Environmental Statement 2006

Transcription

1 Environmental Statement 2006 GETRAG Group Germany consisting of GETRAG Getriebe- und Zahnradfabrik Hermann Hagenmeyer GmbH & Cie KG and GETRAG SynchronTechnik GmbH VERIFIED ENVIRONMENTAL MANAGEMENT SYSTEM D

2 > 02 < Table of contents > Imprint 03 > Foreword 04 > Greetings Tanja Gönner, Minister for the Environment, Baden-Württemberg 05 Sigmar Gabriel, Federal Minister for the Environment, Nature Conservation and Reactor Safety 06, 07 > GETRAG Corporate Group 08, 09 > Corporate VISION and EHS policy 10, 11 > GETRAG management system 12, 13 > Sites of the GETRAG Group > 10 years of environmental management in Rosenberg 24, 25 > Waste / figures - data - facts 26, 27 > Water and waste water / figures - data - facts 28 > Cooling lubricants / figures - data - facts 29 > Energy and emissions / figures - data - facts 30, 31 > Occupational health and safety Health promotion / prevention 32, 33 Emergency management and accident statistics 34, 35 > Report on major fire drill in Neuenstein 36 > Environmental protection in the development 37 > Environmental protection and occupational health and safety program 38, 39 > Input / Output 40 > Glossary 41 > Statement of validity 42 > Translation of the Greetings (german version see on pages 05, 06, 07) 43

3 > 03 < Imprint > Contact address GETRAG Getriebe- und Zahnradfabrik Hermann Hagenmeyer GmbH & Cie KG GETRAG InnovationsCenter Hermann-Hagenmeyer-Straße Untergruppenbach Germany Phone: +49.(0) > Responsibility Dieter Schlenkermann (CEO GETRAG Group and person responsible for Environmental Protection and Occupational Health) Thomas Ritzenfeldt (Environmental Protection and Occupational Health Safety Office for the GETRAG Group) > Text and pictures Kurt Dießl; Bernd Gosolits; Andreas Kapfer; Herbert Köcheler; Tanja Kretz; Thomas Ritzenfeldt; Roland Roth; Dieter Schlenkermann; Jürgen Schöneck; Rainer Spillner; Hans-Hermann Steinhäuser; Alexander Titschka; Ralf Titschka; Tobias Wien > Layout Claudia Rath, Jürgen Schöneck > Printing April 2006 / Printed on 2 Plus Recyclingpaper GETRAG believes in fair discussion. Thomas Ritzenfeldt, Environmental Protection and Occupational Health and Safety Officer for the GETRAG Group (phone +49.(0) , [email protected]), and the heads of the environmental protection and occupational health and safety teams at the GETRAG sites will be happy to provide you with further information. Untergruppenbach, St. Georgen and Heilbronn Jürgen Schöneck +49.(0) ; [email protected] Ludwigsburg Herbert Köcheler +49.(0) ; [email protected] Neuenstein Roland Roth +49.(0) ; [email protected] Oberstenfeld Andreas Kapfer +49.(0) ; [email protected] Rosenberg Hans-Hermann Steinhäuser +49.(0) ; [email protected] Bad Windsheim Kurt Dießl +49.(0) ; [email protected] Occupational health and safety Bernd Gosolits +49.(0) ; [email protected]

4 > 04 < Foreword Dieter Schlenkermann 2006 is a particularly important year for GETRAG as it marks 10 years of validated environmental management under EMAS. In 1996, Rosenberg became the first GETRAG site and one of the first sites in Germany to be validated under EMAS. We can be proud of this, as we have assiduously followed through the decision that was taken at that time and can now say that all of our sites throughout the world are certified to ISO 14001, and our sites in Germany and Italy are also certified in accordance with EMAS. In addition, all sites in Germany, the USA and India are certified according to the occupational health and safety standard OHSAS However, our conscious commitment to environmental matters did not just start in 1996, but goes as far back as 1989 when environmental protection was included in the VISION as one of the corporate objectives and has been playing a first violin in our company ever since. The awareness of environmental protection and occupational health and safety issues has been incorporated into all areas of our company and has been firmly anchored in the company for a long time now. This is borne out by the figures showing the improvement in our environmental performance and, not unimportantly, by our external environmental and occupational health and safety auditors who have spent more than 150 days at our German sites alone. If we look at the targets published in the environmental statement alone, there are an impressive total of more than 200 individual measures. The focal point of our environmental activities in terms of our products is the optimization of energy efficiency and environmental friendliness. We are continually endeavoring to improve our products in this respect. This is borne out by the development of our new transmission technology and double clutch transmissions, and the designs for hybrid vehicles. We are delighted to acknowledge the greetings sent from the Minister for the Environment for Baden- Württemberg, Mrs. Tanja Gönner, and the Federal Minister for the Environment, Mr. Sigmar Gabriel. Our diverse efforts in environmental protection and occupational health and safety are also recognized externally as an excellent company with an exemplary record... This should give us the encouragement to continue with the activities we have planned. As mentioned in the letter from Mr. Gabriel, we must also focus more on ensuring that there are efficient management systems in an ongoing collaboration between the government in the context of its legal standards and the economy and the companies with their associates. We should also ensure that the autonomy and independence of our associates is at the heart of any refinements of systems. This will undoubtedly take us a huge step forwards in the continuous improvement of efficiency, the appropriateness and effectiveness of our EHS management system in the context of our corporate vision and corporate strategy. We regard the environmental statement as an important medium for communicating with our associates, as well as for anybody outside of the company who is interested in what we are doing in respect of environmental protection and occupational health and safety. As communication by necessity requires an interlocutor, we would greatly value your suggestions, comments and ideas. I would like to thank all associates whose efforts have helped protect the environment and improve the health and safety of each and every associate, thereby bringing our vision and objectives alive and making them achievable. I hope that any readers from outside the company will find this insight into the company interesting. Dieter Schlenkermann CEO GETRAG Group and person responsible for Environmental Protection and Occupational Health and Safety in the GETRAG Group

5 Grußwort Greeting Sigmar Tanja Gönner, Gabriel, Minister Bundesminister for the Environment, Baden-Württemberg > 05 < Translation - see page 43

6 > 06 < Grußwort Greeting Sigmar Gabriel, Bundesminister Federal Minister for the Environment, Nature Conservation and Reactor Safety

7 > 07 < Translation - see page 43

8 > 08 < GETRAG Corporate Group GETRAG Getriebe- und Zahnradfabrik Hermann Hagenmeyer GmbH & Cie KG (GETRAG KG) has developed from a traditional, family-owned business founded in 1935 in Ludwigsburg to a successful, internationally-oriented group of affiliated companies. Figure: GETRAG Corporate Group - Group structure, overview The company is now a world leading manufacturer of drive technology for motor vehicles, light duty commercial vehicles and motorcycles. Sales of around 2,4 billion were attained in 2005 with more than 10,500 associates across 22 sites in Europe, the USA and Asia. Transmissions from GETRAG serve a market where absolute technical precision is a must and which reads like a Who's Who of the automotive sector: Be it BMW, Audi, Cadillac, Chevrolet, DaimlerChrysler, Dodge, Fiat, Ford, GM, Harley Davidson, Jaguar, Land Rover, Mazda, Mini, Mitsubishi, Nissan, Opel, Pontiac, Porsche, Renault, Skoda, smart, Toyota, Volvo or VW - GETRAG is regarded by its customers around the globe as a guarantee of reliable technology and meets customer expectations through its competence, innovation, service and reliability to mutual benefit in a collaboration based on partnership. This is borne out by numerous awards and long-term customer relationships. The GETRAG Corporate Group includes the sub-groups GETRAG Group and GETRAG FORD Transmissions (see Figure: GETRAG Corporate Group, group structure, overview) GETRAG KG and GETRAG SynchronTechnik are the companies in the GETRAG Group that will be studied in the context of this Environmental Statement (see Figure: GETRAG Corporate Group, worldwide sites) and GETRAG Figure: GETRAG Corporate Group - Worldwide sites Germany GETRAG InnovationsCenter Untergruppenbach GETRAG Ludwigsburg plant GETRAG Neuenstein plant GETRAG Rosenberg plant GETRAG Bad Windsheim plant GETRAG Systemtechnik St. Georgen GETRAG LDZ Heilbronn GETRAG SynchronTechnik Oberstenfeld GETRAG Innovations GmbH Untergruppenbach GETRAG FORD Transmissions Cologne GETRAG Driveline Systems Köln Europe (without Germany) GETRAG All Wheel Drive AB Köping, Gothenburg (Sweden) GETRAG FORD Transmissions Sweden AB, Gothenburg (Sweden) GETRAG FORD Transmissions Halewood (GB) GETRAG FORD Transmissions Bordeaux (France) GETRAG S.p.A. Modugno / Bari (Italy) GETRAG s.r.o. GETRAG FORD Transmissions Slovakia s.r.o. This Environmental Statement is valid for the sites marked USA Asia GETRAG Corporation with GETRAG Engineering Center Sterling Heights, MI (USA) and GETRAG Axle Plant Newton, NC (USA) GETRAG Precision Gear Charleston, SC (USA) GETRAG Asia Pacific Beijing (China) GETRAG (Jiangxi) Transmission Co. Ldt. Nanchang plant Ganzhou plant Yudu plant GETRAG Nagoya Office Nagoya (Japan) GETRAG Hi-Tech Gears Bhiwadi (India)

