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 McCormick developed mechanical reaper

1847: International Harvester relocates to Chicago, IL

1850’s: First modern dealerships are formed

1904: Engines 1905: Tractors 1907: Automobiles

1909: Trucks 1911: Buses

1977: Combine Invented

1995: AmTran Merger 2002: IC Bus Created First company to make integrated buses

Making An Impact in Illinois!

Headquarters located in Wooddale, IL

Headquarters located in Lisle, 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

Parts & Service

Sales, Leasing & Financing

• Bus parts inventory – exceeds $10 million • Inventory stocked with parts for every make

and model of buses • Express shipping to minimize down time • Mobile bus parts sales trucks • Authorized bus repair centers

• Certified technicians service all makes and models of buses

• Fully equipped body shops • Off-site bus repairs and field service

technicians • 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 • Extended warranties available • Financial partners who can provide great financing and creative leasing plans • 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

investments: 1. NOx reduction 2. Human Risk/Exposure 3. Cost Effectiveness (across the full life of the vehicle) 4. Market Impact

PROPANE EMISSIONS VS DIESEL

PROPANE IS COST EFFECTIVE

• Price Future is Stable

• Maintenance Savings

• Reduced Time/ Manpower

• Tax Credits/Grants

PROPANE IS CLEANER & QUIETER

• Propane is Cleaner

• Propane is Greener

• Propane is Healthier

• Propane is Quieter

WHY CHOOSE PROPANE?

• Propane is Abundant

• Infrastructure is Simple

• Propane is Safe

• Fuelling is Easy

• Drives like a Diesel

• Help is Available

PROPANE IS EASY

PROPANE BUSES

• 1975 – Schwan’s converts it’s entire fleet to

propane following the oil embargo.

• 1999 – Bi-Phase was acquired by Schwan’s to

evolve their existing propane system.

• 1999 – Bi-Phase was the First to Introduce

Liquid Propane Injection in the USA.

• 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

FUEL SYSTEMS Why Choose IC Bus and PSI

Schwan's Home Service, Inc. fleet

estimated fuel savings are over $30

million annually.

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

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.

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

IC BlueBird Thomas

PROPANE

Engine PSI

Ford PI/GM/New Eagle

Fuel System Roush CleanFuel

GASOLINE

Engine PSI

Ford N/A

Fuel System Roush N/A

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

THE ALLISON ADVANTAGE

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.

Why Choose IC Bus and PSI

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

School Buses Impact The Community