Why NGVs? Why Now? Customers seeking alternatives Very favorable - - PowerPoint PPT Presentation

The global leader in natural gas engines.

Natural Gas Engines

WEMCO

Why NGVs? Why Now?

 Customers seeking alternatives  Very favorable economics  Domestic resource  Abundant supply  Cleanest hydrocarbon fuel

What is Natural Gas?

 >90% methane - CH4 (+ inert gases, butane, propane, ethane)  Lowest carbon, hydrocarbon available  Lighter than air  Same fuel that is used to cook food, heat homes, dry clothes, and heat water  Ignition temperature 1080oF  Low lubricity  Source of most industrial hydrogen  Measured Octane = 130

Natural Gas Costs Less

 Natural gas and petroleum prices have diverged since 2008

 New horizontal drilling technology has unlocked shale reserves

 Operating cost savings

 Nationwide, CNG costs less per BTU than gasoline and every

• ther fuel in the U.S.

 Lifecycle cost savings

 Despite vehicle price premium  Cost of ownership =

 Price – Incentives – Fuel Savings – Residual Value

Since 2009 Natural Gas Has Declined - Gasoline Has Risen

O Feb. 2013 O Feb. 2013

Fuel Cost Comparison

 Retail Cost Comparison

Nationwide Average Price per Gallon (GGE) BTU (LHV) per Gallon (GGE) Cost per 10,000 BTU Gasoline Reg. E10 $3.52 112,000 $0.31 Diesel #2 $3.75 129,500 $0.29 CNG $2.05* 114,000 $0.18 Propane $2.64* 83,400 $0.32 Ethanol E85 $3.24 81,800 $0.40 Biodiesel (B100) $4.23 118,300 $0.36 Biodiesel (B20) $3.83 127,250 $0.30

Clean Cities Alternative Fuel Report July 2012

* Does not include the effect of the 2013 $.50 reduction in Federal excise tax

Natural Gas Price Stability

 1MM BTU of natural gas = energy content of 8.7 gallons of gasoline*  Changes in natural gas prices have a much smaller effect at the pump, when compared to changes in the price of crude oil on gasoline and diesel

Source: U.S. Energy Information Administration

* Calculated at lower heating value (LHV) of 114,000 BTU per gge

Westport Natural Gas Engine Technologies

Spark-Ignited Dual-Fuel (fumagation) High Pressure Direct Injection (HPDI) How it works

 Fuel and air pre-mixed at low pressure on compression stroke  Ignition from spark plug  lower compression ratio to avoid knock (vs. compression ignition diesel)  Bi-fuel (automotive) or dedicated (CWI)  Simple EGR and catalyst after treatment  Nat. gas and air pre-mixed at low pressure on compression stroke  Compression ignition with high pressure diesel injection  Diesel/gas mixture adjusted based

• n knock sensor (50% – 60% max.

substitution)  Can revert to diesel fuel only  Air - only on compression stroke  High pressure nat. gas injected directly into combustion chamber  Compression ignition from high pressure direct injection diesel pilot  95-99% substitution with full torque/power and efficiency of compression ignition diesel

Where

 Westport Automotive  Cummins Westport  Weichai Westport  EPA 2010 & Euro VI Capable  EMER Westport  Euro V Capable  Focus on diesel retrofit  Westport Trucking & HHP  EPA 2010 & Euro VI Capable

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GVW ≤ 65,000 LBS ≤ 80,000 LBS ≥ 80,000 LBS

Natural Gas Engine Availability 8.9L - ISL G (Now) 11.9L - ISX12 G (Q3 2013) 15L - HD 15L (Now)

320, 382, 384 320, 382, 384, 365 367, 386, 388 T440, T470, W900S W900S, T660, T800SH T800 M2-112, SD-114 Cascadia TranStar TerraPro Pinnacle, Granite CWI VNM VNL D13 VNL (2014) VNL (2014)

Truck Model Availability Choosing The Right Natural Gas Solution

Westport WiNG Business Model

KEY-READYtm - the Name Says It All  We create a “key-ready” experience

 Just turn the key and drive away

 WiNG Power System is fully integrated at the OEM level

 The ownership experience from maintenance to warranty is the same as a standard vehicle

 The WiNG Power System meets the highest standards of quality and safety with seamless integration

Westport WiNG Business Model

KEY-READYtm – Seamless System Start to Finish Materials match OEM specifications System appearance complements vehicle design Quality level matches or exceeds OEM quality Component integration designed in collaboration with OEM Manufacturing logistics are integrated with the OEM Vehicle shipping and delivery in conjunction with the OEM

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Facility Overview

 Engineering / Technology Center – Plymouth, MI

• 45,000 sq. ft. facility
• Houses Engineering / Design / Testing / Validation

 F250/F350 Manufacturing Center – Louisville, KY

• Adjacent to Ford’s Kentucky truck plant

3661 Collins Lane Louisville, KY 40245

• Ford approved ship-

through location

• Ford QVM certified
• Ford QVC calibration

2013

Ford F250/350 CNG Bi-Fuel Pick Up

System Overview

• Designed to meet both EPA and CARB emissions

certifications

• 4x2 or 4x4. - 6.75 or 8 ft. beds lengths
• Single cab, Super cab, Crew cab, Cab-chassis with

Service bodies

• Standard 18.4 GGE Type IV Tank or optional 24.5 GGE

Type IV Tank

• 200 to 325 mile range (CNG)
• Combined fuel range of 650+ miles
• Non-selectable, primary CNG
• peration with automatic transition

to gasoline

2013

Ford F250/350 CNG Bi-Fuel Pick Up

System Overview, cont.

