The Evolution of Efficiency

Senior Vice President, Sales & Marketing Freightliner Trucks

Nearly 70 Years of Truck Building

171

210

262

211 209

258

290

158

140

97

110

179

140146 146

184 187 185

203196

179169

148 153 159

171180

188193

205

90

120

150

180

210

240

270

300

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

U.S

. C

lass

8 R

eta

il S

ale

s (0

00

's)

U.S. Class 8 Retail Sales 10-Yr Rolling Avg.

Rolling 10-Year Average US Cl. 8 Tractor Sales

5.4 5.45.5 5.5

5.3 5.3

5.5

5.7

5.9 5.95.8

5.7

6.0

6.2

6.5

6.7

5.0

5.2

5.4

5.6

5.8

6.0

6.2

6.4

6.6

6.8

'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10E

Avg

. A

ge o

f U

S

Tru

ckin

g F

leet

Average Age of U.S. Class-8 Truck (1995-2010E)

Maintenance Expense Maintenance Exp / Mile Increases significantly as a Truck Gets Older

Miles Maint. Exp / Mile Growth

< = 175 k $0.031

250 k $0.037 22.0%

350 k $0.046 24.1%

500 k $0.060 29.1%

> 550 k $0.149 148.7%

History of Diesel Fuel Prices

Historical Spend Inflation Adjusted

TCO

Fuel Cost

Repair & Maintenance

Acquisition Costs

Productivity Uptime

Training

Total Cost of Ownership

Product

• Cascadia - $450 Million

• EPA 07 / 10 - $323 Million

• DD Engine Platform - $1.9 Billion

• The New Coronado - $40 Million

• ParkSmart - $5 Million

• M2 CNG/LNG - $5 Million

Manufacturing Facilities

• Saltillo Truck Plant - $300 Million

• Redford Component Plant - $496 Million

Product Validation Facilities

• Wind Tunnel - $2 Million

• Hot / Cold Chamber - $1.95 Million

• Full Vehicle Shaker/Lab - $2.6 Million

$2.8 Billion Invested in Major Products and Major Facilities

DTNA Product and Facility Investments

8 Cross-Functional SuperTruck Workstreams

Engine Downsizing & Hybrid

Parasitic Losses

Energy Management

PowertrainIntegration

Engine

Waste heat Recovery

Aerodynamics Weight

Reduction

Thema

Packaging, drivability, weight

distribution

14

Predictive Technologies

FREIGHTLINER CASCADIA

Peak Efficiency

Bumper Closure

Roof Spoiler

Side Extenders

Longer, Re-contoured Trim Tabs

Re-Positioned Valence Panels Chassis Side Fairing Extensions

Aerodynamics

DD15 455 / 1550

Direct Drive Trans

6 X 2 Configuration 2.50 Ratio

455/50 R 22.5 Super Singles

Predictive Cruise Control

Drivetrain

Aluminum 5th Wheel

Horizontal Exhaust

225” Wheelbase, 9/32” Frame Rail

Weight

Current options

Product Innovations

Significant Improvements Achieved!

CAS S60 EPA07 (2007)

-3.1%

Cascadia Introduction

-1.3%

Aero Updates

CAS DD15 EPA07

Fuel Consumption (in MPG)

COL S60 EPA07

-1.7%

DD15 Introduction

CAS DD15 EPA10

CAS ISX EPA10

+3.3% ISX

Based on Pendleton

route Ø58.0 mph (93.3 km/h)

37.9 (6.2mpg)

39.1 (6.0mpg)

36.8 (6.4mpg)

36.5 (6.4mpg)

35.3 (6.7mpg)

-4.2%

EPA10 Vehicle

Freightliner Cascadia is the Benchmark!

Fuel Consumption (in MPG)

Peterbilt 386

ISX EPA10

Volvo VNL 780

D13 EPA10

Kenworth T700

MX-430 EPA10

International ProStar Plus

MaxxForce-13 EPA10

CAS DD15 EPA10

CAS ISX EPA10

CAS DD13 EPA10

+6.3%

+3.3%

+6.1%

+3.8%

+5.9%

Cascadia RR Sleeper Improvements

Longer Side Extenders

Next Generation Chassis Side Fairing Extensions

Day Cab Aerodynamic Improvements

Next Generation Chassis Side Fairing Extensions

Enhanced Roof Deflector, Trim Tab, & Side extenders

Big picture weight reduction potentials

22

• 125BBC 113 BBC

• DD15 DD13

• Smaller Sleeper Cab

• Shorten wheelbase

• Horizontal exhaust pipe

Weight savings opportunities available now!

120 lbs lighter than vertical exhaust

Aftertreatment System

Installed Weight (lbs)

2V2 553 2HV 479*

Large

1-Box 410

Small

1-Box+ 386

Horizontal Exhaust Configuration

* Cascadia 125 w/ 72 in Sleeper + Available with DD13 & DD15 up to 505HP/ 1750 lb-ft

Wide Based Tires 600 lbs. in weight savings

Long term weight reduction potentials

24

• Aluminum frame crossmembers

• Aluminum or plastic battery box

• Aluminum front suspension spring brackets

• Aluminum engine mounts

• Aluminum radiator support cradle

• Aluminum closing crossmember

• Integrated shock/airbags for cab mounts

• Aluminum front cab supports

• Aluminum clip plate on front axle spring pack

• Aluminum chassis step mounting brackets

• Aluminum runners on tank fairings

• Aluminum gladhand mounting brackets

• Reduce HDEP battery requirements (capacitors, engine improvements, etc)

• HDEP engine weight initiatives

• Presidential directive made in May 2010 to reduce MD / HD GHG emissions and improve fuel efficiency by as much as 20%.

