Webasto Product North America Solutions for Improved Air Quality

1. Webasto Product North America Solutions for Improved Air Quality June 2008

2. John Thomas Vice President of Marketing/ Environmental and Regulatory Affairs Improve your environment While protecting ours

3. Webasto Overview Current Idling Situation U.S. Idling Issues, Impacts and Opportunities Revenue Generation (Fuel Savings and Enforcement) Reduction of Dependency on Foreign Oil Reduction of Green House Gases (GHG) Impact on Job Creation Improve Public Health Conclusion/ Next Steps AgendaU.S. Idle Elimination Strategy

4. Webasto History 107 years of excellence WilhElm BAier in STOckdorf  WEBASTO 1901 - 1908 Wilhelm Baier, Sr. founded the company in Esslingen Germany

5. Webasto Worldwide • Global • Turnover 2.1 billion USD • 6,300 Colleagues • United States • Established operations in the US in 1974 • Turnover 540 Million USD • 1,650 Colleagues • Kentucky • Established operations in 1997 • Turnover 300 Million USD • 900 Colleagues

6. Webasto‘s U.S. Presence

7. Webasto in America • Locations: GCS Heating and Cooling Solutions • Fenton / Michigan (USA) HQ & Production • Santa Fe Springs / California (USA) • Locations: CRB Roof Systems • Rochester Hills / Michigan (USA) HQ & Production • Livonia / Michigan (USA) • Lexington / Kentucky (USA) • Murray / Kentucky (USA)

8. Background • “For more than 50 years Webasto has provided engine-off comfort and environmental solutions to the global transportation industry, greatly reducing or eliminating the need to idle” • Webasto’s products provide: • Environmental Consciousness • Reduced Greenhouse Gases • Reduced Dependency on Fossil Fuels • Return on Investment • Safety • Engine-off Comfort • Convenience Technology the Way Nature Intended Engine off Comfort Saves fuel, reduces emissions, protects the environment

9. U.S.Transportation Industry Idling: Issues, Impacts & Opportunities

10. Step 1: Idle Elimination Reduce Foreign Oil Dependency by 8% • 8.0% of the national daily consumption is attributed to idling • US Dependency on foreign oil can be cut significantly by addressing idling

11. Step 1: Idle Elimination Reduction on Foreign Oil Dependency by 8%

12. Step 2: Idle Elimination Tax Money • More than $224 Million per year goes out the tail pipe of our school buses • By eliminating idling, tax dollars currently spent on fuel can be used to support schools, improve roads, create anti-idling programs……. • By adding and enforcing idling laws, states and municipalities could generate significant levels of revenue by fining non-conforming trucks and passenger cars

13. IDLING

14. Step 2: State Level Idle Elimination Revenue Generation – Example: Kentucky • Kentucky could save $4.6 Million per year by adding a state idle elimination campaign for school buses

15. Step 3: Idle Elimination Reduction of Green House Gases (GHG) • The US is the world’s largest producer of GHG • The US could reduce harmful Green House Gases, such as CO2, by 34.5 Million Tons/Year via idle elimination • Idling makes up .6% of the US national CO2 output

16. Step 4: Idle Elimination Improved Public Health • Idling elimination will reduce ozone and fine particle exposure resulting in: • Fewer premature deaths • Fewer cases of chronic bronchitis • Fewer non-fatal heart attacks • Fewer hospital and emergency room visits • Fewer days workers are out sick due to respiratory symptoms • Fewer school absences • Idle elimination in Kentucky and other states would compliment and accelerate existing plans including: • SIP, Clear Skies and elimination of nonattainment status

17. Step 5: Idle Elimination New Job Creation – 18,000 New Jobs • A US idle elimination program would create a demand for more than 37 Million anti-idling devices • Conservatively, this initiative could create more than 18,000 new jobs related to engineering, designing and building anti-idling technologies • Additional jobs in other industries, such as the building segment, parts supply, raw materials, enforcement... would also result

18. Automotive Climate Control (ACC) Autotherm Division Enthal Systems, Inc Auxiliary Power Dynamics, LLC BBW, Inc. Bergstrom Carrier Transicold Cummins Engine Company, Inc. Gates Corporation Idle Free Systems, LLC Phillips and Temro Industries Rig Master Power Safer Corporation Shurepower™, LLC TAS Distributing, Inc. Thermo King Corporation Webasto Product North America, Inc. Idle Elimination Address Job Creation at a National Level • In the US today there are more than 40 U.S. companies who supply and manufacture anti-idling technologies • The job creation component of idle elimination will have a positive effect at a national level

19. Industry Recognized Anti-idling Technologies • Battery Powered • Systems Fuel Operated Heaters Green Green Automatic Shut-Down/Start-Up Engine-off Cooling Auxiliary Power Unit or Generator Set Stationary For More Information: http://www.epa.gov/smartway/idlingtechnologies.htm

20. Global Anti-idling Initiatives That Work

21. Special Guest – Global Warming

22. Canada is moving more and more towards a no idling position • Between 2003 & 2005 Canada instated a Heavy Truck rebate program to stimulate use and sales of anti-idling devises • A truck or fleet received up to $350.00 - $1400.00 per truck for adding and using approved anti-idling devices • This program has resulted in significant reductions of fuel and GHG’s • In 2005 Toronto instated, and is enforcing, a 3 minute idling law Europe and CanadaNo idle and idle reduction programs • In Europe today idling is forbidden

23. EPA SmartWay Program & Clean School Bus • EPA SmartWay Program & Clean School Bus • Creates information and awareness • Promotes anti-idling and technologies • Demonstrates that technologies provide a positive ROI • Provides for low interest loans & funding programs • Model for idle reduction laws http://www.epa.gov/smartway/transport/what-smartway/idling-reduction-state-laws.htm

24. Opportunities: Additional Enforcement &Idling Regulations Overview of State Idling Regulations • Approximately 22 states in the US have some level of commercial or passenger vehicle anti-idling regulations • Little is being done to enforce these laws and many loop holes exist • Some US cities have established enforcement agencies to address idling and air quality, but these are far too few

25. 15 minutes or less Pending/considering legislation North American Idling Laws • Idling is regulated in States, Cities and Municipalities • Toronto • Boston • New York • Philadelphia • Washington DC • Atlanta - Vancouver - Denver Active Enforcement 5 minutes or less 10 minutes or less • - St. Paul • St. Louis Seasonal

26. Rebate or incentive programs Retrofit of current Kentucky school bus fleets Legislation & Enforcement Awareness √ √ √ √ √ √ √ √ √ √ Kentucky Idle Elimination Required Elements for Success Trucking School Bus Light Duty

27. Leading the industry through education - LEaP A giant LEaP towards a cleaner tomorrow

28. Five Step Opportunity Step 1: Reduction of Dependency on ForeignOil Step 2: Generate Revenue (Fuel Savings and Enforcement) Step 3: Reduction of Green House Gases (GHG) Step 5: Create New Jobs Step 4: Improves Public Health Next Steps: How Can We Help? SummaryU.S. Idle Elimination Strategy

29. “ It’s not easy being green” Kermit the Frog

30. Everyone has to have the same goal! WE ALL BREATH THE SAME AIR!

31. Kentucky Nonattainment Counties

32. National Nonattainment Counties