Mercedes-Benz Vans launches future initiative adVANceto expand its growth strategy and develop new business models

New strategic future initiative adVANce and Vision Van

• Mercedes-Benz Vans launches future initiative adVANceto expand its growth strategy and develop new business models
• Investments of approximately 500 million euros over the next five years for digitalisation, automation and robotics in vans as well as innovative mobility solutions
• New organisational unit within the start-up scene in Stuttgart, Berlin and Silicon Valley – approximately 200 employees already work on numerous projects
• Close cooperation with start-ups, including first strategic investments – among others in Matternet
• All-electric "Vision Van" van study with a range of up to 270 km, fully automated cargo space and integrated drones

Today the globally successful van manufacturer Mercedes-Benz Vans, has unveiled its strategic future initiative adVANce for the transport industry. 

This sees the division systematically taking up its customers' changing requirements. The transformation of the industry is the result of various economic and social trends, among them urbanisation, the growth in e-commerce, the intelligent networking of a wide range of technologies in the Internet of Things (IoT), and the proliferation of platform-based business models.

Mercedes-Benz Vans is systematically making use of present-day and future technological opportunities presented by digitalisation, automation and robotics.

The business division is developing from a mere vehicle manufacturer into a provider of system solutions and will offer integrated and intelligent systems in addition to its basic vehicles in the future. 

These solutions can make the transportation of goods and passengers even more efficient and open up new business opportunities and economic benefits for customers.

"In the first six months of this year, we brought in the best results yet for Mercedes-Benz Vans. This provides us with an excellent foundation to position our vans division systematically for the future," said Volker Mornhinweg, Head of Mercedes-Benz Vans, at today's Van Innovation Campus in Stuttgart.

"To live up to the dramatic changes in our sector, we adapt our 'Mercedes-Benz Vans goes global' strategy and expand it beyond the product and untapped international markets. We are focusing our attention beyond the vehicle on the entire value chain and business environment of our customers. 

We provide transport solutions for the digital age and evolve the van into an intelligent, interconnected data centre on wheels. 

In order to do this, we are investing around half a billion euros over the next five years, and we created a separate organisational unit. So far, this approach is unique within the van sector."

Identifying the customer requirements of tomorrow

With the adVANce initiative, Mercedes-Benz Vans is systematically adapting to new, rapidly changing customer requirements. Examples include the burgeoning business in food and everyday necessities ordered online. 

Here, demand for same-day delivery or delivery within an hour is increasing rapidly. At the same time, more and more people are living in cities – by 2030 urban areas will be home to more than two thirds of the world's population. 

It is clear that the rising transportation requirements will need to be met even faster and more efficiently in future and, above all, in an environmentally friendly way.

All-electric "Vision Van" van study for innovative delivery on the last mile

Mercedes-Benz Vans is presenting a fascinating, integrated solution for new customer requirements with the "Vision Van" van study, which was presented today and evolved as part of the adVANce initiative. 

This all-electric vehicle combines various innovative solutions for last-mile delivery in urban and suburban environments. It is the first van worldwide to fully digitally connect all people and processes involved, from the distribution centre to the consignee. 

Furthermore, it is the first van ever to feature a fully automated cargo space and integrated delivery drones. For example, if a parcel service provider stops his vehicle in a residential area, it will be possible to deliver multiple packages to nearby consignees autonomously by air – even if they are not at home – in addition to manual delivery. 

This makes the deliverer’s job easier, reduces the delivery time and offers end customers new opportunities such as same-day delivery at an agreed time. Mercedes-Benz Vans envisages deployment of the Vision Van boosting efficiency by up to 50 percent on the last mile. 

The vehicle is equipped with a 75 kW electric drive and – depending on the intended application – has a range of 80 km to approximately 270 km. With the Vision Van, deliveries are emission-free.

"With the Vision Van from Mercedes-Benz Vans we provide an idea of future generations of vans: the intelligent automation technology connects the entire process, from loading and transportation by road through to delivery to the consignee. 

This makes it easier for the deliverer to do business and rapidly reduces the delivery time for end customers," adds Volker Mornhinweg.

"Equipped with an electric drive system, the Vision Van not only operates locally emission-free, it also moves almost silently. This means that it can be operated in cities even during times when there are traffic restrictions or for late-night deliveries in residential areas. This gives our customers the possibility of offering new services to their customers."

Focusing on three key fields of innovation: adVANce

As part of the strategic future initiative, Mercedes-Benz Vans will be focusing on three fields of innovation: thefirst involves incorporating the van into the Internet of Things. 

