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Building bridges across the Atlantic

What one would give to be a fly on the walls of the DaimlerChrysler head office boardroom: a breathtaking range of new models, a US diesel campaign, hybrid rumours, fuel cell prospects and platform sharing politics. Dean Slavnich caught up with Dr Hans-Joachim Schöpf to dig-up the latest on the company that has brought Europe and the US closer together.

Fuel cell vehicles represent the future for the automotive industry, says Schöpf

Dark clouds may still be lingering over automotive companies, symbolising the arduous economic climate the industry still faces, but clearly the people at Mercedes-Benz and Daimler Chrysler (DC) have forgotten how “difficult” 2003 was supposed to be.

Times might be challenging, but if you are part of the DaimlerChrysler group, then at least this epoch is an exciting one. A few things to note: the new CLK Cabriolet, the acclaimed Smart Roadster, the Chrysler Crossfire (that proves Yankee styling with German engineering really can work), the CL 65 and S65, which are the most powerful Mercedes AMG models ever built, the near production-ready Mercedes CLS Vision concept and, potential car of the year, the SLR have all been brought to us by the fine people at DC in a supposedly “tough” era.

Then there is more. Further fuel cell and hybrid development, the next-generation A-Class and the eagerly anticipated new ML. Yet it is the daring diesel dash that Mercedes has undertaken in the US that might be most significant of all its recent activities. Americans have always “had” a thing for Mercedes and BMW, and so the launch of the Mercedes E320 CDI six-cylinder in the US could have severe repercussions for so-called diesel power in the land of 5.5 litre gasoline guzzling powertrains.

“The announcement of the E320 shows we are preparing for re-entry into the US market as we think that looking at the infrastructure, the needs of our potential customers, the fuel economy, CO2 and range of this technology actually shows now is the right time,” says Schöpf, who quickly adds: “I think the range is a good argument for diesels over there. It shows Americans that here’s a car with a range of 800 – 1000 miles with no refill.”

Yet despite the prospect of not having to stop at service stations as often as gasoline driven vehicles, the executive vice president for development and engineering at Mercedes remains cautious as to how much of an impact the diesel-driven Mercedes will have stateside from its 2004 launch. “In terms of numbers, I think at first it will only be a few thousand, but then we must take the next steps from there,” he says.

Schöpf might have already prepared himself for a slow start for the E320, but he remains confident diesel technology will eventually be embraced by Americans. “We really don’t think that diesels in the US is like flogging a dead horse. We think there’s an opportunity in the market and we think there’s been a change in the mindset in some of the potential customers out there.”

However, the threat to diesel technology in the US has increased in recent times, and gone are the days of when diesels used to be shoved to the side due to American perceptions and their love affair with the gasoline engine. Two newcomers – hybrid and fuel cells – back by Japanese OEMs have also landed on US soil, and Schöpf is only too aware of the menace.

He says: “I think there is an interesting feel in the US market. On the one hand we have the Japanese carmakers that are pushing hybrid technology forward and selling numbers to different customers and fleets over there. On the other hand we have the Europeans, who have mastered diesel technology. In the end it’s to do with both emissions and fuel economy, and so we think based on our experience that there’s a bigger chance for diesels, eventually, in the US than hybrid technology.”

Yet Schöpf, in true Germanic fashion, is careful not put all his Mercedes eggs into one diesel US basket. He continues: “But then you can never be sure, and that’s one of the reasons why we have been preparing on the hybrid side for years now even though we don’t have any plans to enter this market at the moment, but we are working strong on this technology.”

European OEMs like Mercedes and BMW might have become the “diesel masters,” while Honda is quickly becoming renowned for its advances made in hybrid development, but it’s Toyota – the specialist jack of all trades – in offering refined diesel, petrol and hybrid cars that have caught the eye.

If Toyota can do it, surely Mercedes Benz and DC can also add a hybrid string to their bow? Schöpf replies: “With hybrids, it’s a cost issue and customers in today’s market are cost orientated. In the end, one of the questions will be what is better value for the customers, is it the hybrid or the diesel? We think, looking at the future from a cost perspective, the diesel will be much superior to the hybrid in terms of cost per car.”