9 referred to collectively as GE- TRAG Group, Germany. However, we will also stray beyond this framework for the purposes of this Environmental Statement in order to give the reader a complete picture. Figure GETRAG Corporate Group - Markets that we supply > 09 < New sites China At the end of 2004, GETRAG decided to get a foothold on the Chinese market and entered into negotiations on a joint venture with Jiangling Motor Company Group (JMCG). A letter of intent was signed in January The agreements were then signed in January The new joint venture will start its operating activities after the official closing in May The GETRAG Corporate Group is investing around 34 million in its 66.7 % stake. The JMCG holds the remaining 33.3 % and will contribute three production sites (Nanchang, Ganzhou and Yudu) to the joint venture with approximately 2,200 associates. Over the next 2-3 years, the joint venture will produce more than 550,000 manual and automated Markets that GETRAG supplies transmissions and more than 1.7 million transmission parts per year, primarily for the Chinese market. Kechnec (Košice), Slovakia The foundations for a new production plant for GETRAG and GETRAG FORD Transmissions were laid in Kechnec in the Košice region in the east of Slovakia on July 7, The company will create around 750 jobs. The volume of investment amounts to 300 million for planned sales of between 300 and 400 million. Motorcycle transmissions will be produced here as from November 2006, to be joined by double clutch transmissions from August Figure: GETRAG Corporate Group - sales and associates worldwide

10 > 10 < Corporate VISION and EHS policy In 1989 the following corporate vision (see Figure: Corporate vision) of the GETRAG Group was developed together with all the hierarchical levels, building on the beliefs of GETRAG (see Figure: Convictions). > We Do It Better. < With its eight basic principles, it indicates the company's philosophy and demonstrates the high importance of environmental protection and occupational health and safety on the basis of the following tenet: We have eight first violins playing at GETRAG. Translating the corporate vision into eight specific areas of action produces a highly motivated staff that is a core element of the company. The high level of job satisfaction increases performance and innovativeness - key elements in a highly competitive market. In 2005, the corporate vision was put to the test, with all the sites involved, to see if it is still in tune with the changes in global requirements that had taken place over the last 16 years. An interdisciplinary team gathered together all of the suggestions from GETRAG associates across the world, discussed them at length and put together a proposal that was approved by the management on July 14, Convictions No status or hierarchical thinking Respect for our people s dignity - respect for each other Open and comprehensive information Self-fulfillmant To create insight how a company works People involvement, people empowerment To understand companies as an entire organism Not systems or organizations achieve success, but only the people forming that organism People have to be the center of decisions Open and honest relationship with our people Trust Figure: Convictions This proposal was made public at the Manager's Conference on December 3, 2005 and thus became official. It is expected that this will impact our EHS policy. Together with all sites, we therefore plan to revise the EHS policy and EHS guidelines in These will then be set out in the fullest detail in the next Environmental Statement. Figure: Company vision

11 Figures: EHS policy > 11 <

12 > 12 < GETRAG management system Structure The environmental protection and occupational health and safety (EHS) management system of the GETRAG Group is based on the worldwide environmental protection and occupational health and safety manual (Level 1) in conjunction with the nationwide EHS procedures (Level 2) and the sitespecific EHS procedures (Level 3). This integrated EHS management system, which includes both environmental protection and occupational health and safety and is referred to here as EHS Environment, Health and Safety for short, describes the structural and procedural organization and sets out responsibilities (see Figure: EHS manual valid worldwide). Responsibilities Responsibility for environmental protection and occupational health and safety is assumed for the GETRAG Group worldwide by Mr. Schlenkermann from the management as the person responsible for Environmental Protection and Occupational Health and Safety. Those duties that can be delegated are in turn passed on to the respective site managers responsible for "their" site via Jürgen Bregler, Managing Director for the German production sites. The Officer for Environmental Protection and Occupational Health and Safety Management for the GETRAG Group, Thomas Ritzenfeldt, is the person responsible for the EHS Management department at the Untergruppenbach site, where environmental protection and occupational health and safety management is anchored as a core function. All GETRAG sites are given advice, supported and audited internally from here. The site-specific heads of operations for waste, water pollution control, cooling lubricants, dangerous goods, hazardous materials, fire and laser radiation protection and the occupational health and safety expert report directly to the relevant site or department heads and are therefore independent. Their technical guidance and support is sought by the Officer for Environmental Protection and Occupational Health and Safety Management for the GETRAG Group and the EHS Management department. The company doctors and nurses are also closely involved in the EHS management activities at GETRAG. Their particular areas of concern are regular examinations, safe and ergonomic arrangement of work centers, medical health check-ups and the assessment and approval of hazardous materials for use at the respective site. At each GETRAG site there is also an EHS team consisting of associates from the individual departments as well as the Works Council, the appointed heads of operations and the EHS team leaders. The team meets at regular intervals and its tasks include the following: Specification of the environmental protection and occupational health and safety targets and the environmental protection and occupational health and safety program Collaboration with the responsible departments and site management Communication of information relevant to environmental protection and health and safety to the departments responsible for this particular area Contact persons for the associates in the respective areas of responsibility. Figure: EHS manual valid worldwide Level 1 manual EHS manual valid worldwide (environmental protection and occupational health and safety) Level 2 EHS nationwide Germany Italy USA India Level 3 EHS site-specific Untergruppenbach Heilbronn St. Georgen Ludwigsburg Neuenstein Rosenberg Bad Windsheim Oberstenfeld Bari Sterling Heights Newton Charleston Bhiwadi

13 The particular feature of the GETRAG EHS (environmental protection and occupational health and safety) management is the close involvement in processes of all associates and their personal responsibility for daily actions, identification with a common corporate VISION and the creation of the basic conditions for strong satisfaction among associates, combined with an assessment of cost-benefit factors in EHS management. At present, all GETRAG sites are certified in accordance with the ISO environment management systems. The sites in Germany and Italy are also validated under EMAS. In addition, all sites in Germany, > 13 < the USA and India are certified according to the OHSAS occupational, health and saety management system. Figure: First validity statement for the Rosenberg site Certification The activities and aims of the EHS management are controlled by a worldwide integrated environmental protection and occupational health and safety (EHS) management system. As GETRAG places great emphasis on an efficient and effective management system, and also wants to be credible, this is checked and certified on a regular basis by DQS auditors, in some cases in collaboration with the DNV (in Italy) or the UL (in India). We have had more than 150 audit days over the last 10 years, on which we have refined and improved our procedures with the assistance of our auditors. Figure: History of certification of individual sites in accordance with ISO 14001, EMAS and OHSAS ISO EMAS OHSAS Newton; Sterling Heights 2004 all German sites 2003 Untergruppenbach Untergruppenbach; St. Georgen; Bari Bhiwadi; Charleston 2002 Bhiwadi Newton; Charleston; Sterling Heights Oberstenfeld Ludwigsburg, Oberstenfeld, St. Georgen Ludwigsburg Bari Bad Windsheim Bad Windsheim Rosenberg; Neuenstein Neuenstein Rosenberg -

14 > 14 < Sites of the GETRAG Group German GETRAG sites that are validated as part of the Environmental Statement Previous Environmental Statements from the GETRAG Corporate Group gave detailed reports of the activities of the GETRAG sites and the resulting environmental issues. The intention is therefore to only indicate any changes from previous years: Untergruppenbach Untergruppenbach Associates: 660 (12/31/2005) Total area: m² Built area: m² The head office of the GETRAG Corporate Group has been in the newly built GETRAG InnovationsCenter at the Untergruppenbach site since January During the last year there were just a few minor changes to the building or technical facilities that had any impact on the environment. For example, the automation of the gray water supply from the retention lagoon to the cistern (Figure: Retention lagoon with GETRAG InnovationsCenter in the background) allows more even drawing-off of water and forwarding of gray water to the buffer tank in the workshop area. This is expected to reduce the non production-related supply of water for drinking. The E-Max energy program has been in use since March 2005 via the building control station technology; this has created savings in electricity and therefore electricity costs due to electrical devices being switched off after a short period. A device for "measuring" the field of vision was purchased for the company doctors. This examination is known as "perimetry" and detects any physiological or anatomical abnormalities in the eye. As part of the Summer Camp of the Hypovereinsbank in Munich with the theme Sustainability in mediumsized companies, GETRAG took part in a Corporate Responsibility (sustainability) ranking by oekom research. The result is evident. The results in the area of the environment are shown in the diagram. Figure: Device for measuring the field of vision In a course on saving fuel, an expert from DEKRA not only showed interested parties and associates concerned about the environment theoretical ways of saving fuel consumption, but also gave participants the chance to put these to the test in their own vehicles. Figure: Result of Corporate Responsibility (sustainability) ranking By oekom research in the area of the environment GETRAG Figure: Retention lagoon with GETRAG InnovationsCenter in the background

