NACE - Mack Trucks Update Tim Wrinkle Construction Product Manager April, 2018 Update Session – NACE April 2018 1 PROUD BEGINNINGS First Mack Vehicle – 1900 Mack Trucks was born in 1900 when brothers Jack, Gus and William Mack built their first motorized vehicle - a bus - that carried sightseers around Brooklyn’s Prospect Park in New York. Update Session – NACE April 2018 2 Update Session – NACE April 2018 Update Session – NACE April 2018 MACK IN NORTH AMERICA Dealer Network Full Line 311 Parts & Service 123 Total Outlets 434 Update Session – NACE April 2018 5 MACK IN NORTH AMERICA Facilities U.S. MANUFACTURING: – LVO Plant Macungie, PA – Cab & Vehicle – Hagerstown, MD – Powertrain COMPETITORS: • Company X – 7% of trucks manufactured in U.S. • Company Y – 39% of trucks manufactured in U.S. • Company Z – 80% of trucks manufactured in U.S. Update Session – NACE April 2018 6 PRODUCT LINE – NORTH AMERICA Mack® TerraPro® Cabover Used for severe service refuse, concrete boom pump and other construction equipment. • Rugged exterior built to handle tough jobs • Powered by MP® Series engine family (MP®7 and MP®8) • Panoramic visibility • Tight wheel cuts Update Session – NACE April 2018 7 PRODUCT LINE – NORTH AMERICA Mack® TerraPro® Natural Gas Combines the advantages of natural gas with Mack reliability and performance. Sets new benchmark for lower alternative fuel lifecycle costs. • Narrow cab width for tight working conditions • Equipped with Cummins Westport L9N (near zero emissions) natural gas engine • Meets EPA and CARB emission standards Update Session – NACE April 2018 8 PRODUCT LINE – NORTH AMERICA Mack® Low Refuse (LR) Puts the driver's needs first with upgraded features designed to provide greater visibility and comfort for increased productivity. • Superior visibility • Versatile configurations • Ergonomic design, easy-entry • Expanded storage • Powered by mighty MP® Series engines • Can be equipped with Cummins Westport L9N (near zero emissions) natural gas engine Update Session – NACE April 2018 9 PRODUCT LINE – NORTH AMERICA Mack® PinnacleTM The Mack Pinnacle is available as a sleeper or day cab. • Axle-forward configuration • Completely redesigned living environment (2018 model year) • Mack Co-Pilot™ display • Mack Advantage™ chassis • Dependable performance and fuel economy Update Session – NACE April 2018 10 PRODUCT LINE – NORTH AMERICA Mack AnthemTM The Mack AnthemTM is the next-generation in highway trucks. • Axle-back configuration • Bold design delivers superior aerodynamics and fuel efficiency • Completely re-engineered living environment for better control and comfort • New 70” stand-up sleeper with 35% more space and generous headroom (7’1”) • Easy maintenance and smart serviceability with tilt-assist hood Update Session – NACE April 2018 11 Mack Granite The No. 1-selling heavy-duty conventional straight truck in the U.S.* *Based on IHS Markit U.S. Class 8 VIN defined conventional straight truck new vehicle registrations for 10 liters and larger engines, January-December 2016 Update Session – NACE April 2018 12 PRODUCT LINE – NORTH AMERICA Mack® Granite® The Mack Granite remains #1 conventional straight truck model for good reason. • Axle-forward or axle-back configuration • Powerful and fuel-efficient MP Series® engine • High horsepower and low-end torque • Granite MHD powered by Cummins L9 • Galvanized Steel Cab offers – Best in class visibility, more room, quieter ride, protection and durability only steel can provide Update Session – NACE April 2018 13 MACK GRANITE - RESALE VALUE • In the Dec 2017 edition of the Black Book Commercial Truck Guide, Mack vocational trucks reign as leaders in resale value over competition. • This is testimony to the quality and longevity that comes with a Mack. • Mack customers not only have a truck that delivers on strength and durability for all work requirements, but also delivers on resale value. • Comparisons are based on 6x4 equipment with 10-speed transmissions, 20,000 lb. front and 44,000 lb. rear axles, plus comparable 450hp engines and components. $140,000 $138,750 Average Retail Price of 3-6 Year Old Vocational Trucks $133,900 $130,000 $127,025 $125,300 $123,000 $122,200 $120,000 $116,650 $116,125 $112,400 $111,400 $110,300 $110,000 $103,625 $102,675 $98,750 $98,200 $100,000 $98,400 $92,400 $91,300 $88,600 $87,775 $90,000 $87,425 $82,775 $81,525 $80,000 $74,450 $73,125 $68,000 $70,000 $66,250 Pete 367 SBA Pete 4900SBWS Granite GU713 Granite GU813 Granite KW T880 SBA FL M2 112 Int 7600 $60,000 2016 MY 2015 MY 2014 MY 2013 MY The information supplied in the Black Book Official Heavy Duty Truck and Trailer Guide has been gathered from leading dealer auctions across the country plus many special truck and trailer auctions and experienced industry contacts. For more information on the Black Book, including subscription services, please visit www.blackboockauto.com