OUR SENIOR LEADERSHIP TEAM - WordPress.com...International Truck announced today that it has started...
Transcript of OUR SENIOR LEADERSHIP TEAM - WordPress.com...International Truck announced today that it has started...
OUR SENIOR LEADERSHIP TEAM
Troy Clarke
President and Chief
Executive Officer
Walter Borst
Executive Vice President
& Chief Financial Officer
Perio Lisboa
President, Operations
Bill Kozek
President, Truck &
Parts
Jeff Sass
Senior Vice President,
Sales and Marketing
IT’S UPTIME
2015 • Highest quality products in decades
• Positive cash flow
• Improved market share
• Big product announcements
Q2 2015 SUMMARY
Positive Momentum:
• Chargeouts are up 38% vs. last quarter; up 10% year-over-year
• Ends quarter with $784 million in manufacturing cash on positive
cash flow for the quarter
• Class 8 and medium duty industry outlooks for 2015 are strong
Trucks that are designed to stay on the road
• Warranty spend is down year over year and quarter over quarter
Build defect-free trucks, delivered on the date promised
• All of our SCR products launched on-time or ahead of schedule
Fast service and repair at our dealerships
• Lower costs per repair
Real-time vehicle monitoring and support
• OnCommand Connection is the only open architecture telematics solution in the industry!
Our Uptime Focus
AND THE
MOMENTUM
CONTINUES TO
BUILD
International Truck and Quality Companies
have finalized a three-year supply
agreement for International® ProStar®,
LoneStar® Class 8 tractors powered by the
Cummins ISX-15. Following the 1,050
truck order announced last week,
International Truck announced it has
finalized the remaining 7,950 orders from
Quality Companies, Inc., a wholly owned
subsidiary of Celadon Group, Inc.
The 9,000 vehicle commitment consists
primarily of International® ProStar® and
LoneStar ® vehicles powered by Cummins®
ISX-15 engines, and will be spread across
the next three years.
Quality Companies is a very sophisticated
company that pays close attention to
tracking and understanding the cost of
ownership (including uptime and fuel
economy) for new truck purchases. They
have told us that our products outperform
anything else in their fleet. The 9,000 truck
order is a strong vote of confidence from
an industry leader.
International Truck invited each of its Class 8 competitors to
participate in an open performance testing to compare fuel
economy and drivability of their new trucks. During the week
of August 31, at the Navistar Proving Grounds in New
Carlisle, Ind., International Truck’s Class 8 competitors will
have the opportunity to bring their two best performing
vehicles with regards to fuel economy and drivability.
So far, Freightliner and Volvo have declined to participate. We
are awaiting a response from Paccar.
The tests will include SAE Type III fuel economy testing and
aerodynamic coast down testing as well as ride vibration and
harshness, curb-to-curb cornering ability, forward visibility and
interior noise.
The heavy duty products we are building today are the
highest quality trucks we have built in decades, and are easily
the most fuel efficient trucks we have ever built. The fact that
Freightliner and Volvo have declined indicates they are
scared of us—they know how well the new ProStar performs
and realize that it’s a game they likely would not win.
The ProStar® ES is part of an ecosystem
that combines superior aerodynamics
with an optimized drivetrain, customized
by our highly experienced Performance
Engineering Team and monitored through
our exclusive OnCommand™ Connection
system
THE RESULT?
Up to 13% fuel efficiency improvement vs. our fuel efficiency baseline.
Baseline is a 2010 ProStar with MaxxForce13 engine and 10-speed manual transmission
Navistar will be first-to-market with the Eaton Procision™ line of dual-clutch transmissions for its International® DuraStar® medium-duty
trucks and IC Bus™ CE series school buses, available in late 2015. Based on Eaton's testing, the new 7-speed transmissions deliver a
significant fuel economy advantage compared to a similarly equipped vehicle with a torque converter automatic transmission. The Eaton
Procision transmission features a dual-clutch design and electronic shifting that uses grade, vehicle weight and throttle input to provide
optimal fuel efficiency and smooth, continuous delivery of torque.
Eaton Procision transmissions utilize a new synthetic transmission fluid that
provides component protection while reducing maintenance costs, as part of
150,000 mile or 4-year lube and filter change intervals. The internal sump filter
and electrical system do not require maintenance.
We are investing in all of our products, including medium duty. Our Open Integration
philosophy allows us to bring new innovations like the Eaton Procision transmission
to our customers before any other OEM. The addition of the Procision reinforces
the value proposition of the DuraStar as the most versatile medium duty trucks
on the road, offering new choices that the other OEMs don’t have.
Navistar announced that it will launch a new
line of premium vocational trucks for the
severe service segment beginning in early-2016,
leveraging shared technology and intellectual
property from its venture with Caterpillar. Navistar
and Caterpillar have had a strong, collaborative
working relationship through a number of projects
and partnerships for many, many years. This next
phase provides Navistar with an exciting
opportunity to introduce new technologies and
product features into our new line of premium
vocational trucks that we'll launch in 2016.
We are not standing still. Our vocational
customers are very important to us, which is why
we are investing in a brand new truck to replace
PayStar to better serve the premium vocational
market. This addition to our full lineup of
commercial trucks will add even more
momentum to our recent successes.
The International® ProStar® is available with Bendix® Wingman® Fusion™, an integration of advanced safety technologies,
offering exclusive new capabilities and unparalleled performance to North American fleets and drivers. Bendix Wingman
Fusion combines a proven suite of Bendix advanced safety technologies—radar, camera, the vehicle's brake system, and
SafetyDirect® by Bendix Commercial Vehicle Systems—into a comprehensive driver assistance system more powerful than
any other system or combination of safety technologies in the commercial vehicle industry today
We're committed to providing our customers with industry-leading technologies and bringing them to market quickly. Being the
first to introduce the Bendix Wingman Fusion to our heavy-duty line-up is an important step toward that goal.