15 Figure: Participants in the course on saving fuel Figure: Breakdown of activities between GETRAG and Steinle > 15 < The participants were able to see after the test drives that this does work and that a reduction of more than 1,5 liters on the average consumption of the respective vehicle is possible. Other tricks could be demonstrated in another drive in a specially prepared vehicle with a special on-board computer. A fuel savings brochure with relevant explanations was also produced and distributed to all associates. The LSC is in an industrial area in the northern part of Heilbronn, right next to the Neckar and is in hired halls and buildings. Due to the proximity to the highway and the central position in relation to the GETRAG sites in Germany (see Figure: Central position of the Heilbronn LSC), this site is ideally situated in logistical terms to bundle goods deliveries for all GETRAG sites, store them for the interim and then distribute them to the respective individual sites. A special feature of the LSC is the collaboration with the external service provider, Steinle, which employs 37 associates. The breakdown of tasks can be seen in the figure Breakdown of activities between GETRAG and Steinle. Heilbronn Logistics Service Center (LSC) = LDZ The following were the main key aspects for a central site: Associates: 68 (12/31/2005) Total area: m² Built area: m² GETRAG has another site in Germany, the Heilbronn Logistics Service Center (LSC) since January 1, Figure: Central position of the Heilbronn LCS The logistics areas got increasingly smaller as a result of new projects and production expansions The material flow was disrupted or made more expensive due to the lack of opportunity to coordinate when accessing suppliers Key logistics processes could not be performed optimally (packaging, transport, warehousing etc.) The frequency of shipments consequently the costs and emissions from these were too high Reduction of costs for special journeys Reduction of empties shrinkage LDZ Heilbronn Optimization of logistics chain from procurement through to the finished product; this point can be seen very clearly from the diagrams Volume of journeys without/with the LSC.

16 > 16 < Figure: Volume of journeys excluding Heilbronn LCS Customer Customer Customer Customer Customer Customer Figures: Views of Ludwigsburg plant Flow of material Ludwigsburg plant Neuenstein plant GST Rosenberg plant Bad Windsheim plant Supplier Supplier Supplier Supplier Supplier Supplier Figure: Volume of journeys including Heilbronn LCS Customer Customer Customer Customer Customer Customer Flow of material GST Ludwigsburg plant Rosenberg plant Neuenstein plant Bad Windsheim plant The Ludwigsburg site was the first GETRAG plant to be founded in 1935 by Hermann Hagenmeyer. Manual transmissions and drive sets are manufactured here. Supplier Supplier The relevance for environmental issues on the site can be classed as extremely low, as there are almost no direct significant impacts on the environment beyond a KLT container cleaning plant operated by the company Steinle. Organizationally, the site is largely assigned to the Untergruppenbach site and is overseen by the environmental officers there. The safety specialist and hazardous materials officer are designated by the Ludwigsburg site. St. Georgen systems engineering Supplier LCS Supplier Supplier Associates: 34 (12/31/2005) Total area: m² Supplier Built area: Office and garage premises are hired At the St. Georgen site, transmission software is developed and the relevant applications and tests are performed.the hydraulics laboratory was closed in 2005, as the development section for hydraulics was transferred to Untergruppenbach. A closed underground garage was also hired in addition to the existing garage, expanding the facilities for accommodating prototype vehicles was dominated by structural changes and further optimizations of the machine facilities to increase efficiency. A number of activities were pushed forwards and implemented in the area of EHS management. As part of the implementation of redesign of the entire heating installation that, in the future will be able to be operated by natural gas and fuel oil, the building heating system was fitted with the latest heating technology. Another measure was the reglazing of the shed roof with a skylight approximately 950 m² in size in one of the production halls, improving the K-value by 35 %. A special coating on the weather side has also improved the climatic conditions in the hall during the summer months. Ludwigsburg Associates: 487 (12/31/2005) Total area: m² Systemtechnik St. Georgen Built area: m² Ludwigsburg

17 These measures will further reduce the energy required for heating and therefore the emissions of harmful substances. A significant contribution to saving electricity was made by connecting the central oil supply system to the recooling plant for heat treatment. The additional refrigerating plant could remain switched off altogether during the autumn and winter months and in future will only be used for air conditioning in the halls. At the end of the conversion phase, regular operation of the new recycling yard began in The concept and objectives behind the conversion work carried out in 2004 on our waste water treatment plant were roundly confirmed after the first year of continuous operation. Since September 2005, the waste water from the GETRAG Untergruppenbach site has also been treated via Ludwigsburg. With these and many other EHS activities such as in fire protection, the introduction of fairly traded goods in the kiosk, the KVP Team for the central cooling lubricant plant and the recording of nearmisses, the Ludwigsburg plant actively implements the EHS management system aimed at the continuous improvement of the company's record on environmental protection and occupational health and safety. Neuenstein Neuenstein Associates: 991 (12/31/2005) Total area: m² Built area: m² The Neuenstein site was founded as an NSU plant in 1941 and has been integrated in the GETRAG Corporate Group as the GETRAG Neuenstein plant since July The site is on the eastern side of Neuenstein in the north of Baden- Württemberg (Hohenlohe district). The site mainly produces toothed wheels and shafts and assembles these with other components to form finished manual transmissions, automated manual transmissions and motorcycle transmissions. Timing gears for gasoline engines will be produced for the first time from 2006 onwards. Transmission prototypes can also be tested on various performance test stands. The biggest outwardly visible change on the site was the demolition of the two blocks of residential > 17 < accommodation and the old boiler house, which restored a total area of m² to its natural state. We should also mention the installation of new and non-glare glazing in the gates. An organizational change in the middle of 2005 resulted in the Occupational Health and Safety and Environmental Protection also taking on logistical tasks such as shipping, goods receipt and transport. The site is due to undergo extensive restructuring in 2006 / 2007; this restructuring is required on the basis of new orders for the production of double clutch transmissions. This restructuring will also impact the existing structural fabric of certain production halls, which needs to be strengthened, requiring considerable work in some cases. It is particularly worth mentioning that the new double clutch transmissions have to be assembled under clean room conditions. Figure: Dry deburing of shaft teeth Figures: Demolition of boiler house with chimney, demolition of residential accommodation blocks, successful restoration to natural state

18 > 18 < Rosenberg Bad Windsheim Associates: 422 (12/31/2005) Total area: m² Built area: m² Rosenberg Associates: 470 (12/31/2005) Total area: m² Built area: m² Figures: Modern production systems in Rosenberg In February 2005, the decision was taken to demolish the first of the two transfer lines following the discontinuation of the 220 transmission type. Figures: Demolition of the transfer line Inline manual transmissions are produced and assembled at the Rosenberg site. In the past, the assembly processes frequently generated noises that were uncomfortable for the human ear. This resulted in noise protection measures with the aim of achieving a noise exposure level of <75 db (A) in the whole assembly hall. To this end, the hydraulic units and two press stations were completely encapsulated. Another success is in the increased motivation of the associates, who now no longer feel that their performance is impaired thanks to the elimination of disturbing noise. To maintain the service life of machining oils on Präwema highperformance honing machines, extensive tests were conducted to establish the purity degree of the oil prior to machining and the impurities after machining. All of the Präwema highperformance honing machines were supplemented with magnetic roller systems in addition to centrifuges, achieving a purity degree of <15 µm. This created considerable process stability and a side effect of this is an extension of the alternating cycle times. There were no relevant changes to buildings, built areas or covered areas during the past year. Bad Windsheim This considerably reduced contamination, emissions and noise in the area of hall 3. Once the transfer line had been demolished, the hall was repainted, new lighting was put in and a new floor was laid. Figure: Grob machining center

19 Figures: Redesigning of hall 3 As a coating that was impermeable to media was applied to the floor back in 1989, this coating only had to be milled, to level the floor with the existing level of the hall. The capacity of the central cooling lubricant plant released in this area has been used by moving seven machining centers into this area. In consultation with the machine manufacturer, these are being converted from what is currently a decentralized coolant supply (1.100 liter per system) with chips discharged via a chip conveyor for connection to the central system with chips discharged via canals. A new parking lot was put in use on the south side of the plant in the nd 2 half of This was designed as a non-covered area with compound stone that allows seepage, so that the rain water can be drained away via a channel system. Figure: Parking lot GETRAG SynchronTechnik (GST) Oberstenfeld Associates: 445 (12/31/2005) Total area: m² Built area: m² The site was founded in 1960 as the first GETRAG external plant. The site was hived off in 1997 to form GETRAG SynchronTechnik GmbH. GST develops and produces synchronizing units and their individual components and supplies these not only to the GETRAG Group, but also to renowned external customers which it has since acquired. Nothing has changed superficially at GST since 2004, but the numbers of both associates and machines has increased. 64 new associates have been taken on or transferred from other GETRAG plants during the last two years. 11 combination machines for gearshift sleeves (wet machining) and five new plants for clutch bodies (dry machining) were procured. On the basis of current technology it is not possible to convert the gearshift combination machines for dry machining, as the chips cannot yet be fully removed in the storage machining process. For the Pittler brass synchronizing ring lathes, it was possible to calculate the difference in cost between wet and dry machining. According this calculation, dry machining on these plants is cheaper by 0,4 /teb (h). This produces an annual saving of approximately At the end of 2005, an automatic assembly machine was constructed that is designed to increase assembly reliability by automatically detecting faults. Furthermore, the plant can only take the prescribed packaging (reusable containers), thus redu- > 19 < cing the volume of paper and cardboard in the future and further decreasing the amount of waste. In the case of the EMAG dry lathes, all plants were retrofitted with CO2 extinguisher systems to improve process safety and prevent fires. Additional restacking cells for the ALD hardening furnaces and the extension of the automation on the inductive hardening plants help ease the workload for associates. The associates no longer have to move the parts or transport frames (racks) by hand. The two inductive hardening plants with linear carriages are now fitted with vents, further reducing the build-up of mist and odors in the hall. In a new MTM part cleaning system with automatic loading, the baskets are transferred wholesale to the plant in piles of several individual baskets filled with parts, to ease the physical strain on associates. Using a carousel system, the baskets are washed individually, one after the other, including the floor rollers, and then reassembled into ready cleaned piles of baskets. To maintain the timing of the individual treatment stages, each stage is compartmentalized. Operation with low emissions of exhaust air is ensured and the water recaptured by using a water-cooled vent condenser. These technical measures extend the service life of the electrically heated treatment baths. Two old broaching machines were demolished as planned and the broaching pits filled, so that the risk of ground contamination can now be ruled out. Oberstenfeld

