A Clean Diesel State of MindTop States for Diesel Drivers Growing Clean Diesel Cars, Trucks and SUVs:

June 4, 20142:00 pm ETPress Conference#cleandiesel

Welcome and Housekeeping Items Logistics and Format

Asking and Submitting Questions

Availability of Materials

Agenda - Presentation Allen Schaeffer, Executive Director

Release of new 50 state diesel car, truck and SUV data and analysis

Perspectives on the future for clean diesel cars

Questions & Answers

Today’s Virtual Press Conference

About the Diesel Technology Forumwww.dieselforum.org

AGCOBorgWarnerBOSCHCaterpillar Inc. ChryslerCNH Industrial Cummins Inc. Daimler Delphi AutomotiveDeere & CompanyFord Motor CompanyGeneral Motors Honeywell Isuzu MotorsJohnson Matthey

Mazda North American OperationsNavistar Volvo GroupVolkswagen Group of AmericaYanmar

Allied MembersAssociation of Diesel SpecialistsNational Biodiesel BoardWestern States Petroleum Association

Background and

Methodology

Allen SchaefferExecutive Director

Clean diesel technology is emerging as an increasingly popular option for new car buyers.

Resurgence in clean diesel technology in the U.S. since 2006

Fuel economy, performance, proven, long-term value contribute to growing acceptance

Clean diesel seen as a technology to contribute to meeting 2025 CAFE requirements of 52.5 mpg

Background

“The initial decline in the level of [fuel] consumption is due in part to the recession, but much of the lower projection for the coming decades reflects unforeseen efficiency improvements stemming from the 2012 light-duty vehicle fuel economy standards, along with some projected switching to diesel in the light-duty fleet.

(page 10; emphasis added)

Impact of clean diesel technology in light-duty vehicles now showing up in President Obama’s “All-

Of-The-Above Energy Strategy” (May 2014)

The Diesel Technology Forum commissioned R.L. Polk and Company to secure vehicle registration data for all 50 states from January 1, 2013 to December 31, 2013.

Goal was to evaluate the trends in clean diesel and hybrid registrations nationwide, to identify geographic and other trends in 2013 and compare to previous years.

Analysis covered1. Passenger cars, light-duty trucks, vans and SUVs.

Identified clean diesel and hybrid vehicles.

2. Heavy-duty pickup trucks (> 8500lbs gvwr) – gasoline and diesel

Methodology

Our analysis includes the

The top states for..

clean diesel car, SUVs, pickup trucks and vans.

fastest growth of clean diesels

fastest growth of clean diesels and hybrids;

total clean diesel and hybrid registrations;

Methodology

Findings . . .

National Registration Trends: Consumer acceptance of new clean diesel technology and hybrids is

growing

Diesel car registrations up 30%; Hybrids up 64%

2010-2013

010000002000000300000040000005000000600000070000008000000

2010 2011 2012 2013

Un

its

YearsSource R.L. Polk and Company, March 2014

Registrations of Diesel Cars and Trucks 2.5 X that of hybrids

Total Diesel

Total Hybrid

Diesel SUV & Car

Diesel Truck

Diesel Van

State Percent Total Vehicles

1) Wyoming 10.8 66,632

2) Montana 8.1 97,454

3) Idaho 6.9 104,306

4) Alaska 6.7 43,548

5) North Dakota 6.4 46,833

6) South Dakota 6.0 53,444

7) Oregon 5.7 188,976

8) Utah 5.6 131,385

9) New Mexico 5.1 91,352

10) Colorado 4.3 198,906

West Dominates with Highest Percentage of Diesel Cars, SUVs, Pickup Trucks and Vans (2013)

Fastest Growth Diesel Cars, SUVs, Pickup Trucks and Vans 2012-2013

1. North Dakota2. DC3. Illinois4. Delaware5. Idaho6. New Jersey7. Ohio8. South Dakota9. Texas10.Arizona

Land of Lincoln Leads As State with Fastest Growing Clean Diesel Car & SUV Registrations

1. Illinois

2. Arizona

3. California

North Dakota (tie)

5. Mississippi

6. Texas

7. Idaho

8. Wyoming

9. Arkansas

Source: 2013 Data from R.L. Polk and Company

25.08

15.56

11.35 11.35 10.98 10.7 9.4 9.27 9 8.69

0

5

10

15

20

25

30

IL AZ CA ND DE MS TX ID WY AR

Fastest Growing Registrations (% increase 2012-2013)

Top Ten States for Clean Diesel Car & SUV Registrations 2012-2013

Texas, California Lead the Pack for Top Ten States for Diesel Pickup Truck Registrations

1. Texas2. California3. Florida4. Washington5. Colorado6. Pennsylvania7. Oregon8. North Carolina9. Georgia10. Ohio

Fastest Growing States for Diesel Pickup Registrations (2012-2013)

State Percent Increase 2012-2013

1) North Dakota 24.03

2) Vermont 11.17

3) Illinois 8.62

4) Idaho 8.05

5) Delaware 7.86

6) New Hampshire 7.74

7) South Dakota 7.72

8) Massachusetts 7.54

9) Texas 7.14

10) Rhode Island 7.10

Fuel Efficient Vehicles Combined(Clean Diesel & Hybrid Vehicles)

