Peace of Mind with Warranty Support

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1 Peace of Mind with Warranty Support Basic Limited Warranty 24-month/unlimited-mileage basic coverage 36-month/150,000-mile Eaton hybrid power components 60-month/unlimited-mileage cab/cowl perforation corrosion coverage 84-month/unlimited-mileage coverage on frame rails 36-month/150,000-mile (240,000 km) towing coverage Extended warranty is available 39

2 Eaton Hybrid Warranty Standard warranty - 3 years / 150,000 miles Includes base transmission and Eaton supplied Hybrid system* *Cooling portion of system International Truck & Engine supplied Extended warranty coverage additional 2 years & additional 50,000 miles

3 Battery Life Expectancy Current life projection 6-8 years Strongly dependant upon application, duty cycle Continued focus on: PEC Serviceability Component exchange program Reman program

4 Expanded Chassis Options Auto Therm-Factory installation coming! Engine off heating 70 F cab heat for 11/2 hours with 32 F outside ambient temperature with MaxxForce DT 42

5 Future Opportunities Electrification of Reefer Thermo King-Smart System-POC Carrier with the Oasis System Expanding Application Integration with the Hybrid Higher GVWR / GCWR s Electric HVAC Systems Engine Brakes Higher Engine Horsepower

6 Future Hybrid Focus Arvin Meritor Class 8 Hybrid Dual-Mode Drive Train System Benefits Include: Idle reduction (Stop/ Start and Hoteling) Fuel electric/ Zero emission mode Fuel Efficiency (Diesel Operation) Silent Mode Operation Lower Emissions Two PECs Development Stage only forecasted to be available by 2012

7 Future Hybrid Focus Arvin Meritor Class 8 Hybrid Dual-Mode Drive Train Development Stage only forecasted to be available by 2012

8 Class 8Heavy Duty Program Overview Partnership with Clean Air Power (CAP) Provides MxF 13 NG Dual Fuel offering in the ProStar product-85%lng/15% Diesel 430 HP / 1550 lb-ft, mile range Concept Demonstration complete December 2010 Steady State 2010 Emissions Basic drivability Competitive Advantages: Product Differentiation Flexibility Diesel-like efficiency No SCR Limp home mode Advance Engineering NOT release for production CONFIDENTIAL and Proprietary to Navistar

9 estartm Electric Truck Limited Product Launch

10 Applications for Best Customer 100 mile range/day, 50 MPH, Frequent stops & starts along with a Central Hub Industry Examples Food/Beverage General Freight Government Services Telecom Utilities Universities Temperature (-5 F to 95 F) in places like.vancouver, Detroit. Boston, Chicago, San Francisco and Houston, Texas

11 Programs to Fund Technology Tax Credits Federal/State/local opportunities for your customers (private and public), including DERA/DOE/CMAQ/Clean Cities, etc. Many federal programs allow for combining with state and local programs for additional funds! Some states offer tax incentives, does yours? Grants vary, but funds can be used for new vehicle purchases, (hybrid/alt fuel and conventional), retrofits, idle reduction technologies, alternative fuels, APUs, DOCs etc. Get to know your Clean Cities organizations! Join and attend stakeholder meetings and association functions. (your customers are there!) or at least get on their distribution lists. They have all the latest funding information!!

12 Programs to Fund Technology Federal Alternative Fuels Tax Credit: up to $32K for new or natural gas conversions. Expired 12/31/10. Pending legislation NAT GAS ACT for up to $64K Hybrid Federal Tax Credits $3k-$12k-Expired 12/31/09. Awaiting reinstatement. State and Local Tax Credits: (LA and OK offer a 50% state tax credit for the incremental cost of new or retrofit cost for alternative fuel vehicles) Federal Emission Reductions Programs: DERA (25% of the total vehicle cost/requires replacement vehicle, applies to hybrid and conventional trucks) 2011 closed program expected late 2011 DOE (historically 100% hybrid up-charge/no replacement vehicle required, applies to hybrid and alt. fuel trucks only) 2011 program limited to EV infrastructure studies Federally funded state programs: Federal programs like DERA, typically set aside funds for states to fund specific programs of their choice. State Funded Programs: Texas has TERP which funds up to 80% of replacement vehicle costs, for conventional or alternative fueled vehicles, terms vary by grant.

13 Funding Websites **Alternative Fuel and Advanced Vehicle Data Center: search by state and type of fuel/funds/etc Congestion Mitigation and Air Quality: US DOT Highway Administration: EPA Clean Fleets Programs: VALE-Voluntary Airport Low Emissions: EPA general grant information region 4: General grant search: International s hybrid grant information on the MRC: Environmental Defense:

14 Questions??? 6/6/2011

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