20 > 20 < Insight into foreign GETRAG sites GETRAG S.p.A. Modugno / Bari (Italy) Associates: 789 (12/31/2005) Total area: m² Built area: m² The site in Modugno, southern Italy, was founded in 1996 and now primarily produces manual transmissions for GM, Fiat and Landrover. The Mann+Hummel central cooling lubricant supply plant was converted from non water-mixable cooling lubricant (oil) to watermixable cooling lubricant (emulsion) after extensive tests, last year. The oil mist that used to be generated no longer exists, a discharge of oil into the washing process via the parts is also precluded, as are tracks of oil on the hall floor caused by drips. As a result of the construction of a rain water treatment plant, the rain water that falls on the building roof and parking lot is collected and Köping dust and any oil impurities are removed from the water. Two additional thermal afterburning systems for the exhaust gas emissions from the vacuum hardening process have been installed to ensure that when the existing thermal afterburning systems fail or undergo maintenance work, no untreated emissions can be released into the atmosphere. GETRAG All Wheel Drive AB Köping (Sweden) Associates: (12/31/2005): 1,086 Total area: m² Built area: m² All-wheel systems, angle drives, rear axles, chassis systems and components are produced at GETRAG All Wheel Drive AB (GAWD). Modugno GAWD is a joint venture between GETRAG KG, DANA Corporation and VOLVO Cars Corporation. Heat recovery is used in the majority of ventilation systems. Roughly 90 % of all ventilation systems are controlled by a computer in order to achieve the best possible air quality. Wherever possible, the ventilation system is also switched off when production is shut down. For several years, the company has been working hard on minimizing the consumption of process media (e.g. cooling lubricants). As a result, the consumption per part produced has been continually falling. This reduction is due on the one hand to improved maintenance, which is extending the service life of the cooling lubricants, and on the other hand to the prevention of oil leakages from the machines. In several of the new processes, machining is even performed without the use of emulsion; this is also referred to as dry machining. In 2005, new tanks were installed within the building for storing spent cooling lubricant, so that there are now no more tanks outside. To avoid accidents, bicycle traffic has been heavily restricted in the production area. Further changes during the year have included the introduction of a smoking ban in all buildings as from February 1, Furthermore, the system for performing the exertion and hazard analysis and assessing the ergonomic arrangement of work centers has been optimized.

21 Göteborg The development process for the products produced in Köping takes place in Göteborg. A group of 15 associates are working on product development here. After an initial makeshift solution, a new building was purchased at the end of 2004 after a six-month building period. This building is used jointly with the development group at GETRAG FORD Transmissions. GETRAG Corporation USA GETRAG Axle Plant Newton, NC (USA) Over the years, the production range has shifted towards differentials and PTUs (power take-off units). A huge production order meant that it was necessary to purchase the furniture factory directly next to GETRAG (GETRAG Axle Plant 1), together with the land and buildings, in January Figures: Modernization of the new buildings > 21 < This became GETRAG Axle Plant 2 and increased the area of the site. Work began to modernize the purchased buildings and bring them in line with the requirements and the GETRAG standard. The two halls already modernized now contain a central storage facility and the two assembly lines for PTUs and axles. When the hardening furnaces were demolished in 2005, the soil underneath the hardening furnaces was found to be slightly contaminated with oil. Extensive soil analyses showed that the contaminated soil was easily contained to a small area and that the groundwater was not affected. 340 tons of soil were excavated as a result and disposed of in an environmentally friendly manner. The new concrete floor was coated with Stonehard, a coating impermeable to media, that will prevent further contamination of the soil in future. These and other experiences enable us to learn from past mistakes, handle resources carefully and constantly improve our performance, not least so that future generations can inherit a world worth living in (GETRAG Vision). GETRAG Engineering Center Sterling Heights, MI (USA) Associates: 400 (12/31/2005) Total area: m² Built area: m² GETRAG Axle Plant (GAP) was founded in 1986 to produce timing gears for engines. GETRAG Axle Plant 2 Newton GETRAG Axle Plant 1 Associates: 53 (12/31/2005) Total area: m² Built area: m² The Development department for the American sites is based at the Sterling Heights site (near Detroit), along with the Sales and Purchasing department for PTUs and axles. Apart from the installation of a small photovoltaic system for supplying energy for the external lighting, there were no changes to the building last year with any relevance to the environment. In terms of the size and nature of the site, the clear focus of optimizations in the area of environmental

22 > 22 < Pictures from Charleston: Part cleaning system Sterling Heights Automatic personal protection equipment dispensers Figures: Product optimization in Sterling Heights View of production protection is on product-related issues. For example, the weight of parts in certain types has been further reduced and lead-coated blanks have been replaced with lead-free blanks. GETRAG Precision Gear Charleston, SC (USA) Associates: 274 (12/31/2005) Total area: m² Built area: m² GETRAG Precision Gear (GPG) is located in hired premises. GPG achieved several improvements in terms of the environment and safety in Automatic personal protective equipment dispensers have been installed to monitor the quantity of consumable materials and also reduce waste substances. GPG has a new part cleaning system that has a more efficient cleaning process and therefore uses less water and chemicals. The machine was positioned lower in order to create a more ergonomic working environment for the associates. Charleston The ventilation system in the hardening shop was optimized in order to improve ventilation and in turn the air conditioning and air quality.

23 > 23 < GETRAG Hi-Tech Gears Bhiwadi (India) Associates: 73 (12/31/2005) Total area: m² Built area: m² Bhiwadi GETRAG Hi-Tech Gears (GHT) has been producing timing gears for OEMs in the USA since August 2000 and is a joint venture between GETRAG Precision Gear and HiTech Gears. During the preparations for environmental protection certification to ISO 14001, a number of challenging areas of environmental protection concerning emissions, water consumption or electrical hazards inside and outside of the building were tackled and improved. A few examples of some of the changes made should serve as an illustration: Water consumption was reduced by 80 % by optimizing the groundwater pump and water storage tanks. The ambient noise was considerably reduced by encapsulating the diesel generators. Optimization of the disposal of chips and better separation of these from the adherent emulsion by installing and operating a chip press. Bhiwadi Further measures such as the installation of a dedicated waste water treatment plant or the use of rainwater are planned and will contribute to the continual improvement process to reduce damage to the environment.

24 > 24 < 10 years of environmental management in Rosenberg - a constant challenge The change And if you are not willing, the market will push you out : this was a key statement by one of our customers and was made in reference to thinking about wastage and by extension preserving resources in order to protect the environment. Of course, there is a background to this. The preservation of resources should also reduce the overall costs to us as manufacturers of transmissions and be reflected in the end price for our customers as consumers. Figure: Handover of EMAS certificate in May 1996 From right to left: Messrs Göller, Wolf, Dr. Bode (external environmental expert), Ritzenfeldt and Weimer Implementation A site-specific team was set up under the auspices of the central EHS management (BPM) to deal with EU Regulation 1836/93, and later EMAS (761/2001). The core team consisted of Messrs Kilgus, Wolf, Weimer and Göller from the site and Messrs Wrobel and Ritzenfeldt from the head office. Before participation in the EU Regulation was possible, the legal position of the company had to be clarified, i.e. specific attention was given to compliance with legislation for environmental protection. Any variances were dealt with as part of the project right up to validation of the company. A chart of accounts had to be produced for all flows of goods into and out of the plant, starting from raw parts and oils through to volumes of waste water and waste. The existing environmental management system was expanded to include the additional requirements for EMAS. Prior to validation, our first Environmental Statement was produced and distributed to all associates as well as to the public. The Management regarded the publication and the opportunity afforded by the EMAS environmental logo to show the outside world that GETRAG is proactively engaging in this issue before being pushed into it by customer as the ideal opportunity to get one step ahead in responding to the aforementioned future demands of the market. In addition, a large element of our environmental policy was implemented: >Which is why we actively support a balanced relationship between ecology and economy in order to provide our children with an environment worth living in< Preparing for external auditing In an internal environmental audit in February 1996, performed by Roland Roth from Neuenstein, the environmental aspects of the EU Regulation were examined at the Rosenberg site and found to be in order. The big day finally came on May 23, The external auditing organization Ernst & Young GmbH, represented by Dr. Bode and Mr. Rauscher, inspected the environmental management system at the Rosenberg site in accordance with EMAS. The result was evident and culminated in the awarding of the EMAS certificate to the site by the representative of the Rhine-Main Chamber of Commerce and Industry in Mannheim, President Eirich, on July 1, The GETRAG Rosenberg plant th thus became the 7 company in this region to be recorded in the register under the number DE-S A great success! The broader outlook The introduction of this environmental management system in the Rosenberg plant was a clear demonstration that there are opportunities for improvement in the GETRAG world and the logical conclusion of this was to include all of the other German sites in EMAS. The Neuenstein plant followed in 1997, the Bad Windsheim plant in 1998, the Ludwigsburg plant in 2000 and GETRAG Syn-chron- Technik in Oberstenfeld in In 2003, the Untergruppenbach and St. Georgen sites in Germany and GETRAG S.p.A. in Modugno/Bari, Italy, were validated under EMAS for the first time. We are vindicated by our success. It is a recurring challenge to face the external and internal environmental management auditors. Although it is now becoming harder to carry out new environmental projects with any major potential for improvement, we are always finding new ways to improve. Since 2003, all issues and requirements in relation to environmental protection and occupational health and safety have been recorded in our worldwide GETRAG EHS management system. This management system, under the responsibility of the EHS Management department, has also been certified to OHSAS since 2003 and is kept up to date and available to all associates at all times via the INTRAnet. A focal point and key objective of further optimization of our EHS management system will be to place the emphasis on increasing the independence of our associates.