Top 50 States

California, Texas, Florida – States with Most Fuel-Efficient vehicles (Most Clean Diesels & Hybrids Combined)

1. California2. Texas3. Florida4. Washington5. New York6. Pennsylvania7. Illinois8. North Carolina9. Georgia10. Ohio

State 2013 Diesel Total 2013 Hybrid Total

1) Texas 837,426 153,557

2) California 609,212 698,560

3) Florida 314,228 150,885

4) Washington 245,306 103,429

5) Pennsylvania 226,574 86,499

6) Colorado 198,906 56,689

7) North Carolina 197,305 77,943

8) Ohio 191,924 69,739

9) Georgia 189,018 76,168

10) Oregon 188,976 59,465

National Totals 7,068,439 2,826,885

Top Ten States for Total Diesel Cars, SUVs, Pickup Trucks and Vans… compared to Hybrids

0

10

20

30

40

50

60

70

2000 2005 2010 2012 2013 2017 2020

Diesel Choices for Consumers (Cars, SUVs, Vans and HD Diesel Pick Ups)

Diesel Choices forConsumers

Factors Driving Clean Diesel Car Success…More clean diesel choices will drive further market

growth

20

Factors Driving Clean Diesel Car Success…Diesel fuel more widely available today than ever before… and growing!

Finding Diesel Fuel – Not a problem with more than half of all retail fuel sites in the U.S. offering diesel fuel - and more coming each day.

LocationPercent of Fuel

Stations in US and Canada offering

Diesel

East Coast 51%

Midwest 54%

Gulf Coast 61%

West Coast 54%

Canada 69%

Rocky Mountain 65%

Overall Average 55%

Diesel Fuel Locator – Locator Apps, QR

Codes & Search Services Provide One-Stop

Shop to Aid Diesel Car Drivers

www.dieselforum.org/FindDiesel

Source: Integer-Research, May 2014

(UNPUBLISHED)

21

Diesel to be # 1 Transport Fuel by 2020 according key Energy Authorities

ExxonMobil: Diesel will surpass gasoline as the number one global transportation fuel by 2020. Diesel demand will account for 70% of the growth in demand for all transportation fuels through the forecast period to 2040. Although natural gas will play a greater role as a transportation fuel by 2040, it will remain only a small share of the global transportation fuel mix, at 4% by 2040, up from today’s 1%, according to ExxonMobil’s forecast.

The World Energy Outlook: Diesel fuel will remain the “dominant” growth fuel between now and 2035, according to the International Energy Agency. Globally, the report suggests the possibility of only a 2% share of natural gas in the heavy-duty transport market by 2035.

The National Petroleum Council in its 2012 report “Advancing Technology for America’s Transportation Future” for the U.S. Department of Energy stated: “Diesel engines will remain the powertrain of choice for HD (heavy-duty) vehicles for decades to come because of their power and efficiency."

Clean diesel technology is emerging as an increasingly popular option for new car buyers.

Real-world fuel economy, performance, proven, long-term value have solidified clean diesel as a preferred advanced technology choice

Fuel saving impacts of switching from gasoline to diesel in light duty vehicles now recognized in President Obama’s All-Of-The-Above Energy Strategy for a Sustainable Economic Growth Plan

Growth in future diesel options recognizes key role in Clean diesel in meeting future vehicle fuel efficiency requirements (CAFE standards - 52.5 mpg/2025)

Conclusions

The 2.9M light-duty new clean diesels introduced from 2005 through 2012 have saved the American consumer: 7.6M tonnes of CO2

1.2B gallons of gasoline 29M barrels of crude oil

These reductions are equivalent to: Removing 1.6M vehicles from the road for a year Carbon sequestration from 6.2M acres of forests

This is an equivalent forest the size of Vermont

Removing the annual emissions from 2.2 coal fired power plants 32,000 railcars of coal stretching continuously from Boston to Philadelphia

Roughly 11% of the Strategic Petroleum Reserve for sweet crude.

Source: Martec Research, Detroit MI ; 2013 for the Diesel Technology Forum

Clean diesel vehicles impacts already being felt in lower emissions, CO2

…CO2 savings equivalent to removing annual emissions from 2.2 coal fired power

plants for a year.

Summary

30 percent increase in diesel registrations (2010-

2013); second consecutive period

of double-digit growth. (overall auto industry market growth 3.7%).

Hybrid growth: 64.5 %

Clean Diesel Technology has universal appeal across the U.S. – red states, blue states, urban and rural.

Texas, California, Florida– Top registrations of clean diesels & hybrids

Illinois, Arizona, California – fastest growing diesel cars and SUVs

North Dakota, District of Columbia and Illinois – fastest growing – diesel cars, trucks, vans, SUVs

Wyoming, Montana, Idaho- Highest percentage diesel cars, trucks, vans, SUVs

Wyoming, Utah, Montana- Highest percentage of diesel pick up trucks

North Dakota, Vermont, Illinois- fastest growing diesel pick up trucks.

Thank You

www.dieselforum.org

301-668-7230