Demand Drivers & Trends Denny Mooney Group Vice President Global Product Development Navistar, Inc.
My#Background:#Australia#
Navistar:#A#Leader#in#Transporta:on#
• Founded'in'1831'as'the'McCormick'Reaper'Company'
• Products'include:'< Interna>onal®'brand'commercial'and'military'trucks'
< MaxxForce'®'brand'diesel'engines'
< IC'Bus™'brand'school'and'commercial'buses'
• $10'billion,'FORTUNE'250'company'
• North'America’s'largest'truck'retail'organiza>on,'with'nearly'
900'dealer'loca>ons'
• 14,000'employees'
Full<line#truck,#bus,#military#vehicle#and#diesel#engine#manufacturer#
A#Leading#Class#6<8#Truck#and#Bus#Manufacturer#in#North#America#
School#Bus#37%'Market'Share'
FY2013'
Medium<Duty#24%'Market'Share'
FY2013'
Class#8################Severe#Service#22%'Market'Share'
FY2013'
Class#8#Heavy<Duty#12%'Market'Share'
FY2013'
Navistar#in#Australia:#Trucks'sold'under'Cat'brand'
Emissions#Standards:#U.S.#EPA#
2011#ADR#80<03#
Customer#Demands#
• Fuel'Efficiency'
• Reliability/Up>me'
• Acquisi>on'Costs'• Driver'Accommoda>on'
• Weight'Reduc>on'
Emissions#Standards:#Not#Aligned#with#Customer#Priori:es#
Regulatory#Impact#
• Less'Fuel'Efficient'
• More'Weight'
• Reliability'Issues'• More'Cost'
• Product'Complexity'
Costs#Increases#Driving#Higher#Prices#(U.S.'Dollars)'
90,000#
95,000#
100,000#
105,000#
110,000#
115,000#
120,000#
125,000#
1996#1997#1998#1999#2000#2001#2002#2003#2004#2005#2006#2007#2008#2009#2010#2011#2012#2013#
$95,000#
$100,000#
$108,000#
$117,000#
$123,000#
+5.2%#
+8%#
+8.3%#
+5.1%#
+29%'
Priori:es#of#Today/Tomorrow:#The#Customer#
Fuel#39%#
Drivers#33%#
Acquisi>on'
11%'
Adm/Fees'
6%'
Up:me#11%#
United#States##
Source:''American'Transporta>on'Research'Ins>tute'
An'Analysis'of'the'Opera>onal'Costs'of'Trucking,'Sept'2013'
(2012'survey'of'for<hire'motor'carriers')''
Electronic#Vehicle#Integra:on#
Body#Controller#
ECM#
ABS#
ECS#
Cruise#Control#• Up#to#34#computer#modules#• Up#to#2,900#messages#per#second#
Smart#Cruise#Control#
Smart#Cooling#System#
Smart#Charging#Systems#
Smart#Air#Compressors#
12'
Intelligent#Vehicle#Systems#
13'
Aerodynamics:##From#airflow#to#ac:ve#energy#management#
• Leadership#History#• Cri:cal#to#Fuel#Economy#• Innova:ons#on#the#Horizon:#< Smart'Grille'Shuhers'
< Smart'Ride'Height'Adjustments'
< Smart'Fikh'Wheel'
< Tractor/Trailer'Integra>on'
Powertrain#
18%#*Fuel#Economy#impact#at#100#KPH#
14'
Smart#Cruise#Technologies#
Vehi
cle
Spe
ed
Maximum Set Speed
Cruise Control Set Speed
Minimum Set Speed
Ele
vatio
n
Expert Driver Normal Driver Potential downshift
Potential braking event
15'
Smart#Cruise#Technologies#
Loca:on# Terrain#
GPS# Road#Map#Database#
16'
Automated#Manual#Transmissions#
17'
Smart#Cooling#
18'
Connected#Vehicle:#Vehicle<to<Infrastructure#
19'
Connected#Vehicle:#Vehicle<to<Driver#
Autonomous#Vehicle'
20'
Connected#Vehicle:#Vehicle<to<Vehicle#
21'
Truck#of#Tomorrow:#Technology<Driven#Efficiency#