3RD QUARTER 2016

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D E P A R T M E N T S

A P A R T S & S E R V I C E N E W S L E T T E R 3 R D Q U A R T E R 2 0 1 6

AFTERMARKET

DAIMLER TRUCKS NORTH AMERICA

11

DISTRIBUTION NETWORK DEVELOPMENT

DETROIT REMAN

AFTERMARKET MARKETING

PARTS SALES & OPERATIONS

A f t e r m a r k e t M a r k e t i n g

Keselowski wins at Daytona

Brad Keselowski won his 20th career race and earned his third win of the 2016 season while driving the No. 2 Detroit Genuine Parts Ford Fusion in Daytona on July 2. Brad showed fans again why he is one of the best NASCAR drivers in the series by leading 115 of the 161 laps, and keeping the lead to win. This was his first win at Daytona and he did it in a DTNA-sponsored car! This also marked the 100th Cup win for Team Penske.

After the race Brad said, “This is my 250th start, year 50 for Team Penske, 100th Cup win for Team Penske, my 20th win, and we finished first with the Detroit Genuine Parts Ford − I like that number the best, but I’m really happy and proud for our team to be in the victory lane tonight.” He went on to say, “It was a good effort for us for sure. I was telling Roger Penske when I was in victory lane and the fireworks were going off, that I’m usually loading up the car and about to head to the airport, so it's nice to be here and have a great finish.”

Brad is second in standings for the Cup series and is only four points behind the leader. He is guaranteed a spot to begin the Chase for the Sprint Cup which begins on September 18 at Chicagoland. Be sure to watch Brad on October 30 in Martinsville and November 6 in Texas when he will be driving the No. 2 Alliance Truck Parts Ford Fusion.

Join the conversation at Evolution

The 2016 Daimler Trucks North America Aftermarket Conference — Evolution, is only a few more weeks away. Everyone is asked to join in on the conversation at Evolution this year. Follow us on Twitter @dtna_evolution and on Instagram @dtna_evolution to stay informed on all conference related activities. Also, be sure to use the event hashtag #DTNAEvolution to be part of the conversation when you share your own Evolution content.

Brad Keselowski takes his 100th Cup win for Team Penske driving the Detroit Genuine Parts Ford Fusion No. 2.

Brad Keselowski accepts the first place trophy in Daytona on July 2.

Aftermarket Marketing continued next page.

SERVICE OPERATIONS

3RD QUARTER 2016

Freightliner LLC Dealer Operations

S e r v i c e O p e r a t i o n s

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Over 90 attendees participated in this year's Vehicle Training Update meeting at the southeast training center in Cleveland, North Carolina.

Advancing the service training network at VTU

Facilitated by the Daimler Trucks North America (DTNA) Service Training Academy, the 2016 Vehicle Trainer Update (VTU) meeting took place at the southeast training center in Cleveland, North Carolina in July. The annual conference is a fast-paced week of technical information exchange and discussions aimed to advance the technician training field by bringing together instructors teaching Freightliner, Western Star and Detroit™ DT12™/axle courses with DTNA course developers. DTNA management also presented relevant information and attended various sessions in a support role for larger scale discussions.

The training center saw over 90 attendees get hands-on experience during the VTU sessions. The main focus of this year’s meeting was sharing the available information on the New Cascadia with the training network. The DTNA team also unveiled its Service Training Evolution Program (STEP) designed to take training into the future with new technologies and applications, while providing a complete re-evaluation of current training materials and methods. “The Vehicle Trainer Update highlights the great relationship between corporate trainers and their dealer and customer training counterparts, resulting in DTNA having the best training footprint in the industry,” said Mike Mallett of the DTNA Training Development group and the VTU meeting organizer and emcee.

“I enjoyed every minute of VTU,” said Truck Centers, Inc. Trainer Buster Lamke. “I recognize the continuous improvement of the training network and this year was the best VTU we attended,” said Daniel Mustafa of TA-Petro.

Bolstered by this face-to-face meeting, the relationships in the service training community continue throughout the year with monthly conference calls, course development collaboration and various train-the-trainer events centered on new material. The instructors’ passion for teaching technicians the correct way to diagnose and repair DTNA vehicles extends beyond their hours in the classroom and shop; their dedication is a key driver of uptime.

