
markets, free trade, and cross-border knowledge transfer. Globalization
paves the way for progress in science and technology, and
for the more efficient use of natural resources. Global dialogue
also raises awareness of the need to respect human rights. Even if
the far-reaching change brought about by the global integration of
production processes and markets leaves society facing many
challenges, we have no doubt whatsoever that globalization opens
up opportunities for growth, prosperity and sustainable development
all over the world – chances that we must use, and that we
must ensure are distributed fairly. Because no country, no region,
and no part of the population should be excluded from the benefits
of globalization.
Vital cornerstones of this process include transparency and open
dialogue, because they provide the key to breaking down prejudice,
building trust and forging partnerships – responsible partnerships
between politics and business, management and workforce,
and companies and society, which will help to generate a positive
global framework for every nation.
14 | 15

Sustainability Structures
Binding principles, clear responsibilities, and effective processes and structures lay the
foundations for the realization of our vision of sustainability at DaimlerChrysler.
DaimlerChrysler | Sustainability Profile 2005 | Sustainability Structures

Sustainability Structures
1.0 Corporate governance structures 17
1.1 The corporate bodies of DaimlerChrysler AG17
1.2 Structures for the implementation of corporate principles 19
2.0 Principles, rules of behavior, voluntary agreements 20
2.1 The principles guiding our activities 20
2.2 Risk management 20
2.3 DaimlerChrysler and the Global Compact 20
2.4 Principles of Social Responsibility 21
2.5 DaimlerChrysler Integrity Code 22
2.6 Code of Ethics for senior financial officers 23
2.7 The Environmeltal Protection Guidelines of the
DaimlerChrysler Group 23
2.8 Personal data protection 24
3.0 Dialogue with interest groups 24
4.0 Current topics of corporate ethics 27
5.0 Sustainability ratings, rankings, and awards 28
6.0 Sustainability communications in the company 29
Additional information (indicated by the www symbol and an index number)
is available online at:
www.daimlerchrysler.com/sustainability
1.0 Corporate governance structures
As a stock corporation with a head office in Germany, the Corporate
Governance structures at DaimlerChrysler AG are largely
subject to German law, specifically the Stock Company Act,
Co-Determination Act and capital market legislation, as well as the
DaimlerChrysler AG Articles of Incorporation. DaimlerChrysler AG’s
stock is also listed on foreign stock exchanges, in particular on
the New York Stock Exchange; consequently, DaimlerChrysler AG
also observes the capital market laws and admission requirements
of these stock exchanges.
DaimlerChrysler acts in compliance with the principles of good
and responsible Corporate Governance and is dedicated to promoting
the trust of its shareholders, customers and employees on a
sustained basis. A detailed description of the Corporate Governance
principles at DaimlerChrysler may be found in the Internet.
www4
1.1 The corporate bodies of DaimlerChrysler AG
Shareholders and the Annual Meeting. Shareholders exercise
their rights and vote at the Annual Meeting. Each DaimlerChrysler
AG share carries one vote. The direct influence of the Annual
Meeting on Corporate Management is legally defined. However,
the Annual Meeting takes significant decisions. It resolves on the
appropriation of net income and endorses the actions of the Board
of Management and the Supervisory Board; it elects the annual
auditors and the members of the Supervisory Board and passes
resolutions on significant measures such as changes in the Articles
of Incorporation and capital measures. Each shareholder in the
Annual Meeting is entitled to take the floor and to request oral
information from the Board of Management with respect to all matters
of relevance for the corporation. If certain threshold values
are reached, the shareholders are also entitled to call for an extension
of the agenda and the convening of an Annual Meeting.
16 | 17

Board of Management. The Board of Management manages and
represents the company vis-à-vis third parties. It is responsible for
the operative and strategic corporate management. The Board of
Management, which currently has ten members, exercises joint
management of the company’s activities in accordance with the
principle of collegiality. Each Board of Management member is
responsible for one division. In addition to the operating divisions
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services, functional units such as Finance & Controlling,
Research & Technology, Corporate Development, Human Resources,
and Global Purchasing are also represented at Board of
Management level. The activities of the Board of Management
are coordinated by its Chairman, Prof. Jürgen E. Schrempp.
The Board of Management has established various committees
with supporting functions. One such committee is the Executive
Automotive Committee, which is responsible for coordinating
all cross-divisional automotive issues and for examining further
efficiency potential.
The principles for determining the remuneration of DaimlerChrysler
AG Board of Management members as well as the amount and
structure of Board of Management compensation are described in
a remuneration report which is published as part of the Annual
Report. The Board of Management remuneration system is aimed
at paying adequate, internationally competitive compensation to
Board of Management members in accordance with their respective
responsibilities and activities. Joint and individual performance
of the Board of Management, as well as corporate performance, is
clearly and directly accounted for by way of variable compensation.
The combination of fixed and variable income components which
vary in accordance with the short- and long term corporate performance
is designed to provide incentives for sustained corporate
management.
Supervisory Board. Under the German co-determination provisions,
the DaimlerChrysler AG Supervisory Board has 20 members,
made up equally of shareholder and employee representatives. The
shareholders’ representatives are elected at the Annual Meeting,
the employee representatives by employees of the domestic group
companies. Both the shareholder and employee representatives
are equally committed to representing the Company’s interests.
The Supervisory Board is composed of members who, as a whole,
DaimlerChrysler | Sustainability Profile 2005 | Sustainability Structures
have the required knowledge, abilities and professional expertise
to properly complete their tasks and reflect the international orientation
of DaimlerChrysler AG.
The Supervisory Board monitors and advises the Board of Management
in the management of the enterprise. The Supervisory Board
appoints and dismisses the members of the Board of Management.
The Supervisory Board has delegated certain tasks and decisions
to its committees. The Presidential Committee, for example, is
responsible for the independent determination of the compensation
of Board of Management members. The Audit Committee
deals with accounting issues and risk management issues; it
appoints the annual auditor and assesses the annual auditor’s
suitability and independence. The Mediation Committee of the
Supervisory Board gets involved in the event of disagreements
concerning the appointment of Board of Management members.
German law includes various provisions aimed at the independence
of the members of the Supervisory Board. Other than in the
so-called “one-tier board” common in the Anglo-Saxon countries,
the management and control of German stock corporations are
strictly separate from one another (“two-tier board”). Consequently,
it is not possible to be a member of the Board of Management
and, at the same time, a member of the Supervisory Board
of DaimlerChrysler AG. In order to ensure the independence of
Supervisory Board members DaimlerChrysler AG has established
additional regulations respecting possible conflicts of interest. The
members of the Supervisory Board are bound by the company’s
best interests. No member of the Supervisory Board may pursue
personal goals in his/her decisions or use business opportunities
intended for the enterprise for personal reasons. As soon as material
conflicts of interest occur that are not merely temporary in
respect of the person of a Supervisory Board member, this shall
result in the termination of this member’s mandate. In its report,
the Supervisory Board informs the Annual Meeting of any conflicts
of interest concerning Supervisory Board members that have
occurred, as well as on their treatment.

Management of opportunities and risks. The members of the
Board of Management and the Supervisory Board shall act in the
interest of the shareholders and are obliged to increase the sustainable
value of the company. The Board of Management shall
also act in the interest of its employees and, to a certain extent, in
the public interest. The Board of Management shall hold strategic
meetings at least once a year in order to discuss the long-term
planning of business units and the strategies of the functional divisions
on the basis of global scenarios which project the long-term
economic, ecological and social developments and their impact on
the enterprise. The Board of Management holds operative planning
meetings at regular intervals in order to define the medium-term
operative goals of the business units and the planning of the functional
divisions. Examinations of the current risks and possible
measures to counteract these risks are a fixed component of these
discussions. The Management Report informs the Supervisory
Board regularly about the strategy of the business divisions as well
as changes in their strategic direction and approves the operative
planning of the Group. The audit committee of the Supervisory
Board deals intensively with the organization and efficiency of the
internal risk management and control systems.
1.2 Structures for the implementation of corporate principles
The Board of Management is particularly concerned with significant
economic, ecological and social principles. As early as in
1999 the Board of Management issued a rule of conduct that is
binding for all company employees. It contains regulations governing
human rights, abolition of child labor and forced labor, corruption,
equal opportunity and environmental protection. The Board
of Management has commissioned the internal audit function to
audit compliance with the rule of conduct at regular intervals and
to report any violations which will then be sanctioned. The internal
audit department reports directly to the Board of Management.
The members of the Board of Management and the executive staff
in particular are obliged to comply with all legal provisions within
the scope of the DaimlerChrysler AG Code of Ethics.
The principles governing social responsibility introduced by the
DaimlerChrysler AG Board of Management together with the Global
Works Council reflect DaimlerChrysler’s commitment to the cata-
logue of principles of the UN initiative “Global Compact.” These
principles define minimum standards for work conditions and
industrial relations at all sites of the Group worldwide. They reflect
DaimlerChrysler’s belief in the social responsibility of a global corporation
and are fully supported by the Board of Management.
Collaboration with our employee representatives is of great value
to us. The employee representatives exert an influence at the
company not only through the formal process of codetermination
but also through creative contributions to many different processes.
Management annually informs the World Employee Committee
of the state of implementation of the Principles of Social
Responsibility.
Environmental protection is one of the key concerns of the Board
of Management and is anchored in the Environmental Protection
Guidelines approved by the Board. The company expects and
encourages environmentally conscious behavior among employees.
This particularly applies to the uses and development of new
product and production technologies, which conserve natural
resources, enable recycling, lead to a maximum reduction of
pollutants, and preserve the natural environment. The Board of
Management member responsible for Research and Development
and the Chief Environmental Officer at DaimlerChrysler also bear
responsibility for these activities.
The Board of Management of DaimlerChrysler AG supports the
idea that entrepreneurial success and social responsibility go hand
in hand. In addition to the business indicators, the society-related
parameters of entrepreneurial activity also play an important role
in the overall assessment. This is reflected in the annual reports
and the Internet pages of DaimlerChrysler AG, in the involvement
through environmental initiatives and in the extensive social commitment
of the company.
Detailed information on Corporate Governance appears in our
Annual Report 2004 and on the Internet at
www4
18 | 19

2.0 Principles, rules of behavior,
voluntary agreements
2.1 The principles guiding our activities
Transparency. DaimlerChrysler regularly informs shareholders,
financial analysts, the media and the interested public of the situation
of the Group and of any significant changes in its business.
Information is made public according to the principle of fair disclosure.
All new material facts that are communicated to financial
analysts and institutional investors are simultaneously also made
available to all shareholders and the interested public. If any information
is made public outside Germany as a result of the regulations
governing capital markets in the respective countries, we
also make this information available without delay in Germany in
the original version, or at least in English. In order to ensure that
information is provided quickly, DaimlerChrysler makes full use of
the Internet, but also of other methods of communication. All
important dates (e.g. Annual Report, interim reports, Annual
Meeting) are published in advance in a Financial Calendar. The
Financial Calendar can be found on the Internet at
www5
In addition to its regular scheduled reporting, DaimlerChrysler
reports, without delay and in accordance with applicable law, any
inside information which directly affects the company (ad-hoc
disclosure). The relevant details on communication in this field are
also available on the Internet at
www4
Accounting principles. The consolidated financial statements of
the DaimlerChrysler Group are prepared in accordance with United
States Generally Accepted Accounting Principles (US GAAP).
Details of US GAAP can be found in the Notes to the Consolidated
Financial Statements in the Annual Report. The year-end financial
statements of DaimlerChrysler AG, which is the parent company,
are prepared in accordance with the accounting guidelines of the
German Commercial Code (HGB). Both sets of financial statements
are audited by an independent company of auditors.
DaimlerChrysler | Sustainability Profile 2005 | Sustainability Structures
2.2 Risk management
DaimlerChrysler has a risk-management system commensurate
with its position as a company with global operations (see pages
38 and forward). The risk-management system is one component
of the overall planning, controlling and reporting process. Its goal
is to enable the company’s management to recognize significant
risks at an early stage and to initiate appropriate countermeasures
in a timely manner. The Chairman of the Supervisory Board has
regular contacts with the Board of Management not only to discuss
the Group’s strategy and business developments, but also to discuss
the issue of risk management. The Internal Audit department
monitors adherence to the legal framework and Group standards
by means of targeted audits, and, if required, initiates appropriate
actions. Overarching risk management is supported by divisional or
site-related systems. Our Corporate Security Policy also complements
the Group’s risk management activities.
2.3 DaimlerChrysler and the Global Compact
For DaimlerChrysler, it is an important issue to contribute to the
fair and socially compatible design of globalization. For this reason,
we align ourselves with international policy documents such as
the OECD Guidelines for Multinational Enterprises, in which the 33
signatory states have established behavioral rules for global companies,
and as a founding member of this UN initiative we declare
our commitment to the Global Compact.
The objective of the Global Compact is to make the advantages of
globalization equally accessible to people in all parts of the world.
The model has been defined in ten principles for the areas of
human rights, labor standards, environment and anti-corruption.
The principles are based on internationally valid agreements such
as the Universal Declaration of Human Rights and the Declaration
on Fundamental Principles and Rights at Work of the International
Labor Organization (ILO).

The principles of the Global Compact
Human rights
1. Business should support and respect the protection of internationally
proclaimed human rights; and
2. make sure that they are not complicit in human rights abuses.
Labor standards
3. Business should uphold the freedom of association and the
effective recognition of the right to collective bargaining,
4. the elimination of all forms of forced and compulsory labor,
5. the effective abolition of child labor and
6. the elimination of discrimination in respect of employment and
occupation.
Environment
7. Business should support a precautionary approach to
environmental challenges,
8. undertake initiatives to promote greater environmental
responsibility and
9. encourage the development and diffusion of environmentally
friendly technologies
Anti-corruption
10. Business should work against all forms of corruption, including
extortion and bribery.
www6
DaimlerChrysler supports the objectives of the Global Compact
and continually applies its principles in actual practice with a
large number of activities. We are involved in the national networks
of the initiative, for example in Germany, Poland, Thailand and
Singapore. The objective of numerous projects mentioned in this
report (see page 69) is to fulfill the targets of the Global Compact.
In project reports and case studies, we share the expertise and
experience we have gained in these projects with other members.
For further information on the continuous implementation of the
Global Compact at DaimlerChrysler, please click on the Internet.
www7
In addition, please refer to the overview of the GRI indicators on
page 78 for further activities relating to the Global Compact presented
in this report.
2.4 Principles of Social Responsibility
We consider the principles of the Global Compact an important
element for shaping political framework conditions at the international
level. Most of all, however, they serve as the foundation
for our own internal rules and principles of action. Thus, our Principles
of Social Responsibility, which were resolved by corporate
management and the World Employee Committee in 2002, relate
to the ten principles of the Global Compact. The principles are
binding for the entire Group and apply worldwide.
We respect and support the internationally recognized human
rights, condemn child and forced labor practices and pledge to
respect the maxims of equal opportunity and the principle of
“equal pay for equal work.” Occupational safety and health protection
in the workplace are a key issue and a fixed element of our
corporate policy when making investments. We ensure appropriate
standards of remuneration, working hours and training worldwide.
The right to freedom of association and pay negotiations is
anchored in the principles.
From our suppliers, we expect adherence to comparable principles
as the basis for sustained business relationships. In addition,
compliance with the Occupational Safety and Health Act (OSHA) is
also mandatory for all supplier locations based in the USA. Among
other things, OHSA requires companies to provide ongoing training
for their workforce, and for management and workforce to collaborate
in a spirit of partnership. The assessment of working conditions
at these supplier locations are an element of regularly
conducted audits of DaimlerChrysler at its suppliers. The social
requirements imposed by DaimlerChrysler on its suppliers play
their part in making globalization a sustainable process. Our principles
of social responsibility are made accessible to all employees
and their representatives. Managers in the DaimlerChrysler Group
are responsible for their observance. Social responsibility is also
audited by the Corporate Audit department. Corporate management
regularly briefs and consults with the World Employee Committee
on the observance of social responsibility within the
company. To ensure the implementation of the principles on social
responsibility in all areas and at all corporate levels, we have integrated
the principles into the Integrity Code of the DaimlerChrysler
Group.
You will find further information on the Integrity Code, including the
principles of social responsibility, on the Internet.
www8
20 | 21

Figure 1
Implementation of international principles at DaimlerChrysler
Monitoring
Employees | Managers | Business Practice Office | Corporate Audit | Legal Department | Corporate Security
2.5 DaimlerChrysler Integrity Code
Our behavioral guideline, the Integrity Code, has been in effect
since 1999 and was redrafted and extended in 2003. It provides a
binding framework for all employees worldwide. The guideline covers
rules of conduct in international business, handling conflicts of
interest, equality issues, the role of internal monitoring systems
and the requirement to fulfill legal standards and other internal and
external regulations. This includes the current cartel and commercial
legislation as well as the relevant laws of price setting, competition
and consumer protection. Violations of the Integrity Code
can lead to disciplinary measures, which can result in the termination
of the work contract and further legal steps.
DaimlerChrysler | Sustainability Profile 2005 | Sustainability Structures
DaimlerChrysler Principles
of Social Responsibility
International frame of reference
UN Global Compact
OECD Guidelines
Transparency International – Principles
DaimlerChrysler
Integrated approach: Internationally accepted principles and conventions are
consistently implemented and their compliance is audited continuously.
Internalization Operationalization
World Employee Committee
DaimlerChrysler
Integrity Code
1 Principles 2 Process 3 Monitoring
Business Practices Office. Information on presumed infringements
or irregularities is reported to the offices of our Business
Practices Office (BPO) in Stuttgart and Auburn Hills. The function
of the BPO is to receive information on possible infringements of
legal or corporate guidelines, to document them in anonymous
form, initiate and coordinate the necessary investigations and
report the findings to the Audit Committee of the Supervisory
Board. DaimlerChrysler informs all employees worldwide on the
functions of the BPO and the conditions for submitting and reviewing
complaints. It is made quite clear that absolute confidentiality
is ensured. Employees are also given the option to address the
Audit Committee of the Supervisory Board directly.
Proscription against corruption and bribery. DaimlerChrysler
does not tolerate any ethically unsound or corrupt practices on the
part of its employees and business partners. Equally, the company
prohibits any involvement in or toleration of bribery. This is also
stipulated in our Integrity Code. Our corporate policy, which is

inding for each individual employee, supports all endeavors for
aligning business activities to the highest ethical standards. Over
the next few years, we will provide additional resources to discover
and eliminate possible weaknesses of internal controls. Managers
and supervisors must ensure that each employee knows and
observes the guidelines of the Integrity Code. We underscored our
commitment to condemning corruption in all forms in 2002 by joining
the German section of Transparency International.
Objectives and measures for combating corruption and bribery
– Exemplary behavior of management on the basis of clear guidelines
(Integrity Code, Code of Ethics for Senior Financial Officers)
– Zero tolerance
– Systematic monitoring (Internal Audit, Board of Management,
Audit Committee)
– Rigorous sanctions against violations
– Making employees more aware of the issue through extensive
communications
– Establishment of the Business Practices Office (BPO)
– Black list for suppliers
– Formation and expansion of internal control systems (already implemented
in key areas of financial reporting in 2004)
– Preventive control through employee selection (screening)
– Monitoring the internal control system
– Systematic checks of transactions in critical areas and business
processes
– Systematic and comprehensive examination of all information
received by the BPO
– Examination of compliance with internal guidelines by Corporate
Audit
Rigorous investigations at the DaimlerChrysler German Sales
Organization (DCVD). In December 2004, DaimlerChrysler
received anonymous information concerning irregularities in parts
of our German sales and marketing organization. Since that
time, DaimlerChrysler Corporate Audit and Corporate Security
have been investigating the matter. We are providing support to
the Public Prosecutors Office in Stuttgart, which is involved in the
investigation of a number of individuals, most of them former
DaimlerChrysler employees, who have been accused of corrupt
business practices. In some cases, DaimlerChrysler has already
taken action against the employees concerned.
2.6 Code of ethics for senior financial officers
As a company listed in the USA, DaimlerChrysler approved a
Code of Ethics in July 2003, in line with the Sarbanes-Oxley Act.
It applies to members of the Board of Management and a large
number of other managers who have a material influence on
planning and reporting in the context of annual and quarterly financial
statements. The objective of the regulations contained in the
Code of Ethics is to avoid incorrect behavior and to ensure not
only ethical behavior, but also complete, appropriate, accurate,
timely and understandable reporting of corporate information.
DaimlerChrysler is a member of the working group on “External
and Internal Monitoring of Companies” of the Schmalenbach-
Gesellschaft.
More information on guidelines and standards:
www4
2.7 The Environmental Protection Guidelines
of the DaimlerChrysler Group
For DaimlerChrysler the protection of the environment is one of the
key prerequisites for the Group’s success. The way we see our role
in protecting the environment is set down in our Environmental
Protection Guidelines, which were signed off by the Board of Management
in 1992. In the guidelines we commit ourselves to integrated
environmental protection which attacks the root causes of
environmental impacts. The guidelines apply to all DaimlerChrysler
sites worldwide.
The Environmental Protection Guidelines of the DaimlerChrysler Group
– We face the environmental challenges of the future by working continuously
to improve the environmental performance of our products
and operations.
– We strive to develop products which in their respective market segments
are highly environmentally responsible.
– We plan all stages of manufacturing to provide optimal environmental
protection.
– We offer our customers ecologically oriented service and information.
– We endeavor to achieve exemplary environmental performance
worldwide.
– We provide our employees and the public with comprehensive information
on environmental protection.
22 | 23

2.8 Personal data protection
With its data protection guideline “Data Protection and Privacy –
The DaimlerChrysler Code of Conduct” the Group has created a
uniform data protection regulation which is valid across the Group.
The Code, which applies to all personal data relating to employees,
customers and suppliers, is in compliance with the provisions of
the European Data Protection Guideline and other national regulations.
It sets out the conditions under which data may be compiled,
processed and used as well as the conditions that are to be
observed. It also explains the rights accorded to those affected
and how they take effect in individual cases. Under the direction of
the Chief Officer Corporate Data Protection, a worldwide network
of local data protection coordinators ensures compliance with
the regulations. Complaints of alleged irregularities involving data
protection are rare. But in any such cases we investigate every
piece of evidence before informing inquirers of the outcome. In
most cases no breach of our data protection guidelines is established.
The few legitimate complaints are usually attributable to
carelessness in daily operation. Such cases are treated as an opportunity
to identify weaknesses, re-evaluate processes and to increase
general awareness for the prevention of any further occurrences. In
ambiguous cases, employees, customers and suppliers can contact
the Corporate Data Protection Officer for a quick solution.
DaimlerChrysler | Sustainability Profile 2005 | Sustainability Structures
3.0 Dialogue with interest groups
In responding to the demands of its many interest groups worldwide,
DaimlerChrysler must adapt its business strategy to various
underlying political, social, and cultural conditions, and at the same
time take on a role of responsibility within society. For this reason
we play an active part in selected political, social, and community
initiatives. Two aspects are of vital importance to DaimlerChrysler
in this respect: strong interest groups and the integration of the
relevant social groups into the corporate decision-making process.
That is why we seek dialogue with decision-makers in politics,
business, and key social groups (stakeholders) around the world.
A critical factor for us in the identification and evaluation of stakeholders
is the question of whether or to what extent a specific
group of people is affected by our company’s activities or fields of
work. On this basis we have established 11 key groups of stakeholders
(see chart).
Major groups of stakeholders
– Customers
– DaimlerChrysler employees and their families
– Shareholders and analysts
– Non-governmental organizations (NGOs)
– Media
– Suppliers
– Politicians: representatives of communities, regional institutions,
and nation states
– Authorities
– Multinational institutions
– Neighbors living close to our production facilities and sales units
– Research institutions, academic institutions

