State of the IndustrySeptember 2013

Steve Carey Doyle SumrallExecutive Director Managing Director

ABOUT THE NTEAEstablished in 1964, NTEA, the Association for the Work Truck Industry, represents more than 1,600 companies that manufacture, distribute, install, sell and repair commercial trucks, truck bodies, truck equipment, trailers and accessories. Buyers of work trucks and the major commercial truck chassis manufacturers also belong to the Association. The NTEA provides in-depth technical information, education and member programs and services, and produces The Work Truck Show®. The Association maintains its headquarters in suburban Detroit and a government relations office in Washington, DC. For more information, call 1-800-441-6832 or visit www.ntea.com.

Members Continue to See Improvement

Sales RecoverySource: NTEA Business Conditions Survey

Plant Utilization Source: NTEA Business Conditions Survey

10%

57%

29%

4%

37% 39%

24%

Lead Times are EvolvingSource: NTEA Business Conditions Survey

2013 Fleet Purchasing Outlook

Vocational DemographicsSource: 2013 NTEA Fleet Purchasing Outlook

Purchasing IntentSource: 2013 NTEA Fleet Purchasing Survey

Do you plan to replace existing trucks in your fleet during 2013?

Yes No

Purchasing IntentSource: 2013 NTEA Fleet Purchasing Survey

Average Age of VehiclesSource: 2013 NTEA Fleet Purchasing Outlook

Fuel Usage Driving Spec’ Changes Source: 2013 NTEA Fleet Purchasing Survey

20072008

20092010

2011

0200400600800

1000120014001600

ELECTRICLNGAUTO GASE 85CNGBIODIESEL

Alternative Fuel UseEstimate 1,000 GGE

Note: Ethanol in Gasohol 8,563 (100K GGE)

Current Fleet Deployment

Hierarchy of Solutions

Driver Involvement Idle ReductionWeight Reduction

High Efficiency Engines Aerodynamics

Gaseous Fuel

Hybrid Vehicles

Electric Vehicles

Component Electrification Telematics

?

Using Analysis and Tools to Understand Payback

Drive & Duty Cycle DataValidation & Insights

Life Cycle Cost

Refine• UNDERSTANDING USE & NEEDS• COMPARING TECHNOLOGY & FUELS• DEVELOPING BUY-IN• REFINING RESULTS

OEM Perspective

• CNG is a prime focus• An order of magnitude breakthrough is needed for

electric hybrid and/or electric drive• Diesel will be with us for a very long time and we

can expect breakthroughs in this engine technology• Fleets / Users see Life Cycle Cost as the Prime

Acquisition Criterion

OEM Perspective (Cont’d)

• Cost of bringing technology/fuels to market is high and intensified by instability and failures in the supply chain

• Balancing infrastructure growth, product offerings and fleet integration is critical

• Driver training and buy-in critical to achieving technology or fuel potential

• Telematics is a winning strategy• Trucks are going to get a lot smarter

FLEETS TAKE MULTI-FACETED APPROACH

Fuel-Saving StrategiesSource: 2013 NTEA Fleet Purchasing Survey

Finding What you Need

Suppliers Promoting Green

Green Program or Mandate

Acquiring Green Trucks

0% 50% 100%

Fleet Acquisition Insights

All Fleets

Utility/ Telecom

Government/ Municipal

Delivery/ Cartage

Construction

Agricultural

Other

Source: 2013 NTEA Fleet Purchasing Outlook

Fuel and Technology Fleets Currently Deploy

Bio D

iesel

CNGE8

5

Electr

ic Hyb

rid

Exte

nded R

ange E

lectri

c

Full

Electr

ic

Hydra

ulic H

ybrid LN

G

LPG/A

utogas

Telem

atics

Syste

m Elec

trifica

tion

0%5%

10%15%20%25%30%35%40%

Chart Title

Source: 2013 NTEA Fleet Purchasing Outlook

Fuel and Technology Fleets Plan to Acquire

Bio Dies

elCNG

E85

Electr

ic Hyb

rid

Exte

nded R

ange E

lectri

c

Full

Electr

ic

Hydra

ulic H

ybrid LN

G

LPG/A

utogas

No Acq

uistion

Planned

0%5%

10%15%20%25%

Chart Title

Source: 2013 NTEA Fleet Purchasing Outlook

Drivers for System Electrification

Reduce Fuel Utilization

Reduce Overall Operating Cost

Improve Co. Green Position

Take Advantage of Subsidies

Green Mandate

Other

0% 5% 10% 15% 20% 25% 30%

Why are you currently using electrification?

Source: 2013 GTA, VETC Fleet Electrification Survey (172 fleets with 54% currently electrifying)

% of Fleets See Factor as High Importance

Summary and Resources• Questions? Call 1-800-441-6832• Visit Shop NTEA on NTEA.com to order full reports:

– Whitepaper: Growing Interest in Electrification Systems– 2013 Fleet Purchasing Outlook

Thank you.