Schöpf’s cost theory is an interesting one, especially when taking into consideration that Hiroyuki Ito, president, Honda R&D, Europe, assured me that hybrid engines were far more cost-effective than diesel powertrain development (see AE June 03).

Schöpf, however, refuses to be drawn into an argument with his Honda counterpart, saying: “I can’t comment on that. What I can say is that we are all working on engineering and that we are strong on diesels and we’re pushing hybrid forward so we can also be strong technologically on hybrid development and then we can make a decision.”

Yet the head of development and engineering at Mercedes is quick to rule out a hybrid powered Mercedes. “This will not happen in the next few years,” he says. Yet when asked whether five years is a more realistic time scale, he replies: “This is a more feasible idea.”

Mercedes might be only lukewarm on hybrids, but the German carmaker eagerly made important steps forward in fuel cell development only a few years ago with the NECAR 5. Since then, however, Mercedes and DC have remained more or less stationary, with Honda and Toyota being touted as the new leaders in fuel cell technology.

Not surprisingly, Schöpf disagrees: “I can’t judge who is in the lead in terms of fuel cell technology development, but I think the comparisons show that we are on the leading edge in this area.”

Schöpf is keen to highlight the “strong” partnership with Ballard, as a case in point, and how Mercedes is currently “building up” a fleet of around 60 fuel cell cars. Fuel cells might only be slowly moving forward, but the technology, says Schöpf, is key to the future of the automotive industry.

“If you look at the availability of crude oil – and nobody knows how much is left under the surface – it means we have to work very strong in the area of fuel cell development. But two things have become prerequisite: we have to generate and make hydrogen regenerated and for there to be an infrastructure.”

Yet such a day is still far off according to Schöpf. “In a larger volume, well it’s probably going to be between 2015 and 2020,” he predicts.

On a more immediate timeframe, however, and it has become evident that DaimlerChrysler and Mercedes, like a few other automotive groups (PSA, Ford and PAG take note), have become overtly sensitive to platform sharing issues. “Not a problem,” counters Schöpf, who explains: “Platform sharing within the Mercedes-Benz car group is very clear. If you have an E-Class for example, and then you do derivatives like an estate, then that is OK as this is something that we say yes to as this is state-of-the-art and the way to go forward.”

A creditable answer, after all, why only produce an E-Class saloon when one can also spin-off an estate model as well? Yet there is a real issue with platform sharing under the DaimlerChrysler umbrella, and Schöpf is quick to distance himself when asked whether the new Smart Forfour is really a Mitsubishi Colt. “I can’t comment on this as the Forfour is a Smart product,” he replies.

Schöpf adds: “I think we have our range of cars and we have our expectations and perceptions on our customers side. I think that one thing customers really want is for the car to be unique in their eyes, you can’t cheat the customers in the end.”

Such rhetoric sounds almost damning of fellow German car family VW, who have been very public and almost blasé in their approach to platform sharing amongst brands. “I would say that their [VW’s] strategy – whether it’s right or wrong – is not for me to judge. What I can say is uniqueness and market leadership is our part and will stay our part.”

So, being “unique” is important to DC in today’s automotive world. Schöpf might not be able to comment whether a Smart Forfour is a Mitsubishi Colt, but is it not true that a Chrysler Crossfire is a poor man’s SLK 55? Somewhat conveniently, Schöpf says that the Crossfire is an “exception to the rule.” He explains: “The Crossfire, I think, was a nice idea. We took a run-out car Mercedes car [SLK] and tried to combine that with the genes of a Chrysler, but I can’t see this repeating itself.

“It was a nice try, because on the one hand it was a platform that’s running out, and this platform and car [the SLK] will be replaced by a new platform and car very soon.”

An exception to the rule or a sure indicator of future platform sharing politics within in DC? Only time will tell, but what one can be assured of is that Mercedes, allied by Smart, Mitsubishi, Maybach, McLaren, the AMG range and Chrysler, (which also includes Jeep and Dodge), all under the happy family name of DaimlerChrysler, will no doubt continue to excite in difficult times. The industry speak might be on Toyota gunning for the number one slot, but it would seem that Daimler and Chrysler (unlike the big American two) have turned the corner. German engineering with American design? That’ll be DC.