International Truck announced today that it has started production of its first International® WorkStar® vocational trucks powered by the
Cummins® ISB6.7 engine. Both the WorkStar and the International DuraStar® medium-duty truck are available with the ISB6.7 as an
engine option.
Production of the WorkStar with Cummins ISB6.7 is an important milestone in meeting the needs of vocational customers by providing a
comprehensive offering of proven components. The WorkStar with Cummins ISB6.7 gives customers a winning combination of
performance and strength. The International WorkStar with Cummins ISB6.7 is the right truck for many of our vocational customers.
International® Truck announced the industry's first telematics credit, available through approved,
integrated telematics providers—effective immediately. The telematics hardware and a two-year
data plan from one of several providers will be standard and available at no cost to the customer
through this program. Hardware and data from the other telematics service provider partners will
be partially covered by this program. The credit bundle goes into effect on new orders placed
since July 1, 2015 in the U.S. and Canada, and will be available to customers buying directly
through the International Truck dealer organization.
OnCommand™ Connection and the telematics bundle credit is an important part of International
Truck's commitment to Uptime. We want every customer in the industry to improve their uptime,
so we took the initiative to offer a technology bundle with a portfolio of telematics providers our
customers already know and trust.
…and we can demonstrate uptime
improvements for these customers. It’s one of
the most important new developments in
trucking…and Heavy Duty Trucking magazine
agrees—it named OnCommand Connection one
of its top 20 products of 2014.
OnCommand™ Connection
currently supports more than
130,000 vehicles
OnCommand Connection will enables us to increase our customers’ vehicle uptime,
supports quicker repairs and helps to control maintenance and repair costs.
After six months of using On Command Connection, one customer experienced a
28% decrease in down days and 31% decrease in repair costs
is now STANDARD on all new International Trucks!
Navistar has opened the Navistar Proving Grounds in New Carlisle,
Indiana where the company will test its entire portfolio of
products: Class 5-8 commercial trucks, school buses and military
vehicles. Recently purchased from Robert Bosch LLC, the 668-acre
site includes a three-mile paved and banked oval with several
additional testing capabilities.
Specialized testing such as vehicle noise and handling, center-of-
gravity, rollover and roof crush testing, grade-ability up to 60
percent, traction control, powertrain durability among others
Located about 90 miles from Navistar headquarters in Lisle, Ill., the
close proximity of Navistar Proving Grounds in New Carlisle, Ind.
will complement the company's validation center in Melrose Park,
Ill., driving efficiencies and allowing test capabilities to be managed
in-house by Navistar.
Uptime is not just an ad campaign—it is truly a commitment
by the company to keep getting better every day.
The new Navistar Proving Grounds will play an
important role in our mission to deliver industry-leading
uptime for our customers. Beyond testing, we will also
use the site as a customer center to showcase new
products and give customers an opportunity to
experience our vehicles firsthand.
The company's financial condition and results continue to improve steadily, and we have begun to generate positive
cash flow. We're investing in new products and advancing on our Uptime strategy in the market, driven by our focus on
connected vehicles. The term loan renewal will provide us additional flexibility to pursue these initiatives. This also
demonstrates that the financial community believes in our strategy and is optimistic about our future.
Navistar has the resources to invest in future products and deliver best in class solutions for our customers. Our
financial position continues to improve, and the investment community believes in where we are headed.
DON’T JUST
TAKE OUR
WORD FOR IT…
“THEY TOLD US WE’D SEE A
HUGE GAIN IN FUEL ECONOMY,
AND THEY WERE RIGHT.”
—BLAINE KELLY, FLEET MANAGER
Bulk Carriers just purchased 15
brand new ProStars with N13
engines after fleet manager Blaine
Kelly, son of owner Jack Kelly, met
with a pack of Navistar engineers.
“Right then and there we made the
deal,” Blaine says. Since then, he’s
been stunned by the leap in
performance. “They told us we’d
see a huge gain in fuel economy,
and they were right. It’s three-
quarters of a mile better [per gallon].
I don’t care who you are; that’s
where you make your money at the
end of the day.”
http://www.internationaltrucks.com/trucks/experience/prostar_bulk_carriers
"We've run our DuraStar with the 9-liter (with SCR) for around
40,000 miles during the last two months," said Robbie Easley,
owner, Easley Trucking. "We haul mail and the 9-liter has
performed well on the steep hills our trucks climb daily. This truck
runs between Phoenix and Yuma, Arizona, one of the hottest environments you can find, and it hasn't missed a beat."
Robbie Easley Owner, Easley Trucking
“The versatility of the DuraStar
is perfect for us. essentially, it
functions as two vehicles in one.”
Greg Raver, Vice President of Fleet
Operations, Miller Pipeline
“It doesn’t matter whether it’s hilly terrain in the Southeast or the
flatlands in the Midwest. The feedback that I’ve gotten from our drivers
has been very positive in terms of comfort, and how they handle
different conditions. With the increased power and torque, our drivers
are able to get from job site to job site more quickly— and that adds to
our bottom line.” –Greg Raver, Miller Pipeline
“Our trucks never shut off. From the
time the driver starts in the morning
until the time he’s done at night,
they’re running. We do get decent
fuel economy for what we’re doing,
a little better than the Macks.”
-Jim Hawkins
Owner, J Hawk Water Service
A CONSTRUCTION COMPANY TURNS TO INTERNATIONAL FOR
TOUGHER TRUCKS AND SOLID SERVICE
2015 & BEYOND
• Best in class quality
and uptime
• Best in class fuel
economy
• Continued technology
leadership
• Continued design and
innovation leadership
LOOKING INTO
THE FUTURE