Organization of the stakeholder dialogue. Normally, the stakeholder
dialogue – adapted to regional and national circumstances –
is carried out on both a central and decentralized basis. In the triad
markets (USA, Western Europe, Japan) the focus is on our involvement
in the democratic processes and participation in social life.
In newly industrializing and developing countries we see our
involvement as a long-term contribution to political and economic
stability, which at the same time allows DaimlerChrysler to gain
access to the market on a basis of mutual trust. In this process,
however, owing to the long-term nature of these efforts, we are
also sensitive to the fact that the goal of commercial success can
not always be achieved in the short term.
Our dialogue with stakeholders is maintained in various corporate
activities within the Group:
– Primarily the Corporate Strategy, External Affairs & Public Policy
and Communications departments employ a worldwide network
of contacts with the world of national and international politics
and authorities, multinational organizations, social initiatives,
and media representatives.
– Our national companies, manufacturing plants, branch offices,
and sales companies continue the dialogue with regional organizations
and the local population.
– Our specialist departments – in the environmental, human
resources or purchasing sectors, for example – maintain contacts
with interest groups in their respective fields.
– In the context of our numerous other areas of responsibility,
projects and initiatives, cooperative undertakings also arise
between stakeholders and other partners within the company.
Goals for improving the dialogue. We plan to further develop the
stakeholder dialogue and we review the nature and frequency of
our engagement in this area to ensure its value for stakeholders
and DaimlerChrysler.
Today we already continuously identify the needs and wishes
of the various stakeholder groups through our Issues Management
process. In order to discover to what extent an enhanced dialogue
with DaimlerChrysler stakeholders would lead to quantifiable
results in the perception and evaluation of the company,
DaimlerChrysler has drawn up an integrated stakeholder survey
which regularly monitors the reputation of the company among
its most important stakeholders.
Established partnerships. A great number of cooperative ventures
have proven extremely fruitful in recent years. Thus, for
example, the project Workplace Initiative on HIV/AIDS, which is
administered in collaboration with German Technical Cooperation
(GTZ) in South Africa, has enabled us to gather experience in the
fight against HIV/AIDS that can now be used by our facilities in
other regions, such as China, Russia, South America or Southeast
Asia. On environmental issues, we promote dialogue through our
own series of events and take an active part in the programs of
national and international institutions. Since 1999, experts from
each continent have gathered biennially at the Environmental
Forum organized by DaimlerChrysler and UNEP in Magdeburg,
Germany, to discuss new ways of improving our ecosystems and
sustainable development. We are also in constant dialogue with
various environmental groups, including Deutsche Umwelthilfe e.V.
(DUH, German Environmental Aid) and the Stiftung Europäisches
Naturerbe (EURONATUR, European Nature Heritage Fund), and
maintain close contact with scientific organizations.
24 | 25

Selection of key member organizations and interest groups
Economic Affairs and Employment
– Global: International Chamber of Commerce (ICC)
– Germany: ME Gesamtmetall e.V.
– Germany: Federal Confederation of German Employers
Association (BDA)
– Germany: Federation of German Industries (BDI)
– Germany: Association of German Automobile Manufacturers
(VDA)
– Germany: AmCham Germany
– Europe: European Automobile Manufacturers Association (ACEA)
– Europe: Union des Industries de la Communauté européenne
(UNICE)
– Europe: AmCham EU
– Europe/USA: Transatlantic Business Dialogue
– USA: National Association of Manufacturers (NAM)
– USA: Alliance of Automobile Manufacturers (AAM)
– USA: Business Roundtable (BRT)
– USA: Corporate Council on Africa (CCoA)
– USA: Council for International Business (USCIB)
– USA: Engine Manufacturers Assocation
– USA: US Chamber of Commerce
– Japan: Japan Automobile Importers Association (JAIA)
Environmental protection
– World Business Council for Sustainable Development
– B.A.U.M. – Bundesdeutscher Arbeitskreis für Umweltbewusstes
Management e.V.
– econsense – Forum for Sustainable Development of German
Business
– European Fuel Cell Group
– European Natural Gas Vehicle Association
– World Fuel Cell Council e.V.
– UNEP Mobility Forum – Initiative for Sustainable Mobility
– World Wildlife Fund WWF Deutschland
– Environmental Defense
– Health Effects Institute
– Resources for the Future
– American Council on Renewable Energy
DaimlerChrysler | Sustainability Profile 2005 | Sustainability Structures
Society and social welfare
– Global Compact – UN initiative for environmental protection,
labor standards and human rights worldwide
– Global Business Coalition on HIV/AIDS
– SAFRI – Southern Africa Initiative of German Business
– Deutsche Gesellschaft für Auswärtige Politik (DGAP)
– Atlantik-Brücke e.V.
– Transparency International, Deutsches Chapter e.V.
– Wittenberg Zentrum für Globale Ethik e.V.
– German Network for Business Ethics
– Transatlantic Policy Network (TPN)
– European School of Management and Technology in Berlin
Road safety
– Global Road Safety Partnership
– European Association for Accident Research and Analysis
– Deutscher Verkehrssicherheitsrat e.V.
– Deutsches Verkehrsforum e.V.
– Mothers Against Drunk Driving
– Insurance Institute for Highway Safety
– Air Bag and Seat Belt Safety Campaign
– Governors Highway Safety Association
– National Transportation Safety Board
– European Road Transport Telematics Implementation
Coordination Organization (ERTICO)
– Road and Transportation Association
For example, we are working closely with the University of Hohenheim
and the Central Salt & Marine Chemicals Research Institute in
Gujarat in India on the topic of renewable fuels. Then there are the
many partner companies with which we collaborate in the development
of innovative technologies in the environmental sector – from
paint manufacturers to fuel cell specialists.
Rules governing dialogue with government. Corporate decisionmaking
and the ultimate success of DaimlerChrysler are influenced
to varying degrees by the political climate and the decisions taken
by policy-making bodies (governments and governmental organizations).
We also see it as our right and duty to make policy-makers
aware of the impact of planned measures, and to ensure that the
legitimate interests of the company, its shareholders and workforce
are represented in the process.

For this reason we closely monitor all political developments that
may affect the interests of our company. We represent our position
in all relevant discussions and actively seek dialogue with decisionmakers,
coordinating our efforts at both national and international
level with commercial associations of a general nature as well as
those of the automotive industry. Our positions are subjected to indepth
internal discussions before they are declared as the official
positions adopted by the DaimlerChrysler Group.
Donations to political parties. DaimlerChrysler maintains strict
compliance with the law when it comes to making contributions to
political parties and candidates. Furthermore, all such donations
are subject to the provisions of the DaimlerChrysler Integrity Code.
In this framework, after obtaining the required approval from the
Board of Management, total contributions of €400,000 were made
to the following parties in Germany in 2004: CDU, CSU, SPD, FDP,
Bündnis 90/Die Grünen (The Green Party).
In our second home market, U.S.A., contributions from corporate
funds to politicians or to political parties are not allowed. However,
in 2004, the DaimlerChrysler Political Support Committee (DCPSC,
our political action committee) paid total contributions of USD
577,790 in 2004 to candidates and political party organizations.
DCPSC receives its funding from voluntary contributions by management
staff.
4.0 Current topics of corporate ethics
Germany: Dealing with company history in the nazi period.
DaimlerChrysler played a leading role among those companies in
Germany, which have championed frank and open treatment of
their company history in the period of the National Socialist
regime. In the early Eighties, the archive of the then Daimler-Benz
AG was made available for academic research, which led to the
creation of various publications. We placed a particular focus on
the fate of the forced laborers in the former businesses of our company
and dedicated an entire study to this area. Over the last two
decades, DaimlerChrysler has provided financial restitution payments
to former forced laborers. Today, we are also supporting
numerous projects which help us to derive lessons from the past.
In this context, it was logical for DaimlerChrysler to create the
Remembrance, Responsibility and Future foundation for German
business. We made a significant contribution to raising the €2.5
billion pledged by German industry. So far some 1.6 million people
have received a total of €4 billion from the foundation. Together
with other companies, we were actively involved in developing the
future fund, which is to contribute to understanding between people
and safeguarding human rights as part of the foundation.
Argentina: Dealing with events during the military dictatorship.
At the request of the Works Council and in response to
a proposal from Amnesty International, in 2002 DaimlerChrysler
commissioned the renowned international law expert Prof.
Christian Tomuschat to conduct an academic study examining
the circumstances behind the disappearance of certain members
of the Works Council during the military regime between 1976
and 1983 and to clarify the related allegations against corporate
management at Mercedes-Benz Argentina (MBA).
Prof. Tomuschat presented his report in December 2003. He
arrived at the conclusion that “there is no proof whatever of the
correctness of the theory that the ten MBA employees who disappeared
between 1976 and 1977 during the time of the military
dictatorship were abducted and murdered by state security forces
at the instigation of the management of the company.” For a copy
of the report, please contact DaimlerChrysler (Tel. +49 (0) 711
17-93315).
26 | 27

South Africa: Dismissed claims of possible support of the
apartheid regime. Suits alleging that companies of various industries
and nationalities supported the South African apartheid
regime were filed in the USA. DaimlerChrysler AG is named as a
defendant in one of the suits, and an American subsidiary of our
company in another. In November 2004, the court dismissed the
suits after a petition by several accused companies, one of which
was DaimlerChrysler. Plaintiffs have refiled their notices of appeal.
Land mine production: Unfounded allegations against
DaimlerChrysler. DaimlerChrysler has been repeatedly accused of
involvement in the production of landmines via EADS. This assertion
is untrue. DaimlerChrysler and its affiliated company EADS
have never produced landmines in the sense of the Ottawa Treaty.
The sub-munitions systems MIFF and MUSPA referred to in the
complaints are devices that are used to make military airports
unusable. These devices have never been classified as anti-personnel
or landmines, and were never buried in the ground. After the
end of hostilities, they are rendered harmless by a mechanism.
Since 1994, these systems are no longer being constructed since
they no longer conform to the NATO defense concept. The production
machinery at a subsidiary of EADS has been scrapped.
DaimlerChrysler | Sustainability Profile 2005 | Sustainability Structures
5.0 Sustainability ratings, rankings, and
awards
A large number of activities and initiatives on the part of
DaimlerChrysler in the field of sustainability have won national and
international awards (see table on page 29 for examples). Analysts
have also commended the company’s economic, ecological and
social commitment in their rankings, as the following examples
show:
– Scoris, Sustainable Investment Research: DaimlerChrysler is the
most sustainable company in the German automobile industry
and takes second place in a comparison of DAX 30 companies
(2005),
– ASPI Sustainability Index: DaimlerChrysler is listed as one of the
best 120 companies in the DJ EURO STOXX,
– Oekom Research Ranking: DaimlerChrysler ranks 4th out of 20
(2003),
– FTSE/ISS: Maximum points for DaimlerChrysler in the global
stock index for companies with good corporate governance.
Despite these successes that reflect our commitment to the topic
of sustainability, we are aware that our company is either not listed
in other leading ratings or rankings, or is ranked at a level with
which we cannot be satisfied.
Some other indices currently do not include DaimlerChrysler on
account of certain exclusion criteria – for example on account of
our 33 percent holding in the European Aeronautic Defence and
Space Company (EADS).
It is our declared aim to further improve our position in sustainability
ratings and rankings by optimizing our operational processes,
our reporting, and our involvement in dialogue.
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The most important awards
Fight against HIV/AIDS
– Business Excellence Award 2002 from the Global Business
Coalition on HIV/AIDS
– Achievement Award 2002 from the Global Competitiveness
Centre in Engineering
– Grand Prix 2003 from T-Systems Age of Innovation &
Sustainability Award
– Investing in the Future Award 2003, Mail and Guardian
– NOSA Excellence Award 2003 for the HIV/AIDS Workplace
Program
– Stevie Award 2003 from the International Business Association
– NOSA Best Global HIV/AIDS Workplace Program Manager Award
2004
Society and environment
– Environmental Communication Award from Euronatur and
Bellagio Forum 2003
– World Summit Business Award for sustainable development
partnerships 2002
– Trust for the Americas Award for Corporate Social
Responsibility 2003
– Change the World Best Practice Award from the Club of
Budapest 2004
– Winner of the Baden-Württemberg Equality of Opportunity
competition 2002
– “Goldener Öltropfen” Energy and Environment Award
– JEC Composite Award 2005 “Innovative Winner in the Ground
Transport Category”
– Clean Air Excellence Award 2003
– SAE Award for Environmental Excellence in Transportation (E2T)
2004
6.0 Sustainability communications in
the company
In order to inform employees about sustainability issues and developments
on an ongoing basis, we use internal print media, the
web-based employee portal, and the internal business TV station
DaimlerChrysler Television (DCTV).
Employee newspaper. The key employee print medium is the
DaimlerChrysler Times, a newspaper for all employees in the
automotive business in Germany and the USA. It appears monthly
in German and fortnightly in English with a total circulation of
200,000 copies.
Newsletter. The DaimlerChrysler Headline is the newsletter for
all corporate managers worldwide. It appears fortnightly with a circulation
of 30,000 copies.
Both the employee and management media focus on sustainability
issues. The current global broadcasts of Business TV regularly
show items on this issue complex. In addition, a series of regional
and departmental newsletters are published on a regular basis for
various internal target groups.
Intranet and Internet. Sustainability also receives extensive
coverage in the employee portal and on the Internet. In the portal,
employees can access special internal information on sustainability.
For example, pension programs are explained or training
offered.
Reporting. Regular reports and magazines report on individual
dimensions of sustainability. They are distributed to all managing
staff and are available to all employees in the portal, as well as for
external distribution. Particularly noteworthy in this respect are the
Environmental Report, The Corporate Social Responsibility Report
and the HighTech Report.
Environmental Leadership Award. The objective of the Environmental
Leadership Award (ELA) is to raise popular awareness of
environmental issues within the Group and to motivate as many
employees as possible to be active in this respect. The prize is
announced across the Group. DaimlerChrysler gives the award as
recognition for projects which advance environmental protection in
the company. At the same time, with ELA, we want to disseminate
expertise and knowledge on exemplary techniques and to encourage
imitation at as many locations as possible worldwide.
28 | 29

Economy
DaimlerChrysler is one of the world’s leading automakers and thus one of the largest companies
in the world. Our primary goal is to create value for our shareholders, customers and
employees. This requires an excellent economic base that allows us to make investments
in the future of our company and maintain our strong position in global markets.
DaimlerChrysler | Sustainability Profile 2005 | Economy

Economy
1.0 Our results in 2004 31
2.0 Business development in 2004 32
2.1 The world economy and the automotive industry 32
2.2 Development of unit sales in 2004 32
2.3 Revenues in 2004 33
2.4 Profitability 33
2.5 Income taxes 34
3.0 Shareholders’ equity and liabilities 34
3.1 Shareholders’ equity 34
3.2 Accrued liabilities 34
3.3 Financial liabilities 35
4.0 Performance measures 35
4.1 Management and control tools 35
4.2 Development of return on net assets 35
5.0 Expectations and challenges for the future 36
5.1 Outlook for revenues and unit sales 36
5.2 Product development and investments in the future 36
6.0 Global procurement 37
6.1 Supply chain management 38
6.2 Risk management in procurement 38
7.0 Our shareholders 39
7.1 DaimlerChrysler shares 39
Additional information (indicated by the www symbol and an index number)
is available online at:
http://www.daimlerchrysler.com/sustainability
Figure 2
Key figures – DaimlerChrysler Group
2004 2004 2003 2002 04/03
Amounts in millions
Revenues
European Union
of which: Germany
NAFTA
of which: USA
Other markets
Discontinued operations
Employees (at year-end)
Investment in property,
plant and equipment
Research and development
expenditure
Cash provided by
operating activities
Operating profit
Net income
per share (in US$/€)
Total dividend
Dividend per share (in €)
1.50 1.50 1.50 ±0
1 Rate of exchange € 1 = US $ 1.3538 (based on the noon buying rate on Dec. 31, 2004).
2 A 7% increase after adjusting for the effects of currency translation and changes in the consolidated
Group.
1.0 Our results in 2004
US $ 1 € € € Change in %
192,319 142,059 136,437 147,368 +4 2
64,162 47,394 48,496 46,546 -2
30,210 22,315 24,182 23,121 -8
99,187 73,266 73,477 87,831 -0
86,957 64,232 64,757 77,686 -1
28,970 21,399 16,397 15,206 +31
– – (1,933) (2,215) –
384,723 362,063 365,571 +6
8,645 6,386 6,614 7,145 -3
7,660 5,658 5,571 5,942 +2
14,973 11,060 13,826 15,909 -20
7,790 5,754 5,686 6,854 +1
3,338 2,466 448 4,718 +450
3.29 2.43 0.44 4.68 +452
2,057 1,519 1,519 1,519 ±0
In 2004, DaimlerChrysler once again made significant progress in
spite of consistently difficult circumstances. The operating profit of
€5.8 billion significantly exceeded last year’s reference figure of
€5.1 billion. At the same time, the Group’s net income also
increased markedly. Despite good unit sales, the Mercedes Car
Group returned a marked drop in earnings. The Chrysler Group
achieved the turnaround and performed very well in relation to its
competitors. The Commercial Vehicles Division posted record earnings
in 2004, and Financial Services maintained the high earnings
level of the previous year. Our balance sheet is sound. We further
increased the net liquidity of our industrial operations and the free
cash flow was positive.
30 | 31

The decisive factors for our corporate success are the performance
and motivation of our global workforce of some 385,000 people. At
the end of 2004, we employed 185,000 persons in Germany and
98,000 in the United States. We also create employment in the
other regions of the world and thus contribute towards economic
progress and prosperity – from Central and South America, where
24,500 people work for DaimlerChrysler, to emerging markets such
as China, where, including our joint ventures, more than 5,500
people work for our company at present. In total, DaimlerChrysler
created some 8,400 new jobs in 2004.
Personnel expenses amounted to €24.7 billion in 2004. Despite a
high proportion of external sourcing of parts and components, the
automotive industry still has a substantial percentage of in-house
production. The majority of our personnel expenses are accounted
for by the development, production and distribution of our vehicles.
As nearly 75% of all our workforce is employed in Germany and the
United States, personnel expenses are chiefly incurred in these
two countries.
Figure 3
Personnel expenses
in millions of €
Wages and salaries
Social security and
payroll costs
Net pension cost
Net postretirement benefit
cost
Other expenses for pensions
and retirements
DaimlerChrysler | Sustainability Profile 2005 | Economy
2004 2003 2002
18,737 18,897 19,701
3,282 3,178 3,132
948 837 152
1,173 1,290 1,119
51 85 59
24,216 24,287 24,163
2.0 Business development in 2004
2.1 The world economy and the automotive industry
2004 was one of the years with the strongest growth for the world
economy since 1980, despite the significant increase in raw-material
prices. This was mainly caused by dynamic economic developments
in the United States, China and Japan. On the other hand,
rates of expansion in many countries of Western Europe were disappointing,
especially in Germany, where domestic demand did not
yield any perceptible impetus.
In general, global automobile markets developed positively in 2004.
The commercial-vehicles sector in particular benefited from lively
investment activity in important markets. However, the major
passenger-car markets of North America, Western Europe and
Japan recorded little growth. High raw-material prices, the related
loss in purchasing power and uncertainty among consumers all
acted to reduce demand.
2.2 Development of unit sales in 2004
DaimlerChrysler sold a total of 4.7 million vehicles worldwide in
2004, surpassing the prior-year result by 8%. Unit sales of 1.2 million
vehicles by the Mercedes Car Group were slightly higher than
the figure for the prior year. Due in particular to the fact that several
new models were not fully available until the end of the year,
worldwide unit sales of the Mercedes-Benz brand decreased to
1,074,600 vehicles (2003: 1,092,200). The smart brand increased
its unit sales by 22% to 152,100 vehicles in the year 2004.
In the context of its product offensive, the Chrysler Group
launched nine new models in 2004. Unit sales increased by 5% to
2.8 million vehicles of the Chrysler, Jeep® and Dodge brands. The
Chrysler Group increased its market share in the United States to
12.8% (2003: 12.5%).
The Commercial Vehicles Division increased its unit sales by
42% to 712,200 trucks, vans and buses. Excluding Mitsubishi Fuso
Truck and Bus Corporation (MFTBC), which is included in the division’s
unit sales with 118,100 vehicles since March 31, 2004,
there would have been a 19% increase to a new record level.

2.3 Revenues in 2004
DaimlerChrysler’s total revenues increased by 4% to €142.1 billion
in 2004. Adjusted for currency-translation effects and changes in
the consolidated Group, revenues were actually 7% higher than in
the prior year. In regional terms, DaimlerChrysler’s revenues in the
NAFTA region were similar to the prior-year level at €73.3 billion,
while revenues in the European Union were 2% lower than in 2003
at €47.4 billion. In the rest of the world, we expanded our business
volume by 31% to €21.4 billion.
www10
Figure 4
Consolidated revenues by region
in billions of €
175
150
125
100
75
50
25
Figure 5
Revenues by division
in millions
DaimlerChrysler Group
Mercedes Car Group
Chrysler Group
Commerical Vehicles
Services
Other Activities1 1 2003 figures include discontinued operations (MTU Aero Engines).
■ European Union ■ USA ■ Other markets
2001 2002 2003 2004
2004 2004 2003
US $ € €
192,319 142,059 136,437
67,189 49,630 51,446
67,010 49,498 49,321
47,064 34,764 26,806
18,871 13,939 14,037
2,978 2,200 4,084
2.4 Profitability
DaimlerChrysler recorded an operating profit of €5,754 million in
2004, which was slightly higher than the result of the prior year
(€5,686 million). We thus achieved our target of significantly
improving on the prior year’s operating profit, adjusted to exclude
restructuring expenses at the Chrysler Group (€469 million) and
the gain realized on the disposal of MTU Aero Engines (€1,031
million). The Chrysler Group and the Commercial Vehicles Division
developed positively, achieving substantial increases in their operating
profits compared with the prior year. However, the Mercedes
Car Group recorded lower earnings than in 2003. This was due
above all to currency effects, the revised model mix, and expenses
incurred for the launch of new products and to safeguard quality
standards. The Services division further increased its operating
profit from the financial-services business.
DaimlerChrysler achieved net income of €2.5 billion in 2004
(2003: €0.4 billion) The Annual Meeting of DaimlerChrysler AG
held on April 6, 2005 resolved to distribute a dividend to the shareholders
of €1.50 per share for the year 2004.
Figure 6
Development of earnings
in billions of €
9.0
7.5
6.0
4.5
3.0
1.5
■ Operating profit ■ Net income
2001 2002 2003 2004
32 | 33

2.5 Income taxes
Income-tax expense incurred in Germany and other countries is
shown below:
www11
Figure 7
Income tax expense
in millions of €
Current taxes
Germany
Non-German countries
Deferred taxes
Germany
Non-German countries
3.0 Shareholders’ equity and liabilities
3.1 Shareholders’ equity
Shareholders’ equity amounted to €33.5 billion at the end of 2004.
The decrease compared with the prior year (€34.5 billion) was
mainly due to the dividend distribution for 2003, the change in the
minimum pension obligation, currency translation and the fairvalue
accounting of derivative financial instruments (with no effect
on the income statement). Conversely, shareholders’ equity was
increased by net income. The equity ratio, adjusted for the proposed
dividend distribution for the 2004 financial year (€1.5 billion),
declined by 1 percentage point to 17.5% (2003: 18.5%).
The equity ratio for the industrial businesses amounted to 25.3%
(2003: 26.1%).
DaimlerChrysler | Sustainability Profile 2005 | Economy
2004 2003 2002
847 766 1.141
923 (432) (286)
(502) 172 (441)
(91) 473 701
1,177 979 1,115
DaimlerChrysler had 1,012,824,191 registered ordinary shares of
no par value issued and outstanding at December 31, 2004 and
2003. Each share represents a nominal value of €2.60 of the capital
stock. In 2004, DaimlerChrysler purchased approximately 0.8
million (2003: 1.3 million) DaimlerChrysler shares in connection
with an employee share-purchase plan, all of which were re-issued
to employees, as in the prior year. Due to the exercise of stock
options, the number of shares may increase in the future. This
depends, however, on the achievement of certain exercise hurdles
concerning the share price.
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3.2 Accrued liabilities
Accrued liabilities increased by €2.4 billion to €41.6 billion in
2004. They were comprised as follows:
Figure 8
Accrued liabilities At December 31, 2004 At December 31, 2003
Due after Due after
Total one year Total one year
in millions of €
Pension plans and similar
obligations
Income and other taxes
Other accrued liabilities
13,923 12,634 13,467 12,275
3,134 1,674 2,794 946
24,509 8,609 22,911 8,662
41,566 22,917 39,172 21,883
The increase in accrued liabilities for pensions and health-care
benefits was primarily due to the reduction in discount rates and
the first-time consolidation of MFTBC. There were opposing effects
from currency translation and additions to the pensions plans.
The Group’s pension obligations are still slightly underfunded.
www11

