Webasto Product North America

Solutions for Improved Air Quality

June 2008

2

John Thomas

Vice President of Marketing/ Environmental and Regulatory Affairs

Improve your environment While protecting ours

AgendaU.S. Idle Elimination Strategy

Webasto Overview

Current Idling Situation

U.S. Idling Issues, Impacts and Opportunities

Reduction of Dependency on Foreign Oil

Reduction of Green House Gases (GHG)

Impact on Job Creation

Conclusion/ Next Steps

Improve Public Health

Revenue Generation (Fuel Savings and Enforcement)

Webasto History

107 years of excellence

1901 - 1908

Wilhelm Baier, Sr. founded the company in Esslingen Germany

WilhElm

BAier in

STOckdorf WEBASTO

Webasto Worldwide

GlobalTurnover 2.1 billion USD6,300 Colleagues

United States Established operations in the US in 1974 Turnover 540 Million USD1,650 Colleagues

KentuckyEstablished operations in 1997Turnover 300 Million USD900 Colleagues

GLOBAL WEBASTO TURNOVER

14%

11%

75%

REST OF WORLD

UNITED STATES

KENTUCKY

Webasto‘s U.S. Presence

7

Webasto in America

Locations: GCS Heating and Cooling Solutions

• Fenton / Michigan (USA) HQ & Production

• Santa Fe Springs / California (USA)

Locations: CRB Roof Systems

• Rochester Hills / Michigan (USA) HQ & Production

• Livonia / Michigan (USA)

• Lexington / Kentucky (USA)

• Murray / Kentucky (USA)

Background

“For more than 50 years Webasto has provided engine-off comfort and environmental solutions to the global transportation industry, greatly reducing or eliminating the need to idle”

Webasto’s products provide:

Environmental Consciousness Reduced Greenhouse GasesReduced Dependency on Fossil FuelsReturn on InvestmentSafetyEngine-off Comfort Convenience

Technology the Way Nature

Intended

Technology the Way Nature

Intended

Saves fuel, reduces

emissions, protects the environment

Engine off Comfort Engine off Comfort

U.S.Transportation Industry Idling: Issues, Impacts & Opportunities

Step 1: Idle Elimination Reduce Foreign Oil Dependency by 8%

8.0% of the national daily consumption is attributed to idling

US Dependency on foreign oil can be cut significantly by addressing idling

Step 1: Idle Elimination Reduction on Foreign Oil Dependency by 8%

US NATIONAL IDLING ANALYSIS

 

Average Hours One

Vehicle Spends Idling

Per Year

Number of Vehicles

Idling Entire Fleet

Hours Idling Entire Fleet

Annual Fuel Consumption

for Idling (Gallons) Entire

Fleet

Annual Barrels of Oil Consumed for Idling Entire

Fleet

Daily Barrels of

Oil Consumed for Idling

Entire Fleet

Percentage of the 20 Million

Barrel a Day National Use that is Being Used to Idle

HEAVY DUTY TRUCK 2142

2,,984,008 5,292,437,180 5,292,437,180 529,243,718 1,449,983 7.25%

SCHOOL BUS 181

412,539

74,669,583 74,669,583 7,466,958 20,457 0.102%

LIGHT DUTY 30 60,309,709

1,809,291,259 1,157,946,406 59,078,898 161,860 0.809%

TOTAL ALL 2353

63,706,356

7,176,398,022 6,525,053,169 595,789,574

1,632,300 8.161%

Step 2: Idle Elimination Tax Money

More than $224 Million per year goes out the tail pipe of our school buses

By eliminating idling, tax dollars currently spent on fuel can be used to

support schools, improve roads, create anti-idling programs…….

By adding and enforcing idling laws, states and municipalities could

generate significant levels of revenue by fining non-conforming trucks and

passenger cars

 Tax Dollars Spent on Fuel for Idling

in School Bus Industry

HEAVY DUTY TRUCK N/A

SCHOOL BUS $ 224,146,087

LIGHT DUTY N/A

TOTAL ALL $ 224,146,087

13

IDLING

Step 2: State Level Idle Elimination Revenue Generation – Example: Kentucky

STATE OF KENTUCKY SCHOOL BUS

 

Average Hours One

Vehicle Spends

Idling Per Year

Hours Idling

Entire Fleet

Number of

Vehicles Idling Entire Fleet

Annual Fuel

Consuption for Idling (Gallons)

Entire Fleet

Annual Barrels of

Oil Consumed for Idling

Entire Fleet

Daily Barrels of

Oil Consume

d for Idling Entire Fleet

Percentage of the 20 Million Barrel a

Day National Use that is Being Used to

Idle

Tax Dollars Spent on Fuel for Idling

School Buses

SCHOOL BUS 181 1,534,699 8,479 1,534,699 153,470 420 0.002% $ 4,604,097

Kentucky could save $4.6 Million per year by adding a state idle elimination campaign for school buses

Step 3: Idle Elimination Reduction of Green House Gases (GHG)

