bob carrick, vocational sales manager, natural gas greg treinen, product marketing segment manager,...

Bob Carrick, Vocational Sales Manager, Natural GasGreg Treinen, Product Marketing Segment Manager, Alternative Fuels/Medium DutyApril 12, 2012

Freightliner Natural Gas Market and Product Update

Product Marketing

Daimler Trucks North America2

Daimler Trucks North America

Pioneers in Natural Gas Market• Freightliner Trucks: THE leader in natural gas deliveries of conventional heavy duty trucks

• More than 1300 natural gas-powered trucks and tractors since 2008

• Only conventional OEM producing natural gas vehicles with full factory installation and warranty

• First to publicly demonstrate ISX12 G-powered vehicle


Customer Purchase Process – Natural GasResearch the Business Case

• FUEL – FUEL – FUEL – FUEL – FUEL – FUEL

• Will products work?

• Weight/length differences?

• Funding availability

• Financing

• Warranties

• Insurance

• Driver reactions

• ONCE AGAIN: is Fuel readily available at competitive cost & flow?

~3.711”~24.736”~16.646”


CNGprices.com – prices listed in Gasoline Gallon Equivalent. Add 13% to price to get Diesel Gallon Equivalent pricing

NG Fuel Location & Price Resources


Cascadia 113 Day Cab Natural Gas – Base Spec

6

• 113” BBC

• Cummins Westport ISX12 G, 400 hp, 1450 lb ft torque

• Allison 4000HS

• 12,000 lb. Front Axle / 12,000 lb. Taperleaf Suspension

• 40,000 lb. R-series Aluminum Carrier Tandem / 40,000 lb. Airliner

• 192” Wheelbase

• 155 Diesel Gallon Equivalent (DGE) CNG Fuel Tanks

• 40 DGE LH CNG tank• 40 DGE RH CNG tank• 75 DGE back-of-cab CNG tank package

• SOP Q2 2013


Cummins Westport ISX12 G

7

• 11.9 liters, up to 400 hp/ 1450 lb ft torque

• Cleanest technology available: EPA10 and CARB emission standard compliant

• Dedicated natural gas engine – NOT dual fuel

• Spark ignited stoichiometric EGR engine

• Factory produced – Cummins Jamestown, NY plant

• Maintenance-free aftertreatment system

• Three-way passive catalyst

• No regeneration or ash cleaning

• Optional engine brake available

• Target Markets:• Q2 2013 SOP: Regional haul truck / tractor -

Cascadia• Q1 2014 SOP: Vocational – 114SD

• Future (2015): Cummins ISX15 G, 500 hp


• What: Drive Cascadia with ISX12 G from Long Beach, CA to Washington, DC

• Dealer events

• Microsite – freightlinergreen.com - with blogs, photos, videos, social media

• PR

• When: Begin following ACT Expo, which ends May 17, 2012. First stop on May 18. Tour ends at dealer meeting location in Washington around May 24.

• Where: Four (4) or five (5) stops between Long Beach and Washington:

• Phoenix

• OKC

• Little Rock

• Nashville

• Charlotte (?)

• Why: Promote Cascadia with new 12 liter natural gas engine. Keep FTL in spotlight as natural gas leader. Show natural gas as a fuel, and FTL CNG product, as viable alternative to diesel

CNG Cross Country Tour Summary


• What: Cascadia 113 CNG Demo Program

• Five (5) Cascadia 113 CNG tractors with new ISX12 G engine

• Purchased from DTNA by Ryder – Ryder keeps trucks at end of demo

• Ryder responsible for maintenance, permitting, etc.

• Rental/leasing terms not yet determined

• When: July through June 2013

• Begins following FTL dealer meeting in Washington, DC

• Where: One vehicle in each sales region (US & CAN), plus potentially one additional focused on LA to Salt Lake corridor (LNG)

• Why: To seed interest in Freightliner’s all new Cascadia CNG product

• Give customers hands on experience with natural gas

• Give dealer network more experience with natural gas product line – very few have it now

• Demonstrate continued leadership in alternative fuel products – Shaping Future Transportation

Proposed Cascadia CNG Demo Program


Cascadia 113 Day Cab Natural Gas – CNG Fuel Tanks

10

40 Diesel Gallon Equivalent Rail-

Mounted CNG Tanks

Contact Agility Fuel Systems for Additional

Tank Sizes


Cascadia 113 Day Cab Natural Gas – CNG Fuel Tanks

11

75 Diesel Gallon Equivalent Back-of-Cab-Mounted CNG Tank

Package

This package is flush with top of cab vs. current package (17”

above cab); approx 5 additional inches BOC vs. current package)

Contact Agility Fuel Systems for Additional

Tank Sizes


Cascadia 113 Day Cab Natural Gas – Dual LNG Fuel Tanks Required

12

150 Gallon (84 Diesel Gallon Equivalent) Rail-

mounted LNG Tanks


• Installed at Anniston, AL or Fontana, CA

• Tank delete, with price quote process

• Data Codes• 605-095 DRILLING PREP FOR ALONG SIDE RAIL CNG TANKS • 212-800 FUEL TANK BRACKET 03-23715-000, STEPS AND BANDS

SHIPPED TO DEALERSHIP SEPARATELY FOR LH AND RH CUSTOMER INSTALLED CNG FUEL SYSTEM

• 290-017 BATTERY BOX FRAME MOUNTED• 29G-001 PLASTIC AUXILIARY BATTERY BOX MOUNTED BETWEEN RAILS • 282-005 LH BATTERY BOX MOUNTED AS FAR AFT AS POSSIBLE • 29E-001 AUXILIARY BATTERY BOX(ES) MOUNTED IN RAIL BACK OF CAB • 291-017 WIRE GROUND RETURN FOR BATTERY CABLES WITH