• Standard covers Class 2b through Class 8

• Vehicle and Engine OEM’s responsibility to meet the standard; goal is to improve all vehicles

• Timeline:

– Final rule expected July 30th, 2011

– Rule goes into effect for MY 2014

– Second step in MY 2017

EPA Greenhouse Gas and Fuel Efficiency Standard

EPA GHG Regulations

–EPA and NHTSA

–Regulatory program on OEMs to lower GHG (CO2, HFC, N2O and CH4)

–Measures primarily gCO2/ton-mile

–DTNA Project Leaders: - Brian Burton

- Don Keski-Hynnila

Super Truck

–DOE program

–Research project to demonstrate 50% improvement in freight efficiency

–$80M program with 50% cost share

–Measures ton*mpg

–DTNA Project Leader: - Maik Zeigler

Project 2020

–Daimler wide target (car, truck, EADS, etc)

–Internal program to support Daimler Trucks strategic positions of : “Shaping future transportation” and “Fuel economy leadership”

–Measures mpg

–DTNA Project Leader:

- Kary Schaefer

CO2 Reduction Initiatives at DTNA

Our Road Map for Alternative Fuel Solutions

Freightliner Innovation Truck

Roof Deflector

Bumper Overlay

Long Side Extenders

Side View Camera

Front Air Splitter Integrated Underbelly

Panel

Aero Side Skirts

Rear Wheel Fairings

Innovation Truck Technology List Aerodynamics

• Underbody Panels • Front-Air Splitter • Side View Cameras • Rear Wheel Fairings • Rear Roof Deflector • Longer Side Extenders • Aero Side Skirts

Chassis • Dual Ride Height – drop 30mm • Tandem Axle alternative (6x2 with Differential Lock) • SmarTire Pressure Monitoring • Single Wide Tires/Al Wheels and Hubs • FTL Proprietary Front Air Suspension • EPA 2010 Systems

Mechatronics • Predictive Cruise Control (PCC) • Predictive Aux Load Management (PALM) • T7000 Touch Screen (Ipod, Navigation, integrated SmarTire,

hands-free phone) • Integrated multi-functional Antenna. • Enhanced Stability Control

Power Systems • Park Smart (Parked HVAC) • Advanced Batteries (Firefly Energy) • Ultracapacitors (generic system) • Fuel Cell APU • Solar Panels

Innovation in action: Predictive Technologies!

RunSmart Predictive CruiseTM

Available Now! ▸ Optimizes cruise control set speed over varied

terrain predicatively to save fuel

Predictive Auxiliary Load Management (PALM) Under Development ▸ Calculates optimal engine cooling to minimize power

consumption & fan actuation

Predictive Torque Management (PTM) Under Development ▸ PTM adjusts the amount of available engine torque

based on specific vehicle, load, and terrain conditions to maintain fuel-efficient driving behavior.

32

Project Target

Develop and demonstrate vehicle and advanced engine technology for Heavy-Duty Class 8 Trucks as follows:

• 50% improvement in “freight efficiency” (measured in ton-miles per gallon for a Class 8 vehicle weighing 65,000 lbs)

• 20% improvement in “engine brake thermal efficiency” (50% BTE)

Funding

• Federal awards: $39.6M (with $40M DT matching) over 5 years (2010-2014)

• Pairing with partners or subcontractors encouraged

DoE SuperTruck Project Goals

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Basis for DoE Super Truck Award Proven Leader for Fuel Efficiency .. and a Clear Vision

Innovation Truck

Aerodynamics DD15 – EPA 2010 Compelling DoE Application

Predictive Technologies

Performance • Fuel Economy Improved 20% - 40% • CO2 Output Reduced 10 to 14 Tons/Year Applications (typical) • Beverage Library Truck • Delivery Trucks Service Trucks • Stake Trucks Dump • Refuse (not residential) Landscape Customer Results • Package Delivery

• 40% fuel economy improvement, 4x brake life, 99% uptime • Beverage Delivery Applications (heavy stop and go)

• 40% fuel economy improvement vs competitor’s diesel

• 30% fuel economy improvement vs baseline

• 2.6x increase in engine hours before DPF regeneration • Delivery Application (heavy stop and go)

• 35% fuel economy improvement vs baseline, general freight • Refrigerated Delivery Application (hybrid powered refer)

• 36% fuel economy improvement vs baseline

M2 106 City Delivery Hybrid

APG

DTNA and Walmart –72” RR Hybrid Cascadia

DTNA and Walmart have collaborated to build the first-ever hybrid electric Freightliner Cascadia®. This truck also marks the beginning of a long-term strategic partnership

between DTNA and Walmart to develop innovative, green technologies.

37

DTNA Natural Gas Experience

DTNA has put more than 2000 natural gas units into service!

1996: FCCC Walk-in Vans FCCC & TBB School Busses

July 2009: ThomasBuilt Bus Saf-T-Liner CNG w/ISL-G

Feb 2008: Sterling SB 113 LNG Tractor

June 2009: Freightliner M2 112 LNG

Oct 2009: Freightliner M2 112 CNG 2011: FCCC w/Cummins CNG engine

1999: ThomasBuilt CNG bus w/John Deere engine

THANK YOU!