Mercedes 2013 Annual Report Download - page 131

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C | Combined Management Report | Risk and Opportunity Report
Regulations on the CO2 emissions of new cars also exist in the
EU. For 2015, all new cars in Europe will have to meet a fleet
average of 130 g CO2/km. The relevant limit for Daimler depends
on the portfolio of cars we sell in the European Union and will
depend on vehicle weight. Furthermore, the EU Parliament and
the EU Council of Ministers are currently dealing with an
EU regulation proposed by the EU Commission calling for fleet
averages to be reduced to 95 g CO2/km by the year 2020.
Daimler will have to pay penalties if it exceeds its limits.
For the Chinese market, the authorities have defined fleet average
fuel consumption as of 2015 of 6.9 liters per 100 kilometers
(approximately 160 g CO2/km) as the industry’s target for new
cars. As the legislative procedure for 2015 has not yet been
concluded, there is a risk that although each car will be calcu-
lated for the average of the fleet, it must individually at least
meet the previous limits, posing a big challenge for cars with
powerful engines. Sanctions have not yet been announced.
For the year 2020, a new, very demanding target has been set
of 5.0 l/100 km (approximately 117 g CO2/km), although
the exact details are still under discussion. Similar legislation
exists or is being prepared in many other countries, for
example in Japan, South Korea, India, Canada, Switzerland,
Mexico, Saudi Arabia, Brazil and Australia.
Daimler gives these targets due consideration in its product
planning. The increasingly ambitious targets require significant
numbers of plug-in hybrids or cars with other types of electric
drive. The market success of these drive systems will be primarily
determined by regional market conditions, for example the
battery-charging infrastructure and state support. But as market
conditions cannot be predicted with certainty, a residual risk
exists.
Pursuant to EU Directive 2006/40/EC, since January 1, 2011,
vehicles only receive a type approval if their air-conditioning
units are filled with a refrigerant that meets certain criteria with
regard to climate friendliness. The directive calls for an intro-
ductory period until December 31, 2016 for such refrigerants
to be used in all new vehicles. Mercedes-Benz Cars had origi-
nally planned to use the refrigerant R1234yf in its new vehicle
models as early as possible and therefore did not intend to
make use of this transitional period. However, due to the safety
risks identified by Mercedes-Benz Cars in 2012, Daimler has
decided not to use refrigerant R1234yf in its vehicles and has
started with the development of CO2 air-conditioning systems.
At present, the Group does not assume that this will result in any
significant effects on its financial position, cash flows or
profitability.
Strict regulations for the reduction of vehicles’ emissions
and fuel consumption are connected with risks also for
the Daimler Trucks division. For example, legislation was
passed in Japan in 2006 and in the United States in 2011
for the reduction of greenhouse-gas emissions and fuel consump-
tion by heavy commercial vehicles. In China, legislation has
been drafted which is likely to affect our exports to that country
and require additional expenditure as of 2015. The European
Commission is currently working on methods for measuring the
CO2 emissions of heavy commercial vehicles that will probably
have to be applied as of 2017. The Group has to assume that the
statutory limits will be very difficult to meet in some countries.
Although worldwide statutory safety regulations require
a certain level of expenditure; Daimler does not anticipate
any additional risks in this respect due to its longstanding
strong focus on vehicle safety.
Very demanding regulations for CO2 emissions are also
planned for light commercial vehicles; especially in the long
term, this will present a challenge for the Mercedes-Benz
Vans division, which primarily serves the heavy segment of N1
vehicles. The European fleet of N1 vehicles may not emit
an average of more than 175 g CO2/km as of 2017 and no more
than 147 g CO2/km as of 2020; penalty payments may
otherwise be imposed.
In addition to emission, consumption and safety regulations,
traffic-policy restrictions for the reduction of traffic jams and
pollution are becoming increasingly important in cities and urban
areas of the European Union and other regions of the world.
Drastic measures are increasingly being taken, such as general
vehicle-registration restrictions like in Beijing, Guangzhou
or Shanghai, and can have a dampening effect on the develop-
ment of unit sales, especially in the growth markets.
Daimler continually monitors the development of statutory
and political conditions and attempts to anticipate foreseeable
requirements and long-term targets at an early stage in the
process of product development. The biggest challenge in the
coming years will be to offer an appropriate range of drive
systems and the right product portfolio in each market, while
fulfilling customers’ wishes, internal financial targets and
statutory requirements. With an optimal product portfolio and
market-launch strategy, competitive advantages may also arise.
The position of the Daimler Group in key foreign markets
could also be affected by an increase in bilateral free-trade
agreements without the involvement of the European Union.
This occurs for example if two Asian countries or regions abolish
their import duties. Imports of vehicles from the EU would
then suffer cost disadvantages in the amount of the import
duties, as they would still have to be paid on exports of
goods exported from Europe while trading between the Asian
parties to such an agreement would be free of those duties.