D. Joseph Fleming President Serving the Steel Industry And the Automotive Industry

Grandpa McNicholas – in the tie and hat

First Unit

PROBLEMS Breakdowns

PROBLEMS Breakdowns Feed the Horses

PROBLEMS Breakdowns Feed the Horses – with only low sulpher HAY

PROBLEMS Breakdowns Feed the Horses Accidents

PROBLEMS Breakdowns Feed the Horses Accidents And EMISSIONS

PROBLEMS And the EMISSIONS SOLUTION

PROBLEMS And the EMISSIONS SOLUTION TECHNOLOGY

History The McNicholas General Cartage and Storage fleet in 1918: Two 3-tonners and one 2-tonner.

Legislation is Important

DOWNTOWN PITTSBURG PA IN THE 1920’S

Downtown Pittsburgh Pa 2003

Anti-lock Brakes Mandated The Government Mandated Anti-lock brakes on all new Trucks In 1974

Anti-lock Brakes Mandated The Government Mandated Anti-lock brakes on all new Trucks In 1974 Millions of Dollars were spent on R&D

Anti-lock Brakes Mandated The Government Mandated Anti-lock brakes on all new Trucks In 1974 Millions of Dollars were spent in R&D People purchased the trucks

Anti-lock Brakes Mandated The Government Mandated Anti-lock brakes on all new Trucks In 1974 Millions of Dollars were spent in R&D People purchased the trucks Failures went crazy - Trucks were on the side of the road. AND

Anti-lock Brakes Mandated The Government Mandated Anti-lock brakes on all new Trucks In 1974 Millions of Dollars was spent in R&D People purchased the trucks Failures went crazy - Trucks were on the side of the road. AND The Anti-lock rule was rescinded

Anti-lock Brakes - Part II A TMC Group of Suppliers, Manufacturers, OEMs and Government worked together

Anti-lock Brakes - Part II A TMC Group of Suppliers, Manufacturers, OEMs and Government worked together They Developed Standardized Processes, Terminology's, Training Methods, Maintenance Methods, and

Anti-lock Brakes - Part II A TMC Group of Suppliers, Manufacturers, OEMs and Government worked together They Developed Standardized Processes, Terminology's, Training Methods, Maintenance Methods, and New Legislation was Passed

2000 Anti-lock Brakes Mandated and People purchased the trucks

2000 Anti-lock Brakes Mandated It was a Great Success Quality was Excellent Drivers and Mechanics Understood Them And Liked them and

2000 Anti-lock Brakes Mandated It was a Great Success Quality was Excellent Drivers and Mechanics Understood Them And Liked them and Safety Improved

2000 Anti-lock Brakes Mandated It was a Great Success Quality was Excellent Drivers and Mechanics Understood Them And Liked them and Safety Improved & THEY WORK

2000 Anti-lock Brakes Mandated It was a Great Success Quality was Excellent Drivers and Mechanics Understood Them And Liked them and Safety Improved & THEY WORK TEAMWORK = SUCCESS

2000 Anti-lock Brakes Mandated Falcon Bought Them We were an Early Customer We saw the Benefits and we bought the trucks

Falcon & New Technology Falcon Purchased Qualcomm very Early Falcon was an Early Purchaser of Electronic Engines We saved fuel Increased Durability and Engine Life Reduced Maintenance Costs Had Access to Engine Performance Data in the ECM

Falcon & Electronic Engines The Technology was Right for the Challenge Cleaner Air was a Bi-Product - Not the Only Product Legislation and Co-Operation Worked TEAMWORK = SUCCESS The Engines were well Designed and Tested

Falcon & New Technology Falcon's Position on 2002 Engines What are the Benefits for Falcon ? Current Trucks are Performing Better Engines are Living Longer MPG is Good and Costs are Down WE ARE RUNNNING THE TRUCKS LONGER

2002 ENGINES & FUEL COSTS WHAT IF FALCON BOUGHT ENGINES Test Group used 160,397 Gallons of Fuel - 5 Months We spent $252,736 on that Fuel Annualized - 385,000 Gallons and $606,500

2002 ENGINES & FUEL COSTS If the loss in MPG is 4.7% EXTRA FUEL COSTS - $90,650 PER YEAR If the loss in MPG is 7.5% 198,800 extra Gallons of Fuel EXTRA FUEL COSTS - $149,000 PER YEAR If the loss in MPG is 14.5% EXTRA FUEL COSTS - $310,000 PER YEAR

2002 ENGINES & FUEL COSTS The Commercial Trucking Industry consumes 28 billion gallons of Diesel Fuel per Year 14.5% Results in over 4 Billion Gallons of Extra Fuel Annually for the Industry CAN WE AFFORD CLEAN AIR ?

2007 ENGINES Ken Veith, principal of ACT Research said “2007 engines are expected to increase truck costs by about $10,000 and diminish fuel economy by another 5% WHAT CAN WE DO ?

2007 ENGINES Temporarily Suspend the Implementation of the 2007 Rule WHAT CAN WE DO ? Recommendations from Citizen Joe Fleming Let the 2002 Engines Technology Mature Create a Joint Government, Supplier & User Task force Use ATA/TMC as the forum for this Task Force Find the Best Answer - for all Parties Get Possible Technology into the Fleets ASAP Keep Reliability Data Using VMRS information Publish Test Data & Reliability Information on the NET

2007 ENGINES Use the TMC Web Sight to Post the Information TEAMWORK = SUCCESS Recommendations from Citizen Joe Fleming Do What is Best for the Entire Country - Not Just Air Quality Work for Tax Credits for Users of Clean Vehicles Similar to Automobiles Finalize the Distribution Network for Low Sulpher Fuel AND REMEMBER

D. Joseph Fleming President THANK YOU