Fleet managers are increasingly willing to invest in technologies that can lower operating costs. Regulation compliance, total cost of ownership, and driver retention are top concerns. Advanced safety technologies like collision mitigation systems and stability control are expected to see increased adoption. Telematics services like prognostics are growing in popularity due to their potential for cost savings. Natural gas and smaller diesel engines are gaining interest from some fleets. Overall, fleet managers prefer technologies that enhance productivity, safety and regulatory compliance while controlling expenses.

1. 2014 United States Fleet Managers Desirability
and Willingness to Pay for Advanced Truck
Technologies
Market Pull for Fuel-Efficient, Safe, and Smart Trucks Rising Steadily
May, 2014
Concise Summary

2. 2
Source: Frost & Sullivan
Contents
Section Slide No.
Objectives and Methodology and Respondent Profile 5
Executive Summary 18
US HD Fleet Managers 2014- Top of Mind Issues
Voice of Customer Research Insights
Key Implications
Analysis of Powertrain Technologies 25
Powertrain Technologies Summary 26
Engine Technologies 31
Transmission Technologies 42
Hybrid Truck/Alternative Fuel Technologies 46
Natural Gas Fuel Options Summary 51
Lubricants Overview 59
Key Insights-Powertrain Technologies 64
Analysis of Advanced Safety Technologies 65
Brake Systems Summary 66

3. 3
Source: Frost & Sullivan
Contents
Section Slide No.
Advanced Safety Technology Summary 72
Active Chassis Control Options Summary 81
Other Advanced Safety Technology Components 87
Key Insights-Advanced Safety Technologies 95
Analysis of Telematics Technologies 96
Telematics Technology Summary 97
Prognostics Technology Summary 103
Other Telematics Technology Components 110
Key Insights- Telematics Technologies 121
Regulatory Compliance Technologies 122
CSA Rating Compliance 123
Stopping Distance Regulations 124
Anti-idling Regulations 126
Key Insights- Regulation Compliance Technologies 127

4. 4
Source: Frost & Sullivan
Contents
Section Slide No.
Brand Perceptions 128
Overall Best Engine Supplier 129
Overall Best Advanced Safety System Suppliers 130
Overall Best Advanced Telematics Supplier 131
Appendices 132
Powertrain Technologies (Influential Factors, Relative Importance of Options, Price
Sensitivity Analysis, etc.)
133
Advanced Safety Technologies (Influential Factors, Relative Importance of Options, Price
Sensitivity Analysis, etc.)
150
Telematics Technologies (Influential Factors, Relative Importance of Options, Price
Sensitivity Analysis, etc.)
169
The Frost & Sullivan Story 184

5. 5
Objectives and Methodology

6. 6
Source: Frost & Sullivan
Objectives
The following are the objectives of this research:
• Understand the importance of advanced truck technologies (i.e., powertrain,
safety, and telematics) features in the overall purchase decision process
• Assess which powertrain, safety, and telematics advance technologies are
currently being utilized and are planning to be utilized in 2015
• Ascertain which advanced truck technologiesare most preferred by fleet
managers
• Measure the desirability and willingness to pay for advanced truck
technologies
• Determine the impact that regulatory compliance has on fleet managers’
decisions
• Evaluate fleet managers’ perceptions of advanced truck technology brands

7. 7
Source: Frost & Sullivan
Methodology
Methodology
A telephone interview survey methodology was utilized. Data collection was
during in March and April 2014.
Sample
In total, 101 United States (U.S.) heavy duty fleet managers were
surveyed.Specifically, we targeted heavy duty fleet managerswho:
• Are part of the vehicle (for heavy duty trucks) purchase making process
• Are expecting to purchase additional vehicles for their fleet within the next two
years
• Have at least class 6, 7, and 8 vehicles in their fleet
Reporting Note
Due to rounding, percentages in charts and tables may not sum to 100.

8. 8
Source: Frost & Sullivan
Current Title of Respondent
53%
13%
33%
1%
Current Title of Respondent
Fleet manager
Safety manager with influence on
the purchase decision process of
vehicles for use in your fleet
Maintenance or service manager
General Manager
Q1. Which of the following best describes your current title?
The largest proportion of surveyed respondents are fleet managers (53%).
Base: All respondents (n=101).

9. 9
Source: Frost & Sullivan
Prevalence of Private Versus For Hire Fleets
41%
59%
55%
45%
24%
76%
33%
67%
Private For hire
Prevalence of Private Versus For Hire Fleets
Total sample Small Medium Large
Approximately six out of ten surveyed fleets are for hire (59%).
Q6. Is your fleet primarily…?
Base: All respondents (n=101).