3.3 Financial liabilities
DaimlerChrysler’s financial liabilities amounted to €76.6 billion at
the end of 2004, of which €6.8 billion related to short-term commercial
paper, €44.4 billion to bonds, and €17.0 billion to bank
loans. The weighted average interest rate was 5.22% for bonds,
2.66% for commercial paper, 4.47% for bank loans and 2.35% for
deposits in the direct-banking business. The leasing and salesfinancing
business accounts for some 90% of financial liabilities. Its
total contract volume amounts to €102.4 billion. DaimlerChrysler
Financial Services offers leasing and sales financing in 39 countries.
In connection with refinancing, DaimlerChrysler aims to utilize all
available refinancing sources in accordance with their respective
terms and conditions. Due to a financial flexibility of some €50 billion
and investment-grade ratings, DaimlerChrysler is very well
positioned to react to changing market conditions. We make use of
refinancing markets worldwide and borrowings in various currencies
and with various maturities.
www13
4.0 Performance measures
4.1 Management and control tools
The performance measures used at the DaimlerChrysler Group
provide for the decentralization of corporate responsibility to the
divisions and business units and create enhanced transparency
between the various areas of the Group.
For purposes of financial controlling, DaimlerChrysler differentiates
between the Group level and the level of the divisions and business
units. Value added is one element of the control system at both
levels and is determined as the difference between the operating
result and the weighted average cost of capital employed. This
ratio determines the extent to which the Group and its divisions
and business units have satisfied or exceeded the minimum
required rate of return of the shareholders and creditors, thus creating
value added.
The profitability ratio, return on net assets (RONA), has a special
significance as a fundamental component of value added. By
examining the ratio of net operating income to average capital
employed, a statement can be made about the profitability of the
Group or the divisions and business units using standard units of
measure. To assess the profitability of the financial services business,
return on equity (ROE) is normally used.
The required rate of return on capital employed and thus the cost
of capital are derived from the minimum returns that investors
expect on their invested capital. The DaimlerChrysler Group’s minimum
required rate of return is 7% after taxes. For the industrial
divisions and business units, the pre-tax cost of capital is 11%.
The return on equity before taxes required for the financial services
business is 14%. Value is created when these minimum hurdle
rates are exceeded.
4.2 Development of return on net assets
DaimlerChrysler achieved a return on net assets (RONA) of 5.6%
after taxes in 2004 (2003: 2.4%). Value added thus improved by
€2.0 billion to minus €1.3 billion. This result for value added was
based on the minimum required rate of return of 8% which was still
valid in 2004. Calculating with a cost of capital of 7%, value added
would have amounted to minus €0.8 billion.
34 | 35

With a RONA of 12.3 percent in 2004 (2003: 24.3 percent), the
Mercedes Car Group did not quite achieve the minimum required
rate of return of 13 percent that was valid for the year 2004. Both
the Chrysler Group, with a significantly increased RONA of 16.4
percent, and the Commercial Vehicles Division, with a RONA of
13.8 percent, exceeded the minimum required rate of return.
At Financial Services, lower risk costs and stable interest-rate
margins led to an increase in return on equity to 22.0 percent
(2003: 17.7 percent), so the minimum required rate of return was
again significantly surpassed.
www14
Figure 9
Return on net assets (RONA) – DaimlerChrysler (after taxes)
in %
9.0
7.5
6.0
4.5
3.0
1.5
5.0 Expectations and challenges
for the future
5.1 Outlook for revenues and unit sales
2001 2002 2003 2004
In the coming years, the expansion of global demand for automobiles
will primarily take place in the emerging markets of Asia and
South America, and probably also Eastern Europe – a result of
dynamic growth in purchasing power and the rising need for mobility
in these regions. The limited scope for growth in the major automobile
markets of North America, Europe and Japan, combined
with manufacturers’ high production capacities, will further intensify
competition in all market segments. Additional factors will be
DaimlerChrysler | Sustainability Profile 2005 | Economy
stricter environmental and safety regulations, the fulfillment of
which will cause substantial costs for all producers. Against this
backdrop, the ability to set oneself apart from the competition by
means of innovation and strong brands will become increasingly
important.
Assuming a moderate increase in the worldwide demand for automobiles,
we expect total unit sales by the DaimlerChrysler Group to
increase again in 2005 and the following years. Revenues should
also continue to rise depending on the development of the dollareuro
exchange rate.
We aim to participate in the growth of all the major markets, particularly
in the emerging economies. The revenues we generate in
Asia should increase significantly in the coming years, especially in
the Mercedes Car Group and Chrysler Group divisions. In this context,
we have initiated several projects in China.
www11
5.2 Product development and investments in the future
In 2004, the DaimlerChrysler Group invested a total of €6.4 billion
in property, plant and equipment. The focus of this capital expenditure
was on investments related to the launch by all the industrial
divisions of new vehicles and engines. We also invested in the production
plants to enhance their efficiency and flexibility.
In the planning period of 2005 through 2007, DaimlerChrysler
expects to invest a total of €21 billion in property, plant and equipment.
At the Mercedes Car Group, the focus of investment will
be on preparations for the successor models to the C-Class, the
E-Class and the smart fortwo. Principal investments by the
Chrysler Group will be in the modernization of its plants and the
continuation of its product offensive. At Commercial Vehicles,
investments will focus on the successor model to the Sprinter, the
new Century Class by Freightliner, and the new family of engines
for heavy trucks.

Research and development expenditure totaled €5.7 billion in
2004. In the period of 2005 through 2007, DaimlerChrysler will
invest a total of €17 billion in research and development activities,
thus maintaining the high level of recent years. The main focus of
DaimlerChrysler’s research and development expenditure is on the
new vehicle models from the Mercedes Car Group and the Chrysler
Group divisions. Important projects at Commercial Vehicles
include new truck engines fulfilling the future emission regulations
in the United States, Western Europe and Japan, a new platform for
the successor models to the Actros, the Atego and the Axor, and
two new trucks from the Mitsubishi Fuso brand. Another focus is
on new technologies, with which we intend to improve the safety,
environmental compatibility and fuel economy of our road vehicles.
6.0 Global procurement
In the year 2004, DaimlerChrysler purchased goods and services
for a total of €101.4 billion (2003: €99.7 billion). The Mercedes
Car Group accounted for 38 percent of our total purchasing volume,
the Chrysler Group 32 percent, Commercial Vehicles 26 percent
and other units 4 percent. In order to manage this purchasing
volume efficiently while ensuring proximity to the suppliers, our
procurement is organized on a global scale with activities all over
the world. In cooperation with our suppliers we are currently concentrating
on three areas of action for achieving the best overall
results: Global Scale, Global Supply Base and Global Processes.
With our high global procurement volume, we can offer our supply
base global-scale opportunities. In addition, increasing volume by
bundling purchasing volumes worldwide helps us to optimize costs.
In the context of Global Supply Base, we optimize the distribution
of procurement volumes between the various suppliers taking
cost-risk aspects into consideration. For this purpose, we engage
in intensive dialogue with existing and potential suppliers.
To strengthen our business relations with the world’s best suppliers,
we have further developed the Extended Enterprise ® supplier
program, the key element of which is a system for the evaluation of
supplier performance. With our global procurement management,
long-term contracts with key suppliers and close collaboration
with reliable partners, we have the benefit of a broad spectrum of
instruments that allow us, even with the current challenging situation
in the international raw-material markets, to secure deliveries
to our plants and to limit the impact of rising raw-material prices
on our production costs.
www15+16
Figure 10
Purchasing volume by region
in %
Asia 3.4
Other markets 4.3
Germany 44.7
European Union without Germany 9.2
NAFTA 38.4
Figure 11
Purchasing volume by division
in %
Mercedes Car Group38
Chrysler Group32
Commercial Vehicles 26
Other Units 4
36 | 37

6.1 Supply chain management
The basis for clear and consistent management of the global relations
between DaimlerChrysler and its suppliers is our supplier
cooperation program Extended Enterprise ® . Within the framework
provided by Extended Enterprise ® the performance of each supplier
is analyzed and evaluated from a global perspective. Initially,
the analysis focuses on four main value drivers: cost, technology,
quality, and logistics. Together these parameters form a part of the
standardized global “External Balanced Scorecard” (EBSC), which
is available to the responsible employees of the Global Procurement
& Supply function via a web front end. These employees
work closely with colleagues from other units, such as Engineering
and Production. The EBSC translates the strategic goals of
DaimlerChrysler into measurable criteria for all purchased goods
and services. In addition, it makes our strategic goals clear to our
suppliers, boosts transparency at the suppliers in respect of their
own activities, and encourages continuous efforts on their part to
improve performance in the global competitive arena.
The four value drivers are supplemented by three conduct-related
aspects derived from our Principles of Social Responsibility: communication,
commitment, and integrity. The active and mutual
implementation of these conduct-related aspects in the cooperation
with our suppliers is of central importance for us. We also
clearly expect our suppliers to live out these aspects in the relations
with their own suppliers.
Together, these conduct-related aspects and value drivers enable
DaimlerChrysler to compare supplier performance with the
required transparency, identify potential deficiencies at an early
stage and discuss them constructively with the suppliers. Ultimately
this improves the efficiency of all procurement processes
worldwide. The External Balanced Scorecard is continuously updated
and comprehensively evaluated for the suppliers.
DaimlerChrysler | Sustainability Profile 2005 | Economy
In addition, DaimlerChrysler draws up Supplier Plans for key global
suppliers which contain a thorough in-depth analysis of both our
suppliers and their cooperation with DaimlerChrysler. The purpose
of this analysis, which covers several divisions within the Group,
is to study core management topics for our medium to long-term
collaboration at an early stage, document them and discuss them
with top management at the suppliers. The scope covered includes
the overall strategy of the supplier, its core competencies, its financial
position and a wealth of other aspects of collaboration with
DaimlerChrysler. This overall analysis involving both medium and
long-term aspects enables potential challenges to be identified and
discussed in advance. In this way, we can initiate effective remedial
action before a concrete response is required. These overarching
“Supplier Plans” allow DaimlerChrysler to continuously optimize
supplier involvement and thereby support the vision of presenting
one face to all our suppliers worldwide that underlies the Extended
Enterprise ® model. At the end of 2004, Supplier Plans were in
effect with 18 suppliers who together accounted for some 60 percent
of the total purchasing volume of the DaimlerChrysler Group.
By the end of 2005, DaimlerChrysler intends to have supplier plans
covering 76 percent of its global purchasing volume. Another key
supply chain management tool is the Supplier Portal at www17,
where suppliers can query all the data relevant to their cooperation
with DaimlerChrysler online. Other companies interested in business
relations with DaimlerChrysler can obtain a comprehensive
overview of DaimlerChrysler’s purchasing strategy. The Supplier
Portal also supports the one-face-to-our-partners approach targeted
by DaimlerChrysler.
6.2 Risk management in procurement
A continuously smooth material supply is very important for us.
Therefore, we have well-established processes to monitor the
financial health of our supply base. In the light of the ongoing global
economic challenges for many suppliers, these tools have been
enhanced in recent years. These enhancements help to ensure that
the continuity of our production processes is guaranteed in our
plants and DaimlerChrysler’s financial risks are minimized. Many
suppliers experienced financial difficulties in 2004. Working closely
together with our supplier partners, we were able to minimize the
effects of production losses caused by this situation. A key enabler
of our success is our supplier risk-management process.

7.0 Our shareholders
DaimlerChrysler has a broad shareholder basis of some 1.7 million
shareholders. Institutional investors own 56.4 percent of our equity
capital, and private investors own 25.6 percent. European investors
held about 75 percent of our equity capital at the end of 2004, while
U.S. investors held 17 percent. Compared with the prior year, the
free float increased by 1.4 percentage points to 82.4 percent. At
year-end 2004 strategic investors were Deutsche Bank with a shareholding
of 10.4 percent and Kuwait Investment Authorithy with 7.2
percent. At the end of January 2005, the Emirate of Dubai announced
that Dubai International Capital had acquired a shareholding of
about 2 percent in DaimlerChrysler.
As in the previous years, in 2004 our investor-relations activities
were primarily focused on providing information on the Group to
analysts, institutional investors, rating agencies and private investors
– in a timely and reliable manner. With the “Personal Internet
Service,” a new platform for electronic communication, we
have made it easier for our shareholders to exercise their rights.
www11
7.1 DaimlerChrysler shares
In the German DAX 30 index, DaimlerChrysler’s shares were
ranked in sixth position at the end of 2004 with a weighting of 6.4
percent. In the Dow Jones Euro Stoxx 50, our shares were represented
with a weighting of 1.2 percent. Global trading volume in
DaimlerChrysler’s stock amounted to some 1.5 billion shares in
2004 (2003: 1.7 billion), of which about 123 million (2003: 153
million) were traded in the United States and about 1,336 million
(2003: 1,561 million) in Germany.
The fact that in 2004 investors were generally reticent despite
the upturn in the world economy was primarily due to substantial
increases in raw-material prices, especially the sharp rise in the
price of oil, and the strong gains of the euro against the US dollar.
The share prices of export-oriented European companies were particularly
impacted by the sustained strength of the euro.
Rising raw-material prices mainly affected global automobile manufacturers,
and those companies active in the United States were
additionally affected by the increasingly tough competition in that
vehicle market. The automotive industry became less attractive
than some other sectors due to expectations of higher interest
rates and their impact on the automotive and financial services
business. Whereas the US auto index weakened considerably, the
European auto index closed slightly higher than its prior-year level,
but it was the weakest European industry index in the year 2004.
DaimlerChrysler shares were not exempt from the general market
trend in 2004. However, the share price remained relatively strong
in this difficult market environment. DaimlerChrysler was the
strongest automobile stock in the DAX in 2004, also performing
significantly better than the US automobile manufacturers.
www11
Figure 12
Statistics
December 31
Capital stock (in millions)
Number of shares (in millions)
Market capitalization (in billions)
Number of shareholders (in millions)
Weighting in share indices
DAX 30
Dow Jones Euro Stoxx 50
Credit rating, long-term
Standard & Poor’s
Moody’s
Fitch
Dominion Bond
2004 2004 2003
US $ € €
3,565 2,633 2,633
1,012.8 1,012.8
48.7 35.7 37.5
1.7 1.8
6.4 % 7.2 %
1.2 % 1.3 %
BBB BBB
A3 A3
BBB+ BBB+
A- A-
38 | 39

Ecology
Making mobility sustainable – that is our most important goal in the ecological sector. We
are busy optimizing the environmental compatibility of current vehicles, working on alternative
powertrains, using eco-friendly production processes, and promoting the development
of alternative fuels – all fundamental parts of the sustainable mobility of the 21st century.
DaimlerChrysler | Sustainability Profile 2005 | Ecology

Ecology
1.0 Environmental strategy and policy 41
1.1 Environmental structures and management 41
1.2 Group environmental protection structures 42
2.0 Product-related environmental protection 43
2.1 Our strategy for the sustainable mobility of the future 43
2.2 Research and product development 44
2.3 Products and product use 49
3.0 Production-related environmental protection 53
3.1 Our production-related environmental strategy 53
3.2 Air pollution control 53
3.3 Energy and climate protection 54
3.4 Waste prevention and recycling 55
3.5 Water protection 55
3.6 Soil conservation and remediation 55
3.7 Noise abatement 56
3.8 Delivery traffic and logistics 56
3.9 Suppliers and environmental protection 56
4.0 Important environmental goals 57
Additional information (indicated by the www symbol and an index number)
is available online at:
http://www.daimlerchrysler.com/sustainability
1.0 Environmental strategy and policy
Protecting the environment is a primary objective of the
DaimlerChrysler Group. It is not one separate objective among
others but an integral part of a corporate strategy that targets
long-term value creation. The Environmental Protection Guidelines
approved by our Board of Management define the environmental
policy of the DaimlerChrysler Group and describe our commitment
to the kind of integrated environmental protection that begins at
the roots of environmental impacts, assesses in advance the ecological
implications of production processes and products, and
takes these findings into account in corporate decision-making.
The Environmental Protection Guidelines are binding for all of the
Group’s employees and at all corporate locations.
The Environmental Protection Guidelines of the DaimlerChrysler Group
– We face the environmental challenges of the future by working continuously
to improve the environmental performance of our products and
operations.
– We strive to develop products which in their respective market segments
are highly environmentally responsible.
– We plan all stages of manufacturing to provide optimal environmental
protection.
– We offer our customers ecologically oriented service and information.
– We endeavor to achieve exemplary environmental performance worldwide.
– We provide our employees and the public with comprehensive information
on environmental protection.
1.1 Environmental structures and management
In order to implement our environmental policy, reach our targets,
and ensure continuous improvement in environmental protection
performance we have established clear structures, processes, and
responsibilities. The certification of all our sites around the world
in line with ISO 14001 and the additional EMAS validation of our
European sites are important elements of our environmental management
system. The efficiency of the system is regularly validated
worldwide by international experts. The Environmental Management
Manual adopted by DaimlerChrysler Group in 2003 is a key
tool for all Group facilities and units worldwide. More than 95 percent
of DaimlerChrysler employees work with the Environmental
Management Manual worldwide.
40 | 41

Figure 13
Environmental organization at corporate level
Research and Technology
Environmental
Representatives
(ER) Plants
Global Facility Environmental Council
direct reporting lines coordinating functions
1.2 Group environmental protection structures
On behalf of the Board of Management of DaimlerChrysler, the
Board Member responsible for Research and Technology is also
charged with environmental matters concerning the Group. In addition,
a Chief Environmental Officer is appointed to coordinate
activities across the Group. The Chief Environmental Officer also
represents the Board of Management with respect to the central
environmental management system. To assist in this task, the following
bodies have been set up at Group level:
– The Central Environmental Protection function (ENV)
– The Global Product Environmental Council, which includes the
Environmental Representative, Product (responsible for environmentally
compatible product design and processes) and representatives
of the Corporate Strategy and Communications,
External Affairs and Public Policy functions.
– The Global Facility Environmental Council, which consists of
regional working parties of the environmental representatives.
DaimlerChrysler | Sustainability Profile 2005 | Ecology
CEO
Board of Management
Executive Automotive Committee
Environmental
Representatives
Sales &
Marketing
Chief Environmental
Officer
Technology and
Environmental
Communication
ENV Environ. Management Representatives
(EMR) of Central Functions
Global Product Environmental Council
Corporate
Strategy
Core tasks and responsibilities
External Affairs
and Public Policy
Environmental
Representative
Product
Group Chief Environmental Officer
– Coordination of environmental protection and environmental management
across the Group and participation in strategic planning
– Regular reporting to the Executive Automotive Committee (EAC)
– Assuring internal and external environmental reporting
– Advising the Board of Management on environmental matters;
presentation of environmental status reports to the Board
of Management
Global Product Environmental Council
– Analysis of product-related environmental matters and preparation
of coordinated statements concerning the impact of Group
products on the environment
– Definition and development of product-related environmental
targets and programs
– Coordination of cross-functional or cross-divisional environmental
protection tasks and initiation of cross-functional or cross-divisional
environmental projects
Global Facility Environmental Council
– Regional and global coordination of production-related
environmental protection activities
– Identification of measures required at cross-facility level
– Initiation and processing of joint projects

Central Environmental Protection Function (ENV)
– Verification of compliance with legislation in production-related
environmental protection
– Assuring internal and external environmental reporting
– Advising the Board of Management on environmental matters
– Ensuring the proper functioning of the Environmental Management
System
– Definition and monitoring of environmental targets
– Environmental risk management
– Initiation of preventive environmental protection projects;
definition and stewarding of internal environmental standards
Environmental Management Manual provides orientation.
The Environmental Management Manual adopted by the
DaimlerChrysler Group in 2003 is a key tool for all Group facilities
and units. It establishes a uniform framework for environmental
management throughout the Group, ensuring the implementation
of standardized processes and compliance with internal and
external requirements.
Integrated management systems. The merging of the management
systems for quality, health & safety, and environmental protection
into a single system is a key task for us. This will enable us
to integrate environmental protection tasks more fully into the core
functions and processes of the respective departments, instead
of dealing with them as separate processes. Implementation of the
integrated concept was approved in 2002, initially for the Mercedes
Car Group plants in Germany and the USA. At the Chrysler
Group plants, the environmental management system was introduced
as an integral part of the existing Manufacturing Quality
Assurance System, MQAS.
Spotlight on sites. Ecological site audits help us apply uniform
global parameters (environmental standards) as we identify environmental
risks, reduce them using measures agreed between the
Board of Management and plant management, and raise all of our
sites to a high environmental standard. The first series of audits,
including those units of the Commercial Vehicle Division which had
not yet been audited, was completed in 2003. In 2004 we completed
the second three-year cycle for the Mercedes Car Group
plants, and 2005 sees the onset of the second cycle of audits at
the Commercial Vehicle Division plants.
Environmental protection in the development process. Vehicle
development takes place in a standardized process in which the
vehicle specifications and the quality gates form the cornerstones.
Environmental protection topics and requirements (fuel consumption,
emissions, prohibited or prescribed materials, and recycling
requirements) form an integral part of the vehicle specifications
and are taken into account throughout the product creation process
within the framework of the quality gates.
Knowledge builds motivation. If our employees were not aware
of relevant environmental issues and committed to resolving them,
we could not achieve continuous improvements in environmental
protection. Accordingly, we organize comprehensive environmental
training programs, above all at our production plants.
2.0 Product-related environmental
protection
2.1 Our strategy for the sustainable mobility of the future
As an automobile manufacturer, DaimlerChrysler is committed to
making a decisive contribution to the realization of an environmentally
acceptable and sustainable form of mobility. Our core objective
is clear: to further reduce CO2 emissions and the consumption
of fossil fuels. In order to reach this goal – and within the context
of our project “Energy for the Future” – we are focusing on two
fields of activity: technical innovations in the vehicle and powertrain
sectors on the one hand (core activities), and fuels on the
other (support activities). Through our technical innovations in the
vehicle and powertrain sectors we are also pursuing another goal:
we aim to achieve a further reduction in exhaust emissions from
our products.
42 | 43

