California BAR-DAD Vendor Update

BAR Update Company Info BAR-OIS Background DAD Development BETA Experiences Smog Shop “Choices” What’s Next

Drew Technologies Company Info Founded and incorporated in 1995 Engineering, Manufacturing, and HQ in Ann Arbor, Michigan Core focus on vehicle communications and diagnostics Over 20,000 vehicle communications products delivered to OEMs, dealerships, smog shops, and the aftermarket last year

Drew’s Involvement With The Spec First learned of the DAD Specification in 2012 Drew’s proposal to use SAE J2534 instead or BAR-DAD Spec –J2534 would move more decision making and data collection capabilities out of the hardware and into the application –Idea came too late in the regulation process Working thru the DAD Specification –Early on, there were differences of opinion among vendors on how things should work –Our goal was to make the spec more clear so all 4 DADs would behave the same –Biggest challenge came from a belief that there was “magic” in the DAD interface

DAD Spec – Reaching Consensus –Originally, there were group phone calls. But no one wanted to speak out and give feedback in front of other vendors. –This lead to private calls where vendors were asked their opinions on topics, but it became very difficult when there was disagreement –To encourage collaboration, four vendor workshops held where all DAD vendors could discuss and debate topics with BAR and SGS. This turned out to be very effective. –This lead to over 200 Q/A’s published by BAR, with many adding clarity, deleting, or changing requirements –We put a significant effort into providing feedback on the DAD spec, similar to how we interact with SAE on “vehicle com” specs –Focus related to the DAD and communications: handling multiple ECUs, negative responses, retrying after no-com, message formatting, and uniform behavior among all DAD devices

DAD Device Development –Once we had clarity on the DAD specifications, we began developing our IMclean interface –Based off our CarDAQ J2534 interface and dealership diagnostic tools, we had the first IMclean DAD design completed and working within a month –Leveraged existing designs used in dealerships worldwide to reduce time and risk –Tested to BAR’s durability requirements

Requirement: Test 5,000 Cable Insertions

Requirement: Cable Run Over

Requirement: 1 Meter Drop Test

Alpha Submission –Prior to Alpha, Drew installed their prototype units at a California smog shop and tested it on each vehicle that drove thru the lanes –Over 500 actual vehicles tested with the Drew Software before submitting to Alpha –Drew submitted one wired and one wireless OBD2 DAD device for Alpha –Both DrewTech devices passed Alpha on the first attempt

BETA Program –Drew Tech has a lot of prior experience with BETA programs. We have run several beta test programs for automakers. –Over a course of 9 months, Drew interviewed over 500 stations and established it’s “best 50” –On-site delivery and setup, and equipment provided at a discount or no charge. Substantial acquisition cost per-site. –Constant struggle with 4 DAD vendors competing for BETA shops Vendors trying to steal away stations after they have already received equipment Shops violating signed agreements –Despite challenges, BETA participants have been very enthusiastic about the program

BETA - Continued –Current status from BAR depicted below –Drew is in Phase 2 of BETA –Program is expecting to resume in May –We expect to be one of the first two vendors to complete BETA

BETA – Connectivity Rates –Adherence to the specification can get you above 99% –There is no magic –During BAR BETA, we are monitoring each test –If a vehicle fails, there is always a reason. Tool failure, application error, operator error, non- compliant vehicle, or something broken. –Gus Nassar’s presentation yesterday discusses dealing with non-compliant vehicles

Workshops –Meet BETA shops and provide training –Keep shops informed on what’s happening with BAR-OIS –Over 30 live, in-person workshops across the state –Over 1,000 smog techs attended

DrewTech Products for California IMclean Support for all 1996-present OBD2 vehicles Built-in self tester USB or optional wireless IMready Low cost consumer emissions test tool MSRP of $59, gives a simple red, yellow, green indication of emissions compliance Currently available in the state of California Easily configured for other state requirements DIY Cart Kit Bracket kit that turns a low cost “off the shelf” cart into smog station Includes monitor mount, fits any VESA monitor (up to 40”) Custom printer shelf DAD mount Barcode scanner bracket and cable Low cost, $500 for the DIY Kit + $200 for the cart. No PC or printer, although we have a suggested list User assembly required

Technician Helper

DrewTech Solutions for California –DAD Only: Shop puts together their own system –DIY Cart: Pieces needed to build a custom cart –Turnkey Systems available from 3 rd parties Banalogic Opus/ESP

DrewTech and ESP/Opus Supply agreement established between Opus Inspection and Drew Technologies ESP integrates the I/Mclean DAD with their OIS systems Opus Inspection provides emissions inspection systems under the ESP brand in California ESP offers an innovative low cost payment structure to shop owners

ESP/Opus Offerings Cabinet System Bench-Top System Wall Mount System

DrewTech and Banalogic Providers of Advanced Automotive Technology –Remote test and real-time performance monitoring tools –Touchless drive through alignment verification device –Reporting systems, training systems, VID and fraud detection systems Providers of Analyzer Systems –North Carolina, DRC –Partnered with Drew Technologies to provide a complete Turnkey solution with full support (next day replacement)

BanaLogic Offering Includes the following: –Drewtech IMclean wired DAD (wireless opt) –Industry Tested Powercoated Heavy Duty Steel Cart, (North Carolina) –20” LCD Monitor –Windows 8 PC –OkiData Laser Printer –High Performance ‘Imaging’ Barcode Scanner –DAD OBD2 and barcode scanner cables –UPS Battery Backup –Keyboard and mouse –1 year standard warranty, overnight shipping. MSRP $3,995

BAR Summary Final Thoughts BAR’s high connectivity rate is possible, but there is cost associated with identifying each vehicle failure When picking a technology for the DAD device, SAE J2534 is already available and we used it to prototype and develop our BAR-DAD. If you write your own spec, plan time for vendor collaboration Allowing multiple DAD vendors to serve the market creates healthy competition and provides more input to the state program when dealing with vehicle communications problems The BETA program has been very useful to prove the technology and prepare smog shops for what is coming