25 Figures: > 25 < First Environmental Statement by Rosenberg, 1996 (below) and informing the associates and the Management (Right) Pictures from the auditing of the Rosenberg plant

26 > 26 < Waste / figures - data - facts In 2005, the sites of the GETRAG Group in Germany generated a total of tons of waste, from scrap and paper through to conventional household rubbish, that was forwarded for recycling or disposal. The absolute volume of waste and the fact that this has remained virtually constant during the last three years can be seen in the diagram Volume of waste (in tons). Figure: Pressed swarf Figure: Chips from dry milling The recycling quota, or more accurately the ratio of recyclable waste to total volume of waste, has been more than 98 % at GETRAG for a number of years. The volume of waste for recycling fell from tons in 2004 to tons (see diagram: Volume of waste (in tons)). The volume of waste for disposal rose year on year from 39 tons to 73 tons. Diagram: Volume of waste (in tons) The main reason for the decline in the volume of waste is attributable to the smaller volume of scrap metal, particularly in Ludwigsburg and Neuenstein and the reduced volume of residue from dialysis from the waste water treatment plant as a result of the new plant design in Ludwigsburg. The other portions of waste were also subject to site-specific fluctuations, although these are more or less balance out. If the total volume of waste is compared against the number of transmissions produced, there is a reduction of 4.4 % from 10,98 kg/transmission in 2004 to 10,52 kg/transmission in 2005 (see diagram: Key waste figures (in kg/transmission)). Diagram: Key waste figures (in kg / tranmission) Structural waste was deliberately excluded from this representation of the key figures, as these would alter the key figures disproportionately and a year-on-year comparison would no longer be possible. You can also find a detailed representation of the waste per site from the input/output balance sheet on page 40.

27 Waste disposal company audits Figure: Waste collection point in Oberstenfeld > 27 < To ensure that waste is being disposed of correctly and the disposal companies are adequate partners for GETRAG, audits of the waste disposal companies are performed on a regular basis by the waste officers for the individual sites. To minimize the time that this takes, the waste officers decided to improve the coordination of the waste disposal company audits to be performed and divide into audit teams. The depth and quality of the audits were improved by introducing a standardized audit process. IUWA Waste Manager To improve the recording and analysis of waste flows, the IUWA Waste Manager software was introduced on all sites in 2005 (see Figure: IUWA Waste Manager). The IUWA Waste Manager enables waste officers to meet statutory obligations easily. Using the evaluation functions provided in IUWA Waste Manager, (almost) any quantity- or costbased balance sheet can be produced for the waste flows on each site. The program records all of the relevant master data for this and completes the ongoing postings of the waste generated. At the end of the year (or at any required point), the software produces the audit trails required by law as well as additional statistical evaluations. The software also allows standardized benchmarking of waste data for all sites, which means that comparisons can be drawn between the sites and potential optimizations can be identified. Figure: IUWA Waste Manager

28 > 28 < Water and waste water / figures - data - facts Water consumption on the GETRAG sites in Germany totaled approximately m³ or 105 liter per transmission in This consumption is identical to the water consumption for the previous year. The water is used for sanitary facilities (approx. 40 %) and in production (approx. 60 %). In production, the water is largely used to produce cooling lubricant emulsions, as washing water for cleaning parts or for cooling technical plant and machinery. Due to the high standards of quality and hygiene required in our production processes, only water fit for drinking can be used here as a rule, which means that rainwater or groundwater (gray water) is currently mainly used in the toilet facilities or as cooling water. The proportion of gray water was therefore only approximately 3 % in Introduction of further dry machining and minimal quantity lubrication technologies; Optimization of production processes to minimize washing processes. Figure: Comparison of waste water: Prior to treatment in our internal waste water treatment plant, the production water is dark, gray and extremely cloudy from oils and detergents (see left). After treatment of the waste water, the water is clear and only slightly yellowed. Diagram: Water consumption (in m³) The production water is contaminated with oil, detergent and other chemicals, which means that we cannot release this waste water into a communal sewage treatment plant along with the waste water from our sanitary facilities. The microorganisms in the communal sewage treatment plant could be damaged by these substances. Our production waste water therefore has to be thoroughly cleaned in the internal waste water treatment plants before the waste water can be released into the public sewerage system. The quality of purification of our internal waste water treatment plants is checked regularly by an independent laboratory. Diagram: Key water figures (in Liter per transmission) Our internal waste water treatment plants are able to reduce the protective freight by approximately 80 % (in relation to the COD value). However, as this internal purification of waste water is extremely costly, we are continually endeavoring for financial reasons to reduce the volume and contamination of production waste water, for example by means of: Rigorous replenishment of the cooling lubricant emulsions to prolong service lives;

29 > 29 < Cooling lubricants / figures - data - facts Although a number of advances have been made in the development of dry machining processes and in the area of minimal quantity lubrication over the last few years, the use of cooling lubricants is still an important environmental issue in our transmission production. GETRAG uses both water-mixable cooling lubricants (emulsions) and non water-mixable cooling lubricants (oils) for machining metals. However, the share of non watermixable cooling lubricants has fallen by 34 % over the last two years to liter. Consumption of water-mixable cooling lubricant has only changed slightly and amounted to approximately liter in Figure: Processing of cooling lubricant emulsion in the central plant on the Untergruppenbach site Diagram: Cooling lubricant consumption (in liter) Figure: The aim of the weekly monitoring of cooling lubricant emulsion is to detect microbial contamination at an early stage in order to avoid major contaminations. Diagram: Key cooling lubricant figures (in liter per transmission) If we take cooling lubricant consumptions per transmission produced, it can be seen that the demand for non water-mixable cooling lubricant has fallen by approximately 6 % to 0,344 liter per transmission during the past year due to the changes in production technologies and the systematic optimization of the basic conditions implemented over the last few years. Consumption of water-mixable cooling lubricant remained virtually unchanged at 0,171 liter per transmission in 2005.

30 > 30 < Energy and emissions / figures- data - facts Electricity consumption for production and the consumption of fossil fuels such as gas and fuel oil for heating the building are some of the main resources used at GETRAG. The ensuing direct and indirect emissions are still one of the most important environmental issues at GETRAG. In monetary terms as well, the proportion of expenditure attributable to energy is extremely high at 80 % compared to the costs for water/waste water, cooling lubricant and waste (see diagram: Breakdown of environmental costs). Diagram: Breakdown of environmental costs sites, they are still included in the assessment. With the current energy mix in Germany, the consumption of one kwh of electricity generates the emission of approximately 590 g of CO2 (cause of greenhouse effect), 0.8 g of SO2 and 0.5 g of NOx (cause of acid rain). The specific data (260g/kWh) of EnBW were used at GETRAG for the first time in 2005, a factor that halved the calculated CO2 emission. The first-time inclusion of the energy consumptions of the LSC at the Heilbronn site has produced slight changes to both absolute consumptions and the key figures in this year's Environmental Statement. This represents an absolute increase in electricity consumption of 801,794 kwh and a remarkable 2,115,600 kwh in district heating for heating the large halls, which constitutes a not inconsiderable share of 9 % of the total energy consumption of all German sites. The current consumption of all German sites totaled 112,476,420 kwh in 2005, remaining almost unchanged on the previous year. Increases and decreases at individual sites balanced each other out in part. Increased consumptions of compressed air through the introduction Diagram: Energy consumption (in kwh) We are therefore extremely concerned to continually reduce the consumption of energy further, both in absolute terms and per transmission, to optimize processes and procedures and to not only maintain the state of the art but also go beyond it wherever possible, thereby continually reducing environmental impacts and saving costs. The efficient use of energy will contribute significantly to preserving natural resources (natural gas, crude oil) and reducing carbon dioxide emissions, which are a major contributing factor to global warming. Diagram: Key emissions figures (in kwh per transmission) The overall energy consumption of the GETRAG Group in Germany of 136,632,096 kwh in 2005 can be broken down into electricity, fuel oil and gas (see diagram: Energy (in kwh)). The largest share of energy consumption shown for all Germany sites continues to be electricity. Even if the emissions for the electricity used by GETRAG are not generated directly on the GETRAG