Freightliner LLC Dealer Operations

A f t e r m a r k e t M a r k e t i n g

Alliance Truck Parts Fan Clutches & Accessories

A new Alliance Truck Parts fan clutch and accessories program will lauch this October. The product line includes remanufactured industry-leading fan clutches, rebuild kits, 2-speed fan clutches, fan blades and other

complementary accessories, expanding the current product line to over 3,000 part numbers.

All parts are backed by the Alliance Truck Parts 1-year/unlimited-mile nationwide warranty.

The new product will be on display at Evolution – the Daimler Trucks North America Aftermarket conference. Look for more launch details in the coming weeks. The official announcement will include special launch promotions, point of purchase display details and ordering information.

3RD QUARTER 2016

Freightliner LLC Dealer Operations

P a r t s S a l e s & O p e r a t i o n s

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First Pinnacle fleet on closed loop order processing

Closed loop order processing was launched on June 1 with Old Dominion Freight, the first Pinnacle fleet to use the system. Closed loop order processing is an electronic purchase-to-payment (P2P) system integrated with the fleet’s shop floor management system (SFMS). Orders are generated electronically from the SFMS and are dispersed across the network utilizing Pinnacle Truck Parts, the Daimler Trucks North America (DTNA) e-commerce platform. Invoices are received and payments sent electronically utilizing Pinnacle Fleet Solutions, the DTNA fleet parts program.

Closed loop stats (June − July 2016):• Number of enrolled Old Dominion Freight shops - 39• Average order value - $510

Key benefits:• Streamlined parts procurement process• Reduced back office administrative costs • Streamlined accounts payable process• Centralized and decentralized purchasing models are supported• 24/7 parts ordering access• Improved invoicing and payment accuracy

Other fleets targeted for closed loop order processing:• Ryder (Q3 2016)• Crete (TBD)• Swift Transportation (TBD)

For more information on closed loop order processing, please send an email to atssupport@daimler.com.

Fourth DMS to support Pinnacle Truck Parts

Pinnacle Truck Parts is a single network-wide, e-commerce solution. This innovative website allows transactions with customers by providing customer-specific pricing and visibility into dealer and PDC parts inventory. An essential component of Pinnacle Truck Parts (PTP) is the Dealer Management System (DMS). CDK became fully integrated with Pinnacle Truck Parts during June of this year and joins DSI, Karmak and Procede as the fourth DMS provider to develop new technology supporting Pinnacle Truck Parts.

E-commerce stats (June 2014 – July 2016):• Number of enrolled DTNA rooftops - 154 • Number of enrolled end-users - 4,087 • Average order value - $1,004

PTP future enhancements:• Displaying part images within Shop Parts• Dealer marketing upload• PTP “What’s New” communication upload• Web analytics• Super-user cosmetic enhancements (tablets, smart phones, etc.)• Detroit Reman and Alliance Truck Parts product exposure

For more information on Pinnacle Truck Parts please email atssupport@daimler.com.

Parts Sales & Operations continued next page.

The east Core Training Forum hosted 144 participants on May 23-26 in Salt Lake City while the west hosted 179 on June 6-9 in Cambridge, Ohio.

First Core Training Forum a success

Daimler Trucks North America (DTNA) recently held the first Core Training Forum with an overwhelming positive response from dealers and distributors in attendance. The Core Training Forum was a direct result of feedback received from the Core department survey distributed to the entire network last year. The most notable areas for improvement were associated with the core inspection process. This includes the core inspection criteria created by the remanufacturing supplier and training on how to apply the criteria. The primary objective of the forum was to provide hands-on core inspection training from major suppliers including Detroit™, Bendix, Delco Remy (BorgWarner), Eaton/Fuller, Horton and Meritor. The target audience included core operations personnel, responsible for inspections, creating returns, packaging/shipping and tracking eligibility. The end-goal was for participants to leave the training equipped with the tools and resources to effectively manage the core operations at their respective locations.

