Freightliner Natural Gas Market and Product Update Bob

Freightliner Natural Gas Market and Product Update Bob Carrick, Vocational Sales Manager, Natural Gas Greg Treinen, Product Marketing Segment Manager, Alternative Fuels/Medium Duty April 12, 2012 Product Marketing

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Pioneers in Natural Gas Market • Freightliner Trucks: THE leader in natural gas deliveries of conventional heavy duty trucks • More than 1300 natural gas-powered trucks and tractors since 2008 • Only conventional OEM producing natural gas vehicles with full factory installation and warranty • First to publicly demonstrate ISX 12 G-powered vehicle Daimler Trucks North America

Customer Purchase Process – Natural Gas Research the Business Case • FUEL – FUEL – FUEL • Will products work? • Weight/length differences? • Funding availability • Financing • Warranties • Insurance • Driver reactions • ONCE AGAIN: is Fuel readily available at competitive cost & flow? ~16. 646” ~24. 736” ~3. 711” Daimler Trucks North America

NG Fuel Location & Price Resources CNGprices. com – prices listed in Gasoline Gallon Equivalent. Add 13% to price to get Diesel Gallon Equivalent Daimler Trucks North America 5 pricing

Cascadia 113 Day Cab Natural Gas – Base Spec • 113” BBC • Cummins Westport ISX 12 G, 400 hp, 1450 lb ft torque • Allison 4000 HS • 12, 000 lb. Front Axle / 12, 000 lb. Taperleaf Suspension • 40, 000 lb. R-series Aluminum Carrier Tandem / 40, 000 lb. Airliner • 192” Wheelbase • 155 Diesel Gallon Equivalent (DGE) CNG Fuel Tanks • • 40 DGE RH CNG tank • • 40 DGE LH CNG tank 75 DGE back-of-cab CNG tank package SOP Q 2 2013 Daimler Trucks North America 6

Cummins Westport ISX 12 G • 11. 9 liters, up to 400 hp/ 1450 lb ft torque • Cleanest technology available: EPA 10 and CARB emission standard compliant • Dedicated natural gas engine – NOT dual fuel • Spark ignited stoichiometric EGR engine • Factory produced – Cummins Jamestown, NY plant • Maintenance-free aftertreatment system • Three-way passive catalyst • No regeneration or ash cleaning • Optional engine brake available • Target Markets: • • • Q 2 2013 SOP: Regional haul truck / tractor Cascadia Q 1 2014 SOP: Vocational – 114 SD Future (2015): Cummins ISX 15 G, 500 hp Daimler Trucks North America 7

CNG Cross Country Tour Summary • What: Drive Cascadia with ISX 12 G from Long Beach, CA to Washington, DC • Dealer events • Microsite – freightlinergreen. com - with blogs, photos, videos, social media • PR • When: Begin following ACT Expo, which ends May 17, 2012. First stop on May 18. Tour ends at dealer meeting location in Washington around May 24. • Where: Four (4) or five (5) stops between Long Beach and Washington: • • OKC • Little Rock • Nashville • • Phoenix Charlotte (? ) Why: Promote Cascadia with new 12 liter natural gas engine. Keep FTL in spotlight as natural gas leader. Show natural gas as a fuel, and FTL CNG product, as viable alternative to diesel Daimler Trucks North America 8

Proposed Cascadia CNG Demo Program • What: Cascadia 113 CNG Demo Program • Five (5) Cascadia 113 CNG tractors with new ISX 12 G engine • Purchased from DTNA by Ryder – Ryder keeps trucks at end of demo • • • Ryder responsible for maintenance, permitting, etc. Rental/leasing terms not yet determined When: July through June 2013 • Begins following FTL dealer meeting in Washington, DC • Where: One vehicle in each sales region (US & CAN), plus potentially one additional focused on LA to Salt Lake corridor (LNG) • Why: To seed interest in Freightliner’s all new Cascadia CNG product • Give customers hands on experience with natural gas • Give dealer network more experience with natural gas product line – very few have it now • Demonstrate continued leadership in alternative fuel products – Shaping Future Transportation Daimler Trucks North America 9