31 of dry machining for transmission types 217/252/452/453 at the Bad Windsheim site or the commissioning of two additional motorized transmission test stands on the Rosenberg site resulted in an increase in electricity consumption. The potential for saving energy is exploited in a number of ways on the sites. By changing over to frequency-controlled pumps in the central cooling lubricant plant on the Ludwigsburg site, the energy consumption of the pumps was constantly matched to the actual requirements of the production machines, for example. This allowed a reduction in the energy consumption of the plant by approximately 40 % and prevented reactive power. Gas and fuel oil consumption would have actually fallen by about 5 % year on year. However, the inclusion of the LSC produced an absolute increase to 24,155,676 kwh for gas and fuel oil. This is the only GETRAG site in Germany where the heat requirement is covered by district heating. The concept behind district heating is to also use the waste heat generated in the power plant next to the site as an unwanted byproduct to supply electricity. Normally the waste heat is simply dissipated into the atmosphere and in this case the efficiency of the power station is confined to the electricity it generates. To increase the effective efficiency, however, the thermal energy generated can also be used, removing the need for a separate heating system. Reductions have been achieved through various and often small measures. For example, the lowest gas consumption since 2002 was achieved at the Untergruppenbach site through further optimization of the condensing boiler, reducing the return temperature, reducing room temperatures on the basis of the heating load, as well as adjusting the running times of ventilation and air conditioning systems and optimizing the frequency-regulated pumps. Consumption was reduced by around 18 %. Further interesting investigations are in the pipeline for 2006, e.g.: Examining the viability of using a thermal solar system for processing industrial water from a financial and ecological point of view, possibly to include a pro rata supply of the other heating and ventilation and air conditioning systems (Untergruppenbach site). In collaboration with the Rosenberg community and Abfallwirtschaftsgesellschaft (AWN) des Neckar-Odenwald-Kreises, investigations are underway to ascertain whether GETRAG could reduce heating costs and therefore avoid using fossil fuels if it were connected to a biogas plant (Rosenberg site) > 31 < If we look at the total energy consumption in relation to the transmissions produced (see diagram: Key energy figures (in kwh/transmission)), it can be seen that there was another slight increase in comparison to 2004 from 158 to 162 kwh per transmission. This change is also largely attributable to the first-time inclusion of the LSC. CO2 emissions have developed proportionally to energy consumption. These developments can be seen in the diagrams Emissions (in tons CO2) and Key emissions figures (in kg CO2/transmission). Diagram: Emissions (in tons CO ) Strom / electricity Erdgas / natural gasoline Heizöl / heating oil Diagram: Key emissions figures (in kg CO2 per transmission) At the Ludwigsburg site, the building heating system was fitted with the latest heating technology and the shed roof of one of the production halls was reglazed, improving the K-value by 35 %.

32 > 32 < Health promotion / prevention The user-friendly arrangement of work centers is the basis for safeguarding the long-term health of associates and ideally even actively contributing to upholding health and safety. In addition to ergonomic and safety requirements, the conditions of the working environment such as noise, room climate and chemical vapors must be taken into account when planning work processes and work centers. Plant planning therefore plays a crucial role in promoting occupational health and safety. As part of the risk assessment, the potential residual risks are analyzed and assessed systematically to assist in prevention and appropriate measures for improvement are examined to preclude accident hazards and negative impacts on health. In 2005, the average sickness level was 5.7 %. This represented an increase of 0.5 percentage points on the previous year. A comparison of the different GETRAG sites shows an extremely disparate development of sickness levels. Figure: Moisturizing the skin is important for those who come into daily contact with oils and cooling lubricants to prevent long-term skin problems As part of the universal introduction of these analyses, several hundred measures for improvement have been implemented over the last few months to reduce negative impacts on health and preclude accident hazards. Unfortunately, these improvements are not yet reflected in all of the key figures. However, organizational aspects such as shift patterns, management structures and the employment situation can also have negative impacts on health. Figure: Noise measurement at the Bad Windsheim site Figure: State-of-the-art safety technology (Shown in yellow font here by way of example: light barriers) prevents injury to associates from moving machinery

33 Diagram: Sickness levels at the GETRAG sites in Germany > 33 < Figure: Leisure facilities to promote health are included in the health program at a number of the GETRAG sites, such as Nordic Walking in Rosenberg Figure: Healthy eating is at the forefront of the watch-yourweight campaign in Untergruppenbach Figure: To again ensure that our associates get home safely without accidents, regular driving courses for cars or motorbikes are offered. These courses teach drivers how to handle critical situations on the road.

34 > 34 < Emergency management / accident statistics The aim of occupational emergency management is to establish an internal organizational structure to minimize injury to persons and damage to property. Figuer: Emergency Center in Rosenberg This includes ensuring, for example, that every associate is informed of the following: How to seek professional assistance in an accident or medical emergency (internal emergency number, first-aiders etc.); Which escape routes will lead to a safe assembly point in the event of fire; What action must be taken in an environmental emergency. To optimize this emergency management, evacuation drills and practical exercises on operating fire extinguishers were carried out at the GETRAG sites in Through regular training of company first-aiders and company paramedics, we ensure that injuries receive top-quality treatment. 1,129 accidents (injuries) were registered in This figure also includes travel accidents and what are referred to as minor injuries. 83 accidents resulted in incapacity for work for more than 3 days. As these accidents have to be reported to the employer's liability insurance association, they are referred to as notifiable accidents. The key figure of notifiable working accidents for every 1 million operating hours remained unchanged at 15.9 in By way of comparison, the average for the SMBG (employer's liability insurance association) was 33.6 notifiable accidents for every 1 million operating hours in This means that there are 50 % fewer accidents at GETRAG than the average for the industry, although there are still huge variations between the various GE- TRAG sites. The length of time for which associates were signed off sick as a result of working accidents rose very strong (+52 %) in Efforts are therefore being made to minimize the incidence of accidents even further. An important starting point is promoting awareness of safe and responsible actions. Figure: Defibrillators for resuscitation were procured in 2005 and a number of associates were trained in how to use them Figure: Associates are taught how to operate fire extinguishers in the context of practical exercises

35 Table: Key accident figures > 35 < No. of Notifiable Incapacity days per Year registered Notifiable industrial working accidents associate due to accidents accidents per 1 million industrial accidents operating hours ,1 0, ,9 0, ,9 0,35 Change (%) - 21 % - 5 % 0 % + 52 % y.o.y. Diagram: Notifiable working accidents per 1,000 employees Diagram: Number of incapacity days per associate due to working accidents

36 > 36 < Report Alexander Titschka and Ralf Titschka, Neuenstein Major fire drill at the Neuenstein site with evacuation of the heat treat area th At 6:54 p.m. on Friday October 20, 2005, the emergency telephone rang in the Plant Safety office. Foreman Felix Golla from GPS5 reported an explosion in the hardening shop. At this point, no one knew that this was actually a major drill that had been arranged with plant managers. The duty Plant Safety Officer immediately triggered the alarm for the plant fire service and notified the responsible staff in accordance with the alarm plan. By 6:58 p.m. the fire fighting vehicle from the plant fire service was already on the scene with 6 officers. Once the location of the explosion had been identified, it was clear that the internal fire service would not be able to deal with the damage on its own. As officer in charge, the fire service commander gave the initial situation report to the control center and requested backup from the Neuenstein fire service. It was assumed for the purposes of the drill that the explosion had caused a major fire and at least two people were missing. Orders were given via a megaphone to evacuate the heat treat area. The associates proceeded very calmly to the assembly point in front of the Schwarzwaldhaus building. The control center gave the full alarm for the Neuenstein fire service. At 7:04 p.m. two teams from the fire service with breathing apparatus were in the heat treat area rescuing people. Following the evacuation over the megaphone, the situation outside the shop was investigated and at 7:10 p.m. a fire truck and command vehicle with task force were requested from the Öhringen auxiliary fire service. The officer in charge then gave the instruction to disconnect the supply of electricity, natural gas and liquid petroleum gas to the heat treat area. This was done by the Plant Maintenance associates. The following message was then issued by one of the crew: A vessel with hazardous substance found, some contents released. The first two vehicles from the Neuenstein fire service convened at the site of the explosion at 7:17 p.m. and were sent to rescue people from underneath the heat treat area and to gain control of the fire. Four more vehicles from the Neuenstein fire service arrived at the site together at p.m. at the same time as the triple combination pump unit and the turntable ladder from the Öhringen fire service. The officer in charge was supported in his role by District Fire Chief Günther Uhlmann and the task force from the fire service. At 7:32 p.m. three teams from the Neuenstein fire service were sent into the hardening shop with breathing apparatus to rescue people. A supply of water for fire-fighting was set up to gain control of the fire. The command vehicle and another triple combination pump unit equipped for industrial fires arrived at the site. The Öhringen fire service was deployed to street above the heat treat area to gain control of the fire there with the turntable ladder and triple combination pump unit. The two missing people were rescued at 7:44. Following instruction from the officer in charge, the task force took over. The site was divided into three sections and the radio channels were allocated to the respective sections. At the briefing, the section leaders, officer in charge, District Fire Chief and Plant Management assessed the situation together and discussed how to proceed. The commander asked Plant Management the following simulative questions and received satisfactory answers: Who is the Press Officer for GETRAG? Who liaises with the public prosecutor's office, police, authorities, insurance company, press and the relatives of associates injured or even killed? Is there a standby production facility for the hardening shop so that deliveries to customers are still guaranteed? The end of the drill for all those involved in the emergency response team was announced at 8:30 p.m. A total of 87 people and 14 fire-fighting vehicles had been deployed. The District Fire Chief concluded the drill with extremely high praise for all those in involved in the emergency response team.

