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

D. Joseph Fleming President

Serving theSteel Industry

And theAutomotive Industry

Grandpa McNicholas – in the tie and hat

First Unit -- 1903

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• The Anti-lock rule was rescinded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 100 - 2002 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 consumes28 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 PartiesGet 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 VehiclesSimilar to Automobiles

Finalize the Distribution Network for Low Sulpher Fuel

AND REMEMBER

D. Joseph Fleming President

THANK YOU