Who is Daimler Trucks North America? Eugene, OR February 27, 2014 Human Resources 1 A Division of Daimler AG Trucks Vans Passenger cars Daimler Trucks North AmericaDepartment 2 Daimler Vehicle Brands & Services DTNA Global Daimler Trucks North America 3 Daimler Trucks History 1896 1923 1926 1942 Gottlieb Daimler creates first First diesel truck: Daimler and Leland James founds the truck. Mercedes-Benz. Benz merge. Freightliner Corporation. 1947 1950 1951 1967 Freightliner opens its first Hyster Company is the first Freightliner signs agreement Western Star founded by truck plant in Portland, private carrier to order a to retail trucks through White Motor Corporation. Oregon. Freightliner truck. White Motor Corporation dealerships. Daimler Trucks North America 4 Daimler Trucks History 1976 1977 1981 1992 Freightliner opens new Freightliner launches an Mercedes-Benz AG Production starts at corporate headquarters in independent network of purchases Freightliner Freightliner’s new truck plant Portland and sets up regional dealerships, and ends its Corporation from in St. Thomas, Ontario. sales offices. agreement with White Motor Consolidated Freightways. Corporation. 1995 1997 1997 1998 Freightliner launches Freightliner acquires Ford Freightliner launches Freightliner acquires Thomas Freightliner Custom Chassis Motor Company’s heavy- SelecTrucks. Built Buses. Corporation and acquires truck business and names it American LaFrance. “Sterling.” Daimler Trucks North America 5 Daimler Trucks History 1998 1999 2000 2000 1,000,000 Daimler and Chrysler merge. The one-millionth Freightliner Freightliner acquires DaimlerChrysler buys Detroit truck is built. Western Star Trucks. Diesel Corporation. 2002 2002 2002 2003 Freightliner starts production Western Star launches Western Star production Thomas Built Buses debuts of the Coronado, the new 4900EX. The low cab height moves to Portland. the Saf-T-Liner C2, a o/o flagship, and launches makes it popular with auto- revolutionary school bus the Business Class® M2 haulers and owner- design. series. operators. Daimler Trucks North America 6 Daimler Trucks History 2003 2004 2004 2005 Sterling Trucks earns the JD Freightliner opens its high- FCCC introduces the hybrid Opening of a high-tech cold Powers award for Highest tech wind tunnel center in electric walk-in van chassis. chamber in Portland, Customer Satisfaction in Portland, Oregon. Oregon. 2003. 2006 2007 2007 2007 Launch of RPM, an industry- Daimler and Chrysler split. Freightliner launches its new Sterling Trucks earns the JD leading prospecting tool, The new Daimler AG is flagship – the Cascadia. Powers award for Highest allowing FTL, STL, and WST founded. Freightliner LLC is Customer Satisfaction in dealers to effectively target renamed Daimler Trucks 2007. new truck buyers. North America. Daimler Trucks North America 7 Daimler Trucks History 2007 2007 2008 2008 Detroit Diesel starts Saltillo, Mexico plant opens. Parts of the company’s Freightliner LLC becomes production of the new heavy- operations are moved to Fort DTNA LLC. duty engine – the DD15. Mill, SC. 2008 2008 2009 2009 Detroit Diesel adopts Detroit Diesel Corporation Freightliner Trucks Freightliner Trucks earns the Daimler-proven BlueTec Launch of the DD15 World introduces the new JD Powers award for Highest system for all heavy-duty EPA Engine in Redford. Coronado for on-highway Customer Satisfaction in the 2010 engines. and Coronado SD for Vocational Segment. vocational applications. Daimler Trucks North America 8 Daimler Trucks History 2009 2009 2009 2010 Western Star launches three- TBB introduces hybrid The Sterling brand retires. Together, Diesel Direct and axle 6900XD 40-ton dump electric C2 school bus. Freightliner Trucks develop truck, designed for speed, the first ever diesel electric stability, and outstanding hybrid fuel truck. fuel efficiency. 2010 2010 2010 2011 Detroit Diesel invests an Detroit Diesel was FCCC introduces hydraulic Freightliner Trucks additional $190 million in recognized for Achievement hybrid chassis and achieves Introduces New Severe Duty Redford Plant and signs new in Energy Efficiency. Within zero-waste-to-landfill status. Family of Trucks, which 6 year UAW Labor Contract. one year, energy intensity includes the new 114 SD and was reduced by 17%. 108 SD. Daimler Trucks North America 9 Daimler Trucks History 2011 2011 2011 2011 Western Star re-launches the Western Star launches the Detroit Diesel Corporation is FCCC introduces the all- 4800 with twin-steer axle 4700 to meet the renamed Detroit to electric walk-in van chassis. option; the 4800 is available demanding encompass engine family in a day cab or sleeper cab needs of vocational and future products. configuration. applications. 2011 2012 2012 2012 TBB achieves zero-waste-to- Freightliner celebrates 70th Freightliner’s new Cascadia Freightliner introduces the landfill status. Anniversary. Evolution, with the Detroit Revolution Innovation Truck – a DD15 engine, achieves up to new concept in crossover cab 7% increase in fuel efficiency design, modern styling and over the previous model. aerodynamic engineering. Daimler Trucks North America 10 Daimler Trucks History 2012 2012 2012 2012 Freightliner Vocational Western Star celebrates Western Star launches Western Star announces new makes history as Class 6 and 45th Anniversary. 