Detroit Diesel BlueTec Update

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Detroit Diesel BlueTec Update
Security Classification Line
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Agenda

• Overview (Review of BlueTec)
• BlueTec Equipment
• Vehicle Performance/Operation
• Proven Technology
• Diesel Exhaust Fluid
• Infrastructure Update
• Closing

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Overview
Emissions Standards

• Since 1994 significant reductions in PM NOx
• True 2010 emission standard 0.2 g NOx and 0.01g
  PM.
• EPA 2010 not expected to be moved out
• Implementing the emission rules for heavy-duty
  engines is going smoothly and will be a reality
  in 2010. Were on track.
• - Dale Kemery EPA Spokesperson
• Currently no additional EPA emissions regulations
  after 2010

1994
500 PPM (6/93)
5.0
20
1998
4.0
38
SULFUR
2002
NOx g/hp-hr
2.5
52
2007
1.2
ULSD 15 PPM (9/06)
83
2010
0.2
0.0
0.0
0.01
0.10
90
PM g/hp-hr
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Overview
Common Terms

• SCR Selective Catalytic Reduction
• A vehicle emissions control technology to reduce
  diesel engine emissions for passenger cars, light
  heavy duty trucks. Reduces NOx using a reducing
  agent by converting NOx into nitrogen, water and
  tiny amounts of carbon dioxide.

• BlueTec
• Daimlers branded SCR emissions solution

32.5 Urea
100 DEF Diesel Exhaust Fluid

• DEF Diesel Exhaust Fluid
• A solution of 32.5 automotive-grade urea and
  67.5 purified water used in the SCR process
  also referred to as AUS32

67.5 Water

• AdBlue
• Registered trademark for DEF in Europe North
  America will use the term DEF

• ARI Acronym Reduction Initiative
• Effort by DTNA to reduce the number of acronyms
  used

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Overview
Common Terms

• DOC Diesel Oxidation Catalyst
• Part of the 2007 Aftertreament system that
  converts soot into ash

• DPF Diesel Particulate Filter
• Part of the 2007 Aftertreatment system that traps
  ash

• ATD AfterTreatment Device
• Combination of DOC and DPF used to meet 2007 EPA
  emissions standards

• SCR Catalyst
• EPA 2010 hardware used to convert NOx into
  Nitrogen and Water

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Overview
How BlueTec Works

• Exhaust

Intake Throttle Valve
NOx PM
Doser
P
T
T
T
NOx
Diesel Oxidation Catalyst (DOC)
Diesel Particulate Filter(DPF)
N2
H2O
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Overview
Customer Perception

• Market research study commissioned to gain
  insight into customer perceptions of EPA 2010
• Study conducted November 2008
• 828 respondents
• Which pollutants are specifically included as
  part of EPA 2010?

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Overview
Customer Perception

• Which technology (SCR or increased EGR) will
  deliver the following benefits?

SCR delivers all of the above benefits
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Overview
Customer Perception

• How likely are you to consider SCR or EGR for
  your next truck purchase?

Consider both 5.8
Consider both 19.2
SCR Only 23.6
Increased EGR Only 5.0
SCR Only 33.7
Increased EGR Only 10.2
Very Likely to Consider
Somewhat/Very Likely to Consider
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BlueTec Messaging

• BlueTec is better economics with 3 better fuel
  economy than equivalent 2007 engines BlueTec is
  the first emissions change to provide a cost
  benefit to the customer.
• BlueTec is cleaner SCR is the only technology
  that is able to meet Nox levels of 0.2g/bhp-hr at
  the tailpipe. Customers can be proud to support
  environment improvements.
• BlueTec is convenient Fewer active
  regenerations. DEF supply will not be an issue
  and will become second nature to driver when
  operating their vehicles.
• BlueTec is proven With over 600,000 SCR
  vehicles in operation in Europe and over 10
  Million BlueTec test miles run in the United
  States customers can be confident in BlueTec.

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BlueTec Equipment

• New major components for 2010
• 1 Box contains ATD SCR catalyst (est. 90
  vehicles)
• OR
• 2 Box separates ATD SCR catalyst (est. 10
  vehicles)
• DEF plastic storage tank (6, 13, 23 gallon sizes)

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BlueTec Equipment

• Compared to EPA07 weight increase for EPA 2010
  will be approximately 250lbs 500lbs
• Includes DEF
• BlueTec hardware is designed to last the life of
  the vehicle
• Current maintenance intervals will not change
• DEF filter will need replacement at approximately
  300,000 miles

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Vehicle Performance/Operation
Gauges/Lights
Full Indicator Lamp
75 to 100 4 green lights
50 to 75 3 green lights
25 to 50 2 green lights
15 to 25 1 green light
100
0
90
80
70
60
50
40
30
20
10
Full
Empty
DEF in tank
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Vehicle Performance/Operation
Gauges/Lights
Full Indicator Lamp
5 to 15 1 yellow light DEF lamp
0 to 5 1 red light DEF lamp
0 1 red light flashing DEF lamp
0 to 5 tank level - 25 engine derate, 55 mph
speed limit imposed
0 tank level - Vehicle speed will be limited
to 5 mph, provided vehicle is in a safe
situation.
100
0
90
80
70
60
50
40
30
20
10
Full
Empty
DEF in tank
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Vehicle Performance/Operation

• SCR system will detect when an improper fluid has
  been put in the Diesel Exhaust Fluid tank

• The following action will be employed once this
  condition is detected
• 25 engine derate
• 55 mph speed limit imposed
• After 1,000 miles or 20 hours of operation
  without remedy a more significant action will be
  initiated. Vehicle speed will be limited to 5 mph
  provided the vehicle is in a safe situation.