The US could reduce harmful Green House Gases, such as CO2, by 34.5 Million Tons/Year via idle elimination

Idling makes up .6% of the US national CO2 output

The US is the world’s largest producer of GHG

 Emissions GHG CO2

TONS/YEAR

HD TRUCK 27,556,163

SCHOOL BUS 733,177

LIGHT DUTY 6,306,371

TOTAL ALL 34,595,711

Idling elimination will reduce ozone and fine particle exposure resulting in:

Fewer premature deaths

Fewer cases of chronic bronchitis

Fewer non-fatal heart attacks

Fewer hospital and emergency room visits

Fewer days workers are out sick due to respiratory symptoms

Fewer school absences

Idle elimination in Kentucky and other states would compliment and accelerate existing plans including:

SIP, Clear Skies and elimination of nonattainment status

Step 4: Idle Elimination Improved Public Health

A US idle elimination program would create a demand for more than 37 Million anti-idling devices

Conservatively, this initiative could create more than 18,000 new jobs related to engineering, designing and building anti-idling technologies

Additional jobs in other industries, such as the building segment, parts supply, raw materials, enforcement... would also result

Step 5: Idle Elimination New Job Creation – 18,000 New Jobs

Idle Elimination Address Job Creation at a National Level

In the US today there are more than 40 U.S. companies who supply and manufacture anti-idling technologies

The job creation component of idle elimination will have a positive effect at a national level

BBW, Inc.

Cummins Engine Company, Inc.

TAS Distributing, Inc.

Autotherm Division Enthal Systems, Inc

Bergstrom

Idle Free Systems, LLC

Safer Corporation

Automotive Climate Control (ACC)

Webasto Product North America, Inc.

Auxiliary Power Dynamics, LLC

Carrier Transicold

Gates Corporation

Rig Master Power

Thermo King Corporation

Shurepower™, LLC

Phillips and Temro Industries

Industry Recognized Anti-idling Technologies

For More Information: http://www.epa.gov/smartway/idlingtechnologies.htm

Automatic Shut-Down/Start-Up

Battery PoweredSystems

Fuel Operated Heaters

Auxiliary Power Unit or Generator Set

Stationary

Engine-off Cooling

Green Green

Global Anti-idling Initiatives That Work

Special Guest – Global Warming

Europe and CanadaNo idle and idle reduction programs

In Europe today idling is forbidden

Canada is moving more and more towards a no idling position

Between 2003 & 2005 Canada instated a Heavy Truck rebate program to stimulate use and sales of anti-idling devises

A truck or fleet received up to $350.00 - $1400.00 per truck for adding and using approved anti-idling devices

This program has resulted in significant reductions of fuel and GHG’s

In 2005 Toronto instated, and is enforcing, a 3 minute idling law

EPA SmartWay Program & Clean School Bus

EPA SmartWay Program & Clean School Bus

Creates information and awareness

Promotes anti-idling and technologies

Demonstrates that technologies provide a positive ROI

Provides for low interest loans & funding programs

Model for idle reduction laws

http://www.epa.gov/smartway/transport/what-smartway/idling-reduction-state-laws.htm

Opportunities: Additional Enforcement &Idling Regulations

Approximately 22 states in the US have some level of commercial or passenger vehicle anti-idling regulations

Little is being done to enforce these laws and many loop holes exist

Some US cities have established enforcement agencies to address idling and air quality, but these are far too few

Overview of State Idling Regulations

Active Enforcement

5 minutes or less

15 minutes or less

Pending/considering legislation

Seasonal

North American Idling Laws

- Toronto

- Boston

- New York

- Philadelphia

- Washington DC

- Atlanta

Idling is regulated in States, Cities and Municipalities

- St. Paul

- St. Louis

- Vancouver

- Denver

10 minutes or less

Kentucky Idle Elimination Required Elements for Success

Legislation &

Enforcement

√

√

√

√

√

Rebate or incentive programs

√

Awareness

√

√

√

Trucking

School Bus

Light Duty

√

Retrofit of current

Kentucky school bus

fleets

Leading the industry through education - LEaP

A giant LEaP towards a cleaner tomorrow

SummaryU.S. Idle Elimination Strategy

Five Step Opportunity

Step 1: Reduction of Dependency on Foreign Oil

Step 2: Generate Revenue (Fuel Savings and Enforcement)

Step 3: Reduction of Green House Gases (GHG)

Step 5: Create New Jobs

Next Steps: How Can We Help?

Step 4: Improves Public Health

29

“ It’s not easy being green”

Kermit the Frog

30

Everyone has to have the same goal!

WE ALL BREATH THE SAME AIR!WE ALL BREATH THE SAME AIR!

Kentucky Nonattainment Counties

Kentucky Cincinnati-Hamilton, OH-KY-IN Boone, Campbell, Kenton

  Huntington-Ashland, WV- KY-OH Boyd, Lawrence (P)

  Louisville, KY-IN Bullitt, Jefferson

National Nonattainment Counties