2.2 Research and product development
DaimlerChrysler invests about 6 billion euros a year in research
and development, more than any other German company. For us,
innovation is a decisive way of building upon our technology leadership
and safeguarding the future of the company. When we are
drawing up visions of the car of the future, we also consider what
the sustainable mobility of the future could – and indeed should –
look like. Against this backdrop, our research and development
activities are focused on three key objectives:
– Visions for Tomorrow’s Cars: Development of new futureoriented
powertrain and vehicle concepts
– Fuels for the Future: Promoting the development of alternative
and in particular non-fossil fuels
– Accident-free Driving: Development of electronic driver aids
that will improve road safety (vision of accident-free driving)
2.2.1 Automotive visions: New drive and vehicle concepts
Today, diminishing fossil fuel reserves and the need to cut emissions
of carbon dioxide are forcing the industry to rethink proven
powertrain concepts. DaimlerChrysler aims to play its part in shaping
the transition to alternative drive systems and renewable fuels.
Figure 14
DaimlerChrysler powertrain technologies
Conventional
powertrain
Today Future
DaimlerChrysler | Sustainability Profile 2005 | Ecology
Fuel cell
Hybrid powertrain
Continuously improved
combustion engine (gasoline, diesel)
Our powertrain strategy: Three steps to the car of the future
1. Gasoline and diesel engines. For some years to come, vehicles
with conventional internal combustion engines will continue to dominate
the street scene. So our primary short- and mid-term goal is to
optimize the tailpipe emissions and fuel consumption of current gasoline
and diesel engines. We believe that car fuel consumption can be
reduced in the order of 10 to 20 percent.
2. Hybrid powertrains are an important technology between conventional
drive systems and fuel cell vehicles. With specific driving cycles
– and urban cycles in particular – using a hybrid powertrain can also
achieve substantial fuel savings.
3. Fuel cell drive systems lead the field by a substantial margin in
terms of in-vehicle efficiency. As a result, they bring us closer to our
goal of achieving a level of efficiency almost twice as high as that of
modern internal combustion engines. As fuel cell vehicles also generate
no pollutant emissions, we consider the fuel cell the most promising
drive technology for the mid- to long-term. However, they only bring
significant environmental advantages to the overall environmental balance
sheet provided that the hydrogen used is derived from renewable
resources.
Gasoline and diesel engines with savings potential.
DaimlerChrysler still sees considerable potential in optimizing current
internal combustion engines. Whereas with highly fuel-efficient
diesel engines we are concentrating on cutting emissions still
further, in the case of gasoline engines the focus is on reducing
fuel consumption. Engineers are currently succeeding in curbing
the consumption of gasoline engines using technology such as variable
camshaft and valve adjustment or downsizing concepts with
turbocharging. However, they hold out the promise of much greater
progress in matters of fuel economy with their various processes
for direct gasoline injection, in which fuel is injected directly into
the cylinder under high pressure. The newly developed “Mercedes-
Benz combustion process,” a high-pressure direct injection process,
promises fuel savings of between 10 and 15 percent over
gasoline engines with a conventional combustion process.
Natural gas engines as a viable alternative. From both the economic
and the environmental points of view, natural gas is considered
a sensible alternative to gasoline and diesel for specific
applications (e.g. inner city transport). The large reserves of natural
gas worldwide also make it likely that its use will be both sensi-

le and viable for some years to come. DaimlerChrysler acquired
its first experience of low-emission, low-noise natural gas propulsion
back in the 1970s. Today, large numbers of DaimlerChrysler
buses running on natural gas can be found on duty in Australia,
Thailand, Brazil and Germany. And our Mercedes-Benz Sprinter
vans with natural gas drive are also in demand. In the USA, our
Orion and Thomas Built Buses brands offer a number of buses with
natural gas propulsion systems, while on the truck front, Freightliner,
Sterling, and Western Star have several natural gas trucks in
their product portfolios.
Hybrid drives for urban traffic. Since the 1980s DaimlerChrysler
has developed more than 20 prototypes with hybrid technology
and tested numerous different concepts. Our policy is only to offer
our customers hybrid vehicles when environmental compatibility,
handling and comfort can be achieved at competitive prices. One
decisive factor for us is that fuel consumption is below that of an
equivalent CDI diesel engine. This is not necessarily the case with
the currently available hybrid vehicle fitted with an internal combustion
engine, since its advantages mainly become apparent in
the frequent stop-and-go traffic of urban driving cycles.
At Brampton in Canada in December 2004, the first examples of
the Dodge Ram Diesel HEV (Hybrid Electric Vehicle) rolled off the
production line. The hybrid vehicle is powered by a diesel engine
and an electric motor, and is equipped with an automatic start-stop
system that makes the engine cut out on stopping and start up
again on moving off. In the U.S. FTP driving cycle, the dual drive
system offers up to 15 percent fuel savings over conventional
engines and releases fewer emissions. July 2004 saw the presentation
of the Mercedes-Benz Sprinter with a hybrid drive system. An
electric motor has been integrated into the powertrain between the
van’s transmission and clutch. This draws its power from a nickel
metal hydride battery, which is recharged during braking or while
traveling downhill. There is also a “plug-in” version of the drive that
allows the battery to be recharged by plugging into a power socket.
The Orion VII hybrid buses are ideally adapted to their work. There
are already over 100 such buses in regular service on the streets
of New York. They are equipped with a serial drive system that
allows them to recover large amounts of energy during braking.
At the same time, the diesel engine can also be used to recharge
the battery as required. The bus is powered by the electric motor
alone.
Since early 2005 DaimlerChrysler and General Motors have been
pooling their technological expertise in order to provide joint
support for the application of innovative hybrid technology in passenger
cars. Their goal is to push ahead with development of a
two-mode hybrid system. This new technology, which combines an
electrically controlled transmission with two hybrid drive systems,
reduces fuel consumption particularly over long-distance journeys
and is much more efficient than conventional single-mode systems.
The first volume production models will probably be brought
to market at the end of 2007.
Fuel cell drive systems for the future. For more than a decade
our developers have been pressing ahead with fuel cell technology.
Various designs for fuel cell vehicles have been tested and so far
about 20 different concept vehicles and prototypes have been built
along the long road to production maturity. Today, the latest hydrogen-powered
generation – the A-Class F-Cell, the Fuel Cell Sprinters
and the Citaro urban buses – is proving itself in a global testing
program. The results of this large-scale test – which involves the
largest fuel cell fleet of any manufacturer, with over 100 cars, buses
and vans – will be fed into the next generation of vehicles and
fleet tests. In March 2005 in Geneva we also presented a new
B-Class model equipped with fuel cell drive. Our aim with this Compact
Sports Tourer is to achieve a range of about 400 kilometers
and to further improve the reliability and life expectancy of components.
In addition, we have been testing the fuel cell drive in vans
since 2001. In August 2004 we introduced the first fuel cell powered
commercial vehicle to the USA – the Dodge Fuel Cell Sprinter.
Our researchers have overcome a significant technical problem
in the past year – until recently fuel cell vehicles could only be
started in sub-zero temperatures with a considerable delay. Now,
thanks to precise management of the water supply and appropriate
heat management, the cell can be started without difficulty even
at temperatures as low as minus 20 degrees Celsius (minus 4
degrees Fahrenheit).
44 | 45

Figure 15
DaimlerChrysler fuel roadmap
Conventional
fuels
High in sulfur
and
high in aromatics
Increasing efficiency
Decreasing emissions
Decreasing CO2 burden
yesterday today tomorrow
2.2.2 Energy for the future: New fuels replacing fossil fuels
The current practice of blending fossil fuels and crop-derived fuels
such as ethanol and biodiesel is already helping to enhance the
environmental balance sheet for road traffic. But to date we have
not yet tapped the full potential of either the fuel sector or the
overall vehicle/fuel system. Against this backdrop, DaimlerChrysler
has set itself the goal of systematically promoting the development,
testing and market launch of renewable fuels. To this end,
we are not only collaborating with partner companies in the fuel
production sector but also joining forces with competitors.
DaimlerChrysler | Sustainability Profile 2005 | Ecology
Hydrogen
Emission-free and almost CO2-neutral
2nd generation biofuels (BTL)
Low emissions and almost CO2-neutral
1st generation biofuels – (FAME, ethanol, ...)
Synthetic (GTL) Fuels
Low emissions
Compressed natural gas (CNG)
Clean conventional fuels
Sulfur-free, low in aromatics
Based on
renewable energy
Based on
biomass
Based on
natural gas
Based on
crude oil
Renewable
energy
Fossil
primary energy
Our roadmap to the fuel of the future
1. Fossil fuels are readily available everywhere and will still be used
for years to come, so gasoline and diesel must be further improved.
The aim here must be to produce sulfur-free fuels with a low aromatics
content. For specific applications we also consider the use of lowcarbon
natural gas – in place of gasoline or diesel – a useful option.
2. Synthetic fuels produced from natural gas and biomass will
soon be gaining in importance, initially as additives to improve the
quality of gasoline and diesel. In this respect, DaimlerChrysler is above
all supporting the development and use of largely CO2-neutral synthetic
bio-fuels (biomass to liquid, BTL), which can predominantly use biomass,
are sulfur-free, contain no aromatics and can be ideally geared
to the requirements of the internal combustion engine. In addition, we
also support the blending of fossil fuels with crop-based fuels such as
ethanol and biodiesel as a short- to mid-term option.
3. Hydrogen will provide the fuel for the fuel cell cars of the future.
It will probably be about 20 years, however, before volume-production
fuel cell cars are part of the everyday street scene. Furthermore,
suitable and economically viable means of producing hydrogen from
renewable resources must be developed and a widespread hydrogen
supply infrastructure put in place.

SunDiesel: Synthetic fuel full of potential. No sulfur, no aromatics,
much less CO2 – the properties of SunDiesel, the biogenous
diesel fuel developed and produced by Choren Industries in cooperation
with DaimlerChrysler and Volkswagen, have won over engineers
and environmentalists alike. The ecological balance sheet for
2004 shows that BTL fuel achieves significantly lower values in particular
for CO2, hydrocarbon and carbon monoxide emissions when
compared with conventional diesel fuel. But this biomass-based
fuel – which can be derived from any kind of wood residues or other
plant residues – is capable of much more besides. When fueled
with SunDiesel many current EURO 3 diesel vehicles can without
difficulty outperform the new EURO 4 emissions standards. The
fuel has an enormous potential for reducing emissions of hydrocarbons
(HC), nitrogen oxides (NOX) and particulate matter. Since
the summer of 2003, DaimlerChrysler has been testing SunDiesel
in several E-Class models. As soon as the SunDiesel production
process has become established and adequate supplies of the
required quality are available, we intend to use it for the first fill of
our brand-new diesel-engined models.
www18
Biodiesel: The option for today and tomorrow. In 2003
DaimlerChrysler together with experts from India and Germany
launched a pilot project in the Indian provinces of Orissa and
Gujarat to begin planting and utilizing the jatropha plant. The seeds
of this shrub, which flourishes even in semi-arid regions unsuitable
for agriculture, provide the starting material for biodiesel (jatropha
methylester, JME). In order to test and refine the manufacturing
process, in 2004 a quantity of fuel was produced from wild jatropha
seeds. During a tour of India undertaken in a Mercedes-Benz
C 220 CDI in the spring of 2004 the bio-fuel passed this test of its
practicability. Fleet testing is being conducted in 2005.
In the USA, too, biodiesel has an important role to play for us. In
Toledo in November 2004, when the first Jeep® Liberty CRD came
off the production line, it came with a fuel mix of five percent
biodiesel in the tank. Here the bio-fuel is derived from soya beans
(soya methylester, SME). We fuel the diesel SUV with a tank of biofuel
in order to lend our support for the use of renewable fuels in
the USA.
Hydrogen: Fuel of the future. Before the fuel cell drive can be
brought to market, progress has to be made in assuring production
of hydrogen from renewable sources and the construction of a
hydrogen supply infrastructure. Both these tasks call for global
cooperation with governments, the oil industry and the energy
sector. In 2004, as a partner in such an alliance, DaimlerChrysler
reaped its first rewards. In Berlin the Clean Energy Partnership
(CEP) – a collaborative venture involving nine companies and the
German government – opened the country’s first public hydrogen
filling station. DaimlerChrysler is taking part in the associated road
tests with ten F-Cell models based on the Mercedes-Benz A-Class.
www19
2.2.3 Environmentally responsible product development
The extent of the environmental – and economic – impact of a
vehicle is determined at a very early stage of its development. That
is why environmental experts have such a strong say in the development
departments at DaimlerChrysler.
Some of these experts come from the Design for Environment
department (DfE). Their job is to evaluate new component and
vehicle concepts for Mercedes-Benz passenger cars and commercial
vehicles by developing life cycle assessments (LCAs). Since the
department began its work almost ten years ago, the DfE experts
have completed over 100 such assessments. LCAs will remain an
important part of the vehicle development process in the future,
as well. The DfE team brings together experts from five sectors:
Life Cycle Assessments; Dismantling and Recycling Planning;
Materials and Process Engineering; Design; and Production. Their
common goal is to make quantifiable improvements in the environmental
acceptability of our vehicles from one generation of products
to the next.
Environmentally responsible product development begins with the
selection of suitable raw materials and ends with recycling-friendly
design and production processes. These make it possible to re-use
or recycle used components at a later stage. Efficient disassembly
and recycling concepts mean that DaimlerChrysler has to dispose
of fewer and fewer parts from end-of-life passenger cars and commercial
vehicles. Wherever possible, we use high-quality secondary
(recycled) raw materials in place of expensive and precious primary
resources. In the plastics sector we give preference to recycled
raw materials or recyclable materials. Of course the secondary raw
materials must meet the same high quality requirements as virgin
46 | 47

materials, and in fact the recycled materials often prove superior.
To date, we have successfully tested the use of recycled raw materials
for approximately 13 percent of the volume of plastics we
employ in our vehicles, and approved them for series production
applications. In addition, we have set ourselves the goal of further
increasing the proportion of natural fibers from renewable resources
in our vehicles. Fibers such as flax, hemp, coconut, sisal
and abaca already play an important part. Since 2004 we have also
been using natural fibers in the production of exterior car parts.
Environmentally responsible car development. The DfE team
was able to notch up a number of pleasing successes in 2004 with
the development of the new Mercedes-Benz A-Class. Compared
to its predecessor, the new model has again made clear gains in
terms of environmental acceptability. To achieve this we looked at
over 40,000 individual processes and optimized them with respect
to environmental aspects. As a result, the new Mercedes-Benz
A-Class sets new standards not just for safety, comfort and ride
quality, but also in terms of environmental protection.
Figure 16
Percentage of Material classification –
Mercedes-Benz A-Class according to VDA 231-106
in %
Polymer materials 17.7
Other materials 2.5
Electronics 0.1
Light alloys
Fuels and auxiliary
5.8
means
Steel and iron
5.8
materials 65.7
DaimlerChrysler | Sustainability Profile 2005 | Ecology
Non-ferrous heavy
metals 2.0
Process polymers 0.4
Environmental profile of the new Mercedes-Benz A-Class
Less energy: Seen over the vehicle’s entire life cycle, primary energy
consumption has been cut from 522 gigajoules (GJ) for the previous
model to 479 GJ. The saving is equivalent to the energy contained in
approximately 1,300 liters of gasoline.
Fewer emissions:
Carbon dioxide emissions: down 9 percent
Nitrogen oxides: down 17 percent
Sulfur dioxide: down 6 percent
Volatile hydrocarbons: down 8 percent
Hazardous waste: down 10 percent
Less noise: Thanks to an ingenious acoustic concept, the new A-Class
is appreciably quieter than other vehicles in its class both in terms of
interior and exterior noise.
More recycling: The new A-Class is in line with the prescribed recycling
quota of 85 percent that comes into force across Europe in
2006. When new recycling technologies are taken into account, it will
also fulfill the recycling quota of 95 percent scheduled for 2015.
Proven materials: The new A-Class is made predominantly of materials
for which recycling procedures have already been developed and tested,
namely steel and iron (65.7%), plastics (17.7%) and non-ferrous and
light-alloy metals (7.8%).
More components from recycled materials: 54 components in the
new A-Class with a combined total weight of 34 kilograms have been
authorized for the production process using recycled plastics. That
equates to some 16 percent of the plastics employed.
More renewable raw materials: 26 components with a total combined
weight of 23 kilograms are produced using natural materials
such as flax fibers and olive charcoal. The weight of parts produced
from renewable raw materials has increased by approximately 98
percent compared with the previous model, and in all around 11 percent
of the non-metallic materials employed in the vehicle are natural
materials.
Natural fibers for the exterior: Abaca fibers have been used in the
underfloor paneling and spare wheel recess cover of the new A-Class.
These strong natural fibers, which come from the abaca shrub, were
grown and processed in the Philippines – a project that both protects
nature and creates jobs.

Environmentally responsible commercial vehicle development.
Our DfE team has to take into account a special set of
circumstances in the commercial vehicle sector, since economic
factors play a much greater role for commercial users such as
haulage firms or mass transit operators than for the passenger car
sector. When it comes to goals such as cutting fuel consumption,
economic and ecological aspects go hand in hand. The same
applies to lightweight design concepts which reduce the weight of
the vehicle and thereby increase the potential payload.
2.3 Products and product use
There are four key social groups whose activities affect trafficrelated
environmental pollution:
– Legislators establish the framework conditions within which
traffic operates.
– The local authorities – and, in particular, the building authorities
– plan, develop and maintain the infrastructure.
– Vehicle manufacturers develop, produce and sell motorcycles,
passenger cars and commercial vehicles.
– Drivers influence the degree of impact they have on the environment
through their choice of vehicle and approach to driving.
As an integral element in the interdependency of these four groups,
DaimlerChrysler sees its key responsibility as being to make its
vehicles more environmentally compatible from one generation to
the next and to improve its environmental balance sheet over the
entire life cycle of each vehicle. In so doing, our most pressing goal
is to achieve further reductions in fuel consumption and carbon
dioxide emissions. Other major tasks are to reduce the pollutant
and noise emissions from our vehicles.
2.3.1 Fuel consumption and CO2 emissions
We have already made substantial progress in recent years by optimizing
the internal combustion engine. For example, the average
fuel consumption for newly registered passenger cars of the
Mercedes Car Group in Germany has fallen by 29 percent since
1990. In the course of the past decade we have also achieved substantial
reductions in fuel consumption in the commercial vehicle
sector. With long-distance haulage trucks like the Mercedes-Benz
Actros, for example, we have led the field in terms of fuel economy
for several years now.
Making maximum use of the remaining scope for improvement that
internal combustion engines still offer is one of the key focal points
of our research and development efforts. Our strategy is to offer
fuel-efficient vehicles in every segment and thereby minimize the
total fuel consumption of our passenger car fleet. One major challenge
here is to successfully combine low fuel consumption with
customer appeal and acceptable costs.
What is more, since fuel consumption is also affected by driverrelated
factors, a far-sighted, environmentally aware approach to
driving can lead to significant savings. In order to promote this,
DaimlerChrysler has been offering ECO driving courses to its customers
in the car and commercial vehicle sectors since 1999.
Fleet consumption down. In 2004, DaimlerChrysler reduced the
average fuel consumption of its fleet of newly registered sedans
and station wagons in Germany by one percent over the previous
year, to 7.29 liters per 100 kilometers (measured over the New
European Driving Cycle, NEDC). Average CO2 emissions were down
to 182 grams per kilometer. In 2003 we had already outperformed
the target of 7.7 liters per 100 kilometers – a reduction of 25 percent
since 1990 – which we had set ourselves for 2005 in line with
the commitment by the Association of the German Automotive
Industry (VDA) to cut average fleet consumption.
www20
Figure 17
Fuel consumption in Germany 1990–2004
in l/100 km
10.0
9.5
9.0
8.5
8.0
7.5
7.0
1990–1995: European 3-way cycle
New measurement method as of 1995: New European Driving Cycle (NEDC)
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Passenger cars and station wagons of the Mercedes Car Group
48 | 49

At the European level DaimlerChrysler has joined with the other
European car manufacturers in committing itself to reduce the fuel
consumption of the European passenger car fleet by 25 percent
between 1995 and 2008 within the scope of the voluntary undertaking
given by the European Automobile Manufacturers Association
(ACEA). Carbon dioxide emissions from new passenger cars for all
European manufacturers will be down to an average of just 140
grams per kilometer on the New European Driving Cycle (NEDC).
www21
Figure 18
DaimlerChrysler CAFE* values for light trucks 1996–2004 in the USA
in l/100 km
12.0
11.8
11.6
11.4
11.2
11.0
10.8
10.6
10.4
10.2
1996 1997 1998 1999 2000 2001 2002 2003 2004
Light trucks
Since the 1970s the standards of the Corporate Average Fuel
Economy (CAFE) have been setting the legal framework in the USA
for improving energy efficiency. According to these standards,
manufacturers’ passenger car fleets are weighted in line with sales
and for model year 2005 must better average values of 27.5 miles
per gallon for cars and 21 miles per gallon for light-duty trucks. The
CAFE standard for light-duty trucks is currently valid until model
year 2007 (22.2 miles per gallon). Over the entire period since
1996, DaimlerChrysler has succeeded in continually improving its
fleet values for both passenger cars and light-duty trucks. Since
1996, fleet consumption for our passenger cars has fallen by 7 percent,
and for light-duty trucks by approximately 2 percent.
DaimlerChrysler | Sustainability Profile 2005 | Ecology
*CAFE = Corporate Average Fuel Economy
The definition of model years, which does not correspond to normal
calendar years, and continuing high customer demand for our
light duty trucks in the USA have led to an increase in fleet consumption
for model year 2004 light-duty trucks compared to model
year 2003. However, the option of using advance or retrospective
credits across three model years means that the required CAFE
standard can still be met. The much more stringent standards for
cars and light-duty trucks currently under discussion in the USA for
model years from 2007 onwards represent a challenge we intend
to meet with a program of focused technological activities.
www22
In Japan the so-called “Top Runner” concept has fixed binding
upper limits for consumption from 2010 for nine classes of
vehicle – grouped according to gross vehicle weight. In 2004
DaimlerChrysler managed an average improvement over the previous
year across all vehicle classes of approximately four percent.
Targets for 2010 have already been achieved in two classes.
Progress report 2004
The new Mercedes-Benz A-Class uses up to ten percent less fuel than
the previous model. The new A 160 CDI for example gets by on just 4.9
liters of fuel for every 100 kilometers. This progress has been achieved
not only as a result of new developments in engine and transmission
design, but also thanks to first-class aerodynamics.
The new Jeep® Liberty CRD uses up to 25 percent less fuel than the
equivalent model with gasoline engine, thanks to its efficient Common
Rail Diesel technology. And in order to highlight the SUV’s environmental
compatibility, DaimlerChrysler also fuels every Jeep® Liberty CRD
that leaves the production line in Toledo with a fuel mix of five percent
biodiesel (B5).
The new super-wide tires, available for the Actros as an option from
Mercedes-Benz, lead to fuel savings of 1.5 liters per 100 kilometers. The
tires, developed by DaimlerChrysler in collaboration with Bridgestone,
are 80 kilograms lighter than conventional twin tires and also offer a
lower rolling resistance.