10. 10
Source: Frost & Sullivan
Prevalence of Vehicle Classes within Fleets
9%
4%
12%
75%
14%
6%
11%
69%
7%
4% 6%
83%
5% 3%
15%
77%
Class 1 to 3 vehicles Class 4 to 5 vehicles Class 6 to 7 vehicles Class 8 vehicles
Prevalence of Vehicle Classes within Fleets (Mean Percent)
Total sample Small Medium Large
Q4. What percentage of the following classes of vehicles do you currently have in use in your fleet? - Mean scores
Given the criteria to focus on fleet managers within heavy duty truck fleets, a greater proportion of fleets
are composed of class 8 vehicles.
Base: All respondents (n=101).

11. 11
Source: Frost & Sullivan
Prevalence of Straight Versus Tractor Trucks within
Fleets
20%
77%
3%
27%
71%
2%
8%
92%
0%
19%
77%
4%
Straight trucks Tractor trucks Other
Prevalence of Straight Versus Tractor Trucks within Fleets (Mean
Percent)
Total sample Small Medium Large
Q47. What percentage of trucks in your fleet are…? - Mean scores
Base: All respondents (n=101).
Overall, tractor trucks are most prevalent in fleets.

12. 12
Source: Frost & Sullivan
Prevalence of Trailer Types within Fleets
46%
13% 10%
6%
14%
8%
3%
40%
21%
14%
7% 9% 9%
0%
53%
7%
13%
8% 10% 8%
0%
48%
8% 5% 4%
20%
7% 8%
Dryvan
trailers
Tanker
trailers
Flatbed
trailers
Utility
trailers
Refrigerated
trailers
Specialty
trailers
Other
Prevalence of Trailer Types within Fleets (Mean Percent)
Total sample Small Medium Large
Q48. What percentage of trailers in your fleet are…? - Mean scores
Base: All respondents (n=101).
Overall, dry van trailiers are most prevalent in fleets.

13. 13
Source: Frost & Sullivan
Prevalence of Vocational Versus On-highway within
Fleets
30%
70%
33%
67%
21%
79%
29%
71%
Vocational On-highway
Prevalence of Vocational Versus On-highway
within Fleets (Mean Percent)
Total sample Small Medium Large
Q7a. What percentage of your fleet is…? - Mean scores
Q7b. For those trucks in your fleet that are on-highway, what percent are: - Mean scores
Base: All respondents (n=101).
24%
35%
27%
Short/local haul
Long haul
Regional haul
Routes of On-highway
Use (Mean Percent)

14. 14
Source: Frost & Sullivan
Years of Experience in Role
14 14
11
15
Total sample Fleet manager Safety manager Maintenance manager
Years of Experience in Role (Mean)
Q53. How long have you been a (RESPONSE Q1)?
Base: All respondents (n=101).

15. 15
Executive Summary

16. 16
Source: Frost & Sullivan
US HD Fleet Managers: Top of Mind Issues in 2013-2014
0
1
2
3
4
5
1.Regulation
Compliance
2.Total Cost of
Ownership
3.Driver and
Tecnician Shortage/
Retention
4.Declining
Equipment
Utilization
5. Fuel Price
Volatility
6. Freight Rate
(Spot Rate)
Fluctuations
7. Economic
Outlook and Margin
Concerns
• Regulation compliance (CSA, braking
distance, anti-idling, EPS 2010,
upcoming GHG regulations, etc.) is top
of mind for fleet managers in North
America. This is driving fleet managers’
purchase decisions toward advanced
truck technologies, especially in case
of safety, telematics, and powertrain
technologies.
• Equipment utilization is impacted by
shorter hauls, CSA, availability of
drivers, hours of service, and traffic
congestion which all effect operating
cost. Average utilization is down over
15% for the last 5 years.
• Equipment purchase cost and lifecycle
cost, which is related to other factors
such as fuel price volatility, driver
shortage, technician shortage, among
others, are highly rated high top of
mind issues by fleet managers,
indicating the rising importance of
TCO in choosing trucks and advanced
truck technologies.
Note: Factors 1-7 are most highly rated top-of-mind issues reported by managers of 10 largest
for-hire and private fleets derived from a separate survey.
Score legend: 5- Highest importance t; 3- Moderate Importance; 1- Low Importance to fleet
managers
North American HD Fleet Manager: Top-of-mind
Issues Impacting Business Decisions, 2013-2014

