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

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

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

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

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. 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 Saves fuel, reduces emissions, protects the environment Engine off Comfort

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% US NATIONAL IDLING ANALYSIS Average Hours One Vehicle Spends Idling Per Year Number of Vehicles Idling Entire Fleet Hours Idling Entire Fleet Annual Fuel Consumption for Idling (Gallons) Entire Fleet Annual Barrels of Oil Consumed for Idling Entire Fleet Daily Barrels of Oil Consumed for Idling Entire Fleet Percentage of the 20 Million Barrel a Day National Use that is Being Used to Idle HEAVY DUTY TRUCK2142 2,,984,0085,292,437,180 529,243,718 1,449,9837.25% SCHOOL BUS181 412,539 74,669,583 7,466,958 20,4570.102% LIGHT DUTY30 60,309,709 1,809,291,259 1,157,946,406 59,078,898 161,8600.809% TOTAL ALL2353 63,706,356 7,176,398,0226,525,053,169 595,789,574 1,632,3008.161%

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 Tax Dollars Spent on Fuel for Idling in School Bus Industry HEAVY DUTY TRUCK N/A SCHOOL BUS $ 224,146,087 LIGHT DUTY N/A TOTAL ALL $ 224,146,087

13. 13 IDLING

14. Step 2: State Level Idle Elimination Revenue Generation – Example: Kentucky STATE OF KENTUCKY SCHOOL BUS Average Hours One Vehicle Spends Idling Per Year Hours Idling Entire Fleet Number of Vehicles Idling Entire Fleet Annual Fuel Consuption for Idling (Gallons) Entire Fleet Annual Barrels of Oil Consumed for Idling Entire Fleet Daily Barrels of Oil Consume d for Idling Entire Fleet Percenta ge of the 20 Million Barrel a Day National Use that is Being Used to Idle Tax Dollars Spent on Fuel for Idling School Buses SCHOOL BUS181 1,534,699 8,479 1,534,699 153,470 4200.002% $ 4,604,097  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 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  The US is the world’s largest producer of GHG Emissions GHG CO2 TONS/YEAR HD TRUCK 27,556,163 SCHOOL BUS 733,177 LIGHT DUTY6,306,371 TOTAL ALL 34,595,711

16. 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 Step 4: Idle Elimination Improved Public Health

17.  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 Step 5: Idle Elimination New Job Creation – 18,000 New Jobs

18. 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 BBW, Inc. Cummins Engine Company, Inc. TAS Distributing, Inc. Autotherm Division Enthal Systems, Inc Bergstrom Idle Free Systems, LLC Safer Corporation Automotive Climate Control (ACC) Webasto Product North America, Inc. Auxiliary Power Dynamics, LLC Carrier Transicold Gates Corporation Rig Master Power Thermo King Corporation Shurepower™, LLC Phillips and Temro Industries

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

20. Global Anti-idling Initiatives That Work

21. Special Guest – Global Warming

22. Europe and Canada No idle and idle reduction programs  In Europe today idling is forbidden  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

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  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 Overview of State Idling Regulations

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

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

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

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

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

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

31. Sources POLK EPA EPA Clean School Program Fleet Seek ATRI – American Transportation Research Institute Martec Study on Remote Start Airamerica School Bus Fleet STN Argonne National Laboratory Idleair Spokane County Air Pollution Control Authority (SCAPCA) BMW FOH Usage Calculation US Department of Commerce – Vehicle Inventory & Use Survey (VIUS) Energy Information Administration

32. Kentucky Nonattainment Counties KentuckyCincinnati-Hamilton, OH-KY-INBoone, Campbell, Kenton Huntington-Ashland, WV- KY-OHBoyd, Lawrence (P) Louisville, KY-INBullitt, Jefferson

33. National Nonattainment Counties