2.3.2 Airborne emissions
Besides carbon dioxide and water vapor, automobile exhaust
emissions include carbon monoxide (CO), nitrogen oxides (NOX),
hydrocarbons (HC) and in addition, in the case of diesel vehicles,
particulates. Over recent years, with the aid of improved engine
design and highly efficient emission control systems, Daimler-
Chrysler has reduced the various types of emission across its vehicle
range. Since 1995, for example, NOX emissions have been cut
by about 70 percent and diesel particulate emissions by about
95 percent. Similarly with our commercial vehicles, over the course
of the past decade we have succeeded in dramatically reducing
emissions of nitrogen oxides, hydrocarbons and particulate matter
by introducing more advanced fuel injection and combustion
processes. Our aim now is to apply state-of-the-art technologies
to achieve further reductions, and – if possible – to comply in
advance with future emission limits.
Figure 19
Development of emissions diesel passenger cars
Particulate emissions in g/km
■ C 220 D (1995) ■ C 220 CDI with particulate filter (2005)
0.08
0.07
0.06
■
0.05
0.04
EURO 3 limit values,
valid from 1.1.2000
0.03
EURO 4 limit values,
0.02
valid from 1.1.2005
0.01
■
0.1 0.2 0.3 0.4 0.5 0.6
Oxides of nitrogen emissions (NOX) in g/km
NOX and particulate emissions for Mercedes-Benz diesel models with
particulate filter are today already well below the limits laid down in the
current EURO 4 standard.
Innovative particulate filters. Mercedes-Benz introduced the
world’s first series diesel particulate filter into the USA as early as
1980. To begin with, however, this pioneering technology was held
back as a result of advanced developments to internal combustion
processes, as well as requirements in terms of spectrum of use,
fuel quality and durability. Then, in 2000, French manufacturers
introduced EURO 3 vehicles in Europe with an additive-based
diesel particulate filter technology. In 2003 DaimlerChrysler was
able to come up with an additive- and maintenance-free solution
that will comply with the rigorous EURO 4 exhaust emissions standard
valid from 2005, offered a secure technology for the future
and built on early successes in the USA. The emission control system
is available on CDI models in the Mercedes-Benz A, C, E, S, M
and B-Class and is in great demand throughout Germany. In 2004
approximately 110,000 cars were delivered with the innovative filter
technology. From mid-2005 we will be equipping all new Mercedes-Benz
diesel cars in Germany, Austria, Switzerland and the
Netherlands with the particulate filter as standard and offering
retrofitting solutions for this new technology.
Low-emissions commercial vehicles. In the case of our commercial
vehicles we can reduce harmful emissions even further due
mainly to an emission control system with BlueTec ® , a process
based on SCR technology (Selective Catalytic Reduction). BlueTec ®
uses a dilute urea solution as an additive to convert nitrogen
oxides into molecular nitrogen and water. As a result, the NOX
emissions of a commercial vehicle can be cut by more than 80 percent
– at the same time reducing fuel consumption. Commercial
vehicles fitted with BlueTec ® are therefore already in line with the
more stringent limits of the EURO 4 standard which comes into
force in October 2006. Furthermore, BlueTec ® enables compliance
with the EURO 5 standard valid from October 2009. From 2005
onwards we are aiming to gradually make BlueTec ® systems available
across our entire range of trucks and buses. We are also currently
looking into introducing SCR in Japan.
From 2007 the USA will also be bringing into force new emissions
standards for commercial vehicles. In order to comply with these
we will have to increase the efficiency of current emission control
systems by up to 25 percent. In addition, as a direct improvement
to the engine we will be introducing a flexible direct injection
system which will allow our vehicles to comply with future NOX
standards.
50 | 51

2.3.3 Noise emissions
In our acoustics and development laboratories, engineers are
striving to perfect new ways of making our vehicles even quieter.
The problem of traffic-related noise will not be solved by measures
affecting the vehicles alone. Other important factors are: increasing
traffic density and building development along roadways,
driving habits, and the condition and state of maintenance of the
roads.
In commercial vehicles, the main contributory factors to noise are
generally the tire tread patterns, body and load. Low-vibration
design, optimum engine encapsulation, and aerodynamically efficient
cabs are key parameters that DaimlerChrysler can influence.
Vehicles such as our Actros heavy-duty trucks and Citaro buses are
already among the top performers. We also work closely with body
manufacturers to achieve the optimum integration of the entire
vehicle with a view to keeping noise emissions to a minimum.
2.3.4 Service and maintenance
The responsibilities of an automotive manufacturer to the environment
are not limited to making vehicles as eco-friendly as possible.
That’s why we take an active approach to informing our customers
about the environmentally relevant properties of our products and
provide tips on how to use them in an environmentally responsible
way. We have a series of informative, attractively designed publications
which provide information on environmental issues at
DaimlerChrysler – ranging from EMAS certification for our companyowned
sales and service outlets to our MeRSy recycling management
scheme.
MeRSy conserves resources. Our customers in the passenger
car and commercial vehicle sectors can not only rely on receiving
the best possible service, they can also rest assured that environmental
aspects will be taken into account. One example of how
this works is provided by our recycling management scheme
MeRSy, which ensures that a growing number of end-of-life parts
are recycled on a voluntary basis, thus reducing the volume of
waste destined for landfill. We also take old operating fluids and
turn them into new ones: Every year approximately 800,000 liters
of coolant and 480,000 liters of brake fluid are reconditioned.
Today MeRSy stands for the collection and recycling of auto parts
and end-of-life materials from passenger car and commercial vehicle
workshops of the Mercedes-Benz, smart, Chrysler and Jeep®
DaimlerChrysler | Sustainability Profile 2005 | Ecology
brands. What began in a few workshops in 1993 is today well
established throughout Germany, Austria and Switzerland. At the
same time, the number of categories of parts and materials collected
has risen from five to 32. In 2004 MeRSy collected a total of
30,842 metric tons of end-of-life parts and materials for recycling.
www23
Take-back network for ELVs. The End-of-Life Vehicle Directive
has been in force throughout the European Union since July 2002.
Having put in place a widespread network of approximately 200
take-back points – complete with associated dismantling operations
– DaimlerChrysler has now embarked upon a second stage to
establish a take-back network of dismantling operations designed
to relieve company-owned sales and service outlets and authorized
dealerships. This ensures that our customers can dispose of their
end-of-life Mercedes easily and conveniently and makes a commitment
that no customer will have to travel more than 50 kilometers
to the nearest take-back point.
2.3.5 Sales and dealerships
The strategic basis for environmental protection in the sales sector
is provided – as for all other segments of the company – by the
Environmental Protection Guidelines of the DaimlerChrysler Group.
Within this strategic framework DaimlerChrysler’s German Sales
Organization (DCVD) has its own environmental policy which it pursues
with great commitment, practicing proactive environmental
protection at its Berlin headquarters, company-owned sales and
service outlets and dealerships. DCVD’s goal is to ensure the continuous
improvement of its environmental protection performance.
Within the framework of our overall environmental policy, the company-owned
sales and service outlets set their own local environmental
targets and lay down the activities required to reach these
targets.
Today, vehicle workshops too can have their operations officially
certified in line with the European Environmental Management and
Audit Scheme (EMAS). In the course of 2003, 16 DCVD branches,
48 workshops and the Central Sales Office in Berlin obtained the
prestigious EMAS certificate. In 2004 a further seven workshops
followed suit. DCVD currently assumes that further branches will
sign up for certification in the next twelve months.
Further information on environmental protection at DCVD can be
found in the DCVD Environmental Report.
www24

3.0 Production-related
environmental protection
3.1 Our production-related environmental strategy
DaimlerChrysler sees itself as a pacemaker for eco-compatible
innovations in production engineering. “We plan all stages of manufacturing
to provide optimal environmental protection,” says the
third Environmental Protection Guideline of the DaimlerChrysler
Group. Our job is to translate this obligation into practice in the
production sector day by day, in order to attain our environmental
goals and ensure continuous improvement.
The main environmental fields of activity for us in the production
sector are as follows:
– Prevention of air pollution
– Climate protection
– Resource conservation
Our core environmental goals in these three areas are:
– Reducing solvent emissions
– Cutting CO2 emissions
– Making more efficient use of resources and avoiding waste
Environmental goals of DaimlerChrysler plants
Within the framework of their environmental program for the EMAS
audit, the DaimlerChrysler plants all set their own individual environmental
targets and implement their own plant-specific measures for
achieving these targets. A comprehensive list of these measures and
targets is published in the Environmental Statements of the individual
plants.
www25
3.2 Air pollution control
Some vehicle manufacturing processes at DaimlerChrysler plants
generate various air pollutants. In addition to the solvents (VOC)
mainly released in the paintshops, these primarily include sulfur
dioxide (SO2), carbon monoxide (CO), and oxides of nitrogen (NOX).
These gaseous emissions are mainly generated by the combustion
processes in boilers or on engine test rigs. Then there are also
emissions of dust. By using new technologies and improved procedures,
DaimlerChrysler has already significantly reduced emissions
of all of these pollutants in recent years. It remains our goal to
maintain this low level of emissions and to make further reductions
where technically and commercially possible.
One focus of our activities here remains the reduction of solvent
emissions. In this area in particular the Chrysler Group achieved
tangible reductions in 2004 that stemmed not only from systems
modernization but also from a concentration of production that led
in some cases to the closure of production facilities. The Mercedes
Car Group was almost able to maintain the same good results as in
recent years – the slight increase in specific value being attributed
to a disproportionate rise in emissions at the Sindelfingen and
Bremen plants and inclusion in the analysis for the first time of the
Born (NL) plant, where the smart forfour is produced. The increases
at Bremen and Sindelfingen are attributable to the changes
introduced to the clear coating process in 2004 and the resulting
rise in solvent consumption during the launch phase.
Figure 20
Specific emissions of solvents
in kg/vehicle produced
16
14
12
10
8
6
4
2
■ Chrysler Group ■ Commercial Vehicles, Germany
■ Commercial Vehicles, outside Germany ■ Mercedes Car Group
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
The Commercial Vehicle Division Germany was unable to match
reductions achieved in recent years. This is attributed to the fact
that production expansion over the previous year had a major
impact in particular on the painting of heavy-duty trucks (Actros
and Atego) which have larger surface areas. As a result the Wörth
plant recorded a 22-percent increase in solvent emissions. The
tangible increase for the Commercial Vehicle Division outside
Germany is explained to a large extent by changes to the data
52 | 53

collection process, which now includes other plants of the Freightliner
Corporation. In addition, solvent emissions from the Brazilian
plant at São Bernardo do Campo were appreciably higher as a
result of changes to the calculating process. For these reasons the
figures for the Commercial Vehicle Division outside Germany cannot
be compared with those of the previous year.
3.3 Energy and climate protection
Reducing energy consumption at our plants and cutting carbon
dioxide emissions is a goal we pursue from two angles. Firstly,
wherever practical, we use energy sources with lower carbon contents,
such as natural gas. Secondly, we use energy as sparingly as
possible and use it with optimum efficiency. For DaimlerChrysler,
innovative technologies hold the key to improvement. It is, however,
becoming increasingly complex and costly to achieve further
increases in the high level of energy efficiency that we have
achieved through long years of hard work.
In 2004, DaimlerChrysler’s total worldwide energy consumption
was in the order of 20.0 million MWh, one percent lower than in
the previous year. This slight reduction was mainly due to a reduction
in consumption of 7 percent for the Chrysler Group and can be
attributed primarily to programs aimed at increasing energy efficiency
put in place to meet the reduction target (minus 10 percent
between 2002 and 2012).
Our commercial vehicle plants recorded an increase in consumption
of 5 percent. However, specific energy consumption was
reduced, a fact that can be attributed to the 10-percent rise in production
in Germany and a 33-percent rise in other countries. It
should be noted here that German major assembly plants sometimes
supply plants with lesser production depth in other countries.
For passenger car plants the rise in consumption of 7 percent
exceeds production growth (3 percent). There are statistical reasons
for this. For example, the Kölleda and Born engine plants
were taken into account for the first time (see notes on data acquisition
p.10). Other increases in consumption came about as a
result of the development and testing of new production facilities
at the Tuscaloosa (USA), Stuttgart-Untertürkheim and Rastatt
plants, which did not register any corresponding production increase
for the report year in question.
DaimlerChrysler | Sustainability Profile 2005 | Ecology
Figure 21
Direct and indirect CO2 emissions
in 1,000 t
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
Figure 22
■ Electricity ■ District heating ■ Natural gas ■ Fuel oil ■ Coal ■ Liquid petrol gas
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Specific CO2 emissions
in kg/vehicle produced
6,000
5,000
4,000
3,000
2,000
1,000
■ Chrysler Group ■ Commercial Vehicles, Germany
■ Commercial Vehicles, outside Germany ■ Mercedes Car Group
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Figure 22 shows specific CO2 emissions calculated by means of
the energy data. The representation of absolute CO2 emissions in
Figure 21 differentiates between direct emissions (combustion of
natural gas, light fuel oil, coal and liquid gas) and indirect emissions
from power stations (generation of electricity and district
heating). Whereas indirect emissions remained almost constant in
2004, for direct emissions a slight reduction was recorded. Emissions
of other greenhouse gases can be determined only with difficulty.
They can be estimated according to the recorded volumes of
coolants (R134a and other climate-effective gases) required for
topping up in the German plants. Despite the high potential for a
greenhouse effect, the actual greenhouse effect arising from these

gases is very small on account of the very low volumes involved. It
is less than one part per thousand of DaimlerChrysler’s entire
greenhouse gas emissions, and as such well below what is measurable
in terms of CO2 calculations from energy values.
3.4 Waste prevention and recycling
When it comes to waste management the saying at DaimlerChrysler
goes: Prevention and recycling is better than disposal. Accordingly,
the reconditioning and reuse of raw materials, process materials,
and service fluids has been standard practice at DaimlerChrysler
for many years. Another part of the picture is the increasing use in
the vehicle manufacturing process of materials derived from secondary
(recycled) raw materials. And to avoid the creation of waste
in the first place, we use innovative technologies and eco-friendly
production planning processes.
By optimizing supply logistics in 2004, for example, the Sindelfingen
plant achieved a reduction in PVC waste from 75 to 50 metric
tons per year and sent its PVC waste for materials recycling.
As a result, the volume of hazardous waste for disposal was cut to
approximately 20 grams per vehicle. One of the factors that made
this possible was an innovative waste disposal process that permits
raw material recycling of PVC waste.
3.5 Water protection
Our aim in terms of water protection is to use this precious commodity
as sparingly as possible and to avoid contaminating water
resources. In order to save water, we make use of resource-efficient
methods such as closed-loop systems. In many production
segments, a large proportion of the contaminated water can now
be treated to such an extent that it can be reused in the manufacturing
process. As a result, specific water consumption per vehicle
built at DaimlerChrysler has fallen dramatically over recent years.
To avoid polluting lakes and rivers, we subject our production
wastewater to thorough pre-treatment before it is channeled into
the drainage network together with cooling and sanitary wastewater.
A small proportion of production wastewater is treated so
thoroughly at DaimlerChrysler that it can be channeled directly into
nearby rivers. We mainly use chemical processes to detoxify, neutralize,
and demulsify the wastewater. But wherever possible, bio-
logical wastewater treatment methods also are employed, as in the
case of wastewater from paintshops which use low-solvent waterborne
paints.
In 2004 DaimlerChrysler consumed 34.1 million cubic meters of
water. Compared with the previous year (37.0 million m 3 ) this
represents a drop in consumption of 7.8 percent. Specific water
consumption per vehicle produced fell in every division.
3.6 Soil conservation and remediation
In DaimlerChrysler’s view, looking after the soil calls for an exceptionally
responsible approach. Our primary goal in this respect is to
prevent soil contamination from occurring. Where it has already
happened, we address the remediation issues. Strict regulations
are in place at all DaimlerChrysler plants in order to prevent soil
contamination. Technical equipment such as catchment trays,
double-walled containers, sealed floor coverings and leakage warning
systems help prevent water-polluting fluids from leaching into
the ground. And precise records are kept of the processes and
technical equipment that require such fluids. Identifying possible
contamination problems also forms an important element of the
“ecological site audits” that we use to eliminate or at least minimize
environmental risks at our own sites or to evaluate the sites
of companies in which DaimlerChrysler is planning to invest. Over
recent years, our experts have also developed and tested a variety
of highly effective processes and techniques for the remediation
of contaminated soil.
In October 2004 DaimlerChrysler successfully completed an important
remediation project in the USA and we were able to join
with local residents to celebrate the inauguration of a new park in
Toledo. Liberty Park is located on the site of the former Willys Test
Track across the Ottawa River, part of which was used as a landfill
until the 1960s. The site has been remediated by DaimlerChrysler
in cooperation with the City of Toledo and the Ohio State Department
of Transportation. That makes Toledo the second city in Ohio
to create a recreational park out of a former remediation site.
54 | 55

3.7 Noise abatement
Noise causes stress and can even lead to illness. Our aim, therefore,
is to reduce the impact of noise on our employees and on
the people who live near our plants to the greatest possible extent.
When planning new facilities, we employ noise abatement concepts
to ensure that noise is either not generated in the first place
or at least kept within closely defined limits. Measuring points and
acoustic monitoring equipment at our production plants help to
determine noise sources and levels and combat emissions in a
targeted way – by installing noise-absorbing materials or putting up
noise barriers, for example. At our plant in Berlin-Marienfelde in
2004 noise barriers were developed to protect local residents from
the rising noise levels resulting from increased transport to and
from the plant. Noise emissions are now at times well below the
levels set down in official regulations.
3.8 Delivery traffic and logistics
The vehicles making deliveries to and from our production plants
also have an environmental impact. Our aim here is to minimize
the emissions of carbon dioxide (CO2), pollutants, and noise
caused by this traffic. The most effective means of doing this is to
reduce the volume of traffic by means of efficient traffic management
and logistics concepts.
An important element here is the optimizing of vehicle loads. To
this end, a new centralized database has been set up that can keep
a close track of the entire commodities flow fed from our plants by
ship, rail, plane and truck. Such data is also a valuable source of
information for environmental protection Analysis of 2004 data, for
example, produced some very interesting figures. In 2004 approximately
three million metric tons of commodities destined for production
in our German car and commercial vehicle plants were
transported by trucks and covered a total of 90 million kilometers.
According to the latest emissions factors for Germany (HBEFA 2.1)
this resulted in CO2 emissions of roughly 79,000 metric tons –
equivalent to three percent of total CO2 emissions for our German
plants. Moreover, emissions will also include 18 metric tons of
DaimlerChrysler | Sustainability Profile 2005 | Ecology
dust, 815 metric tons of nitrogen oxides, 147 metric tons of carbon
monoxide and 38 metric tons of hydrocarbons. Since most of
our suppliers operate mostly newer trucks from emissions classes
EURO 3 and EURO 4, the actual emissions values may be lower.
Even though these emissions are only indirectly attributable to
production, we are making every effort to reduce them further by
optimizing vehicle loads, shortening transportation routes and
using rail and ships. For technical reasons our data collection
process is at present incomplete and it is also our aim to continue
to improve and update this on an annual basis in respect of environmental
key indicators.
3.9 Suppliers and environmental protection
The aim of making production operations as environmentally compatible
as possible is not restricted to the Group’s own production
facilities but also applies to materials and components purchased
from suppliers. Special attention is paid in this respect to material
selection criteria and recycling requirements. Many suppliers
have already ensured compliance with ISO standard 14001, which
requires the establishment of an environmental management system.
We assume that ISO 14001 will in future become a binding
standard for all suppliers of production material.

4.0 Important environmental goals
Goals
1. Climate care
Activities Status
Corporate average fuel consumption.
DaimlerChrysler will play its part in meeting the
commitment by the Association of the German
Automotive Industry (VDA) to reduce the average
fuel consumption of newly registered passenger
cars in Germany by 25 percent between 1990 and
2005. For the Mercedes-Benz fleet that equates
to a target value of 7.7 liters per 100 km (NEDC) in
2005 (30.55 mpg).
Reduction of CO2 emissions in the production
sector.
USA: Reduction of specific CO2 emissions intensity
at production plants by 10 percent between 2002
and 2012.
Germany: Definition of medium-term reduction
goals and development of measures to reach these
goals by the end of 2006.
Target 1: Introduction of diesel particulate filters
as standard on Mercedes-Benz diesel vehicles
available in Germany, Austria, Switzerland, and the
Netherlands from the summer of 2005 and for all
Group brands equipped with our own engines by
the end of 2006.
Target 2: Development of particulate filter retrofit
packages for Mercedes-Benz diesel cars of the current
model generation already in customer hands,
initially for the C- and E-Class by the fall of 2005.
Target 3: Introduction of SCR technology for EURO
4 (BlueTec ® 4) as standard by mid-2006 and for
EURO 5 (BlueTec ® 5) by the beginning of 2009 for
Mercedes-Benz trucks and buses available in
Europe.
Improvement of powertrain efficiency, reduction of
drag, further optimization of vehicle weight.
- Creation of a project team as well as internal and
external reporting structures.
- Implementation of information campaigns and
individual measures.
- Feasibility studies for climate care measures
in the production plant supply infrastructure.
- Further enhancement of data acquisition
and evaluation.
2. Prevention of air pollution | Reduction of emissions during the service lives of our vehicles
3. Environmental management
Site audits. Introduction of a system that will permit
the comparison of the current state of environmental
protection at our plants, in order to enable
us to set Group-wide environmental targets for
production operations in the medium term.
Environmental management system. Greater
integration of the production plants outside Germany
into the environmental management system.
Certification of all production plants worldwide to
ISO 14001 by the end of 2005.
Expansion of standard equipment for all diesel
models of the respective brands to include particulate
filters.
Development of a system that ensures safe and
reliable performance, as well as guaranteeing lowcost,
customer-oriented retrofitting options.
Phased introduction of BlueTec ® 4 and BlueTec ® 5.
Ongoing enhancement of engines with the aim of
further improving their efficiency and thus economy,
without compromising on longevity.
Introduction of ecological site audits at
DaimlerChrysler production plants.
Involvement of additional plants and support with
preparation for certification to ISO 14001.
In 2004 the average fuel consumption of the Mercedes-Benz
car fleet in Germany stood at 7.29 liters
per 100 km (NEDC) or 32.27 mpg. We have therefore
exceeded our target by more than 4 percent a
full year ahead of the agreed deadline.
Target remains in force. (+)
New target (!)
New target (!)
New target (!)
At the end of February 2005, DaimlerChrysler
became the first manufacturer to hand over trucks
with BlueTec ® 4 and BlueTec ® 5 systems. These
vehicles already comply with the EURO 4 and EURO
5 emissions standards that will apply from October
2006 and October 2009 respectively.
New target (!)
The audit system has been introduced at the Mercedes
Car Group and Commercial Vehicle Division
plants. A re-audit has already been conducted at the
Mercedes Car Group plants.
Target remains in force. (+)
In 2004, implementation of environmental management
systems that comply with ISO 14001 was
commenced at the Freightliner Corporation sites.
The first sites were certified at the end of 2004. In
the course of 2005 Freightliner headquarters and
the remaining production sites will also be certified.
Target remains in force. (+)
56 | 57

Society
As a globally active company and responsible corporate citizen, DaimlerChrysler strives to
play a proactive role in shaping society. This fundamental approach embraces relations with all
our stakeholders, but primarily with our customers, employees, and neighbors.
DaimlerChrysler | Sustainability Profile 2005 | Society

Society
1.0 Our employees 59
1.1 Employment trends in 200460
1.2 Staff turnover 60
1.3 Human resources planning and controlling 60
1.4Good relations between workforce and management 61
1.5 Global Compact – principles for people
and work at DaimlerChrysler 61
1.6 Flexibility in the use of human resources
and safeguarding jobs 61
1.7 Performance and remuneration 61
1.8 Social security 62
1.9 Diversity management and equal opportunities 62
1.10 Vocational training and professional development 65
1.11 Executive development 65
1.12 Occupational health and safety 65
1.13 Aging workforce – the demographic challenge 67
1.14Combating HIV/AIDS 67
1.15 Employee satisfaction 68
2.0 Our neighbors 68
2.1 Activities in the NAFTA countries 68
2.2 Commitment in Europe, Asia, South America and Africa 69
3.0 Our customers 70
3.1 Responsibility for safety 70
3.2 Customer Relationship Management 72
4.0 Engagement in society 73
5.0 Important goals of the social engagement
of the DaimlerChrysler Group 77
Additional information (indicated by the www symbol and an index number)
is available online at:
http://www.daimlerchrysler.com/sustainability
1.0 Our employees
The products and services offered by DaimlerChrysler are the
result of the efforts of over 384,000 employees around the world.
Our employees provide the basis for a successful future. In order
to honor and foster their commitment we continuously invest in
their training and workplace environment and ensure that working
conditions and social structures at the workplace meet appropriate
standards across the globe.
Just as DaimlerChrysler as a company demonstrates its sense of
responsibility to its employees, these same employees are themselves
expected to shoulder responsibility and to think and act in a
sustainable way at all levels. At DaimlerChrysler this traditionally
includes for example fair and cooperative interaction, but also a
commitment to activities outside the company in roles that benefit
society.
This responsibility towards our employees is something that has
been firmly rooted in our company for over a century. Back in
the early years of the twentieth century we were already offering
young employees systematic vocational training. And since its
introduction almost one hundred years ago, the company’s retirement
benefits scheme has grown steadily in importance.
Future Safeguarding 2012. In Germany, after intensive negations
between Group management and the General Works Council,
the Future Safeguarding 2012 reform package was agreed in the
summer of 2004. The agreement improves the competitive edge,
the innovative ability and investment conditions for our German
locations, and increases working flexibility, thereby securing
employment. The agreement represents a clear commitment to
Germany as a location.
58 | 59

To this end, the workforce made concessions on pay, working
hours, and labor flexibility. In return, management agreed to
dispense with forced redundancies. This long-term ruling is only
possible because it will permit enhanced productivity and efficiency.
The core elements of the reform package include a standard
remuneration agreement, a collective service staff agreement with
longer and more flexible working hours at lower compensation
levels, and DCmove, a “clearing house” for the flexible deployment
and exchange of personnel capacity between plants.
1.1 Employment trends in 2004
DaimlerChrysler is a global company with a globally integrated production
network that provides jobs in every region around the
world. Worldwide, the number of employees rose by 22,660 from
362,063 (2003) to 384,723 (2004). In Germany, DaimlerChrysler
employed a workforce of 185,154 in 2004 (2003: 182,739) drawn
from over 120 nations. Adjusted for changes in the scope of consolidation,
in 2004 the Group created approximately 8,400 new
jobs worldwide. Largely as a result of the successful market launch
of the new A-Class and the high demand for trucks, the number of
employees at our plants in Germany rose by about 2,600. However,
outside Germany too new jobs were created in almost all Group
divisions thanks to positive business trends.
Figure 23
Total employees by region
384,723 employees (on 31.12.2004)
Latin America: 14,691 employees
Europe: 214,978 employees,
of which Germany: 185,154
North America: 123.998 employees, Asia: 21,794 employees
of which USA: 98.119
Africa: 7,584 employees
DaimlerChrysler | Sustainability Profile 2005 | Society
Australia: 1,678 employees
1.2 Staff turnover
Figure 24
Turnover rate 2004
in %
Germany
USA
Rest of world
Worldwide
3.1
9.8
4.8
5.3
At 5.3 percent, the DaimlerChrysler Group’s annual global net
turnover rate for 2004 was 0.1 percentage points below that of
the previous year. This net turnover rate also includes human
resources measures such as early retirements, voluntary redundancies
and – specifically in Germany – part-time phased early
retirement contracts. As a result of efficiency measures at the
Chrysler Group, the net turnover rate for the USA was well above
the Group average.
1.3 Human resources planning and controlling
In 2002, DaimlerChrysler introduced a standardized HR reporting
process which clearly regulates all quantitative and qualitative
information for human resources planning and the HR and employment
situation and collates this information centrally. The eCORPS
data processing system (electronic Controlling, Reporting and
Planning System) ensures efficient and transparent data structures
for all planning processes. This gives the Board of Management
and other corporate bodies constant access to current data and
background information from the Human Resources sector.