17. 17
Source: Frost & Sullivan
Voice of Customer Research Insights: 2014 US HD Fleet
Managers
• This survey, now in its fifth year, reveals a dominant narrative dictating advanced technology
preferences and associated willingness to pay: Fleet managers are willing to invest in technologies that
can enable operating cost saving, even if this implies paying a premium for acquiring such technologies.
• Another key trend gaining momentum is need for access to data and data analysis which will enable
fleet managers to make smart, mission critical decisions aimed at reducing operating cost and
increasing fleet productivity, safety, and regulation compliance.
• Fleet managers, safety managers, and maintenance managers are found to show varying degrees of
preference for advanced technologies. Fleet managers’ decisions were found to be guided by a more
diverse set of needs such as need to reduce operating cost, and also solve current operating challenges
such as regulation compliance, downtime reduction and driver turnover; while safety and maintenance
managers’ decisions are attributed to fewer priorities such as service and maintenance effort and cost
reduction, regulation compliance, and mobile resource safety.
• While it may be observed that private fleets are more likely to adopt new and advanced truck
technologies, analysis of fleet manager responses indicate that for-hire fleets attach more importance to
advanced powertrain, safety, and telematics technologies. Rising equipment cost and operating
expenses, a factor that impacts for-hire fleets more severely than private fleets could be a reason
behind lower probability of adopting advanced truck technologies despite considering these more
important for their operations.
• With average Class 8 truck age touching 9 years, fleet managers are choosing technologies that can
prevent escalation in lifecycle cost such as advanced lubricants, natural gas engines, tire pressure
related systems, prognostics, smaller sized engines. Driver shortage issues are catalyzing adoption of
AMTs, telematics, collision mitigation systems, and anti-idling technologies among others.
• Freightliner was found to be the most prevalent nameplate among surveyed fleets. Cummins, Bendix,
and Qualcomm/Omnitracs were rated highly as suppliers of advanced truck technologies.

18. 18
Source: Frost & Sullivan
Voice of Customer Research Insights: 2014 US HD Fleet
Managers (Continued)
• This year’s survey showed rising preference for 12-13L engines among fleet managers, especially
representing small-medium sized for-hire fleets. While the majority of fleet managers report spec’ing
trucks with both OEM nameplate and independent supplier engines, 34% report spec’ing trucks with
only OEM nameplate engines.
• Among advanced powertrain technologies, natural gas powertrain technologies and semi/fully
automated transmissions, and advanced low-viscosity lubricants are experiencing rising fleet manager
interest and preference. 12-14L engines are rated as most desirable, if made available and if fuel
savings of at least a dollar per diesel gallon equivalent can be attained for applicable vocation(s).
OEMs’ AMT nameplate strategy seems to be paying off with majority of fleet managers reporting
likelihood of considering OEM nameplate and independent supplier transmissions equally.
• The strong brand resonance of independent suppliers such as Cummins, Eaton, and Allison backed by
advanced powertrain products, solutions, and services have ensured fleet managers’ continued
interest and preference for their products, despite OEM nameplate engines and transmissions gaining
increasing traction.
• Among advanced safety technologies chassis control systems such as ESC, RSC, collision mitigation
systems, and tire related technologies such as trailer tire inflation systems and TPMS are showing
highest growth potential. Among driver information and warning systems, lane departure warning
systems receive the highest ratings. Automatic collision mitigation systems and tire related safety
technologies are expected to be experience rapid proliferation in new and existing trucks in the next 2
to 5 years. Among fundamental safety systems, both larger drum brakes and air disc brakes are
expected to dominate the market, with air disc brake proliferation growing at a faster rate while still
remaining a much smaller segment of the brakes systems market.
• CSA 2010 is currently the most important regulation for fleet managers influencing both safety and
telematics technology adoption. Medium-large for-hire fleets are most interested in leveraging data
from safety systems in improving CSA fleet scores, while medium-sized fleets show highest interest in
safety system hardware for CSA compliance.