For this purpose, Mercedes-Benz Vans is integrating smart technologies into the van, which increase its efficiency and make it a central component of the digital value chain. The focus here is on relevant applications and connectivity solutions (digital@vans). 

One example is developing a telematics unit for vans which collects and processes data concerning the status of the delivery tour, the present location and the load, and sends this information to the distribution manager. 

In this way it is possible to monitor and manage last-minute changes within the fleet efficiently from a central point.

Another application concentrates on the efficient part and tool management for service vehicles, for example tradespersons' mobile workshops. 

In future new holistic system solutions will enable parts to be ordered in a fully automated way by means of an intelligent inventory management within the vehicle, as well as for the relevant parts to be placed overnight directly into the van. 

Intermediate steps such as inventory evaluation, ordering parts manually and the tradesperson having to equip the vehicle are no longer necessary.

The second focal point is on innovative hardware-based solutions for the transportation industry(solutions@vans). 

Here Mercedes-Benz Vans is working on automated cargo space systems for delivery vehicles for parcel services, for example. Until now, deliverers need to rearrange their packages (on average around 180 per load) ten times while making deliveries within a residential area and schedule approximately three to four minutes per stop. 

New, interconnected cargo space systems make loading and unloading much faster, thereby increasing process efficiency. One-shot loading (loading the vehicle with all pre-picked parcels in one go) cuts loading times considerably and reduces the amount of vehicle downtime at distribution centres. 

When the deliverer is unloading, the system will show him the exact load configuration and make the right package available at the right time for delivery depending on the delivery destination. 

The team at Mercedes-Benz Vans also has the integration of autonomous delivery systems such as drones or self-driving robots in mind.

The third field of interestfor the Stuttgart-based van manufacturer in conjunction with various cooperation partners is new mobility concepts for the on-demand transportation of goods and people(mobility@vans). 

In future these intelligent mobility concepts could supplement public transit by making fast, efficient and individual transport of passengers possible during peak and off-peak hours via ridesharing concepts. In the future, the intelligent networking of technologies can also make the transportation of goods more efficient and considerably improve transport on the last mile. 

In this pioneering field Mercedes-Benz Vans is also working on innovative leasing, rental and sharing models, which are completely tailored to the needs of van customers.

New organisational unit within the start-up scene

In order to fully exploit the numerous opportunities of evolving the van and vehicle-related business systems, Mercedes-Benz Vans has created a new organisational unit called Future Transportation Systems. 

The project teams are based within the start-up scene in Stuttgart, Berlin and Silicon Valley. In total around 200 employees are working on these topics. They work closely with customers and partners from business, technology, logistics, research and the public sector. 

The objective of working with young companies is to combine the knowledge of the vehicle sector accumulated over decades with new perspectives, agile working methods and innovative ideas.

Strategic investments in innovative start-ups

In order to make new approaches market-ready, Mercedes-Benz Vans is investing in several innovative start-ups in the areas of automation, robotics and mobility services in a first step. One of the companies that Mercedes-Benz Vans has a stake in is Matternet, a US-based developer of autonomous drone logistics systems. 

Together with Matternet, Mercedes-Benz Vans worked on the Vision Van show car, the first integrated delivery system that automates last-mile delivery. 

The new system, which combines van and drone logistics, is a more efficient, faster and a more economical way for people to receive goods on-demand.

Mercedes-Benz Vans achieves most successful first half year ever with records in unit sales, revenue, EBIT and return on sales

In the first half of 2016, Mercedes-Benz Vans achieved the best figures in its history. Unit sales increased by 21 percent to approximately 176 200 vehicles (prior-year: approximately 145 400 units). The entire product portfolio contributed to this increase in unit sales. 

Revenue was up 19 percent to 6256 million euros, another best-ever level (prior-year: 5244 million euros). EBIT and return on sales climbed by 56 percent and 30 percent to 702 million euros and 11.2 percent reaching a new record level (prior-year: 449 million euros and 8.6 percent). Mercedes-Benz Vans anticipates further significant growth in unit sales for the 2016 financial year as a whole. 

The business division is also expecting a significantly higher EBIT from ongoing business in 2016 compared to 2015 as well as a significantly higher return on sales.

The Mercedes-Benz Vans division

Mercedes-Benz Vans is a global full-line supplier of vans and related services. Alongside the large-size Sprinter van and the mid-size Vito van (known in the US as Metris), the division's worldwide product portfolio includes the Mercedes-Benz Citan urban delivery van. 