Cascadia 113 Day Cab Natural Gas – CNG Fuel Tanks 40 Diesel Gallon Equivalent Rail-Mounted CNG Tanks Contact Agility Fuel Systems for Additional Tank Sizes 10 Daimler Trucks North America

Cascadia 113 Day Cab Natural Gas – CNG Fuel Tanks 75 Diesel Gallon Equivalent Back-of-Cab. Mounted CNG Tank Package This package is flush with top of cab vs. current package (17” above cab); approx 5 additional inches BOC vs. current package) Contact Agility Fuel Systems for Additional Tank Sizes 11 Daimler Trucks North America

Cascadia 113 Day Cab Natural Gas – Dual LNG Fuel Tanks Required 150 Gallon (84 Diesel Gallon Equivalent) Rail-mounted LNG Tanks 12 Daimler Trucks North America

Agility Saddle Tanks • Installed at Anniston, AL or Fontana, CA • Tank delete, with price quote process • Data Codes • 605 -095 DRILLING PREP FOR ALONG SIDE RAIL CNG TANKS • 212 -800 FUEL TANK BRACKET 03 -23715 -000, STEPS AND BANDS SHIPPED TO DEALERSHIP SEPARATELY FOR LH AND RH CUSTOMER INSTALLED CNG FUEL SYSTEM • 290 -017 BATTERY BOX FRAME MOUNTED • 29 G-001 PLASTIC AUXILIARY BATTERY BOX MOUNTED BETWEEN RAILS • 282 -005 LH BATTERY BOX MOUNTED AS FAR AFT AS POSSIBLE • 29 E-001 AUXILIARY BATTERY BOX(ES) MOUNTED IN RAIL BACK OF CAB • 291 -017 WIRE GROUND RETURN FOR BATTERY CABLES WITH ADDITIONAL FRAME GROUND RETURN • 289 -001 NON-POLISHED BATTERY BOX COVER • 29 F-001 PLASTIC AUXILIARY BATTERY BOX COVER 13 Daimler Trucks North America

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Agility Saddle Tanks – New CNG Tank Design Expected to be available for install at Agility August 2012 – Contact Agility for details 15 Daimler Trucks North America

Cascadia 113 Day Cab Natural Gas – Availability and Ordering Process Availability • Start of production now expected Q 2 2013 (April) • Launch Group 1 only available with Allison 4000 series transmissions; manuals available Launch Group 2 • Factory-installed tank packages to follow – Launch Group 2 Orders • Order process - expected Fall 2012 in Spec. Pro Pricing • Not yet determined – final pricing from Cummins not confirmed 16 Daimler Trucks North America

26 K GVW Availability in the M 2 112 Natural Gas • The ability to spec a 26, 000 lb GVW vehicle in an M 2 112 with an ISL G will soon be available! • Will be published in Spec. Pro • Look for announcement with full restrictions and other details soon • Achieve 26 K GVW via frame rails – ISL G ONLY: • 546 -092 11/32 X 3 -1/2 X 10 -15/16 INCH STEEL FRAME (8. 73 MMX 277. 8/0. 344 X 10. 94 INCH) 80 KSI • 546 -093 11/32 X 3 -1/2 X 10 -3/16 INCH STEEL FRAME (8. 73 MMX 258. 8/0. 344 X 10. 19 INCH) 80 KSI • 546 -094 9/32 X 3 -7/16 X 10 -1/16 INCH STEEL FRAME (7. 14 MMX 255. 6/0. 281 X 10. 06 INCH) 80 KSI • OR, via 16 K rear suspension – ISL G ONLY: • 622 -1 JO Airliner 16 K rear suspension with 18 K components. 17 Daimler Trucks North America