4900SB FE package with 4700 Tractor; with several Class 7 market share leader. Detroit DD15 engine, 5th wheel options, it is ideal aerodynamic features and for bulk haul, local delivery lightweight options improve and construction fuel economy. applications. 2012 2012 2012 2013 Detroit produces100,000th Launch of the Detroit brand Freightliner Trucks wins Detroit celebrates 75th DD platform engine. for engines, axles, Virtual three heavy-duty JD Power Anniversary. Technician and DT12. awards: (1) Vocational, (2) On-Highway, and (3) Heavy- Duty Engine Daimler Trucks North America 11 2014 and beyond… 2014: Western Star steps into the roll of Optimus Prime for the new Transformers film 2016: DTNA completes construction on their new Swan Island Headquarters in Portland, Ore. Department Daimler Trucks North America12 Six pillars serve as the guiding principles to DTNA DTNA The Undisputed Market Leader of of centric Employer of Choice in the- IndustryIndustry the Daimler Inside Daimler Product Features Product Customer Voice of the Industry the of Voice Employer/ partner Employer/ Industry Leading TCO IndustryLeading Sustainable Solutions Sustainable Choice in Choice Market Leader: Class 6-8 and consistently profitable Department Daimler Trucks North America13 Daimler Trucks North America At A Glance Corporate Headquarters | Portland, Oregon, USA Ownership | Daimler Trucks North America is a Daimler company, the world’s largest commercial vehicle manufacturer with global reach Founded | 1942 Number of Employees | 21,000 (including affiliated companies) Products | Heavy- and medium-duty commercial vehicles for long-haul transport, local and regional distribution, construction and services; school buses; chassis for delivery vans, recreational vehicles and shuttle buses; heavy- and medium-duty diesel engines; mechanical transmissions, drive and steering axles Geographic Markets | United States, Canada, Mexico, and more than 35 countries outside of the NAFTA region Annual Production: 133,500 units (2012) Annual Factory Sales: 130,000 units (2012) Sales and Service Support | More than 1,200 locations in the United States, Canada and Mexico (including Detroit Diesel distributors, Petro Truck Centers and TravelCenters of America ServicePoint facilities) Market Share | 33.9% of the NAFTA market for Class 8 commercial vehicles; 37% of the NAFTA market for Class 6-7 commercial vehicles Daimler Trucks North AmericaDepartment14 DTNA Manufacturing Plants Portland/OR Santiago USA Tianguistenco Freightliner Freightliner Mexico Employees as of 03/2013: 986 Daimler Trucks North America LLC, Employees as of 03/2013: 1,489 Daimler Trucks North America LLC, Founded in: 1942 Head office functions, R&D, truck Founded in: 1991 Truck assembly Freightliner/Western Freightliner/Western Star assembly Cleveland/NC Saltillo USA Mexico Freightliner Freightliner Freightliner Employees as of 03/2013: 2,165 Daimler Trucks North America LLC, Employees as of 03/2013: 2,927 Daimler Trucks North America LLC, Founded in: 1989 truck assembly Founded in: 2008 Truck assembly Mount Holly/NC USA Freightliner Freightliner Employees as of 03/2013: 1,522 Daimler Trucks North America LLC, Founded in: 1979 truck assembly Daimler Trucks North America 15 DTNA Manufacturing Plants– Cont’d High Point/NC FCCC Gaffney/SC USA USA Thomas Built Built Thomas Buses Employees as of 03/2013: 1,277 Thomas Built Buses, school bus Employees as of 03/2013: 542 FCCC, chassis for vans, school and Founded in: 1916 assembly Founded in: 1978 shuttle buses, mobile homes Redford/MI Parts Gastonia/NC USA USA Detroit Detroit Diesel/AAC Employees as of 03/2013: 1,614 Detroit engine production and axle Employees as of 03/2013: 1,262 Daimler Trucks North America LLC, Founded in: 1938 assembly Founded in: 1978 parts production Daimler Trucks North America 16 Product Introduction Department Daimler Trucks North America17 The Undisputed Market Leader US Class 8 DTNA US Class 6-7 CAN Class 6-8 The Undisputed NAFTA Class 6-8 Market share 2013: 38.2%Market Leader NAFTA 6-8 2011 2012 2013 %Chg DTNA 2013 Year End Results of of DTNA 31.9 34.0% 38.2% 4.2% Class 8 Class 6-7 Class 6-8 PACCAR 23.4 35.1% 23.8% -1.3% US 38.2% 44.1% 40.2% centric - Navistar 26.5 22.7% 17.7% -5.0% CAN Industry the 33.8% 19.4% 31.5% Volvo/Mack 12.8 13.3% 13.1% -0.2% MEX 22.2% 53.5% 25.1% Daimler Inside Daimler Product Features Product Customer Voice of the Industry the of Voice Employer/ partner Employer/ Industry Leading TCO IndustryLeading Sustainable Solutions Sustainable NAFTA in Choice 36.0% 43.1% 38.2% US Class 8 2011 2012 2013 %Chg DTNA 31.7% 34.2% 38.2%Market 4.0% Leader: Class 6-8 PACCAR 27.5 28.3% 27.4%and consistently-0.9% profitable Volvo/Mack 19.8 19.6% 20.0% 0.4% Navistar 21.0 17.9% 14.4 -3.5% Department Daimler Trucks North America18 NAFTA Class 6-8 Market Share History 1990-2012 Note: Sterling was acquired in 1997.