19. 19
Source: Frost & Sullivan
Voice of Customer Research Insights: 2014 US HD Fleet
Managers (Continued)
• Telematics/connectivity is now perceived as one of the most important advanced technology areas for
improving overall fleet productivity and efficiency by fleet managers. TCO reduction, regulation
compliance, prediction of impending truck system failure, and mobile resource safety and security are the
primary drivers of telematics adoption. Prognostics is one of the fastest growing telematics
service/application among fleets. This year’s survey indicates a 29 percent growth in prognostics adoption
among surveyed fleets.
• Engine related prognostics is the most vital prognostics data. Roughly half (55%) of surveyed fleet
managers report interest in integrating prognostics data to their fleet’s maintenance systems and parts
inventory management systems.
• Analysis of telematics pricing models and offerings reveals an urgent need for recalibration of telematics
packages. New packages featuring most important applications/services desired by fleets and priced at
optimal price points will likely increase fleet manager adoption but also stoke large scale adoption by
small-medium sized fleets. $19.40 was found to be the mean fee truck fleet managers are willing to pay
per truck, per month for telematics services. This is lower than current industry mean of $26.90/month.
The challenge for telematics service providers will be to package and offer important applications such as
track and trace, prognostics, dynamic navigation, stolen vehicle tracking, and critical event/safety system
intervention alert among others more strategically and within the affordability boundaries of largest section
of fleet managers.
• Voice of customer research insights from this survey indicates the need for technologies and services that
can help reduce fleets’ operating costs, while increasing mobile resource productivity and efficiencies.
This coupled with fleet ownership (private vs for-hire), fleet size (small, medium, and large), and manager
title ( fleet manager, safety manager, and maintenance manager), and pricing analysis provided in this
study reveal rising cognizance and familiarity towards new and emerging advanced powertrain, chassis,
safety, and regulation compliance technologies. This underlines the fact that fleet managers are making
informed decisions and choosing technologies that not only can benefit their fleets’ operations but also
induce improvements in trucking’s productivity, safety, and efficiency.

20. 20
Source: Frost & Sullivan
Key Implications
Fleet
Manager
Research
Implications
• In most cases technologies are priced
within fleets’ affordability limits,
however in some cases such as
prognostics and telematics fleet
managers are demanding further price
reduction for mass adoption.
Price
Sensitivity
Diesel
Powertrain
Regulation
Compliance
Safety
• There is a clear indication of rising
interest in smaller displacement
engines especially among small-
medium sized for-hire fleets. However,
15L engines will continue to dominate
the market in the short-medium term
and beyond.
• CSA is the most important
regulation for fleet managers,
influencing their safety and
telematics technology
purchase decisions
Telematics
Alternative
Powertrain
Implications from Voice of Customer (HD Fleet Managers) Research Findings, US, 2014
• OEMs and tier-1 suppliers must focus
on systems and technologies that can
help in reducing operating costs, and
offer multi-dimensional benefits.
• Automatic collision mitigation
systems, larger drum brakes
and disc brakes, critical event
alerts, stability control systems,
and driver and vehicle
performance monitoring systems
are expected to experience
rising proliferation over 2014-
2015 period.
• Sales and marketing efforts on the part of
tier-1s should center around delivering better
warranty and service support, system durability
and reliability, data access for downstream
analysis and training, highlighting safety
systems’ multi-dimensional benefits, and CSA
compliance support, all packaged with better
warranty and maintenance support.
• OEM nameplate engines and
transmissions are gaining rising traction
among fleet managers. Both OEMs and
independent suppliers must take note of
this trend and strategize accordingly.
• 10 to 12L and higher
displacement natural gas
engines are expected to gain
adoption among private and
for-hire fleets. Fleet managers
seek fuel cost savings of
$1/DGE or more for switching
to natural gas.
• While hybrid powertrain adoption is
declining, we are advising market
participants in staying vested based on
long term application potential of this
technology.
Value proposition and preference for telematics
is rising among fleet managers. However, the
applications that are receiving highest interest are
centered more around vehicle and driver
performance monitoring and downtime reduction. This is
necessitating urgent focus on repackaging and re-pricing of
telematics application bundles as prices are reported higher than
optimal by fleet managers

21. 21
Source: Frost & Sullivan
2
AMTs, natural gas powertrain, collision mitigation systems, air
disc brakes, prognostics, real-time dynamic navigation, and tire
pressure related technologies are on the fast track for fleet
adoption growth.
3
4
5
Multiplexed-electronic architectures have become fundamental
for OEMs, and electronic interfaces for trucks systems for tier-1s
to benefit from brewing technology trends.
1
OEM nameplate systems are gaining traction among fleet
managers. TCO reduction, warranty, and data analytics support
need to be used by OEMs in further catalyzing this trend.
Medium-sized for-hire fleets are most interested in advanced
truck technologies and also require the most support and
guidance. This customer group requires special attention, but can
yield rich dividends.
Technologies that can offer multi-dimension benefits ( e.g. TPMS
reducing fuel costs in addition to safety, advanced lubricants
reducing fuel costs, extending maintenance interval, prognostics
for downtime reduction, peak performance of trucks, etc.) are
gaining the fastest traction among fleet managers.
2014 U.S. Fleet Manager Study- Executive Summary:
CEO Perspective

22. 22
The Frost & Sullivan Story

23. 23
Source: Frost & Sullivan
The Frost & Sullivan Story
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24. 24
Source: Frost & Sullivan
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25. 25
Source: Frost & Sullivan
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26. 26
Source: Frost & Sullivan
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