In Mexico we will produce cars with Mercedes-Benz Premium Quality

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1 In Mexico we will produce cars with Mercedes-Benz Premium Quality Aguascalientes Joint venture with Renault-Nissan Alliance Start of production of Mercedes-Benz compact cars in 2018 Uusikaupunki Made-to-order production at Valmet Automotive Inc. A-Class JV COMPAS New Member of Production Network Mercedes-Benz cars from Aguascalientes meet the same premium quality as the compact cars being built in Rastatt, Kecskemet and Beijing. Mercedes-Benz made in Mexico are distributed to all markets V177 and X247 are world cars. Quality is defined by Daimler Requirements and Daimler Specifications, e.g. MBN (MB Standard), DBL (Daimler Supply Specification), Function Specifications, Component Requirement Specifications, ISO/ TS 16949, VDA- Audits 6.3. Rastatt A-Class B-Class GLA Kecskemét B-Class CLA-Class CLA Shooting Brake Peking Joint Venture (BBAC) with BAIC Beijing Benz Automotive Co., Ltd. GLA in the spring of 2015 Highlight in CorpoS in 20 pt. 1

2 Ensuring premium-supplier quality Design-Freeze Assembly E-vehicle Final testing Shell with series tool Release series tests Job No. 1 Quality-Gates in the Mercedes-Benz Development System F E D C B A VDA-RGA: Maturity level protection according to VDA-Standards 1 - cross functional, ongoing maturity control: purchasing, development, logistics, quality und supplier Samplings (PPAR) - Examination of parts, which were produced under production line conditions - Examination compliance with MB-specifications 2 Performance test - Examination of quality and quantity at supplier-facility at 100% capacity 3 VDA-RGA: Verband der Automobilindustrie Reifegradabsicherung für Neuteile (= Association of the Automotive Industry- Maturity level protection for new parts) 2

3 Reporting of snapshot (VDA 6.3, VDA2 Performance test) VDA-RGA method VDA-RGA: is a cross functional and ongoing maturity level protection, from sourcing to start of production. Implementation occurs at the Daimler company as well as at supplier-facility. Situational supplement is done with process audits according to VDA 6.3 and performance tests. The Sampling is realized according to VDA 2. V177 Mexico Today Lot SOP July D C B A PRO s ABC-partclassification Ongoing maturity level management(vda-rga) Q-planning 3

4 Global Parts Evaluation Center The GPEC coordinates and controls the sampling of purchase parts for the Mercedes-Benz plants. + Sample parts + PPAR Global Parts Evaluation Center (GPEC) Mercedes-Benz supplier is responsible to deliver parts to Sindelfingen GPEC Supplier has to consider the shipping time and due-dates in project timeplan have to be met For Suppliers Located in NAFTA PPAP release will be done from Mexico PPAR sample release report GPEC located in Germany 4

5 Claim management is based on the contract of Daimler and supplier Contract Daimler/ Supplier Claim management Claim Management MFA2 Mexico (or other DAI companies) Buy and sell Supplier NAFTA (w/o Mexico) Supplier RoW In case of claims concerning Daimler parts your business partner is Daimler - based on the supplier contract. The claim management follows the Mercedes-Benz Standard for passenger cars: DAICOM (or other DAI companies) Parts and claim management Assembly Service Agreement JV COMPAS Assembly Service Provider Claims supplier parts Daimler 50:50 DAI/NIS Supplier Mexico 1. First intervention by JV COMPAS, issues communicated to Daimler 2. Second intervention by Daimler, failures communicated to the supplier (supported by IT-system SQMS) 3. Third intervention, if required, by Daimler Procurement Supplier Quality Highlight in CorpoS in 20 pt. Corresponding logistics and finance processes are integrated 5

6 Key Messages Ensuring Mercedes-Benz premium quality requires premium supplier quality. Maturity level to be assured according to VDA and Daimler Standards. Parts sampling and release coordinated by Daimler Global Parts Evaluation Center in Germany and released by Daimler Mexico. Claim Management Daimler parts based on Daimler supplier contracts, standard processes and IT system SQMS. 6

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