• System starts on CNG (dedicated use ok,

does not require gasoline)

• Large, back-lit easy to read CNG fuel gage
• Unique styled tank enclosure
• Stainless steel fuel lines and injector rails
• 6.2L engine with hardened valves and

seats - RPO Code 98F, CNG/LPG-Fuel Capable Engine

• Total added weight 248 lbs. with

large tank

Manufacturing Systems

 Single, QVM manufacturing location

 Westport = design, engineering, calibration, procurement, testing, certification, mfg./installation, delivery

 Computerized mfg. controls and record-keeping

 No process variation, six-sigma verification  Simple logistics:

 All parts received, tested, and warehoused in one place

 Vehicles move a very short distance and remain in OEM production control system  Production parts and service parts use common inventory

Manufacturing Systems

 Smart numbering system provides error-free order fulfillment  Manufacturing Execution System (MES) means 100% accurate build and zero-defect quality

Manufacturing Systems

 OEM-style, continuous, assembly-line processing

 In-station Touch Screen Monitors w/ detailed assembly instructions for each operator  Station functions only for operators trained for that station  Vehicles are scanned into each assembly station – identifying the correct

• ption content and work instructions

 Fasteners audited for torque angle, time, speed, and power using a LAN networked drivers. Torque results are tracked to VIN and stored in the electronic vehicle file  Serialized components are tracked and stored to VIN using bar code scan technology

Three Levels of Testing: Vehicle, System, Component

Vehicle-Level Testing Testing uses OEM (Ford) procedures and facilities

 Mileage accumulation at both the OEM Proving Grounds and in high- mileage fleets  Vehicle level testing (photos and video on-line, more coming)

 Durability testing, catalyst protection  Crash: Passes FMVSS 303 and 304  Vibration (4-poster)  Electromagnetic (EMC)  Stone-pecking, water-fording, mud bath, wash rack, HVAC  Drivability in severe environments (extreme hot/cold, high altitude)

System Level Testing

 Subsystem leak testing performed prior to assembly  Final assembly system checks before sign-off and shipping  In-process:

 All tubes, hoses and fittings are 100% leak tested  Electrical harnesses and electrical components 100% functionally checked  Fuel tanks 100% pressure tested, nitrogen-purged and filled w/CNG

Three Levels of Testing: Vehicle, System, Component

Component Level Testing Tests performed at OEM facilities utilizing OEM procedures

 100% Component testing is part of Production Part Approval Process (PPAP) for Engineering sign-off  Stampings and weldments are material checked and weld-pull tests are performed  Materials and finishes to OEM specifications

Three Levels of Testing: Vehicle, System, Component

F250/350 Service

 All work performed at authorized Westport Ford Dealer/Distributors  3 Year/36,000 mile limited warranty:

 CNG storage tank  Westport tank cover  CNG fuel filler receptacle  Fuel lines

 5 Year/50,000 mile emission warranty:

 AFCM (Alternate Fuel Control Module)  CNG wiring harness  CNG pressure regulator  CNG fuel injectors

 OEM level service manual with integrated training for technicians  Unique owner’s guide for WiNG Power System

 Coolant lines  Fuel rails  Easy to read CNG fuel gauge

Parts Distribution and Support

 Westport service process calls for:

 Rapid, web-based, approval for warranty  All repairs send orders for parts to manufacturing facility  Parts shipped directly to dealer via overnight express  Repair order referenced for quick delivery to the repairing technician  Replaced parts sent back to Westport for analysis

 Process reduces unique dealership inventory and insures latest-release level parts for repair

F250/350 Ordering

 Direct ordering of final product at Westport-authorized Ford Dealer/Distributor or Fleet Management Company

 Dealer orders gasoline vehicle through Ford  Dealer completes order on Westport’s proprietary automated ordering website

 Credit and leasing terms will be made available through Ford Motor Credit  Westport authorized Ford Dealer/Distributors certified in CNG vehicles:

 Sales Training  Service Training  Parts Availability  Special Tools  Facility Compliance

WiNG Power System Pricing

Westport LD WiNG Power System Ford F-250 and F-350

 $9,500 - “Key-Ready” delivered and fully warranted  Standard 18.4 GGE tank  Optional 24.5 GGE tank + $1,200  Fleet and higher-volume pricing available  Simple, retail-friendly process

Industry-Leading, “No-Haggle” Pricing

Contact Information

John Howell

Senior Director, Marketing jhowell@westport.com Tel: 734-233-6869 Cell: 248-686-9167 www.wingpowersystem.com www.facebook.com/wingpowersystem www.twitter.com/westportwing