Mercedes-Benz Vans is also represented in the private segment with the V-Class MPV and the Marco Polo and Marco Polo ACTIVITY travel vans. 

The division has a total of nine production locations: in Germany, Spain, the USA, Argentina, China (joint venture with Fujian Benz Automotive Co., Ltd), France (strategic alliance with Renault-Nissan) and Russia (partnerships with GAZ and YaMZ). 

To date, the main markets have been in Western Europe, accounting for a total of 65 percent of unit sales in 2015.

Mercedes-Benz Vans has launched its all-new Vito Taxi; a worthy successor to the vehicle that took the industry by storm.

Mercedes-Benz Vans has launched its all-new Vito Taxi; a worthy successor to the vehicle that took the industry by storm, which has sold in excess of 3,000 units since its launch in 2008.

Vito Taxi offers unrivalled levels of space and refined comfort for the driver and up to six passengers, as well as being fully-wheelchair accessible. 

Available initially in a National specification, customers can choose from the front wheel-drive 109CDI model, with an 88 hp Euro 6 engine, or the 114CDI with a 114 hp Euro 6 engine, which drives the rear wheels. Both come with manual gearboxes (optional seven-speed automatic gearbox is available for the 114CDI models) and in Compact or Long body lengths.

Later in 2016, a London specification version will be available, incorporating the rear steering axle that allows it to meet the famous 25ft turning circle rule as prescribed by the Public Carriage Office so it can execute a U-turn in London’s congested streets.

The London variant is offered with the more powerful engine as standard together with the 7G-Tronic seven-speed automatic gearbox, which is now controlled using a steering column-mounted lever; offering easy gear selection allowing the driver to remain aware of their busy surroundings.

Standard equipment on both versions includes the fuel-saving BlueEFFICIENCY measures which features engine Start/Stop function for the 114CDI models, air conditioning for driver and passengers, electric folding mirrors, electrically operated sliding doors on both sides and electrical nearside step; London versions feature an additional off-side step.

Priced from £135 per week* for the Vito Taxi 109CDI National variant, the Vito Taxi comes with a three-year, unlimited mileage manufacturer’s warranty and MobiloVan back-up, which includes free, round-the-clock emergency roadside assistance. Pricing for the London variant is still to be announced.

Steve Bridge, Managing Director, Mercedes-Benz Vans UK, commented: “We are passionate about supporting the UK’s taxi drivers, and are delighted to be offering the most fuel-efficient, modern, comfortable, reliable vehicle ever seen in the market.

Mercedes-Benz to introduce a new family of Diesel Engines at low, or below NOx emission levels.

Innovative solution for diesel and gasoline engines

• New family of diesel engines fulfils future RDE requirements
• DEKRA confirms particularly low and below-limit NOx emissions
• Continuous technical improvements across all model ranges
• Large-scale introduction of particulate filters for gasoline engines

With its completely newly developed family of diesel engines, Mercedes-Benz is the first manufacturer to put diesel vehicles on the market that already fulfil the stricter emission limits planned for the EU as of September 2017. This has been achieved through an integrated technology approach, which includes new stepped combustion chambers and further developed exhaust-gas recirculation. 

The new engine design also allows all components for exhaust-gas recirculation to be positioned directly on the engine, instead of under the car floor as previously. This significantly enhances the system’s overall effectiveness – largely independently of ambient temperatures and driving style.

The market launch of the completely newly developed four-cylinder diesel engine OM 654 is in the new E-Class. 

The E 220 d now consumes as little as 3.9 litres of fuel per 100 kilometres (combined according to the NEDC currently prescribed for all manufacturers), although the engine is more powerful than its predecessor [72.4 mpg] (143 kW/195 hp compared with 125 kW/170 hp). This corresponds with CO₂ emissions of 102 grams per kilometre.

The new four-cylinder engine is the first member of a modular engine family that will be applied throughout the entire portfolios of Mercedes-Benz Cars and also at Mercedes-Benz Vans. Several levels of power output are planned, as well as longitudinal and transverse installation in vehicles with front-, rear- and all-wheel drive. 

In this way, Mercedes-Benz will equip its entire range of diesel cars in Europe with this latest engine generation including SCR technology (selective catalytic reduction) by 2019 at the latest.

“Our customers’ trust is very important to us and we take our responsibility to the environment very seriously,” explained Prof. Dr. Thomas Weber, Daimler Board of Management Member for Group Research and Mercedes-Benz Cars Development. 