1.4 Good relations between workforce and management
DaimlerChrysler embraces its good and dependable working relations
with internal and external employee representatives in works
councils and trade unions. A key element here is to achieve social
dialogue that transcends national borders. In order to give employees
security and perspectives especially in times of globalization,
in 2002 we voluntarily set up a World Employee Committee.
Another important body alongside the World Employee Committee
is the European Works Council, which was created in 1996. In
Germany there is also legislation regarding codetermination on
the supervisory board: Ten members of the Supervisory Board of
DaimlerChrysler AG are employee representatives.
In Germany, some 95 percent of DaimlerChrysler Group employees
are represented by a trade union. Outside Germany, the workforces
of almost all production plants with more than 1,000 employees
have trade union representation.
1.5 Global Compact –
principles for people and work at DaimlerChrysler
We have integrated the principles of the Global Compact into our
Principles of Social Responsibility, which were jointly worked out
and signed in September 2002 by senior management and the
DaimlerChrysler World Employee Committee. The principles are
implemented as part of the DaimlerChrysler Integrity Code which
is binding for all employees throughout the Group, worldwide. In
addition to the direct responsibility of all employees, adherence to
the Integrity Code is monitored by the Group’s Corporate Audit
department (see page 21).
www6
1.6 Flexibility in the use of human resources
and safeguarding jobs
DaimlerChrysler employs a number of different flexibility tools so
as to be able to react flexibly to fluctuations in demand and safeguard
the continuous development of the core workforce. The
two key approaches are: first, the market-oriented control of employee
numbers and workforce flexibility, and second, the creation
of different, flexible working-time models. By employing these tools
the company can gain leeway in flexibility averaging approximately
± 25 percent. The existing flexibility framework is exploited to the
full, for example through the delegation of employees, the new
“DC move” regulations, and the appointment of additional employees
with limited-term contracts. Output can be readily modified
using working time accounts, part-time models or compensatory
shift models which also enhance employee loyalty and retention.
Flexibility in working-time models. At DaimlerChrysler AG`s
German plants there are various working-time models. Furthermore,
in consultation with employees we develop individually
tailored working-time solutions which at the same time help the
company react flexibly to capacity fluctuations. In a General Works
Agreement, the objectives of which exceed the legal requirements,
provision is made for the flexible structuring and promotion of parttime
work. Above all, flexible working-time models also represent
an opportunity for women in management and executive roles to
coordinate career and family.
Part-time employment. The number of part-time employees within
the Group has been steadily rising in Germany over recent years.
In 2004, 8,082 (2003: 7,296) employees were in part-time employment,
which equates to 4.7 percent of the active workforce.
1.7 Performance and remuneration
DaimlerChrysler rewards good work by using performance-oriented
compensation. At the same time the base salary is always set so
that, in market comparisons, it represents an appropriate return for
work. For above-average performance – be it individual or as part
of a team – remuneration may also be increased through other
variable components. The same applies when the company as a
whole performs well. For management compensation, expatriate
employees, and retirement benefits there are binding Group-wide
framework agreements in force. This ensures that essential compensation
components are structured in line with requirements
and performance, and at the same time that the commercial interests
of the company are taken into account. The level of cash
compensation varies according to country or region. In this way
DaimlerChrysler can safeguard its competitiveness and attractiveness
in every market and at the same time take account of the
economic options open to each respective company.
60 | 61

In 2004, expenditures for wages and salaries at DaimlerChrysler
totaled €18.7 billion. Of this, €9.8 billion was accounted for by
Europe, € 7.3 billion by the NAFTA states, and €1.6 billion by the
remaining countries.
1.8 Social security
Social security is one of the basic conditions for long-term, success-oriented
business. Financial solidity is a decisive factor when
it comes to provision for old age. The way to safeguard this is set
down in our “Global Pension Guidelines.” Since early 2005 the
newly established Pension Committee has been overseeing the
development of pension plans worldwide in accordance with these
guidelines.
In 2004, the Group assigned approximately €13.9 billion to
provisions for retirement and health benefits. Also in 2004, total
social security contributions for the Group came to €3.3 billion,
of them €2.0 billion in Europe, €0.9 billion in the NAFTA countries,
and €0,4 billion in the remaining countries.
In addition, we encourage employees to make personal provision
for old age. The company provides appropriate information and
savings or investments opportunities. So far, employees in eleven
countries have been given the opportunity to purchase employee
shares in the company.
DaimlerChrysler | Sustainability Profile 2005 | Society
1.9 Diversity management and equal opportunities
Since 2005, DaimlerChrysler has operated a consistent and strategically
oriented system of Global Diversity Management. A Global
Diversity Council made up of members of the Board of Management
and senior managers determines the direction to be taken by
diversity measures within the Group and assures the strategic integration
of the topic. Divisional Diversity Councils then report resolutions
to their respective business units and implement diversity
policies within the workforce at individual sites. Since May 1, 2005,
a Global Diversity Office, established within the office of the board
member responsible for Human Resources, has been responsible
for ensuring the strategic alignment of Global Diversity Management
and its implementation in practice.
Global Diversity Management makes a decisive contribution to
value-added for the Group by making consistent use of the potential
of a diverse employee base. In particular, issues such as promoting
women to management positions, raising the retirement
age, and the ethnic diversity of a multinational corporation like
DaimlerChrysler require a management approach geared to diversity.
Global Diversity Management follows guidelines and measures
that have been practiced at DaimlerChrysler since 1998. At the
time of the merger between Daimler-Benz AG and Chrysler Corporation
a joint declaration of worldwide validity was agreed upon
regarding equal opportunities and the protection of minorities: the
DaimlerChrysler Diversity Statement. The Diversity Statement is
implemented around the world in line with regional requirements.
1.9.1 Diversity management in Germany
By offering all employees equal opportunities, DaimlerChrysler
aims to attract and retain the very best employees. In Germany,
DaimlerChrysler made its position clear on this when on November
25, 2000, it issued a “Joint Declaration on the Promotion of Equal
Opportunities” derived from the Diversity Statement, and defined
five areas for action (see chart).

Figure 25
Fields of activity for equal opportunities in Germany
Advancement of women
Career/family
Equal opportunities
Culture
Promotion of women. The promotion of women within the Group
is a declared goal of company management. In addition to efforts
to achieve target corridors for female employees subject to collective
bargaining agreements – as anchored in the Works Agreement
– the new Global Diversity Management will above all deal with
the promotion of women to management and executive positions.
Here, too, target corridors are designed to ensure that, in future,
women fill more executive positions (8.9% worldwide) than has
been the case to date.
In the promotion of women, DaimlerChrysler has made decisive
progress with regard to reaching the target corridors for women
covered by collective agreements, aided by a large number of activities,
including:
– Career workshops for top female graduates
– Cooperation with technical universities (e.g. femtec)
– Human resources marketing measures (e.g. Girls’ Day)
– Evaluations for top management positions as part
of the LEAD process
– Mentoring and cross-mentoring (Group-wide)
Flexible working (-hour models)
Disabled employees
Integration in HR strategy/Diversity Statement
Fair behavior
Figure 26
Advancement of women
in %
Workforce
White-collar
Trainees
Apprentices
Level 4 management
Target corridor
Actual 2004 entire workforce
12.42
24.37
19.48
10.28
9.22
12.5–15
–
18–20
9–11
8–12
Career and family. Good framework conditions for childcare
are a vital condition for combining career and family. In a works
agreement on family leave, concluded at the end of 2001,
DaimlerChrysler formulated a raft of measures designed to retain
skilled employees and create flexible childcare attendance leave.
In the meantime there are in-house kindergartens at Stuttgart-
Möhringen and Wörth, and cooperative arrangements have been
established with kindergartens in Untertürkheim and Sindelfingen.
At other locations such as Düsseldorf, emergency care places
are available. For this and other initiatives, DaimlerChrysler was
recently named a “Family-Friendly Company.”
Employment of the disabled. In 2002, DaimlerChrysler AG concluded
an integration agreement with the General Works Council
and the representation for the severely disabled, highlighting the
responsibility of management to continually improve integration in
such a way that disabled employees are able to make an equal
contribution to the collective effort. DaimlerChrysler AG currently
employs 8,153 people with a disability, which equates to 5.7 percent
of the workforce – above the statutory target quota of five
percent. Furthermore, the company has made a voluntary undertaking
to place orders with workshops for the disabled. In 2004
these orders were worth 43 million euros.
62 | 63

Fairness in the workplace. In order to integrate equal opportunities,
openness, fairness and mutual respect into everyday working
life at DaimlerChrysler, senior management joined the Group
Works Council and the Senior Managers’ Committee in signing off
the Fair Behavior at the Workplace Initiative. This requires each
individual to contribute to a corporate culture that allows no room
for discrimination, sexual harassment or bullying.
Work-life balance. Another important competitive factor is the
ability to react quickly and flexibly to challenges and changes. For
us, work-life balance means organizing work and the framework
conditions for work – in particular in respect of flexible working
hour models – in such a way as to create a sustainable link
between professional and private life, without losing sight of corporate
requirements.
1.9.2 Diversity management in the USA
Global diversity is firmly anchored in the human resources policy of
the Chrysler Group. The diversity measures embraced by the
Chrysler Group can be primarily assigned to three main areas and
are anchored in numerous agreements and guidelines:
1. Employment and Placement: In both recruiting and employee
development we take affirmative action in the interests of
minority groups of employees including, for example, women,
ethnic minorities or the disabled.
2. Freedom from Harassment: DaimlerChrysler does not tolerate
harassment of any kind in the workplace, be it on grounds of
gender, age, national origin or other criteria.
3. Freedom from Discrimination: DaimlerChrysler’s policy is to
provide equal employment opportunity without regard to race,
color, gender, veteran status, marital status, religion, disability,
national origin, or other similar criteria.
DaimlerChrysler | Sustainability Profile 2005 | Society
Training for respect and tolerance. All Chrysler Group employees
in the USA are required to take part in training measures
designed to prevent sexual harassment and to create awareness of
diversity. In addition we set up the program “R.E.S.P.E.C.T. in the
workplace,” which offers training courses for top managers to
promote respectful and tolerant behavior at the workplace. Over
5,000 managers took part in the program in 2004.
High-ranking diversity policy. In 2004, together, women and
members of minorities made up over 40% of the total Chrysler
Group workforce and accounted for over 27% of executives. The
Chrysler Group is thus one of the leading U.S. companies in the
field of diversity and integration. Last year, for example, the
Chrysler Group was once again ranked as one of the Top 50 companies
in the country to offer women from Latin America the best
employment and career opportunities. Another aspect equally
well received is the Minority Retail Dealer Development Program,
originally drawn up in 1983. The aim of the program is to reflect
the diversity of customer requirements by systematically selecting
and fostering highly qualified sales staff with ethnic minority backgrounds.
Commitment to a diverse society. DaimlerChrysler is also committed
to promoting diversity and integration in society. For example,
the non-profit DaimlerChrysler Corporation Fund uses its
endowments to target organizations that support women and
minorities as well as programs that benefit these groups. In the
past year over nine million US dollars were made available for support
measures in these areas.
1.9.3 Supplier Diversity
In connection with our purchasing activities, it is also very important
for us to open up opportunities in the world’s markets for
minority suppliers and historically disadvantaged groups of people.
Thus, for example, DaimlerChrysler’s Board of Management Member
responsible for Global Procurement and Supply has also been
active as Vice Chairman of the National Minority Supplier Development
Council in the United States. The purchasing activities of
DaimlerChrysler sourced goods and services worth over US$ 3 billion
from U.S. minority-owned suppliers in 2004 (see page 37/38).

1.10 Vocational training and professional development
Vocational training and professional development are strategically
important factors for sustainable corporate success. Daimler-
Chrysler promotes lifelong learning through various programs –
from basic vocational training to top management seminars.
To this end, the company operates more than 40 training centers
worldwide. In 2004, we invested over 255 million euros in
the entire field of vocational training and professional development
in Germany. At the end of 2004 the company employed more
than 10,000 apprentices – over 80 percent of them in Germany.
DaimlerChrysler in Germany alone accounts for almost 40 percent
of all apprentices at German automobile manufacturers.
DaimlerChrysler offers a variety of different training programs
geared to country-specific training approaches and standards. In
India, for example, polytechnic graduates spend one year training
in automotive mechatronics, while in Germany the traditional dual
practical/theoretical education system remains the norm.
On the professional development side, increasing importance is
now attached to training measures that are directly related to the
workplace and to the specific job of the employee. Ahead of production
start-up for the new A-Class at Rastatt, Germany, for
example, every production worker received an average of 15 days
on-the-job training.
Special programs for management are organized by the
DaimlerChrysler Corporate University (DCU). In 2004 DCU
invested €7 million in a total of 5,650 participant days.
1.11 Executive developemt
Executive development. The appraisal, development, and
advancement of executives at DaimlerChrysler are implemented
through a standardized and continuous process known as LEAD.
Every year, this process is applied to managers at all levels, and
comparable appraisal parameters are employed. For the employees
concerned, the LEAD process lays the foundations for a fair
and transparent evaluation of their performance and appraisal
of their potential. As a result, LEAD provides the framework for targeted
and systematic career advancement, thereby making an
important contribution to assuring equal opportunities in practice
at DaimlerChrysler.
1.12 Occupational health and safety
DaimlerChrysler assigns very high priority to health and safety in
the workplace. Based on our Health and Safety Principles, we
developed our General Occupational Health and Safety Guidelines
in 2004. The guidelines are based on the current legislation for
each Federal State as well as on the guidelines issued by the International
Labor Organization (ILO) for business management systems
concerning occupational health and safety. Such guidelines
are currently being drawn up for implementation at all of the
Group’s locations worldwide. In all DaimlerChrysler plants, the
accident rate and sickness figures are carefully documented. A
global DaimlerChrysler reporting system is currently under development.
1.12.1 Germany
Sickness figures. In Germany the key indicators in the health
sector have improved year-on-year. For example, the number of
illness-related absences fell by 0.2 percentage points to 4.6 percent.
The sickness rate has fallen by one-seventh since 2002.
Over two-thirds of illness-related absences relate to periods of
less than six weeks. The number of employees who did not miss a
single day through illness rose by one percentage point year-onyear
to 37 percent.
Figure 27
DaimlerChrysler AG employees with no days off sick
% of employees
40
30
20
10
2002 2003 2004
64 | 65

Occupational accidents. The accident rate at DaimlerChrysler
plants has fallen continually over recent years. In comparison with
the previous year, accident-related costs dropped by 2.2 percent.
Over the last ten years the figure has been halved.
Figure 28
Accident frequency
Medical aid cases per million hours
22
20
18
16
14
Figure 29
Accident costs
Days absent due to illness per million hours
230
210
190
170
150
2001 2002 2003 2004
2001 2002 2003 2004
Ergonomics in production and in the office environment. One
goal of the Ergonomics Initiative launched in 2004 at Daimler-
Chrysler’s German plants is to systematically take into consideration
ergonomic factors when planning workplaces. In 2004, for
example, around 550 workplaces in the production sector were
evaluated at the planning stage for ergonomic quality. In addition
to this preventive strategy, existing production processes are also
examined on a regular basis from an ergonomic point of view, with
the involvement of the employees concerned. Regular expert meetings
ensure that there is an exchange of best practices between
DaimlerChrysler | Sustainability Profile 2005 | Society
the various DaimlerChrysler sites around the world. One goal is
also to make DaimlerChrysler employees more aware of the importance
of ergonomic principles for maintaining their health and
show them ways of taking more responsibility for their own health.
Corporate medical service. The corporate medical service helps
to improve health protection within the company through a variety
of campaigns and measures. These include health seminars,
courses on training the back muscles, support on workplace
ergonomics, and nutritional advice. In addition, there have also
been campaigns on screening for intestinal cancer, quitting smoking,
and early recognition of diabetes and abnormal blood sugar
levels.
Sport and fitness programs. 2004 saw a marked increase in
opportunities for sport and fitness at the company’s German locations
as compared with recent years. Employees are now able to
choose from a wide range of seminars and courses. In addition,
DaimlerChrysler’s associated sports club SG Stern offers over fifty
different sports at sixty locations in Germany.
Figure 30
Corporate sports/SG Stern
Numbers of (as at Dec. 2004)
Attendances at health promoting
sports activities
Attendances at other sport activities
SG Stern locations
SG Stern members
2004 2003
160,000 144,000
510,000 464,000
60 60
30,000 28,220

1.12.2 North America
The process to improve occupational health and safety protection
within the Chrysler Group is known by the slogan “Bringing Excellence
to Safety Teams” (B.E.S.T.) and is the joint responsibility at
the plants of plant management and the union leadership. The
program’s goal is to set out the importance of health and safety
and promote appropriate behavior from employees. The B.E.S.T.
program’s processes and tools are standardized throughout all
Chrysler Group plants. Since its introduction in 1998 the program
has led to a steady decline in the lost work day rate as well as in
the accident rate.
Figure 31
Chrysler accidents – lost work day rate
Cases per 100 employees
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
Figure 32
Chrysler accidents – incident rate
Injuries per 100 employees
18
16
14
12
10
8
6
4
2
1998 1999 2000 2001 2002 2003 2004
1998 1999 2000 2001 2002 2003 2004
1.13 Aging workforce – the demographic challenge
In almost all industrialized countries the steady rise in life
expectancy and falling birth rates are bringing about serious
changes to age patterns in the mid to long term. This demographic
change has consequences not only for social systems, but also for
companies. In order to respond to this change with a long-term
human resources strategy DaimlerChrysler launched the strategic
initiative Aging Workforce back in 2001. The goal of this initiative
is to develop the company’s competitiveness in view of changing
age structures within the workforce by means of an integrated
approach which starts from the moment employees join the company
and continues until the day they leave. The key challenges
here include protecting the health of employees, increasing their
operational flexibility and ongoing employee training.
1.14 Combating HIV/AIDS
Worldwide a total population of 43 million people is infected with
HIV. In 2003, 5 million new infections occurred and 3 million people
died of AIDS. Apart from the human tragedy caused by the disease,
the economic impact on companies cannot be neglected.
Increasing absentees due to illness, compassionate leave and early
retirement lead to reduced productivity and subsequently to
increased costs due to higher costs for benefit schemes and a
decrease in human capacity.
Driven by these challenges, DaimlerChrysler South Africa cooperated
with German Technical Cooperation (GTZ) between 2000 and
2003 to develop a program that prioritizes four areas:
– Information, education and communication
– Integrated health care approach
– Risk management
– Community involvement.
To determine the medium and longtime output of the project, all
components are closely monitored using an indicator-based
process. Based on the South African experience and guided by the
corporate HIV/AIDS policy (in process), the global roll-out in second
wave countries such as China, the Russian Federation, India
and South East Asia is ongoing. With its membership of the Global
Business Coalition on HIV/AIDS (GBC) DaimlerChrysler spearheads
its advocacy role at global level.
66 | 67

1.15 Employee satisfaction
Ever since 1996, employee satisfaction in almost all business
units at DaimlerChrysler has been regularly reviewed by means of
employee surveys. The responses indicate a high level of satisfaction
at work across the board. An employee commitment index for
German companies drawn up by TNS Infratest also reveals a significantly
higher level of employee commitment at DaimlerChrysler
compared with other German companies.
2.0 Our neighbors
The social, economic, and cultural differences that exist between
the various locations where DaimlerChrysler operates are in part
considerable. In Tuscaloosa in the USA, Sindelfingen in Germany,
East London in South Africa, São Bernardo do Campo in Brazil and
Beijing in China the company encounters different circumstances,
in which distinctive regional factors have to be treated with great
sensitivity.
This background has helped shape the Community Care programs
that embody our active involvement in the local environment. In
NAFTA countries, the DaimlerChrysler Corporation Fund has played
a decisive part in guiding and shaping societal activities at our
locations for many years. In Europe, Asia, South America, Africa,
and Australia, Community Care is implemented in decentralized
fashion by the regional companies and by those responsible at the
individual production facilities and sales units.
DaimlerChrysler | Sustainability Profile 2005 | Society
2.1 Activities in the NAFTA countries
In the USA, Mexico, and Canada the DaimlerChrysler Corporation
Fund supports thousands of charitable organizations. In so doing, it
targets mainly communities in which the company or its employees
are actively involved, increasingly funding projects that strive to
attain measurable goals. The focus of this commitment, to which
the company allocated a total of around US$ 24 million, today covers
four key areas:
1. Future work force:
Following a selection process involving the internal Work Force
Diversity and Talent Acquisition Group, the Fund supports academic
educational institutions. In 2004 the Future Work Force
Program had US$ 6,186,658 at its disposal.
2. Community vitality:
At every Chrysler Group location there are programs that promote
local social and economic stability and make the communities
more attractive places to live. In 2004 the Fund made a
total of US$ 14,830,424 available.
3. Employee and DaimlerChrysler Corporation Fund
involvement:
DaimlerChrysler encourages employees to become involved in
voluntary work and neighborhood aid schemes – through volunteer
programs and initiatives such as the Matching Gift Program.
In 2004 the Fund made available US$ 1,032,499 for this
purpose.
1. Public policy:
In order to foster public exchanges on themes such as road
safety, environmental protection, health, and energy and technology,
the Corporation Fund supports organizations that
promote open and factual debate. In 2004 it provided funding
to the extent of 1,652,950 US dollars.
Further information about the DaimlerChrysler Corporation Fund
can be found on the Internet at:
www26