This event brought together subject matter experts involved in each stage of the core return process: dealers/distributors, DTNA Core Return Centers, suppliers and the DTNA Core Management team. The range of perspective generated by cross-functional dialogue could not have been simulated by the traditional means of communication. The inaugural forum was segmented into two events, each located in close proximity to the DTNA Core Return Centers. They included:

Core Training Forum – West Core Training Forum – East May 23-26, 2016 June 6-9, 2016 Tooele, UT/Salt Lake City, UT Cambridge, OH

Both events received a tremendous amount of interest with each at maximum capacity (East – 144 participants, West – 179 participants). The three-day training events combined traditional classroom instruction along with a hands-on application at the core return centers. There was also an opportunity for the DTNA Core Management team to provide a mid-year update on the DTNA aftermarket core project. Some of the updates included:

3RD QUARTER 2016

Freightliner LLC Dealer Operations

P a r t s S a l e s & O p e r a t i o n s

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• Detroit core buy-back enhancement − Allowing the network more opportunity to recover core deposits after eligibility has expired

• Detroit core family group initiative − Consolidating core part numbers into user-friendly groups to simplify the core return process

• Network key performance indicators − Empowering the network with metrics tracking on their core return performance

• Glider core return enhancement − Core returns created in paragon, visibility to core return eligibility, and credits issued in the same fashion as traditional core returns

• RPA mass upload − Enhanced user experience making the return process more efficient

• Core shipping/packaging techniques − Merging the core return (RPA) and shipping (BOL) documentation, providing more visibility to shipments and a more efficient credit process

• Dealer best practices − Provided by Sonny Jones (Lonestar Group) and Phil Solomine (Campbell Freightliner)

The post-event survey yielded overwhelmingly positive results from both events:

West:• 144 total participants, 60 survey responses (42% response rate)• Overall satisfaction: 83% (highly satisfied), 17% (satisfied)

East:• 179 total participants, 86 survey responses (48% response rate)• Overall satisfaction: 85% (highly satisfied), 15% (satisfied)

Open-ended responses:

“Really appreciated the effort put forth by the entire team. In 35 years of parts selling, I have never had this opportunity offered. It was well worth our time and money. … I cannot state it strongly enough that this needs to be mandatory for all DTNA dealerships. Thank you!”

− Dealer attendee, East Training Forum

“I feel that the 2016 Core Training Forum was an extremely valuable training tool and investment in dealer relations. I look forward to more of these training forums to come!”

− DTNA Core Return Center attendee, West Training Forum

“It was great to get face time with the people we communicate with. This was better than any letter or email we ever send as far as communicating with the correct people. Thank you for inviting us!”

− Supplier attendee, West Training Forum

“Very informative. Answered questions that I have had for many years.”

− Dealer attendee, East Training Forum

“To see and feel the products first hand in the inspection process is way more informative than manuals and pictures. Watching the process unfold by those who inspect the orders upon arrival is invaluable. We can now go back to our dealerships with the same thinking process as those who will receive thousands of dollars of our cores and have the confidence that we are on the same page.”

− Dealer attendee, East Training Forum

“I was very pleased with the core training forum. I would love to have this once a year just to keep up on any new ideas and changes that happen during the year. I learned so much and will make changes at our dealership to improve core flow in the future; I am so thankful for the entire staff of Daimler and all I learned. Thanks again!”

− Dealer, East Training Forum

The DTNA Core Management team would like to thank all who attended as well as extend a special thanks to all the managers and ownership of the locations that sent these participants. It is a significant investment to send people to training and this was kept in mind when developing the content. For those who were unable to attend, all of the presentations shared during the events have been posted on DTNA Connect under the Parts Resource Center and Core Information.

Core Training Forum attendees received hands-on core inspection training from major remanufacturing suppliers.

Parts Sales & Operations continued.

3RD QUARTER 20165

Freightliner LLC Dealer Operations

D i s t r i b u t i o n N e t w o r k D e v e l o p m e n t

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The only way to know if customer service expectations are being met is to regularly solicit customer feedback.

Mike Carberry, Truck Center Companies

Elite Support: Getting customers to fill out dealership surveys can be a challenge. How do you ensure your location is consistently capturing the voice of the customer?

Carberry: Truck Center Companies has moved away from online customer surveys in favor of a printed customer survey card that is presented in person when customers are actually in the store. We have found that we get the best survey response rate when our service advisors, cashiers or other front-line people ask customers directly for their input. It's just too easy for customers to ignore a link to an online survey delivered via email. The brief survey is typically presented to customers when they are picking up their vehicle or paying an invoice for service or parts; this gives them an opportunity to voice their perspectives while their experience is still fresh in their minds.

Having our front-line people make a personal appeal for feedback lets our customers know that we truly value their business, and that we will use their input to make improvements. We record the RO number or parts invoice number on each survey card to ensure we can track the processes involved in that customer experience. Each CIC at a Truck Center Companies location is responsible for collecting customer surveys and rolling up the results to review at change management team meetings.

