ACT RESEARCH Spring Seminar. March 24, 2015
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1 ACT RESEARCH Spring Seminar March 24, 2015
2 John Walsh Vice President Mack Trucks Marketing
3 Mack Trucks Founded in 1900 by the Mack Brothers in Brooklyn, New York Committed to durability, reliability, application excellence and total cost of ownership Full range of vocational & highway Class 8 trucks, all built in the U.S.A. Pioneers of integration 3
4 Mack Trucks Component integration knowledge for last 115 years 430+ dealer locations in U.S. and Canada Strong e-commerce platform connecting our customer to Mack Industry-leading telematics integration 4
5 Industry Outlook Anticipating a near-record 2015 U.S. market: Expect North American Class 8 industry retail sales of 310,000 Continued growth in vocational applications as well as TL Strong demand will pressure supply chain Continued focus on integration 5
6 Key Concerns Highway Customers Traffic congestion Driver shortages Asset utilization / productivity Dealer & OEM support Cost of ownership: reliability, fuel, maintenance, etc. 6
7 Key Concerns Vocational Customers Reliability and durability Dealer and OEM support Asset utilization / productivity Integration of chassis and body Cost of ownership: fuel, maintenance, etc. 7
8 Focus on Integration Why integration? Addresses concerns today and tomorrow Optimizes communication among powertrain components Improved design to meet specific applications Increases fuel efficiency, reliability Enables improved analytics for maintenance and uptime 8
9 Mack Integration Powertrain Development Mack MP Series engines More power, less fuel MP8 505C+ Mack mdrive and mdrive HD Boosts efficiency, driver comfort, safety Only about 15 percent of 15-liter engines sold offer more power than MP8 505C+ The enabling component for Super Econodyne solution 9
10 Mack Integration Customer Support People Factory-trained and certified technicians Staffed for Uptime and communication with customer Ability to analyze equipment before breakdown Provide guidance on maintenance and future truck components Innovation On-Board Diagnostic tools Connectivity of major components and operating events Ongoing analysis of vehicle data for improved performance 10
11 David Pardue Vice President Aftermarket Business Development Mack Trucks North America
12 Mack Integration Connectivity ASIST Mack GuardDog Connect Uptime Center - 24/7 support backed by the right blend of people and technology Mack Fleet Management Services 12
13 Body Builder Integration & Connectivity GuardDog Connect now standard on TerraPro concrete pumpers First proactive support service in the industry for pumpers Simplifies service needs in this demanding application Includes specialized body builder support Dedicated pumper support hotline 13
14 The Future of Connectivity Independent systems and data Connected vehicle and managing your fleet 14
15 Turning Data into Operating Results Our customers require reliable, real-time connectivity to their trucks in order to better manage their business. Mack investments in support of our customers Integrated hardware Robust cloud-based data integration Choice in service providers Defined costs Driver and fleet efficiency Shorter diagnostic and repair times Geo-fence BYOD 15
16 Example: Cargomatic Volvo Group Venture Capital working with Cargomatic Technology platform connecting shippers with drivers who have available capacity Shippers know who has capacity, how quickly they can deliver and at what price More efficient process for moving goods Fills under-utilized capacity 16
17 By 2020 (or sooner) Future interaction with Mack dealers Vehicles self-evaluate Trucks repaired remotely via wireless updates Older vehicles diagnosed with physical tool and updates sent remotely Wireless Workshops quick download Further reduction in diagnostic and repair time Truck communicates issue and repair 17
18 By 2020 (or sooner) Remote changes to vehicles Update vehicle parameters (speed limiter) Adjust for legislation (ex. fuel tax) Predictive vehicle analytics Increased driver and fleet efficiency Manage driver information & performance Deliver real-time road conditions 18
19 Summary Integration is key to improving vehicle productivity and uptime Integration is going beyond truck components and moving toward a connected vehicle society Vehicle data will drive enhancements to truck reliability and improvements in vehicle maintenance Truck diagnostic and software repair will be managed remotely limiting unplanned downtime Vehicle support will require People + Innovation Mack is well positioned to lead the integration movement 19
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