ADDITIONAL FRAME GROUND RETURN • 289-001 NON-POLISHED BATTERY BOX COVER• 29F-001 PLASTIC AUXILIARY BATTERY BOX COVER

Agility Saddle Tanks

13


Expected to be available for install at Agility August 2012 – Contact Agility for details

Agility Saddle Tanks – New CNG Tank Design

15


Cascadia 113 Day Cab Natural Gas – Availability and Ordering Process

16

Availability

• Start of production now expected Q2 2013 (April)

• Launch Group 1 only available with Allison 4000 series transmissions; manuals available Launch Group 2

• Factory-installed tank packages to follow – Launch Group 2

Orders

• Order process - expected Fall 2012 in SpecPro

Pricing

• Not yet determined – final pricing from Cummins not confirmed


26K GVW Availability in the M2 112 Natural Gas

17

• The ability to spec a 26,000 lb GVW vehicle in an M2 112 with an ISL G will soon be available!

• Will be published in SpecPro

• Look for announcement with full restrictions and other details soon

• Achieve 26K GVW via frame rails – ISL G ONLY:

•546-092 11/32X3-1/2X10-15/16 INCH STEEL FRAME (8.73MMX277.8/0.344X10.94 INCH) 80KSI •546-093 11/32X3-1/2X10-3/16 INCH STEEL FRAME (8.73MMX258.8/0.344X10.19 INCH) 80KSI •546-094 9/32X3-7/16X10-1/16 INCH STEEL FRAME (7.14MMX255.6/0.281X10.06 INCH) 80KSI

• OR, via 16K rear suspension – ISL G ONLY:

•622-1JO Airliner16K rear suspension with 18K components.


Natural Gas Competitive LandscapeBrand

Models

•KW T800 LNG w/Westport GX 15L 450 hp/1750 lb ft•KW T440, T470 and W900S LNG/CNG w/ ISL-G 8.9L up to 320 hp/1000 lb ft•KW T660, T800, and W900 w/ISX12 G 400 hp/1450 lb ft•PBT 367, 386, and 389 LNG w/Westport GX 15L 475HP/1750 lb ft•PBT 320, 365, and 382 LNG/CNG w/ISL G•PBT 320 and 365 with ISX12 G 400 hp/1450 lb ft

•WorkStar and DuraStar (late 2012) with Emission Solutions Inc (ESI) Phoenix 7.6L, based on DT-466 platform, up to 300HP/860 lb ft•TranStar with ISL G 8.9L up to 320 hp/1000 lb ft – late 2012•ProStar with CleanAirPower modified MaxxForce 13 dual fuel LNG engine; 430 hp/1550 lb ft – 2013

•Mack TerraPro Low Entry and Cabover LNG/CNG w/Cummins-Westport ISL G 9-liter engine 320 hp/1000 lb ft•Volvo VNM with ISL G 9-liter engine 320 hp/1000 lb ft•Volvo VNL with ISX12 G

Current Status

•Engines factory installed, but tanks still installed at tank vendor – factory tank installation discussed for summer 2012, but no confirmation•On same timeline as FTL for ISX12 G integration•Claim to have “broadest range of NG product”

•Emission Solutions Inc converts reman DT-466 engines to NG•Engines installed at Garland, TX plant, tanks not factory installed•Joint program with Clean Energy announced March 2012

•Full production for Mack TerraPro NG products•Mack plans to integrate ISL G into conventional line up, but timeline not clear•Volvo sold 10 CNG VNMs to Giant Eagle in 2011, limited sales beyond that

How to Sell Against

•GX not a true Cummins factory engine and only runs on LNG•GX requires active regen & soot cleaning, plus diesel particulate filters and SCR equipment – extra weight and cost!•GX not compatible with automatic transmissions•Still does NOT install fuel tanks – Agility must install & warrant after the fact•Does not install methane detection system on CNG products•Issues with fan clutches and/or fans falling in to the radiator

•ESI and CAP base engines are remanufactured

•More expensive when considering whole package when considering installation costs, etc.•No after sale factory support from NAV•No factory warranty from NAV•Longer lead time

•Very few units sold – last into the market; limited experience•No engine larger than ISL G available currently – only dual fuel 13L LNG engine in works

•Mack currently only offers COE/LCF refuse products – if customer doesn’t require front-loader we can cover with M2112 tandem axle.•Volvo has limited experience•No factory tank install

18


Dealer/Customer Shop Requirements

• NFPA 30A requirements

• Full implementation can cost $50K per bay

• Differences in CNG (odorized) vs. LNG (non-odorized) repair requirements

• Local fire marshal has final say

• Major fuel system repairs - same requirements for both CNG & LNG• Must call in certified professional – local utility, Agility

Requirement CNG

LNG

Explosion proof lighting X X

Methane detection X

Heater location X

Exhaust fans X

19


Government IncentivesFederal

The NATURAL GAS ACT (HR1380)

• Fuel use – 50 Cent/gal tax credit extension

• Vehicle purchase - $32K to $64K tax credit

• Fueling infrastructure – up to $100K tax credit

• Currently in the HOUSE – stalled for a year

• SENATE introduced similar bill, S.1863, November 15• Senate voted 51-47 in favor of the

amendment on March 13, however the threshold of 60 "yes" votes for inclusion was not met and therefore, the amendment was rejected

• Drops fuel use tax credit• Provisions for funding – better chance of

approval…eventually (after election?)

20

bob carrick, vocational sales manager, natural gas greg treinen, product marketing segment manager,...

Documents

natural gas leader

natural gas vehicles

natural gaspowered trucks

liter natural gas engine

natural gas greg treinen

hp slide

cng tractors

ftl cng product