37 > 37 < Environmental protection in development Figure: BMW M5 (247) transmission Further information about double clutch transmissions and hybrid drives can be found below: The environmental requirements of customers and pertinent environmental legislation and regulations are taken into account and implemented within the development teams in the development phase of the transmissions. We have already reported on the basic procedures for this at some length in the last few Environmental Statements. We will therefore only address a few new key aspects in this Environmental Statement. The documents recorded in the revised procedure (VAU 013) Production of environmental documents for new projects and the GETRAG guideline (GR 028) Environmental concept of GETRAG are evidence of compliance with all requisite environmental matters. Outstanding project in 2005 The development of a 7-gear AMT transmission for the BMW M5 with the inline architecture is another milestone in automated manual transmissions. Building on the knowledge base derived from the MK1 and MK2 hydraulic add-on systems, the MK3 Figure: BMW in testing integrated hydraulic system was developed with considerably shorter shift times, increased ease of shifting and an extended range of functions. Important individual environmental issues were taken into account: Reduction in weight by producing the gearshift mechanism in aluminum Reduction in gasoline consumption and emissions through: - Automatic performance map specifically customized to optimize consumption - Replacement of vehicle tests with test stand tests Greater cleanliness in the assembly work center: - No spillage of hydraulic oil at the assembly site; the complete module (hydraulic unit, slave cylinder and transmission actuator) is delivered ready for assembly. Development trends in transmission technology For a number of reasons, we expect a considerable shift in the current situation in transmission technology. The double clutch transmission is superior to other technologies in terms of environmental impact and consumption. The next stages in development will be towards both hybrid drives and fully electric drives that can be powered by fuel cells. Dual clutch transmissions (DCT) Various double clutch transmissions are currently under development in the GETRAG Corporate Group and are due to go into series production from These are inline and longitudinal transaxle applications with a wet double clutch for torques of between 400 and 800 Nm, and front transverse (transaxle) applications with dry or wet double clutch for torques of between 150 and 450 Nm. There are therefore suitable DCTs for a broad range of vehicles. Hybrid drives The automated transmissions such as AMT and DCT are particularly suitable for hybridizing the driveline. They combine optimum transmission efficiencies with high flexibility in the choice of gear ratio. Extremely high technical synergies are therefore possible. There are prototypes of a double clutch transmission with two electric motors (full) and an AMT with an electric motor (mild); these have been tested in the vehicle. Hybridization (as a mild or full hybrid) is a technology that can be used for all vehicle categories; its advantages are reductions in consumption, particularly in city traffic, greater longitudinal dynamic (boost function) and the option of adding further electrical functions to the vehicle. In addition, we regard hybrid technology as a bridging technology leading to further drive forms in the future, such as the fuel cell drive.

38 > 38 < Environmental protection and occupational health and safety program Our new targets and measures formulated in 2006 (extract from the current environmental protection and occupational health and safety program) 2006 Environmental Protection and Occupational Health and Safety Program Location Target Individual target Measures Deadline Department Costs Worldwide Improvement of communication Exchange of information between the sites of the GETRAG Group Organization of a worldwide EHS meeting in EHS management - Untergruppenbach Increased awareness of environmental issues of our suppliers Increase in proportion of main or strategic vendors certified in accordance with ISO or EMAS to 90 % Strategic suppliers must be certified i n accordance with ISO or EMAS Purchasing - Untergruppenbach Improvement in terms of emissions 10 % reduction in fuel consumption of a dry DCT in relation to an automatic transmission with a torque converter Development of a dry double clutch transmission Development - Untergruppenbach Improvement of EHS management Optimization of the risk analysis Development of software to perform the risk analysis EHS management - Heilbronn Improvement in terms of emissions Reduction in truck emissions Optimization of number of journeys to Kechnec (motorcycle transmission) Plant management - Oberstenfeld Improvement in terms of emissions Reduction of hazard to associates during maintenance work as a result of exposure to soot particles from diesel emissions Abandonment of last two diesel fork-lift trucks, to be substituted with existing electric fork-lift trucks Logistics - Oberstenfeld Improvement in occupational health and safety Optimization of process for clarifying necessary health checkups on appointment of new employees Once a company identity card has been issued, a newly appointed associate should report to the company medical service as soon as possible Occupational health and Not safety/company measurable doctor Oberstenfeld Improvement in respect of cooling lubricant Optimizations and improvements in handling cooling lubricant, with a view to increasing service life and thus reducing consumption. Analysis of actual situation and formulation of written proposals for measures for improvement in the area of the ATG11 on the basis of this Occupational health and safety/logistics Not currently measurable Neuenstein Neuenstein Improvement in occupational health and safety Improvement of occupational health and safety Reduction in notifiable industrial accidents Abolition of decanting system for existing bottles of eye wash Creation of 4-6 jobs for "less-abled associates" on the VOLVO assembly line as "sheltered employment" Procurement of new disposable bottles of eye wash Maintenance Occupational health and safety - Neuenstein Improvement in respect of water Reduction in volume of waste water to be treated Removal of tenifer baths Production - Ludwigsburg Improvement in respect of cooling lubricant Minimum saving of 4000 liter cooling lubricant per year Investment in a dry machining helical toothing machine Production Ludwigsburg Improvement in occupational health and safety Reduction of sickness level to 2004 level Introduction of a holistic "heal th and safety" concept for long-term improvement and promotion of occupational health and safety Plant management/company doctor/occupational Health and Safety - Rosenberg Improvement of occupational health and safety Easing of workload for rooftop infrastructure center activiti es Installation of a second overhead crane Maintenance Rosenberg Improvement in terms of emissions Improvement of ventilation and air conditioning, 30 % reduction in cooling lubricant emissions from processing machines Testing of new exhaust air cleaning systems from 3nine Plant management Rosenberg Improvement of consumption of resources Annual saving of approximately 14 tons machining oil by using a reraffinate Testing of a re-raffinate as a machining oil Environmental protection and occupational health and safety - Bad Windsheim Improvement in respect of noise Reduction of noise emissions by Scrapping and sale of BAZ10558 transfer scrapping non-encapsulated plants line Plant management/pr oduction Bad Windsheim Improvement in respect of cooling lubricant Reduction of quantity of cooling lubricant used in production by approximately liter per year Conversion of 7 machining centers from decentralized to centralized cooling lubricant supply (central bag system) Plant management/m aintenance

39 > 39 < Environmental protection and occupational health and safety program The new targets set out in the last Environmental Statement have been achieved and the measures have been implemented. Those targets and measures that are still in the implementation phase or for which there have been changes in terms of deadline or implementation are defined below Environmental Protection and Occupational Health and Safety Program Location Target Individual target Measures Deadline Department Costs Oberstenfeld Improvement in respect of waste Conversion to dry machining for existing gearshift sleeve combination machines Completion of investigations and tests Planning / Production / Logistics Not currently definable Neuenstein Improvement in respect of noise Reduction of noise Installation of a noise protection wall in the waste water treatment plant Occupational health and safety Rosenberg Reduction of contamination risk Shutdown of cross conveyor chip intake chute as part of restructuring to environmentallyfriendly vacuum transfer of chips Phase I of shutdown of turning/grinding chip ducts Production Rosenberg Reduction of contamination risk Straightening and sealing of outer area Laying of a wearing course after the demolition of the "Rohteilhalle" inner courtyard Maintenance - Bad Windsheim Reduction of contamination risk Prevention of contamination Creation of a central waste collection point Management / plant management Bad Windsheim Improvement in terms of resources Additional building measures to prevent sealing of soil Use of area created a new building project Plant management/maint enance - Unfortunately, it was not possible to implement the following targets: 2006 Environmental Protection and Occupational Health and Safety Program Location Target Individual target Measures Comments Untergruppenbach Improvement in respect of legal security Increase of number of direct Letter or reminder to suppliers who supplier that have confirmed the have not yet confirmed GN GN 4410 It was not possible to meet target as a revised GN 4410 was published in April The target will be carried over in the EHS program on a rolling basis. Worldwide Improvement of EHS management Amalgamation of EHS Management Manual with process handbook (Quality Management Manual) Implementation of integration Integration of the EHS management documentation at levels 1 to 3 into the process handbook is not being pursued any further at present due to a revision of the process manual structure. Various approaches have not produced the anticipated effect. Although there are minor procedural interfaces at the top level between QM and EHS, practice has shown that the contents are largely independent of each other. A decision on how to proceed further will be taken once the revision of the process handbook is complete. Ludwigsburg Encouragement of sustainability Planting of vegetation on Ruhr- Straße Creation of plant areas with natural tree cover. The project was stopped following consultation with the City of Ludwigsburg and will not be resumed in the short to medium term.