DaimlerChrysler Financial Services in North America also takes
seriously its role as a corporate citizen and plays an active part in
communities in which the company does business. In this respect
the financial services provider is following a long-term strategy
designed to promote positive social development in the following
areas: education, particularly in financial skills; community development;
and art and culture. As well as providing financial support,
the Financial Services division also fosters non-profit organizations
through a process of knowledge transfer. For example, the company
helped the Farmington/Farmington Hills Community Foundation
develop a fund-raising concept and marketing strategy. They also
devised a six-week syllabus for a high school to teach students
about foresighted financial planning. There are now plans to transfer
this syllabus to other schools within the NAFTA zone.
2.2 Commitment in Europe, Asia, South America, and Africa
In order to meet the various goals and demands concerning our
production facilities in Europe, Asia, South America, and Africa,
DaimlerChrysler relies on locally devised, flexible, and individually
tailored support programs. In contrast to the coordination of
NAFTA activities by the DaimlerChrysler Corporation Fund, here
planning and implementation is undertaken by those responsible
at the individual plants, enabling them to live out the principle of
neighborhood involvement. This approach leads to a wide diversity
of regionally tailored activities and initiatives, as illustrated by the
following examples from DaimlerChrysler plants:
Germany: With more than 42,000 employees, Sindelfingen is
DaimlerChrysler’s largest production site worldwide. Here, all Mercedes-Benz
passenger cars are developed and the Mercedes-Benz
C-, E-, CLS-, S- and CL-Class vehicles as well as the luxury Maybach
sedan are produced. The close links that exist between the plant
and the town are visible in the cooperative venture “WerkStadt,”
which organizes joint sporting and cultural activities. In 2004, for
example, the second WerkStadt community fun-run was held.
There was also a third exhibition of works from the DaimlerChrysler
Collection at the civic art gallery in Sindelfingen. The net result of
the initiative is that the people of Sindelfingen come and see the
plant, and the plant itself establishes a presence in the city.
South Africa: In addition to AIDS prevention and support for
victims of the fast-spreading immunodeficiency virus (see p. 67),
Community Care is also reflected in the implementation of the
Broad-Based Black Economic Empowerment (B-BEE) program in
the Cape of Good Hope. The aim of this program is to promote
the participation of the black majority of South Africans in the economic
development of the country and is part of the corporate
strategy of DaimlerChrysler South Africa. In 2004, by giving preference
to BEE suppliers we increased their quota beyond the target
of 13 percent to 17 percent of our suppliers. We are also providing
funding for the CIDA City University in Johannesburg, for example,
an institution that takes students from some of South Africa’s most
deprived communities.
Venezuela: At DaimlerChrysler Venezuela the company launched
a project in 2002 to promote the conservation of water resources.
The background to the initiative was the growing environmental
situation at Lake Valencia, where the ecological balance was at risk
as a consequence of large volumes of polluted wastewater from
feeder rivers. The program, put in place by DaimlerChrysler in cooperation
with local communities, involved information campaigns,
production and sale of a map of the Valencia basin and measures
to encourage the recycling of water in the industrial sector. In
another project, DaimlerChrysler introduced the principles of systematic
environmental protection to neighboring communities at
the Valencia plant. With the support of experts from the company,
an environmental management system was set up at eleven
schools.
Further information on our activities at the various locations can
be found in our Corporate Social Responsibility Report or on the
Internet at:
www27
68 | 69

3.0 Our customers
DaimlerChrysler’s sustained success is determined by the trust
that existing and potential customers are willing to place in our
company and its products. Consequently, protecting the health and
safety of the people who use our vehicles has the highest priority,
and we therefore attach the greatest importance to the safety
and quality of the vehicles we manufacture. Also, we actively seek
dialogue with our customers. Their wishes, expectations, and experiences
in respect of our products provide key guidelines for our
work.
3.1 Responsibility for safety
Every year, road accidents generate huge costs, both to the
economy and in terms of human suffering. Consequently,
DaimlerChrysler views its efforts to enhance road safety as a task
of considerable social significance. Our aim is to achieve a high
standard of safety. Moreover, our responsibility for people’s safety
is not restricted to the drivers of our vehicles and their passengers
but embraces all other road users, as well. For the past 60 years
and more, our developers have been pioneering innovations that
provide ever-increasing protection for vehicle occupants and other
road users alike. The technologies that we develop help prevent
accidents and can mitigate their consequences for all concerned.
Our commitment to this topic is illustrated not least by our
research budget: Few other manufacturers invest as much in safety
research as DaimlerChrysler.
As a strategic pillar of innovation and technology leadership,
vehicle safety is one of the core focal points of DaimlerChrysler’s
activities. The company has always considered itself the global
pioneer in this respect, invariably offering its customers the latest
state of the art in safety engineering and thereby enhancing road
safety for all other road users, as well. Over the past decades,
DaimlerChrysler has notched up a whole series of milestone
achievements in terms of automotive safety. These have included
strong protective side moldings (1939), the world’s first car safety
body with rigid passenger cell and crumple zone (1959), the driver
airbag (1980), the first automatic roll-over bar (1989), the introduc-
DaimlerChrysler | Sustainability Profile 2005 | Society
tion of the Electronic Stability Program (ESP ® ) as standard (1999),
and the anticipatory occupant protection system PRE-SAFE ®
(2002). In terms of safety research methods, too, the company has
introduced practices which have won worldwide acclaim, such as
our systematic accident research (1969) or the realistic offset
crash test that we adopted as an in-house test method in 1979.
This test did not become mandatory in Europe until 1999.
Just how successful these developments have proved is revealed
by the statistics. For example, the accident quota for Mercedes-
Benz vehicles had been reduced by 15 percent solely through the
introduction of ESP ® as standard equipment. And in the fall of
2005 we will be introducing a new radar system in the new S-Class
which for the first time will integrate information from the vehicle
environment to enable dangerous situations to be identified, even
earlier and more reliably. This anticipatory Brake Assist PLUS
system will feature the initial use of 24 GHz radar technology.
In order to attain a high degree of vehicle safety across the Group,
all safety-related activities of the Chrysler Group and Mercedes
Car Group must be channeled through the Joint Specification for
Passive Safety process.
But for all this technical progress, we can not and do not wish to
relieve the driver of responsibility for driving the vehicle. Ultimately,
it is always up to the driver to decide what the correct response
to a specific situation should be. That said, the technologies developed
by DaimlerChrysler can ease the load on the driver and
help him or her to concentrate on the essentials. This means
that technology must never be an end in itself. Consequently,
DaimlerChrysler always strives to systematically demonstrate the
added safety provided by its new developments, and to this end
we have drawn up a series of test procedures.

Safe cars. DaimlerChrysler pursues an integrated approach to
safety, as illustrated, for example, in the Mercedes-Benz safety
concept known as PRO-SAFE. PRO-SAFE demonstrates our holistic
approach to vehicle safety from potential accident prevention
through active safety systems and occupant protection geared to
the severity of an impact, to measures designed to enable the
fastest possible rescue of occupants after a collision. PRO-SAFE is
divided into four stages: PERFORM-SAFE covers all measures that
can make for safe driving, identify dangerous situations on the road
and warn the driver. PRE-SAFE can take preventive safety measures
in response to possible danger. PASSIVE-SAFE can provide
accident protection adjusted to the given situation, in the use of
two-stage front airbags for example. And POST-SAFE can help prevent
serious injury and ensure the faster rescue of vehicle occupants
after an accident.
Safe commercial vehicles. In commercial vehicles too, the subject
of safety is highly significant for DaimlerChrysler. As the
world’s largest manufacturer of commercial vehicles, we therefore
develop systems for our trucks, buses, and vans which both protect
the drivers at their workplace and help them defuse critical situations
and avoid accidents, as well as enhancing safety for all other
road users. Driver assistance systems of this kind, such as Telligent
Stability Control, Telligent Proximity Control, and Lane Assist, are
already available for many of our commercial vehicles and proving
their worth in a large number of vehicles.
Safety research. Two DaimlerChrysler facilities that have been
involved in delivering numerous innovations in the past and will
play a key role in future progress in automotive safety are the
DaimlerChrysler driving simulator in Berlin and its Accident
Research unit in Stuttgart. Through their research activities at the
very highest level, both of these facilities ensure the continuous
improvement of our safety concepts. The driving simulator entered
service back in 1984 and since then has been continuously modernized
and expanded. It enables researchers to test the handling
of DaimlerChrysler vehicles under a wide range of conditions and
to systematically identify areas offering scope for optimization. The
simulator is designed to simulate actual road traffic situations with
a large degree of precision. This allows the researchers to study
the behavior of driver and vehicle under a variable range of conditions,
and to reproduce a vast array of different driving situations,
as well as system and vehicle parameters. Thus dangerous on-road
situations can be reproduced in the simulator at no risk to those
involved. Whenever our researchers observe safety-relevant phenomena,
their findings are immediately integrated into the company’s
ongoing development work. In this way, the driving simulator
has played its part in many of the above-mentioned safety systems.
The second facility which has come to form an integral part of
the vehicle development process is DaimlerChrysler’s Accident
Research unit. For over 35 years now, the unit has been systematically
studying road traffic accidents in order to draw conclusions
for the vehicle development process. To date, the DaimlerChrysler
researchers have analyzed and evaluated almost 3,500 accidents
involving injuries to vehicle occupants. The findings of their research
have already led to numerous improvements to our vehicles,
as well as to new crash-test procedures, that enable our
vehicles to be adapted more reliably and effectively to actual road
traffic situations. In this way, the DaimlerChrysler Accident
Research unit has been involved in preparing the ground for many
effective vehicle safety concepts.
Technology and society. This comprehensive research philosophy
also embraces a look ahead to the future. The Technology and
Society research laboratory draws up scenarios concerning questions
such as: What will customers want in 2015? Which products
and brands will be important for them? What will their social environments,
lifestyles and attitudes to leisure time and mobility look
like? And finally: What does all of this mean for the vehicles of the
21st century? When it comes to developing safety-related technologies,
our researchers and their studies on the acceptance of
potential safety systems are always involved.
70 | 71

Road safety awards
– 5th Paul Pietsch Prize (auto motor und sport magazine)
for the integral seat
– Awards for PRE-SAFE:
– Paul Pietsch Prize (auto motor und sport magazine), 2003
– Prince Michael International Road Safety Award 2004, England
– European Auto 1 Innovation Award, Autobild 2003
– Auto der Vernunft-Innovation, Guter Rat, Leipzig 2003
– Traffic Safety Achievement Award 2003, New York Auto Show
– Auto & Elektronik Award 2003, Munich – Stuttgart
– 2nd place in Deutscher Zukunftspreis 2003,
awarded by the President of the Federal Republic
– Five-star award from the National Highway Traffic Safety Administration
(NHTSA) for occupant protection in a head-on impact for nine
Chrysler Group models in succession: the Chrysler Pacifica, Chrysler
and Dodge Minivan, Dodge Durango, Dodge Ram 1500, Dodge Ram
Quad, Chrysler 300, Dodge Magnum, Dodge Dakota, Jeep® Grand
Cherokee.
– Five-star award from the NHTSA for occupant protection in a side
impact for the, Dodge Dakota, Jeep® Grand Cherokee, Mercedes-
Benz C-Class and E-Class
– Mercedes-Benz E-Class ranked safest car in the USA in accident
analysis by the Insurance Institute for Highway Safety (IIHS)
– IIHS: Best Pick award: Mercedes-Benz C-Class, E-Class, M-Class
– Euro NCAP five-star award: Mercedes-Benz C-Class, E-Class, A-Class
3.2 Customer Relationship Management
Good relations with potential and existing customers are assigned
very high priority at DaimlerChrysler. Within the framework of our
Customer Relationship Management (CRM) efforts, we therefore
ensure long-term, sustainable, and profitable relationships. A decisive
part is played here by assuring an integrated approach in line
with the values of the brand.
Detailed knowledge relating to customer satisfaction is of fundamental
importance for the long-term success of DaimlerChrysler.
To this end, the Mercedes-Benz Passenger Car Market Research
unit conducts an annual 120 large-scale projects worldwide in conjunction
with internationally renowned external institutes. The findings
are reported to and taken into account by the very highest
levels of management. We are currently in the process of creating
DaimlerChrysler | Sustainability Profile 2005 | Society
the Mercedes Marketing System (MMS) for Mercedes-Benz. In the
future, MMS will help determine exactly which aspects of customer
feedback need to be available at which point in the product creation
process, in order to ensure sign-off and acceptance at each
quality gate. Similar systems adapted to the respective customer
requirements are also in place at the Chrysler Group and for all
DaimlerChrysler commercial vehicles.
Complaints management. Responsibility for managing customer
complaints always lies with the respective national company, in
order to ensure maximum customer proximity. That said, our Customer
Assistance Center (CAC) in Maastricht in the Netherlands
collates enquiries from almost all Western European countries. For
management reporting purposes these data are assigned to one of
three categories: product complaints, complaints about service
during the sales process, and complaints about service during the
repair or maintenance process.
Defects and recall campaigns. DaimlerChrysler customers
expect nothing but the best from their vehicles and the related
service offerings. Accordingly, we always gear our activities to the
benchmark of maximum customer satisfaction. This applies in
particular to recall campaigns. The framework for such campaigns
is invariably laid down by the respective national legislation. When
we or our customers discover a relevant defect in a vehicle, we
immediately trigger a multi-stage defect analysis and remediation
process. We inform the relevant authorities and all affected customers
without delay. And directly after a recall campaign, we
review the efficacy of the remedial measures. All procedures in
such recall campaigns are clearly defined and described in procedural
guidelines that apply across the Group. These procedures are
subject to regular audits and certified to DIN EN ISO 9001:2000.
In addition, in an ongoing process we make every effort to maintain
long-term customer trust in our company.
Product information, marketing, and advertising. Daimler-
Chrysler applies the same high standards to the design and content
of its marketing and advertising measures as apply to its other
activities. In Germany and the United States the Group has put in
place detailed instructions and guidelines for its advertising. These
ensure that the statements and representations made in the advertising
always comply with legal requirements. In the United States,
for example, there are specific guides issued by the Federal Trade

Commission pertaining to the advertising of fuel economy, other
environmental matters, prices, and warranties. There are also federal
regulations governing advertising involving leasing. In addition,
in its U.S. TV advertising, DaimlerChrysler complies with the standards
established by each of the major television networks (ABC,
CBS, and NBC). A specialized team in the Office of the General
Counsel at the company is in charge of providing legal advice on all
advertising topics.
4.0 Engagement in society
Dialogue and understanding are of fundamental importance to living
together in the globalized world. And it is in this spirit – as well
as for the sake of our own commercial interests of course – that
we pursue the goal of contributing to the dialogue between cultures
and in doing so of improving people’s opportunities throughout
the various regions of the world.
Basic understanding of our commitment to society: For a company
to create added value, it must always place the primary focus
on social values. However, this understanding can only be successful
for the long term if a company’s social responsibility is implemented
as an integral part of its business strategy. Only companies
which are responsibly geared to social values can remain successful
in the product market in the long term. Real acceptance of
responsibility does not necessarily mean questioning the primacy
of the political sphere, but rather working together for global stability.
This common interest – the desire for general stability – is the
key element in the foundations on which society, politics, and business
are built. This is why the maxim driving the activities of global
companies is not the transfer of power, but the transfer of stability.
Together with partners in the public sector, companies make an
important contribution to the struggle against violence, anarchy,
and terrorism while at the same time advancing the causes of civilization,
freedom, and prosperity.
This is why we support many political, societal, social and cultural
initiatives around the world. Our commitment is focused on activities
that utilize our expertise and experience as a global automobile
manufacturer.
Figure 33
Corporate citizenship – scale of impact
Duration of
investment
long-term
mediumterm
short-term
sponsor
corporate citizenship.
Figure 34
partner
Sustainability as a contribution to global stability
Operating activities
of DaimlerChrysler
corporate
citizenship
Only a long-term and strategic approach to social initiatives leads to sustainable
Sustainable impact on shareholder value
Promotion of global and national stability via CSR
Stability
– Presence in
zones of conflict
– HIV/AIDS
programs
– Transatlantic
relations
etc.
Job creation
– Securing the
future 2012
(Germany)
– Apprenticeships
– Research and
Development
etc.
Protection of
the ecosystem
– Fuel cell vehicles
– Natural fibers
– Alternative fuels
etc.
Conventional
sponsoring
– IOC partnership
– Mondialogo
etc.
demographic change – disease – social conflict – trade disputes
External stability challenges that impact on DaimlerChrysler
Sustainable political and social activities on the part of international companies
make an important contribution to global stability.
Transatlantic dialogue. As a German-American corporation that
evolved from the merger of Daimler-Benz AG and the Chrysler
Corporation – two firms with proud heritages – it is only natural
that we should be keen to foster good relations between the United
States and Europe. To this end, in 2001 DaimlerChrysler launched
a series of conferences designed to strengthen transatlantic relations.
These DaimlerChrysler Dialogues are organized primarily in
conjunction with prestigious academic institutions. High-ranking
representatives from the worlds of business, politics, and public
life are invited to take part in these forums, which are held in Berlin
and Washington.
72 | 73

Further information on the transatlantic dialogue can be found in
the brochure “Fostering a Common Future”:
www28
Further projects and initiatives that we support (examples)
– “Partners in Prosperity” – a study by the Center for Transatlantic
Relations of Johns Hopkins University, Baltimore, USA
– Restoration of the George C. Marshall Center at the
Hotel de Talleyrand in Paris
– The Bridge New York–Berlin program from 2002 to 2004, enabling
1,000 young New Yorkers to visit Germany in the aftermath of
the terrorist attack of September 11, 2001
– “Youth Beyond Borders”
Cross-cultural dialogue. Providing incentives to study other cultures
and promoting harmony, respect, and tolerance – these are
the tenets of the Mondialogo project launched in October 2003 by
DaimlerChrysler and UNESCO. Mondialogo targets high-school and
college students and teachers and encourages them to make contact
with their peers in other parts of the world so they can work
together to solve problems. The framework is provided by three
project strands – school partnerships with an inter-school competition;
a sponsorship award for engineering students; and an Internet
portal to provide competition entrants with a central communication
and information platform. For further information:
www29
Mobility and road safety. While the active and passive safety features
of our vehicles are of crucial importance to DaimlerChrysler,
for us road safety is about more than just designing safe vehicles
(see page 71). Thus, for many years now we have offered safe driving
courses for car and commercial vehicle drivers. We are also
working on long-term solutions that will allow all road users to travel
in maximum safety. Children are a special focus of our efforts:
For example, one of the programs supported by DaimlerChrysler is
the Global Road Safety Partnership launched by the World Bank in
1999. The partnership aims to highlight road safety issues through
information campaigns in poorer and less developed countries.
www30
DaimlerChrysler | Sustainability Profile 2005 | Society
Similarly, the international initiative MobileKids launched by
DaimlerChrysler in 2001 also focuses on children. The aim of this
initiative is to heighten children’s awareness in road traffic situations
and nurture sensible behavior patterns.
www 31+32
In addition, we foster the interests of sustainable mobility within
the Sustainable Mobility project of the World Business Council for
Sustainable Development.
Other projects (examples)
– Fit for a Kid – free installation checks for child car seats by all
DaimlerChrysler dealers and company-owned sales and service
outlets in the USA and some parts of Europe.
www33
– Support for the U.S. initiative Mothers Against Drunk Driving to mark
the 21st anniversary of the 21 Minimum Drinking Age Act.
Vocational training for young people. The availability of training
opportunities is crucial to personal development, just as the
availability of skilled employees is of vital importance to commercial
success. With its own in-house training programs – particularly
in zones of conflict and economically challenged regions –
DaimlerChrysler integrates these two elements and, in less developed
countries in particular, helps provide young people with a
chance of a brighter future.
In Afghanistan, a country now facing the task of completely
rebuilding its civil structures after decades of war and oppression,
we organize training programs for mechanics and technicians as
part of a comprehensive campaign. The project, jointly organized
with the German Working Group on Development and Experts
(AGEF) has so far enabled 60 young people to complete their training
and go on to take up employment in service workshops set up
by DaimlerChrysler. These workshops help ensure that the many
vehicles needed for aid distribution in the country are quickly
repaired in the event of a breakdown.

