Trish Reed VP/GM, IC BUS Aug 2, 2018 Topics For Today • Navistar/IC Bus History • Illinois Presence • IC Bus Dealer Network • Midwest Transit • VW Funding • Why Propane? • Why IC Bus & PSI? Navistar / IC Bus History 1831: Cyrus 1909: McCormick 1850’s: First Trucks developed modern mechanical dealerships 1911: 1977: reaper are formed Buses Combine Invented 1847: 1904: 1995: International Engines AmTran Merger Harvester relocates to 1905: 2002: Chicago, IL Tractors IC Bus Created First company to 1907: make integrated Automobiles buses Making An Impact in Illinois! Headquarters located in Lisle, Il Headquarters located in Wooddale, IL Headquarters located in Kankakee, IL IC Bus Dealer Network – BEST IN CLASS • IC Dealer Network . 1,000+ service locations . 9,000+ technicians . 225 body shops . 24/7 emergency breakdown service • Industry’s most robust parts and service network • Service Supremacy . Culture of On Time, Every Time . Parts availability . Dwell time Midwest Transit Equipment Your Illinois Bus Dealer • Headquarters in Kankakee, IL • 8 Locations throughout the Midwest region Over 350 employees • Parts & service hotlines to support IC Bus Customers • Maintenance Management Group hotlines to provide field service • Dealership email monitored for all general inquiries • Website enabled chat feature to field questions from customers Midwest Transit Equipment - Customer Support • Bus parts inventory – exceeds $10 million • Certified technicians service all makes and • Inventory stocked with parts for every make models of buses and model of buses • Fully equipped body shops Parts & Service • Express shipping to minimize down time • Off-site bus repairs and field service • Mobile bus parts sales trucks technicians • Authorized bus repair centers • Free in-house estimates, pick up, delivery, and bus towing services • Exclusive IC Bus Technician Training on MTU Online Portal • Hands On Training onsite or at training centers • Technical Support for our customer technicians • EZTECH Software support provided via remotely or onsite • Host vendor training throughout the year i.e., Braun lift, Bendix, A/C etc. … • Volume discounts and trade-ins considered Sales, Leasing & • Extended warranties available • Financial partners who can provide great financing and creative leasing plans Financing • Leased bus options to fit any number of scenarios and budgets • Variety of payment plans including delayed payments VW Decree Funding – IL Opportunity • ~ $98M in funding available for Illinois o ~ 2200 pre-1998 eligible buses o ~ 19,700 pre-2010 eligible buses • School buses are eligible for funding • Alternative Fuels such as Propane are eligible for funding • Suggested criteria to prioritize PROPANE EMISSIONS VS DIESEL investments: 1. NOx reduction 2. Human Risk/Exposure 3. Cost Effectiveness (across the full life of the vehicle) 4. Market Impact WHY CHOOSE PROPANE? PROPANE IS PROPANE IS PROPANE IS COST EFFECTIVE CLEANER & QUIETER EASY • Price Future is Stable • Propane is Cleaner • Propane is Abundant • Maintenance Savings • Propane is Greener • Infrastructure is Simple • Reduced Time/ • Propane is Healthier • Propane is Safe Manpower • Propane is Quieter • Fuelling is Easy • Tax Credits/Grants • Drives like a Diesel • Help is Available PROPANE BUSES FUEL SYSTEMS Why Choose IC Bus and PSI • 1975 – Schwan’s converts it’s entire fleet to Schwan's Home propane following the oil embargo. Service, Inc. fleet • 1999 – Bi-Phase was acquired by Schwan’s to estimated fuel evolve their existing propane system. • 1999 – Bi-Phase was the First to Introduce savings are over $30 Liquid Propane Injection in the USA. million annually. • 2001 – Tier 1 Ford • 2006 – Over 5,000 propane trucks utilizing Bi- Phase fuel systems • 2010 – Tier 2 to General Motors • 2015 – Bi-Phase was Acquired by PSI and began production on Navistar/IC. • 2016 – New Bi-Phase production facilities at PSI • FUTURE – PSI’s selected as GM SVM for Alternative Fuels using Bi-Phase Systems for LP IC Bus Propane – It Is Better & Different Heavy-Duty Design • Forged, induction-hardened crankshaft • Forged rods and pistons • Oil bath lubrication provides piston cooling • Low engine-speed design produces less noise, heat and wear than competitor gasoline engines Serviceable • Both the engine compartment and engine provide best-in-class accessibility for easy maintenance • Gasoline and Propane versions use same engine block providing an easy solution for mechanics and drivers of mixed fleets • Includes the industry’s only one-stop warranty for gasoline vehicles Allison Transmission • Shorter, sturdier shaft has increased durability (vs Ford) • Over 44% more clutch material vs. Ford so it holds gear and lasts longer in the toughest operation • Heavy-duty park pawl better secures vehicle • Same transmission used across all IC Bus powertrains for ease of maintenance Propane That Performs Like Diesel Allison 2500 PTS (660ft-lb) Allison 1000/2350 PTS (660ft-lb) 8.8L LP 270 hp/565 lbft ISB 6.7L 240 hp/560 lbft Ford 6.8L 360 hp/450 lbft PTI 8.0L 350 hp/ 500 lbft GM 8100 340 hp/455 lbft Benefits of A Low-Speed Engine BENEFITS OF LOW SPEED • Less Noise • Less Heat • Less Vibration • Less Wear • Less Harshness • Right-Sized Transmission Options • More Power at Lower RPM Gives it Diesel Like Performance and Responsiveness • Longer Life / Durability HORSEPOWER provides highway passing power when your engine is revving hard, allowing you to accelerate at high speeds with a heavy load, while TORQUE gives you low-end power, the ability to move heavy loads from a complete stop as well as power to get up steep hills. The PSI 8.8L engine gives you “diesel-like” torque and power at near-idle RPM levels. WHO IS TAKES CARE OF THE CUSTOMER ? • One Warranty Through IC Bus • No Third Parties, No Finger Pointing • One Manufacturer of Record • IC Bus / Navistar Service Network vs. Car Dealerships • One Engine Platform for All Fuels – Controls, Service & Diagnostics IC BlueBird Thomas PROPANE Engine Ford PI/GM/New Eagle PSI Fuel System Roush CleanFuel GASOLINE Engine Ford N/A PSI Fuel System Roush N/A THE ALLISON ADVANTAGE Why Choose IC Bus and PSI The Allison Advantage is Obvious Best In Class Allison Transmission has built a reputation on our ability to manufacture transmissions that last. Allison Automatics are commercial-duty transmissions designed to withstand the rigors of heavy-duty usage and engineered to meet the demands of your particular fleet while providing outstanding value. School Buses Impact The Community Impact to NOx reduction • School Bus Life Cycle – avg. retirement age 16.2 years . Some states - mandatory retirement up to 20 years • ~340,000 plus MY 2009 & older school buses in operation New School Bus Community Impact • Safest transportation to & from school • Updated fleet with recent technology .