Update Session – NACE April 2018 Integrated Powertrain Integration – the key to unlocking improved productivity, performance, fuel efficiency Components designed to work together simply work better Update Session – NACE April 2018 15 Performance and Efficiency Mack ClearTech One Mack MP Engines Mack mDRIVE HD Mack Axles Update Session – NACE April 2018 16 Mack mDRIVE HD The no. 1 transmission choice in Mack Granite models 60% 49% 50% 37% 40% 30% 20% 20% 10% 5% 0% 0% 2014 2015 2016 2017 2018 Update Session – NACE April 2018 17 Mack mDRIVE HD Fully integrated with Mack MP engines • Improved productivity, safety, fuel efficiency • Lower weight, less maintenance mDRIVE HD 13-, 14-speed models • 13-speed OD has 17.5:1 gear ratio for unmatched startability • 14-speed OD has 32:1 gear ratio for low speed applications “TWO TRUCKS IN ONE” • No compromises in startability or fuel efficiency • Ability to run highway rear axle ratios while maintaining startability Update Session – NACE April 2018 18 mDRIVE HD – geared for jobsite and highway Mack GHG17 Engine Sweet Spot MP7: 1275-1375 RPM MP8: 1250-1350 RPM Road Speed MPH 65 65 65 65 65 65 65 65 Trans Gear Ratio (12th) 0.79 0.79 0.79 0.79 0.79 0.79 0.79 0.79 RPM at 65mph (11R24.5) 1810 1685 1601 1524 1432 1368 1307 1251 Tire RPM 470 470 470 470 470 470 470 470 RPM at 65mph (11R22.5) 1895 1764 1676 1596 1499 1432 1368 1310 Tire RPM 492 492 492 492 492 492 492 492 Rear Axle Ratio 4.50 4.19 3.98 3.79 3.56 3.40 3.25 3.11 Update Session – NACE April 2018 19 mDRIVE HD – geared for jobsite and highway Road Speed MPH 65 65 65 65 65 65 65 65 Trans Gear Ratio (12th) 0.79 0.79 0.79 0.79 0.79 0.79 0.79 0.79 RPM at 65mph (11R24.5) 1810 1685 1601 1524 1432 1368 1307 1251 Tire RPM 470 470 470 470 470 470 470 470 RPM at 65mph (11R22.5) 1895 1764 1676 1596 1499 1432 1368 1310 Tire RPM 492 492 492 492 492 492 492 492 Rear Axle Ratio 4.50 4.19 3.98 3.79 3.56 3.40 3.25 3.11 1.5% fuel savings in Top Gear for 100 RPM dropped In example dropped 1810-1368 = 442 RPM = 6.6% fuel savings Update Session – NACE April 2018 20 mDRIVE HD vs. Allison Saves some 237 lbs. Saves 31 quarts of oil Better Fuel Efficiency . 6 speed vs 12 speed . No fluid coupling (torque converter) . Less heat load applied to vehicle cooling system Serviceable by Mack dealer Monitored by GuardDog Connect ALLISON Update Session – NACE April 2018 Utah DOT • 505 hp MP8 engines and • Mack mDrive HD • running wing plows through a REPTO. • these two units part of a 25 truck order • Ordered 6 more due to great performance Update Session – NACE April 2018 All-New, Driver-Focused Granite Interior Update Session – NACE April 2018 23 All-New, Driver-Focused Granite Interior • Optimized ergonomics designed for the driver • Flat-bottomed steering wheel, an industry first • Switches larger, illuminated and laser-etched • All interior lighting now LED-based • Mack-Exclusive Seating Options Update Session – NACE April 2018 24 All-New, Driver-Focused Granite Interior Standard Premium Shown in Steel Gray Shown in Sierra Tan with Satin Aluminum accents Update Session – NACE April 2018 25 Update Session – NACE April 2018 26 Mack-Exclusive Seating Options Custom-designed, manufactured by Sears • All-day comfort combined with durability • Air suspension • 30+ feature and fabric combinations • Lumbar adjustment • Fore – aft slide / isolator • 3-position seat bottom tilt / extension • Inboard seat controls • Leather and heated options Update Session – NACE April 2018 27 Increased Clearance For Underbody Scraper Installation • New factory option for increased ground clearance needed for underbody scraper applications. • Bodybuilder-ready, saving time and money Update Session – NACE April 2018 28 Increased Clearance For Underbody Scraper Installation • Six-inch increase in chassis ride height • Up to 21" of ground clearance* for installation without relocating chassis components • Allows underbody scraper to articulate a full 45° to either side • Modified steps maintain 24-inch max first-step height for no compromise to ingress/egress 21” *Dimensions in loaded condition with 425/65R22.5 tires Update Session – NACE April 2018 29 Increased Clearance For Underbody Scraper Installation SHORTENED WHEELBASE • ~24” shorter than competitors • Improved maneuverability makes it easier to get in and out of tight spots Update Session – NACE April 2018 30 Mack Granite MHD Built on Mack Cornerstone chassis for durability Weight optimized for lighter-duty cycles • Can be spec’d as Class 7 or Class 8 • Lightweight, dependable Cummins L9 engine Multiple configurations available • Ideal for municipal applications • customers who need a durable but lighter work truck Update Session – NACE April 2018 31 Granite MHD Enhancements Short WB for 10’ Dump Body • New shorter wheelbase is also now available for • 10’ Dump Body = CA of 84“ the MHD model in the 4x2 configuration.