Meeting the 2021 Emissions Reduction: A Report for Mercedes Benz

Case Study

Cars are responsible for around 12 per cent of total EU emissions of carbon dioxide (CO2), the main greenhouse gas.  From 2021, phased in from 2020, the EU fleet-wide average emission target for new cars will be 95 g per CO2/km.

Specific emission targets for manufacturers

In 2020, the emission targets will apply for each manufacturer’s 95 per cent least emitting new  cars.  From 2021 onward,  the  average emissions  of all newly  registered  cars  of  a manufacturer will have to be below the target.

Penalty payments for excess emissions

If the average CO2 emissions of a manufacturer's fleet exceed its target each year, the manufacturer must pay an excess emissions premium for each car registered. Since 2019, the penalty is €95 for each g/km of target exceedance.

Manufacturer pools

Manufacturers can group together and act jointly to meet their emissions target. In forming such a pool, manufacturers must respect the rules of competition law.

You act as the lead of the change consultants to Mercedes Benz on meeting the emissions targets. Mercedes Benz’s emissions committee has asked you to prepare a report focusing on the following tasks:

Report Tasks

1.Critically assess and evaluate the business processes and systems required by Mercedes Benz to meet the 2021 emissions reduction. )

2.Develop a roadmap for Mercedes Benz that mitigates the impact of the fleet emissions reductions on its AMG division.

3.Elaborate on the options available in 2021 and 2022 to reduce Mercedes Benz’s new cars average fleet emissions target.

4.Critically evaluate the most appropriate change management models available to Mercedes Benz in reducing its average fleet emissions.