Florida Mid-Year Director s Meeting. February, 15 th 2018
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1 Florida Mid-Year Director s Meeting February, 15 th 2018
2 Tulsa Plant History
3
4 Yellow School Bus Industry Trends Industry Volume Gasoline Enters the Market Electrification VW Decree Funding Advanced Driver-Assistance Systems Integrated Technology Seat Belts
5 Economic Outlook The economy is performing well and its near-term prospects remain good Housing prices continue on positive momentum through 2018 along with housing starts In the U.S., the West and Southeast still have the strongest prospects to lead growth in the near term
6 New Bus Registration Trends Diesel Cannibalization 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2017 Registrations by Fuel Type 2025 Estimated Registrations by Fuel Type GASOLINE NAT GAS PROPANE DIESEL Source: POLK Registrations 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% OTHER DIESEL Source: Navistar Forecast There will be a large cannibalization of diesel market share by other fuel types by 2025
7 Gasoline Enters School Bus Market Gasoline Registrations 1,401 registrations through Oct Lowest acquisition cost on any fuel type upfront cost is lower compared to diesel, and propane Easy maintenance - less training needed than an alternative fuel type most technicians know how to work on both gasoline/diesel engines Cold weather startup don t need to take extra time to heat up the engine before the bus will start Performance the PSI 8.8L low engine speed design drives like a diesel, with no compromise on engine power and reliability *Gasoline registration data from Polk as of Jan 2018 State Buses State Buses NY 170 LA 14 IL 169 OH 11 MI 149 OK 11 PA 118 NL 10 TX 64 AL 9 NJ 64 MA 9 ON 63 BC 7 IA 60 MN 6 GA 59 MD 5 WI 59 KS 5 QC 55 ME 4 MB 54 MT 4 IN 49 TN 3 AB 35 FL 3 MO 29 NV 3 SK 23 NB 3 CA 22 DE 1 VA 18 NM 1 MS 16 AZ 1 CO 14 NH 1
8 The Future of Electric Power The future of electric powertrain will be driven by battery technology & cost/kwh Tesla s Giga Factory in Nevada once at full production in 2018 will produce more batteries then were produced worldwide in 2017
9 Implications of Electric Vehicles ZERO EMISSIONS No recurring investment in emissions certification Global truck, meets emissions everywhere ARCHITECTURES Fewer parts Significantly lower maintenance costs Distribution Model COMPUTER ON WHEELS SCALE BECOMES A HUGE ADVANTAGE Same investment for all regions Higher volume results in lower costs
10 Eligible VW Decree Options & Considerations A) Eligible Vehicles & Equipment : 2009 model year or older class 4-8 buses (A-D) 1. School, Shuttle, or Transit Buses 2. Light-duty EV Infrastructure 3. Local Freight Trucks (large) 4. Local Freight Trucks (medium) 5. Freight Switchers 6. Airport Ground Support Equipment 7. Forklifts 8. Ferries/Tugs 9. Ocean Going Vessels 10. DERA Match (Diesel Emissions Reduction Act) B) Eligible Technologies All-Electric Alternative Fuels (ex: CNG, propane, hybrid) New Diesel (2016 or newer) C) Suggested Criteria to Prioritize Mitigation Investments Nox Reduction Human Risk / Exposure Cost Effectiveness (across the full life of the vehicle) Market Impact
11 Advanced Driver Assistance Systems Electronic Stability Control Lane Departure Warning Obstacle Detection Active Braking Exterior Camera System
12 Integrated Technology Turn by turn directions Route planning Wi-fi External Cameras Remote diagnostics Internal cameras USB ports Student tracking Every day new technology is being introduced to the school bus market Each technology requires different hardware, software and data plans Some technology requires monitors to display information, but there is not always room for additional monitors As school bus customers start using more and more technology the need for integration becomes very important
13 Seat Belts on School Buses Lap Belts Lap-Shoulder Belts Considered Legislation Within The Last 5 Years Every state has/is considering legislation 2017 Alaska Hawaii
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15 What s Happening at IC Bus DriverFirst Philosophy Product Portfolio Power of Choice Electric Road Show Connected Vehicle Technology OnCommand Connection (OCC) OnCommand Link [Over the Air (OTA)] Industry's Leading Dealer Network
16 2018 Product Portfolio CE Series Powered by Propane Purpose-Built PSI 8.8L Engine Expanded WB offerings Expanded Fuel Tank Offering 46, 68, 90-Gallon tank capacities Both air and hydraulic brakes available CE Series Powered by Gasoline Purpose-Built PSI 8.8L Engine Low engine-speed design drives like a diesel Best-in-class accessibility for easy maintenance RE Series Re-introduced w/cummins L9 engine 300 hp and 860 lb-ft of torque best power-to-weight ratio in its class Backed by North America s largest dealer network
17 Gasoline & Propane Powertrain 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
18 IC Bus Driving Choice We re driven to build the most resilient, reliable buses in the industry, all while providing our customers with the power to choose which fuel type suits their needs the best. THE POWER OF CHOICE DIESEL Gasoline Propane Electric Reliable and efficient Cummins B hp and lb-ft VGT Turbocharger increases fuel economy and braking horsepower Purpose-built for school bus applications Low engine-speed design produces less noise, heat and wear for more durability and diesel like performance Best-in-class accessibility for easy maintenance Purpose-built design provides diesel-like performance with low emissions Smooth, quiet, reliable power Propane tank sizes (gallons): 46, 68, 90 Zero emissions and lower cost of ownership Range will exceed 120 miles Estimated launch: 2019
19 Group scale + Modular Architecture Will Drive Compelling Cost Structure Advantages Passenger Car + Commercial Vehicle Volume Passenger Cars Commercial Vehicles VW+Alliance Daimler Volvo Paccar
20 Coming Soon More stops and road show dates SHOW DATE LOCATION CASBO 4/4-4/7 Sacramento, CA Green Trans. Summit 4/17-4/19 Tacoma, WA ACT 4/30-5/3 Long Beach, CA
21 DriverFirst PHILOSOPHY As a leader in the bus industry, IC Bus knows that uptime is about being on time, every time, every day but we also know that won t happen without committed drivers. That s why we re putting the ones behind the wheel at the center of all we do. It s a philosophy we call DriverFirst and it has led to significant improvements in safety, ergonomics and efficiency. We re stepping forward and taking the lead in the industry embracing technology and innovation to make drivers more safe and satisfied, so they stay committed to driving our future with us. Helping all stakeholders in the industry recruit & retain school bus drivers
22 IC Bus Full View Camera Technology by Rosco
23 Connected Services Safety Reliability IC Bus is committed to helping our customers increase on time performance through improved uptime, lowering cost of ownership and increasing satisfaction of all stakeholders. Efficiency (Cost/Student) Growth
24 OnCommand Connection OnCommand Connection Helps: Automate Driver Vehicle Inspection reports to make them faster and more accurate Merge inspection report data with vehicle fault codes into one easy to read report Be more proactive in identifying maintenance issues and addressing them before a breakdown occurs Make informed choices to manage your fleet for maximum productivity
25 Industry s Leading Dealer Network
26 THANK YOU!
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