Elite Support: How do you handle negative feedback from customer surveys?

Carberry: Make sure you are getting input from dissatisfied customers, not just cherry picking the customers who you know had a positive experience. You have to look at bad customer survey results as an opportunity to improve. Customers who give you negative comments are actually telling you that they want to continue to do business with your dealership. Don’t let a bad survey ruin your day; treat it as an OFI – Opportunity for Improvement.

If customer responses reveal a recurring issue, it is elevated to the service director for follow-up action which may include reaching out directly to customers to discuss a resolution. When necessary, we develop an action plan and communicate it to our team and provide training and coaching to correct any issue that is identified.

Although we sometimes struggle with consistently capturing customer feedback, we're committed to improving in this area. We're trying to find a sweet spot and will continue to make a concerted effort to gather our customers’ perspectives, and then use that insight to elevate our level of service.

Express Assessment update

Daimler Trucks North America (DTNA) and the dealer network jointly launched Express Assessment in 2008 to provide customer value through timely diagnosis communication and dealer value through improved shop flow. The Express Assessment program will soon become part of the Elite Support initiative on January 1, 2017. This means that Express Assessment stand-alone dealers will need to become involved with and committed to the Elite Support process by December 31, 2016. Taking these steps toward Continuous Improvement will help the network be more effective in meeting and exceeding customer expectations.

The first step to get involved with Elite Support is by attending an orientation session via webinar. Orientations have been held throughout the year to give Express Assessment stand-alone dealers a better understanding of the Elite Support initiative and the fundamental business changes required to develop a culture of Continuous Improvement. There is only one orientation session remaining and it will take place on Friday, September 9 from 2−4 pm EST. This is the final opportunity to attend an orientation session.

To enroll in the orientation, visit elitesupportregistration.com to submit a request. If you have any issues when registering please email dtnaelitesupport@es3.net.

Gathering the voice of the customer

The defined vision for the Elite Support network is to deliver a superior customer service experience in a consistent manner, at a good value and as validated by the customer. The last part of this vision — as validated by the customer — is an essential element that underscores everything Elite Support represents. After all, how can dealers be sure a superior customer service experience is being delivered unless customer feedback is solicited?

Mike Carberry of dealer family CIC (DFCIC) for the Truck Center Companies organization was interviewed to learn more about how they gather the voice of their customers. Here is an excerpt from that interview:

3RD QUARTER 2016

Freightliner LLC Dealer Operations

D e t r o i t R e m a n

6

New DT12™ Remanufactured Transmission released

Detroit Diesel Remanufacturing LLC is releasing the remanufactured DT12™ transmission which will be produced at Detroit Reman Central in Emporia, Kansas. The release will include seven part numbers in a base model configuration. The base models, which are built with the original configurations, will be offered without the controller and pneumatic clutch assemblies. The reduced content (base) transmission provides customers the best option to reduce total cost of ownership.

The Detroit™ DT12, twelve-speed, automated manual transmission was released in 2013 as an option for Freightliner trucks. Approximately 80,000 DT12-equipped vehicles have been produced in North America as of August 2016. 2017 and 2018 forecasts are already showing double digit growth potential. The DT12’s popularity with fleets and owner-operators continues to increase due to its durability, ease of operation and excellent fuel economy.

The Detroit Reman Central team has worked closely with Detroit engineering during the development and release to ensure the remanufactured transmissions exceed the stringent quality standards of Detroit Genuine Parts. The transmissions are remanufactured with the same technologies used to produce Detroit Reman engines, applying the most current specifications and product design updates. Each unit is completely disassembled and thoroughly cleaned. All key components are carefully inspected, measured, qualified and restored to blueprint tolerances. Wear items such as bearings, bushings, synchronizers and seals are replaced with new genuine components. Units are assembled with dedicated tooling, fixtures and gauging by factory trained technicians, utilizing a controlled ISO 9001 certified process.

DT12 Transmission

All transmissions are functionally tested on a custom-built dynamometer to ensure each unit performs to original Detroit specifications. Remanufactured units are shipped in returnable containers, specifically designed for the DT12, to provide maximum product protection and to ensure the core is returned in good condition.

With the release of the DT12 transmission, Detroit Reman now provides a complete product line offering to support the DTNA integrated powertrain portfolio.

Demand It All. Demand Detroit.

DT12 Dynamometer

DT12 Packaging