40 > 40 < Input / output This extract from our 2005 report on flows of materials having an environmental impact relates to the use of materials and energies (input) and the products generated as a result of our processes as well as ensuing waste, waste water and emissions (output). Input - Output - Balance Total for GETRAG Germany Heilbronn Untergruppenbach St. Georgen Input 2005 Oberstenfeld Neuenstein Ludwigsburg Rosenberg Bad Windsheim Operating supplies Gear oil m³ Cooling lubrification substances - watermixable , m³ - non-watermixable , m³ Hydraulik oil , m³ hardening oil m³ Methanol m³ Energy source Electricity kwh light fuel oil * kwh Natural gas kwh Diesel fuel (eng. test bench) kwh Benzin (eng. test bench) kwh *district heating Water Drinking water m³ "Greywater (rain + groundwater) m³ Total of GETRAG Germany Heilbronn Untergruppenbach St. Georgen Output 2005 Oberstenfeld Neuenstein Ludwigsburg Rosenberg Bad Windsheim Produced parts Transmission (Europa) ** *** parts Synchroneinheiten (Europa) parts Waste for recycling ** 1200 supplied transmissions and 780 installed transm issions. *** housings, shift forks and This is not taken into account in the computat ion of the key figures and the summation. shift rails will be delivered only to GETRAG sites. no monitoring to monitoring to special monitoring to Waste for disposal monitoring to special monitoring to Waste figures excluding structural waste CO 2 - Emissions Electricity to Benzin (eng. test bench) kg light fuel oil to Natural gas to Diesel fuel (eng. test bench) to Benzin (eng. test bench) to Waste water Waste water (e.g. sanitary) m³ Waste water after WWT m³ evapuration m³

41 > 41 < Glossary AMT: COD: DCT: EHS: Automated Manual Transmission Chemical Oxygen Demand Dual Clutch Transmission Environment, Health, and Safety EMAS II: (EU) Regulation no. 761/2001 from the European Parliament and Council dated March 19, 2001 concerning voluntary participation in an eco-management and audit scheme. GPS: GST: CVP: LSC: OEM: OHSAS 18001: VDA: Holistic production segment GETRAG SynchronTechnik GmbH Continual improvement process Logistics Service Center Original Equipment Manufacturer Occupational Health and Safety Assessment Series (international standard for occupational health and safety management) Verband der Automobilindustrie (German Association of the Automotive Industry)

42 > 42 < Statement of validity Dr. Hans-Peter Wruk, Environmental Verifier In the period from 3/27/2006 to 4/6/2006, I, Dr. Hans-Peter Wruk Environmental Verifier Im Stook Pinneberg Registration number: D-V on behalf of the following sites / companies (GETRAG Group, Germany): GETRAG Getriebe und Zahnradfabrik Hermann Hagenmeyer GmbH & Cie KG GETRAG InnovationsCenter Hermann-Hagenmeyer-Straße Untergruppenbach Heilbronn site Logistics Service Center (LSC) Dieselstraße Heilbronn Bad Windsheim site Burgbernheimer Straße Bad Windsheim Ludwigsburg site Solitudeallee Ludwigsburg Statement of validity On the basis of the site inspections performed by me and after examining the submitted data and information, I hereby confirm that the environmental policy, environmental program, environmental management system, environmental audit process and this Environmental Statement 2006 for the named sites/companies (GE- TRAG Group, Germany) fulfill the requirements of (EU) Regulation no. 761/ 2001; I hereby confirm that the statements contained in this Environmental Statement 2006 for the named sites/companies (GE- TRAG Group, Germany) are reliable and that due account has been taken of all relevant environmental issues in these statements; This Environmental Statement 2006 is declared valid. Untergruppenbach, 4/7/2006 Neuenstein site Hermann-Hagenmeyer-Straße Neuenstein Rosenberg site Hermann-Hagenmeyer-Straße Rosenberg St. Georgen site Systems Engineering Industriestraße St. Georgen Dr. Hans-Peter Wruk Environmental Verifier GETRAG SynchronTechnik GmbH Lembacher Straße Oberstenfeld have audited compliance with the requirements of (EU) Regulation no. 761/2001 from the European Parliament and Council dated March 19, 2001 (Title: About voluntary participation in an ecomanagement and audit scheme, EMAS) in the version dated 2/3/2006.

43 > 43 < Translation of the Greetings (see pages 05, 06 and 07) Translation of page 05 Greeting for the 2006 Environmental Statement of the GETRAG Group There are many good and successful companies in Baden-Württemberg, but few with such an exemplary record in environmental protection and holistic management as the GETRAG Group. Ten years ago, GETRAG became one of the first companies in Germany to participate in the stringent EU environmental management system, EMAS, then still known as the eco-audit. GETRAG has not only loyally supported this system, but implemented it on all of its sites as a model for others to follow. The company was and still is paradigmatic in its comprehensive approach of environmental protection and health and safety. Not only does it live EMAS and sustainability in its everyday internal operations in conjunction with its associates; GETRAG also involves its customers. Out of the conviction of its beliefs and without subsidization, the company was involved in one of our EMAS convoys as godfather and mentor. With this method, several companies are amalgamated into one working group ( convoy ) and are steered towards EMAS under the guidance of a specialist adviser. This successful process worked best in the context of GETRAG in collaboration with Modell Hohenlohe Netzwerk betrieblicher Umweltschutz und nachhaltiges Wirtschaften e.v., where GETRAG gave small and medium-sized companies the benefit of their wealth of experience as an environmentally-oriented group. GETRAG has shown that an ecologically efficient management approach with motivated, creative associates will also produce economically successful results. The GETRAG Group is one of our greatest assets. It has a global presence but has also remained loyal to Germany with seven sites. The basis of this recipe for success is again evident from the most recent 2006 Environmental Statement from the GETRAG Group. Their wonderful allegory says it all: We have eight first violins playing at Getrag. These are: the associates, the suppliers, the environment, the families of associates, the shareholders, the customers, the company and its culture, and the products with their quality, reliability and profitability. GETRAG is constantly nurturing these assets and uses them prudently. I hope that your company, all its associates, the company management and the shareholders continue to have good fortune, success, loyal customers, public recognition and, in the interests of promoting environmental protection and high-quality sites, many companies following your lead. Let us hope that you can inspire many other companies to get involved in EMAS over the next 10 years and help these companies along this path. It will be worth it! [Signed] Tanja Gönner, Minister for the Environment, Baden-Württemberg Translation of page 06 Greeting from the Federal Minister for the Environment, Sigmar Gabriel 10 years of EMAS A success story The European environmental management system, EMAS, celebrated its th 10 birthday in We took this as an opportunity in a celebratory function to take stock and think about where we are heading. EMAS has established itself in all branches of industry and in public sector institutions, and more than 3,700 sites in Germany have been through the audit and validation process since Forerunners such as GETRAG have made a crucial contribution to the dissemination of EMAS. One thing is certain: environmental innovations, including in the context of an environmental management system, contribute to competitiveness. Competitiveness also has to factor in energy costs and the consequences of consuming resources. Our coalition agreement stresses the need for the combination of legal standards and checks on the one hand and autonomy for the economy and citizens on the other. The voluntary EMAS environmental management system is a proven model for this type of cooperation and, if there is a high level of participation, can demonstrate the effectiveness of this type of collaboration between the government, economy and society. I would like to see EMAS consolidated considerably as the best environmental management system available on the market. Early incorporation of EMAS into all programs, action plans and draft legislation at EU and national levels can significantly boost the integration of EMAS in all policy areas. I would be delighted if the economy were to support me in this with increasing numbers of participants in this project. [Signed] Sigmar Gabriel, Federal Minister for the Environment, Nature Conservation and Reactor Safety Translation of page 07 Dear Mr. Schlenkermann and Mr. Ritzenfeldt, Thank you for asking me to provide a greeting for your Environmental Statement. I am delighted to meet this request and you will find the greeting attached to this letter. I read the enclosed Environmental Statement with great interest. They clearly demonstrate the effect the introduction of EMAS has had on improving environmental protection. I can see from the documents that you are also particularly concerned about health and safety, and that in respect of indirect environmental issues you have placed particular emphasis on environmental protection and health and safety in purchasing as well as in relation to suppliers. I particularly welcome this, as by doing this you are helping greatly to disseminate EMAS even further and confirming your reputation for longterm corporate management. I will do all I can to support and promote EMAS at all levels. This means incorporating EMAS into EU environmental policy and legislation as well as into our legislation here in Germany, and taking all appropriate measures to strengthen the commitment of companies and increase the recognition of EMAS among consumers. I wish your Group every success in its future business. Yours sincerely, [Signed] Sigmar Gabriel

44 GETRAG Getriebe- und Zahnradfabrik Hermann Hagenmeyer GmbH & Cie KG GETRAG InnovationsCenter Hermann-Hagenmeyer-Straße Untergruppenbach Germany Fon +49.(0)