Natural Gas Competitive Landscape Brand • KW T 800 LNG w/Westport GX 15 L 450 Models hp/1750 lb ft • KW T 440, T 470 and W 900 S LNG/CNG w/ ISL-G 8. 9 L up to 320 hp/1000 lb ft • KW T 660, T 800, and W 900 w/ISX 12 G 400 hp/1450 lb ft • PBT 367, 386, and 389 LNG w/Westport GX 15 L 475 HP/1750 lb ft • PBT 320, 365, and 382 LNG/CNG w/ISL G • PBT 320 and 365 with ISX 12 G 400 hp/1450 lb ft • Engines factory installed, but tanks still Current Status installed at tank vendor – factory tank installation discussed for summer 2012, but no confirmation • On same timeline as FTL for ISX 12 G integration • Claim to have “broadest range of NG product” • GX not a true Cummins factory engine and only How to Sell Against runs on LNG • GX requires active regen & soot cleaning, plus diesel particulate filters and SCR equipment – extra weight and cost! • GX not compatible with automatic transmissions • Still does NOT install fuel tanks – Agility must install & warrant after the fact • Does not install methane detection system on CNG products • Issues with fan clutches and/or fans falling in to the radiator • Work. Star and Dura. Star (late 2012) with Emission Solutions Inc (ESI) Phoenix 7. 6 L, based • Mack Terra. Pro Low Entry and Cabover on DT-466 platform, up to 300 HP/860 lb ft LNG/CNG w/Cummins-Westport ISL G 9 -liter engine 320 hp/1000 lb ft • Tran. Star with ISL G 8. 9 L up to 320 hp/1000 lb ft – late 2012 • Volvo VNM with ISL G 9 -liter engine 320 hp/1000 lb ft • Pro. Star with Clean. Air. Power modified • Volvo VNL with ISX 12 G Maxx. Force 13 dual fuel LNG engine; 430 hp/1550 lb ft – 2013 • Emission Solutions Inc converts reman DT-466 engines to NG • Engines installed at Garland, TX plant, tanks not factory installed • Joint program with Clean Energy announced March 2012 • Full production for Mack Terra. Pro NG products • Mack plans to integrate ISL G into conventional line up, but timeline not clear • Volvo sold 10 CNG VNMs to Giant Eagle in 2011, limited sales beyond that • ESI and CAP base engines are remanufactured • More expensive when considering whole package when considering installation costs, etc. • Mack currently only offers COE/LCF refuse • No after sale factory support from NAV products – if customer doesn’t require frontloader we can cover with M 2112 tandem axle. • No factory warranty from NAV • Volvo has limited experience • Longer lead time • No factory tank install • Very few units sold – last into the market; limited experience • No engine larger than ISL G available currently – only dual fuel 13 L LNG engine in works 18 Daimler Trucks North America

Dealer/Customer Shop Requirements • NFPA 30 A requirements • Full implementation can cost $50 K per bay • Differences in CNG (odorized) vs. LNG (non-odorized) repair requirements • Local fire marshal has final say • Major fuel system repairs - same requirements for both CNG & LNG • Must call in certified professional – local utility, Agility Requirement CNG LNG Explosion proof lighting X X Methane detection X Heater location X Exhaust fans X 19 Daimler Trucks North America

Government Incentives Federal The NATURAL GAS ACT (HR 1380) • Fuel use – 50 Cent/gal tax credit extension • Vehicle purchase - $32 K to $64 K tax credit • Fueling infrastructure – up to $100 K tax credit • Currently in the HOUSE – stalled for a year • SENATE introduced similar bill, S. 1863, November 15 • Senate voted 51 -47 in favor of the amendment on March 13, however the threshold of 60 "yes" votes for inclusion was not met and therefore, the amendment was rejected • Drops fuel use tax credit • Provisions for funding – better chance of approval…eventually (after election? ) 20 Daimler Trucks North America

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