“That’s why we decided five years ago to invest massively in the further development of diesel technology. But we are also continuously making our gasoline engines more efficient and more environment-friendly; because high-tech combustion engines will remain the backbone of individual mobility until the widespread market success of electric vehicles. 

For this reason, we are investing a total of about three billion euros to ensure further improvements in fuel consumption and emissions – in both future and current vehicles.”

DEKRA confirms particularly low and below-limit NOx emissions

In addition to their good fuel consumption, the new family of diesel engines also has the advantage of particularly low nitrogen-oxide emissions. 

That has now been confirmed by independent measurements by DEKRA, a German vehicle inspection company. The DEKRA experts carried out an extensive test program with a Mercedes-Benz E 220 d. The focus was on Real Driving Emissions (RDE), the method prescribed in the EU as of September 2017 in addition to measuring emissions on the test bench.

The RDE dynamic test program covers various stretches of road that include urban streets, country roads and freeways. The measurements were carried out at various temperatures between about two and 16 degrees Celsius, and with various numbers of occupants and varying loads. 

As a result, the E 220 d emitted less NOx than the limit of 80 mg/km on all applicable RDE routes. In some cases, the NOx emissions were at the very low level of between just 13 and 21 mg/km even at low ambient temperatures.

Continuous improvement also with current diesel engines

The Mercedes-Benz engineers made use of the newly gained knowledge from the development of the new family of diesel engines also to continually improve the emissions of current vehicle models. 

That includes optimisations with regard to turbochargingand the further development of fuel injection and intercooling, as well as the application of new materials such as chromised timing chains. 

The combination of these measures results in improved robustness of the parts and components that are subjected to particular stress by combustion and exhaust-gas recirculation. 

The operating range of exhaust-gas recirculation has been extended towards significantly lower temperatures. Another factor is the increased efficiency of the SCR systems. 

This has been achieved by modifying the design of the exhaust system and by applying new catalyst materials. This entire package of measures is now being successively applied in series production.

With the entry-level engines of the compact cars (A- and B-Class and the CLA and GLA) and with the V-Class, Mercedes-Benz is offering the recent improvements as a software update on cars already in customers’ hands in the context of a voluntary service action to be implemented in the coming months, starting with the V-Class in June.

Gasoline engines with particulate filters in the future

Thanks to a large number of development advances, diesel engines’ emissions of particulate matter have been continually reduced in recent years. 

Also many of the modern Mercedes-Benz gasoline engines already emit lower levels of particulate matter than the limits to be introduced in the future. This is achieved by means of modifications within the engines as well as through the application of piezo injectors.

For the further improvement of environmental compatibility, Mercedes-Benz plans the large-scale use of particulate filters also for gasoline engines – the first manufacturer to do so. 

After more than two years of positive field tests with the Mercedes-Benz S 500, additional versions of the S-Class with gasoline engines are to be equipped with this new technology with the next model upgrade. 

That will be followed by gradual implementation in further new models, model upgrades and new engine generations. After that, particulate filters will also be applied in the current model ranges.

Mercedes boosted sales faster BMW in the Q1, moving the brand closer to becoming the #1 Luxury brand.

Mercedes-Benz boosted sales twice as fast as BMW in the first quarter, moving the brand closer to clinching the lead in the world's luxury-car market for the first time in a decade.

The Daimler luxury unit's brand deliveries soared 13 percent worldwide to 483,487 vehicles through March, data from the automaker showed last week, compared with a 6 percent increase to 478,743 cars for BMW Group's namesake brand, announced in a statement today.

Sales of third-placed Audi rose 4 percent to 455,750 in the first three months, the Volkswagen Group unit said in a statement today.

Mercedes has declared it wants to overtake BMW by 2020, a goal it may hit early due to the popularity of all-new models including the GLC SUV. Sales momentum will probably accelerate during the second half, with the new E-class sedan, a key vehicle for the business market, hitting showrooms.

Mercedes was also helped in the first quarter by a 26 percent increase to more than 150,000 of its compact cars such as the A class.

BMW has an older product lineup by comparison, with key models including its E-class equivalent, the 5-series sedan, not due for a refresh until next year.

Monthly tallies still put BMW ahead of Mercedes for March. BMW delivered 201,352 cars, a gain of 2.9 percent. Mercedes sales climbed 8.4 percent to 198,921 autos. Audi volume was up 4.6 percent to 186,100.