According to Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, “Performance is based on partnership. Our goal is to work together with our suppliers towards our common success in the long term. This is why we are launching the new Daimler Supplier Network cooperation model together with you.” The host of the event was Bodo Uebber, Board of Management member of Daimler AG responsible for Finance & Controlling as well as Procurement. Key suppliers of the Daimler Group were invited. Overall, the event was attended by around 500 internal and external guests.

In the business divisions of Mercedes-Benz Cars and Vans and Daimler Trucks and Buses, prizes were awarded in the categories Exterior, Interior, Electrics/Electronics, Chassis, and Powertrain. In addition, in the International Procurement Services division, there were three awards for IT, General Goods & Services, Manufacturing Equipment & Services, and Construction and Facility Management. All winners were selected on the basis of a performance assessment that is standardized worldwide. For the first time ever, a special “Innovation” prize was also awarded. The idea behind this new award is to honor a company, which has a special commitment to exploring new avenues.

The winners of the Daimler Supplier Award 2008 were:

Daimler Trucks and Buses
Exterior: Mekra Lang GmbH & Co. KG, Germany
Interior: Denso Corporation, Japan
Electrics/Electronics: Eugen Forschner GmbH, Germany
Chassis: Kamax GmbH & Co. KG, Germany
Powertrain: Exedy Corporation, Japan

Mercedes-Benz Cars and Vans
Exterior: Gestamp Automoción, Spain
Interior: Autoliv Inc., Germany
Electrics/Electronics: Marquardt GmbH, Germany
Chassis: Borbet Group, Austria
Powertrain: Friedrich Boysen GmbH & Co. KG, Germany

International Procurement Services
Construction and Facility Management: Siegle + Epple GmbH & Co. KG, Germany
IT, General Goods & Services: Bertrandt Technikum GmbH, Germany
Manufacturing Equipment & Services: Still GmbH, Germany

Special Award
Innovation: Trumpf GmbH & Co. KG, Germany

Dr. Heinrich Reidelbach, Head of Corporate Procurement Services, Frank Deiss, Head of Procurement at Mercedes-Benz Cars and Vans, and Stefan Buchner, Head of Procurement at Daimler Trucks and Buses, gave a detailed presentation of the new “Daimler Supplier Network” cooperation model, which replaces the current “Extended Enterprise” cooperation model. With the new model, Corporate Procurement Services will define the basis for future cooperation between Daimler AG and its suppliers with a view to the mutual and continuous improvement of global procurement and supplier activities. The central values of the cooperation are fairness, reliability, and credibility. Adopting “Commitment to Excellence” as its motto, the new cooperation model emphasizes the notion of performance-based partnership: Daimler is striving for further improvements in the fields of quality, costs, punctual delivery, and also technology and innovation. For the suppliers, the trust-based cooperation entails significant benefits in terms of dependability, transparency, planning stability, and, last but not least, extended business opportunities.
 
A fundamentally new aspect of the model is the classification of suppliers into three segments. The smallest and most exclusive group is comprised of the strategic partners, followed by the key suppliers and the large basis of all suppliers. Classification into these three segments is based on the criteria of purchasing volume, performance, and innovative strength on the part of the suppliers. The more intensive the cooperation between Daimler and a given supplier, the greater the mutual expectations and obligations. This also includes their involvement in the development of new technologies.

Photo: Impressions from the 2009 Daimler Key Supplier Meeting on March 12, 2009: Speech by Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and head of Mercedes-Benz Cars

This will represent an important milestone in the series production of electric vehicles. En route to achieving its technological leadership in recent years, Evonik has invested around 80 million Euros. “Evonik is the only company that can actually bring about commercial series production of battery cells of this kind,” says Werner Müller, CEO of Evonik Industries AG. “We will also continue our ongoing investment in relevant future technologies. In the last 30 years, Daimler engineers have registered over 600 patents associated with battery-powered vehicles – over 230 of which were in the field of lithium-ion technology,” comments Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars.

Evonik Group subsidiary Li-Tec is set to make a significant contribution to the success of this continued development. On 15 December 2008, Daimler AG takes over 49.9 percent of Li-Tec Vermögensverwaltung GmbH (Li-Tec). Evonik Industries AG already holds 50.1 percent. Both partners are seeking the involvement of a third shareholder in Li-Tec with expertise in electrical and electronic systems integration. Furthermore, the companies will also establish a joint venture with a clear focus on the development and production of batteries and battery systems for automotive applications. Daimler will hold 90 percent of this joint venture, and Evonik 10 percent.

The lithium-ion batteries produced by the joint venture will be used in both the passenger car and commercial vehicle sectors. The capacity available at Li-Tec and the joint venture will initially concentrate on the needs of Daimler AG. Beyond that, the sale of cells and battery systems to third parties is planned.

“We have the universal electric drive – suitable for everyday use, safe, affordable”, says Evonik CEO Müller. Due to their technical concept featuring a ceramic separator, today’s Li-Tec cells are the most suitable for electric vehicles. The flat cell, which leads the field in worldwide comparisons, boasts a high energy density combined with compact dimensions and outstanding safety – the issue that takes greatest priority in the application of high energy density batteries. First generation lithium-ion flat cell batteries will soon be used in electric vehicles of Mercedes-Benz Cars.

As far back as the late 70s, Daimler began intensive research and development work on battery-powered vehicles. Alongside vehicle concepts, this also included the further development of individual key components such as electric motors and energy storage. “The energy storage is at the very heart of vehicle electrification and thus the key component for sustainable mobility,” explains Zetsche. Further advancements in the storage of electrical energy on-board a vehicle are promised by the flat-cell frame concept brought into the co-operation by Daimler. This is designed around the basic principle of a fuel cell stack and enables standardized production within a modular system.

“With our joint commitment, we once more confirm the innovative strength of the German industrial sector”, comment Müller and Zetsche at the press conference. “At the same time, Daimler and Evonik are writing another piece of industrial history. We are bringing back to Germany a technology that has not existed here for a long time.”

Changes in the automotive industry are increasing the demand for clean and efficient vehicles. According to forecasts, the market size for high-performance lithium-ion batteries will exceed the 10 billion Euro mark within the next decade; with the market for battery materials exceeding 4 billion Euros.

In Germany alone, the federal government is striving to see at least one million electric vehicles on city streets by 2020. “This cooperation will benefit enormously from such a development,” says Müller. The number of jobs in Evonik’s key technology alone is set to increase from its current level of around 100 to over 1000 in the long term. “That is also a clear commitment to the expansion of production in Germany,” adds Müller, going on to say “We have come a long way along our route to becoming Europe’s number one manufacturer of lithium-ion battery components. We now want to build further on our technological lead in this partnership with Daimler.”

As early as next year, Mercedes-Benz will launch the S 400 BlueHYBRID – the world’s most fuel-efficient luxury sedan with a petrol engine. Plans also include series production vehicles with fuel cells and with pure battery-powered electric drive. Daimler has already successfully proved their everyday usability in numerous fleet tests and infrastructure projects, including the smart electric drive in London. This year also saw the launch of further major Daimler electric vehicle projects in the shape of “e-mobility Berlin” and “e-mobility Italy”.