Further training projects that we support (examples)
– DaimlerChrysler Automotive Academy in Perm, Russia – postgraduate
training for technical graduates
– Automotive Academy Kuwait – postgraduate training
– Beith Saher Training Center/Palestinian Autonomous Territories
– Training program for students from South Africa at DaimlerChrysler
plants in Germany as part of the Southern Africa Initiative of German
Business (SAFRI)
– James F. Byrnes Scholarships for one-year visits to the U.S. for highschool
students from the Stuttgart region
– Hoop Dreams Scholarship Fund
Sports sponsorship. Sport transcends international borders –
bringing people together and motivating them to explore their full
sporting potential in peaceful competition. That’s why Daimler-
Chrysler funds sports projects and sports organizations in many
parts of the world. The International Olympic Committee (IOC) has
been a very important partner of ours for many years. As part of
the IOC’s development aid program “Olympic Solidarity” we provide
the National Olympic Committees (NOCs) of fledgling and
developing states with Mercedes-Benz minibuses for journeys to
and from training and competitions. By the end of 2005, almost
100 NOCs spread over all continents will have received such vehicles.
Furthermore, under the slogan “OlympAfrica” DaimlerChrysler
and the IOC are jointly sponsoring sports education projects in
Africa. Using the experience gained here, two similar IOC development
aid programs – “OlympAsia” and “OlympOceania” – also have
been drawn up and put in place.
Art and culture. Art helps engender a lively dialogue between different
cultures. In every country where DaimlerChrysler is represented,
we sponsor projects ranging from the creative arts and
theater to music, literature, and film. One field to which we assign
particular importance is supporting young artists for whom we aim
to help forge international contacts.
The DaimlerChrysler Collection is considered one of the most
important corporate art collections in the world. It currently contains
almost 1,300 works by more than 300 artists. The focus is on
abstract art of the twentieth century and the collection reflects the
most significant movements of this period. A prominent part of the
collection featuring 100 artists from a period of over 60 years is
now on a world tour that runs until 2006 and includes exhibitions
in the United States, South Africa, and Asia.
In South Africa, a country still going through a phase of far-reaching
social upheaval in the aftermath of the abolition of apartheid
ten years ago, art plays a very special role. In order to give it a platform,
in 2000 our company launched the DaimlerChrysler Award
for South African Art. Each year this award is presented to a new
young artist representing a different field of the arts. In 2004 it
went to photographer Guy Tillim for his work opposing war, poverty,
and disease.
For over ten years now the DaimlerChrysler Corporation Fund has
been sponsoring the Washington Performing Arts Society (WPAS)
in the United States, a body that organizes high-quality cultural
events throughout Washington. The Fund also supports the John F.
Kennedy Center for the Performing Arts, which stages arts education
programs across all fifty U.S. states.
Further projects that we support (examples)
– International Bach Academy Stuttgart
– Ludwigsburg Palace Music Festival
– Max Bill Retrospective at the Kunstmuseum Stuttgart (2005)
– SWR3 New Pop Festival at the DaimlerChrysler plant in Rastatt,
Germany
– Deutscher Musikrat (German Music Council – funding for the Federal
German Youth and Jazz Orchestras)
– Choral Arts Society of Washington
www 34, 35, 36, 37
Social projects. The responsibilities of a global corporation do not
end at the company’s perimeter fence; they also include taking a
stance on social issues within society as a whole. In many parts of
the world we fund projects that benefit the weakest members of
society. Often the initiators behind such projects are Daimler-
Chrysler employees working locally (see page 68 “Our Neighbors”).
Some 75 projects in 15 countries across the world are run by the
World Childhood Foundation, the organization set up by Queen
Silvia of Sweden. These projects benefit children who have been
victims of violence, abuse, and exploitation. DaimlerChrysler contributed
one million U.S. dollars to help set up the German section
of the foundation. In addition, the company supports the organization
through numerous donation campaigns, including one conducted
among our employees at Christmas 2004. The proceeds
from this particular appeal were donated to the Philani Project in
South Africa.
74 | 75

Along with such charitable projects, we also regularly play our
part in contributing to emergency relief aid. We reacted rapidly,
for example, to the news of the devastating tsunami that struck
southern Asia in late 2004. On top of our monetary donations
to international aid organizations, our initial involvement also included
the immediate provision of transport and the creation of a
redevelopment fund, with operations coordinated by our regional
center in Singapore. In total, the volume of aid contributed by
DaimlerChrysler reached a value of €2 million. In addition, our
employees around the world showed their solidarity with the victims
of the disaster through generous donations of their own.
Other social projects and initiatives that we support
– American Heart Association
– Mentoring program for disadvantaged children and young people in
social trouble spots at all DaimlerChrysler locations
– Emergency aid and relief transport for the victims of the Iranian
earthquake in Bam in late 2003; construction of a girls’ school in the
earthquake zone and operating-room containers for a hospital
Foundations. In some countries DaimlerChrysler maintains its
own foundations in order to focus the company’s activities.
Foundation (estd.) Focus of activities Funds 2004
DaimlerChrysler Corporation Fund, USA (1953)
www26
Gottlieb Daimler and Karl Benz Foundation (1986)
www38
DaimlerChrysler Fonds im Stifterverband für die
Deutsche Wissenschaft (1975)
www39
DaimlerChrysler Japan Foundation (2002)
www40
DaimlerChrysler Mexico Foundation (1985)
www41
DaimlerChrysler France Foundation (1986)
www42
DaimlerChrysler | Sustainability Profile 2005 | Society
Improving social interaction and cultural life in the communities
where DaimlerChrysler employees live, and philanthropy
Funding science and research in the fields of mankind,
environment, and technology
Sponsoring the research, training and international collaboration
of science and technology students
Supporting cultural programs and philanthropic activities
Assisting health, educational, cultural, and communal projects
Promoting intercultural understanding between Germany, France,
and the United States
US$ 23.7 million
€ 2.5 million
€ 2 million
not available
US$ 2.2 million
not available

5.0 Important goals of the social engagement of the DaimlerChrysler Group
Goals Activities Status
Our employees
Ensuring strategically-oriented consistent diversity
management.
Introduction of Group-wide accident reporting
(Health and Safety) based on uniform definitions.
Further standardization of Health and Safety
management worldwide.
Long-term safeguarding of competitiveness faced
with far-reaching demographic change.
Good neighbor
Gradual acquisition of expenditures worldwide, in
addition to NAFTA data already available, by 2006
for Western Europe and by 2007 worldwide.
Stakeholder engagement and dialogue
Improvement of DaimlerChrysler’s position insustainability
ratings and rankings.
Engagement in society
Expansion of DaimlerChrysler training network in
emerging nations.
Involvement of further national companies in the
battle against HIV/AIDS.
The Global Diversity Office will develop, for example,
measures to foster the promotion of women to top
management positions.
Drawing up of uniform worldwide accident definitions
to facilitate central reporting.
Definition of uniform binding global Health and
Safety guidelines.
Preparation of a list of measures within the Aging
Workforce project.
Definition of uniform global data acquisition criteria
and implementation of acquisition at the company’s
sites.
Enhancement of reporting and dialogue with
analysts.
Improvement of existing training facilities and creation
of new ones, particularly where contributions
to political and social stability are needed. Projects
at the preparation stage include several in Palestine.
Development and introduction of worldwide
Group guidelines for activities in the battle against
HIV/AIDS.
Global Diversity Office reports directly to Günther
Fleig, Board Member responsible for Human
Resources.
Data is already acquired but based on different
acquisition systems.
Draft guidelines have been drawn up and are being
discussed with representatives of national management
and employee representatives.
Analysis phase now completed.
Community involvement outside NAFTA is largely
organized by the national companies and sites acting
independently and in line with regional needs.
We are already well placed in a number of rankings
such as scoris, FTSE/ISS, etc. Other renowned institutes
either do not list our company or rank us at a
level that for us is unsatisfactory.
Vocational training creates sustainable ability to
earn a wage and makes a substantial contribution to
greater stability. Training facilities were opened in
Mongolia (1999), Kabul (2002), and Perm (2003).
The Workplace Initiative on HIV/AIDS at Daimler-
Chrysler South Africa is widely considered a model
approach. As the epidemic spreads, regionally modified
measures are called for in other countries as
well.
76 | 77

External Statement
Dies ist ein Blindtext Dies ist Blindtext dies ist ein Blindtext Blindtext
Ein Blindtext Dies ist Blindtext dies ist ein Blindtext Dies ist ein Blindtext
Christian Hochfeld
Deputy Director,
Öko-Institut e.V. – Institute for Applied Ecology,
Berlin Office
Öko-Institut (Institute for Applied Ecology) was founded in 1977 as a non-profit
organization and currently has some 3,500 members. Today Öko-Institut is
established as one of Europe’s leading independent research and consulting
facilities for sustainable development. The institute employs over 100 staff
working on approximately 150 projects per annum, including projects on
sustainable business development. In international networks and in collaboration
with clients, platforms and strategies are drawn up on scientific
foundations to help meet the challenges of sustainable development at global,
national, and local levels.
www.oeko.de
DaimlerChrysler | Sustainability Profile 2005 | External Statement
The challenge of sustainable mobility as an engine for
responsible competitiveness
With its 2005 Sustainability Profile, DaimlerChrysler documents its
corporate responsibility for sustainable development and mobility.
For the first time, the group has published an integrated report on
economical, ecological and social performance based on the guidelines
of the Global Reporting Initiative (GRI). DaimlerChrysler thus
reinforces its commitment to transparency as an important basis
for the discourse with the groups it addresses in the assumption of
responsibility in society.
In future, DaimlerChrysler will be judged to a greater extent in
terms of its contribution to attaining global corporate objectives of
sustainable development in society. As one of the most important
automobile manufacturers in the world, the focus here is on the
challenges and objectives of sustainable mobility, as identified in
the Sustainable Mobility Project of the World Business Council
for Sustainable Development (WBCSD). Not least the growing
importance of the company’s sustainability performance for global
financial markets will bind DaimlerChrysler’s contributions to
sustainable development more strongly to long-term corporate
success.
The integration of the global challenges of sustainable development
and mobility in the corporate strategy and determination of
specific objectives are the requirements for reducing the related
corporate risks. The latest studies by the SAM Group in cooperation
with the World Resources Institute (WRI) on the potential and
specific costs for reducing fuel consumption as well as specific
greenhouse emissions demonstrate that climate protection, for
example, is one of the most important corporate risks and thus
competitive factors in the automobile industry.
In future, the competitiveness of companies in the automobile
industry will increasingly be determined by how companies perceive
social challenges not just as a risk, but also as the engine for
system and product innovation, and thus as a corporate opportunity
to strengthen their responsible competitiveness.

To paraphrase Prof. John Ruggie, the spiritual father of the Global
Compact: Regardless of the size of the company’s share in our
problems – only when the company can credibly demonstrate that
it is doing its part for sustainable development, will it no longer be
perceived in the public eye as a large part of the problem.
The current discussions on the strategy for the essential reduction
of fuel consumption and the reduction of the climate effect of road
traffic in the U.S. show that conflicts of interest are most clearly
visible when there is a stronger orientation towards sustainable
development in the company. It thus becomes evident that a sustainability
strategy can only be credible and successful if the company’s
competitive strategy can also be harmonized with society’s
requirements and constraints – as a strategy of responsible competition.
The 2005 Sustainability Profile shows DaimlerChrysler’s progress
in its corporate performance. The commitment to sustainability
also clarifies future obligations:
– The demands of sustainability must be firmly anchored in the
processes of corporate strategy development and the corporate
governance structures with specific, binding and transparent
objectives.
– In doing so, the most important groups in society it addresses
and their interests must also be systematically and adequately
integrated into the structures.
This can thus create the conditions for understanding the requirements
of sustainable mobility as a driver for successful product
and system innovation. In the short term, it is necessary to exploit
the efficiency potential of traditional vehicle and drive technologies
for absolute lower levels more rigorously before the contributions
of the company to the introduction and dissemination on the market
of alternative fuels on the basis of regenerative energy sources
can come to bear. The greatest challenge is in developing sustainable
mobility solutions above and beyond the automobile, particularly
in the growing economies of Asia.
In order to have the edge in the competition for sustainable innovations
DaimlerChrysler needs excellent employees all over the
world. The other side of this coin is the company's growing social
responsibility for ensuring appropriate working conditions around
the world, guaranteeing social security at all its locations, and making
an appropriate contribution to ensuring that, as globalization
progresses, standards of living in the vicinity of DaimlerChrysler
facilities also improve. Especially when cost pressures and the
pace of structural change increase, the company’s behavior in relation
to its employees and its social environment is a mirror and a
yardstick for its performance in respect of social responsibility.
It is important to tap the potential of DaimlerChrysler in assuming
shared responsibility for sustainable development in the complex
business model of the automobile industry across the whole
added-value chain on an ongoing basis:
– Equally high social and environmental standards must be
encouraged of system partners and suppliers in order to
optimize the globalized procurement and value-added networks
from a sustainability perspective.
– Customers must be made more aware of the challenges of
sustainable mobility in order to be able to open up large
behavior-driven potential.
In future, the degree of responsibility that DaimlerChrysler will
assume for sustainable development and mobility and its efforts to
achieve versatile partnerships for common solutions will dominate
the assessment of the responsible competitiveness of the company.
At one and the same time, the 2005 Sustainability Profile
can be the compass and engine for the future development of the
Group.
Christian Hochfeld
Deputy Director,
Öko-Institut e.V. – Institute for Applied Ecology,
Berlin Office
Berlin, June 20, 2005
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GRI Index
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This index provides a means of cross-referencing between the DaimlerChrysler Sustainability Profile 2005 and the reporting elements and performance indicators
of the Global Reporting Initiative (GRI) Guidelines, Part C. The index lists all elements in sections C1 to C3 as well as all core indicators in the fields of Economy,
Ecology, and Society. Also listed are the additional indicators on which DaimlerChrysler reports in the present Profile. In addition, the index takes account
of the performance indicators that appear in the draft Automotive Supplement to the GRI Guidelines. A detailed version of the GRI Index can be found online at
www.daimlerchrysler.com/sustainability where all GRI indicators and additional indicators are listed, and further information is given on indicators not
already covered in the print version of the Profile. You will also find explanations as to why DaimlerChrysler does not or cannot report on specific indicators.
GRI reference Indicator
1. Vision and Strategy
Page Print Web
C 1.1 Statement of the organisation’s vision and strategy regarding its contribution to sustainable development 13–15 • •
C 1.2 Statement from the CEO (or equivalent senior manager) describing key elements of the report
2. Profiles
7 • •
C 2.1 Name of reporting organisation 9 • •
C 2.2 Major products and/or services, including brands if appropriate 9 • •
C 2.3 Operational structure of the organisation 9 • •
C 2.4 Description of major divisions, operating companies, subsidiaries, and joint ventures 9 • •
C 2.5 Countries in which the organisation’s operations are located – •
C 2.6 Nature of ownership; legal form 39 • •
C 2.7 Nature of markets served – •
C 2.8 Scale of the reporting organisation: number of employees; products produced/services offered (quantity or volume);
net sales; and total capitalisation broken down in terms of debt and equity
9, 31–37, 39 • •
C 2.9 List of stakeholders, key attributes of each, and relationship to the reporting organisation 24 • •
C 2.10 Contact person(s) for the report, including e-mail and web addresses 83 • •
C 2.11 Reporting period (e.g., fiscal/calendar year) for information provided 10 • •
C 2.12 Date of most recent previous report (if any) –
C 2.13 Boundaries of report (countries/regions/products/services/divisions/facilities/
joint ventures/subsidiaries) and any specific limitations on the scope
10–11 • •
C 2.14 Significant changes in size, structure, ownership, or products/services that have occurred since the previous report – •
C 2.15 Basis for reporting on joint ventures, partially owned subsidiaries, leased facilities, outsourced operations, and other
situations that can significantly affect comparability from period to period and/or between reporting organisations
– •
C 2.16 Significant changes in size, structure, ownership, or products/services that have occurred since the previous report – •
C 2.17 Decisions not to apply GRI principles or protocols in the preparation of the report 10 • •
C 2.18 Criteria/definitions used in any accounting for economic, environmental, and social costs and benefits –
C 2.19 Significant changes from previous years in the measurement methods applied to key economic, environmental,
and social information
–
C 2.20 Policies and internal practices to enhance and provide assurance about the accuracy, completeness, and reliability
that can be placed on the sustainability report
10 • •
C 2.21 Policy and current practice with regard to providing independent assurance for the full report 11 • •
C 2.22 Means by which report users can obtain additional information and reports about economic, environmental,
and social aspects of the organisation’s activities, including facility-specific information (if available)
3. Governance Structure and Management Systems
11, 83 • •
C 3.1 Governance structure of the organisation, including major committees under the board of directors that are responsible
for setting strategy and for oversight of the organisation
17–18 • •
C 3.2 Percentage of the board of directors that are independent, non-executive directors 18 • •
C 3.3 Process for determining the expertise board members need to guide the strategic direction of the organisation,
including issues related to environmental and social risks and opportunities
19 • •
C 3.4 Board-level processes for overseeing the organisation’s identification and management of economic, environmental,
and social risks and opportunities
19 • •
C 3.5 Linkage between executive compensation and achievement of the organisation’s financial and non-financial goals
(e.g., environmental performance, labour practices)
– •
C 3.6 Organisational structure and key individuals responsible for oversight, implementation, and audit of economic,
environmental, social, and related policies
35, 42 • •
C 3.7 Mission and values statements, internally developed codes of conduct or principles, and polices relevant to economic,
environmental, and social performance and the status of implementation
20–24 • •
DaimlerChrysler | Sustainability Profile 2005 | GRI Index

GRI reference Indicator Page Print Web
C 3.8 Mechanisms for shareholders to provide recommendations or direction to the board of directors 17 • •
C 3.9 Basis for identification and selection of major stakeholders 25 • •
C 3.10 Approaches to stakeholder consultation reported in terms of frequency of consultations by type and by stakeholder group 25–26 • •
C 3.11 Type of information generated by stakeholder consultations –
C 3.12 Use of information resulting from stakeholder engagements –
C 3.13 Explanation of whether and how the precautionary approach or principle is addressed by the organisation 21 • •
C 3.14 Externally developed, voluntary economic, environmental, and social charters, sets of principles, or other initiatives
to which the organisation subscribes or which it endorses
26 • •
C 3.15 Principal memberships in industry and business associations, and/or national/international advocacy organisations 26 • •
C 3.16 Policies and/or systems for managing upstream and downstream impacts, including:
supply chain management as it pertains to outsourcing and supplier environmental and social performance;
and product and service stewardship initiatives
37–38, 56, 64 • •
C 3.17 Reporting organisation’s approach to managing indirect economic, environmental, and social impacts resulting
from its activities
13–15 • •
C 3.18 Major decisions during the reporting period regarding the location of, or changes in, operations –
C 3.19 Programmes and procedures pertaining to economic, environmental, and social performance 1 ff • •
C 3.20 Status of certification pertaining to management systems
4. Economic Performance Indicators
41, 56, 72 • •
EC 1 Net sales 33 • •
EC 2 Geographic breakdown of markets 36 • •
EC 3 Cost of all goods, materials, and services purchased 37 • •
EC 4 Percentage of contracts that were paid in accordance with agreed terms, excluding agreed penalty arrangements –
EC 5 Total payroll and benefits (including wages, pension, other benefits, and redundancy payments) broken down by country
or region
32–34, 61–62 • •
EC 6 Distributions to providers of capital broken down by interest on debt and borrowings, and dividends on all classes of
shares, with any arrears of preferred dividends to be disclosed
33, 35 • •
EC 7 Increase/decrease in retained earnings at end of period – •
EC 8 Total sum of taxes of all types paid broken down by country 34 • •
EC 9 Subsidies received broken down by country or region –
EC 10 Donations to community, civil society, and other groups broken down in terms of cash and in-kind donations per type of group
5. Environmental Performance Indicators
68–69, 73 ff • •
EN 1 Total materials use other than water, by type –
EN 2 Percentage of materials used that are wastes (processed or unprocessed) from sources external to the reporting organisation 47–49 • •
EN 3 Direct energy use segmented by primary source 54–55 • •
EN 4 Indirect energy use 54–55 • •
EN 5 Total water use 55 • •
EN 6 Location and size of land owned, leased, or managed in biodiversity-rich habitats –
EN 7 Description of the major impacts on biodiversity associated with activities and/or products and services in terrestrial,
freshwater, and marine environments
–
EN 8 Greenhouse gas emissions 54–55 • •
EN 9 Use and emissions of ozone-depleting substances 53–54 • •
EN 10 NOX, SOX, and other significant air emissions by type 53 • •
EN 11 Total amount of waste by type and destination 55 • •
EN 12 Significant discharges to water by type –
EN 13 Significant spills of chemicals, oils, and fuels in terms of total number and total volume –
EN 14 Significant environmental impacts of principal products and services 43–52 • •
EN 15 Percentage of the weight of products sold that is reclaimable at the end of the products’ useful life and percentage
that is actually reclaimed
47–49 • •
EN 16 Incidents of and fines for non-compliance with all applicable international declarations/conventions/treaties,
and national, sub-national, regional, and local regulations associated with environmental issues
6. Social Performance Indicators: Labor Practices and Safety
–
LA 1 Breakdown of workforce, where possible, by region/country, status (employee/non-employee), employment type
(full time/part time), and by employment contract (indefinite or permanent/fixed term or temporary)
Also identify workforce retained in conjunction with other employers (temporary agency workers or workers in
co-employment relationships), segmented by region/country
60 • •
LA 2 Net employment creation and average turnover segmented by region/country 60 • •
LA 3 Percentage of employees represented by independent trade union organisations or other bona fide employee
representatives broken down geographically OR percentage of employees covered by collective bargaining agreements
broken down by region/country
61 • •
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GRI reference Indicator Page Print Web
LA 4 Policy and procedures involving information, consultation, and negotiation with employees over changes in the reporting
organisation’s operations (e.g., restructuring)
59–60 • •
LA 5 Practices on recording and notification of occupational accidents and diseases, and how they relate to the ILO Code of
Practice on Recording and Notification of Occupational Accidents and Diseases
65–68 • •
LA 6 Description of formal joint health and safety committees comprising management and worker representatives and
proportion of workforce covered by any such committees
65–67 • •
LA 7 Standard injury, lost day, and absentee rates and number of work-related fatalities (including subcontracted workers) 65–67 • •
LA 8 Description of policies or programmes (for the workplace and beyond) on HIV/AIDS 67–68 • •
LA 9 Average hours of training per year per employee by category of employee 62–64 • •
LA 10 Description of equal opportunity policies or programmes, as well as monitoring systems to ensure compliance and results
of monitoring
62–64 • •
LA 11 Composition of senior management and corporate governance bodies (including the board of directors), including
female/male ratio and other indicators of diversity as culturally appropriate
–
HR 1 Description of policies, guidelines, corporate structure, and procedures to deal with all aspects of human rights relevant to
operations, including monitoring mechanisms and results
20–22 • •
HR 2 Evidence of consideration of human rights impacts as part of investment and procurement decisions, including selection
of suppliers/contractors
21 • •
HR 3 Description of policies and procedures to evaluate and address human rights performance within the supply chain and
contractors, including monitoring systems and results of monitoring
21 • •
HR 4 Description of global policy and procedures/programmes preventing all forms of discrimination in operations,
including monitoring systems and results of monitoring
62–64 • •
HR 5 Description of freedom of association policy and extent to which this policy is universally applied independent of local laws,
as well as description of procedures/programmes to address this issue
61 • •
HR 6 Description of policy excluding child labour as defined by the ILO Convention 138 and extent to which this policy is visibly
stated and applied, as well as description of procedures/programmes to address this issue, including monitoring
systems and results of monitoring
21–22 • •
HR 7 Description of policy to prevent forced and compulsory labour and extent to which this policy is visibly stated and
applied as well as description of procedures/programmes to address this issue, including monitoring systems and results
of monitoring
21–22 • •
SO 1 Description of policies to manage impacts on communities in areas affected by activities, as well as description of
procedures/programmes to address this issue, including monitoring systems and results of monitoring
68–69 • •
SO 2 Description of the policy, procedures/management systems, and compliance mechanisms for organisations and
employees addressing bribery and corruption
22–23, 26–27 • •
SO 3 Description of policy, procedures/management systems, and compliance mechanisms for managing political lobbying
and contributions
26–27 • •
PR 1 Description of policy for preserving customer health and safety during use of products and services, and extent to which
this policy is visibly stated and applied, as well as description of procedures/programmes to address this issue,
including monitoring systems and results of monitoring
70–72 • •
PR 2 Description of policy, procedures/management systems, and compliance mechanisms related to product information
and labelling
–
PR 3 Description of policy, procedures/management systems, and compliance mechanisms for consumer privacy and labelling
7. Automotive Supplement
24 • •
P 1 Numbers of vehicles sold, broken down by fuels, power train technologies, and region 9, 44–47 • •
P 2 Breakdown by region/country of compliance of vehicles sold with existing and planned emissions standards 51 • •
P 3 Option 1: Percentage improvement of average standard fuel consumption by region using the year 2000 as the base year
(i.e., 100%)
Option 2: Fuel consumption for the best available vehicle and the best selling vehicle per model range
49–50 • •
P 4 Option 1: Percentage improvement of average standard CO2 emission by region using the year 2000 as the base year
(i.e., 100%)
Option 2: CO2 emissions in grams/km from the best available vehicle and the best selling vehicle per model range
49–50 • •
P 5 Breakdown by region/country of compliance of vehicles sold with existing and planned noise standards 52 • •
P 6 Option1: Weight of vehicle and percentage breakdown of generic, recyclate, and renewable material of sample vehicle
by class
Option 2: Weight of vehicle and percentage breakdown of generic, recyclate, and renewable material of sample vehicle
47–49 • •
S 1 Specify stipulated work hours per week and average hours worked overtime in production –
S 2 Percentage of employees not managed on an hourly basis with overtime compensation schemes –
S 3 Percentage of first-tier supplier facilities with independent trade union organisations or other bona fide employee
representatives
–
DaimlerChrysler | Sustainability Profile 2005 | GRI Index | Addresses

Addresses
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Contact
Dr. Norbert Otten
Tel.: +49 711 17-93310
Fax: +49 711 17-94080
e-mail: norbert.otten@daimlerchrysler.com
Media contacts
Toni Melfi Thomas Fröhlich
Tel.: +49 711 17-95353 Tel.: +49 711 17-93311
Fax: +49 711 17-91681 Fax: +49 711 17-94686
e-mail: toni.melfi@daimlerchrysler.com e-mail: thomas.f.froehlich@daimlerchrysler.com
Additional information (indicated by the www symbol and an index number)
is available online at:
www.daimlerchrysler.com/sustainability
You can also find this and other publications of DaimlerChrysler
on the Internet at:
www.daimlerchrysler.com/sustainability
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