Malfunction Indicator Lamp

• Under no circumstances will the engine be
  shutdown due to running the vehicle out of DEF or
  putting the improper fluid in the DEF tank

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Vehicle Performance/Operation
Engine Optimized for Fuel Efficiency
3 better fuel economy than comparable 2007
engine 5 better than extreme EGR 2010 engine
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Proven Technology
Experience In Europe
SCR Technology/BlueTec Already Proven Around
the World

• SCR Vehicles in Operation TODAY
• Over 100,000 Daimler
• 600,000 in Europe Overall

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Proven Technology
North American Customers Are Learning About SCR
From European Customers
Daimler has done a good job reassuring me that
SCR is the solution and that Daimler has the
answers Steve Williams Chairman and CEO,
Maverick Transportation ATA Chairman
2004-2005 European carriers had the same
concerns we have. Today, nobody even gives them a
remote thought Operationally, the cost of fuel
plus the cost of DEF equals a savings
advantage Don Streuber President and CEO, Bison
Transport The engines might cost a bit more but
they run better with SCR, that was proven by
European customers who have been running with SCR
for two years Harry Muhlschlegel Chairman and
CEO, New Century Transportation
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Proven Technology
Over 10 Million Miles of Vehicle Testing Complete
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DEF Properties
Diesel Exhaust Fluid
32.5 Urea concentration in water Clear liquid
Non-toxic and biodegradable Weight
9.2lbs/gallon Corrosive to aluminum Freezing
point 12 F
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Handling DEF

• Aluminum
• Technically DEF is corrosive to aluminum, but
  only in large quantities and long period of time
• Freezing
• Immersion heater using engine coolant to heat DEF
  in cold ambient conditions
• DEF will be allowed to freeze when the vehicle is
  non operational in temperatures below 12º F
• Vehicle is fully operational when DEF is frozen
  vehicle operation will heat DEF within prescribed
  time in order to allow SCR system to operate
• All DEF is purged from transfer lines when the
  vehicle is shutdown

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Driving Range with One Tank of DEF
Diesel Exhaust Fluid
6900 miles
Driving Range with One DEF Tank
3900 miles
1800 miles
13 gallons
23 gallons
6 gallons
DEF Tank Size
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Scenario 1 Fort Kent, ME to Caribou ME
Route - Fort Kent ME to Caribou ME (132
mi) Vehicle Setup - Western Star 4900 - 80
gallon diesel tank - 6 gallon DEF
tank Results - 3 trips per 1 diesel tank -
13 trips per 1 DEF tank
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Scenario 2 Fresno CA to Boston MA
Route - Fresno CA to Boston MA (6,226
mi) Vehicle Setup - Western Star 4900 - 250
gallon diesel tank - 23 gallon DEF
tank Results - 4 diesel tank fill ups -
Less than 1 DEF tank fill up
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Cost for DEF
Diesel Exhaust Fluid

• Detroit Diesel currently pays 2.61 per gallon
  for DEF
• Purchased through similar channels that will be
  used by fleets in 2010.

2.61/gallon
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Infrastructure Taking Shape Rapidly
Infrastructure Update

• SCR Stakeholders group continues to move forward
  with the distribution network to ensure a smooth
  transition into 2010.
• Pilot Travel Centers, TA Travel Centers of
  America, and Petro Stopping Centers have already
  commented to supplying DEF.
• Other partners are expected to make announcements
  in January

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Industry Website
FactsAboutSCR.com

• What you will find there
• Third Party information about SCR Technology
• Recent 2010 Emission Press Releases
• Diesel Exhaust Fluid developments

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Transport Topics
Navistar Advertisement Shows Desperation

• Remember the facts about BlueTec
• BlueTec is better economics with 3 better fuel
  economy than equivalent 2007 engines BlueTec is
  the first emissions change to provide a cost
  benefit to the customer.
• BlueTec is cleaner SCR is the only technology
  that is able to meet Nox levels of 0.2g/bhp-hr at
  the tailpipe. Customers can be proud to support
  environment improvements.
• BlueTec is convenient Fewer active
  regenerations. DEF supply will not be an issue
  and will become second nature to driver when
  operating their vehicles.
• BlueTec is proven With over 600,000 SCR
  vehicles in operation in Europe and over 10
  Million miles of BlueTec test miles run in the
  United States customers can be confident in
  BlueTec.
• BlueTec is the answer

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Questions?Wayne Stephanwayne.stephan_at_daimler.c
om303-475-4315