SATISFYING READINESS REQUIREMENTS
WITH REDUCED RESOURCES
2011 DoD Maintenance Symposium
Regis Luther – Vice President
November 15, 2011
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Navistar History
1831:
1900s:
1910s:
1930s:
1940s:
1950s:
1980s:
1990s:
2000s:
Cyrus McCormick invents mechanical reaper
International Harvester Company founded
School buses added to product line
First engine plant opens
Military vehicle production for war effort
IH enters off-highway truck business
Aerodynamics is the new buzz
Emphasis on visibility, comfort, efficiency
Hybrid vehicles, Navistar Defense (2004), ProStar/LoneStar
(FY2010 Revenue: $12.1B)
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Navistar Today: North America Focus, Global Growth
North American Market Share Leader: 2011 YTD
School Bus: 48%
Medium: 40%
Severe Service: 34%
Heavy: 17%
School Bus/Combined
Class 6-8 Market Share
FY-2009
27%
FY-2010
35%
YTD-2011
27%
Combined Class 8 Market Share (Q3-2011): 21%
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Award-Winning Service
2010 J.D. Power & Associates Award Winner
Highest Customer Satisfaction
Heavy-Duty Dealer Service
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2007 Core Products
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2011 Global Product Portfolio
4
“1+2+3” Product Strategy
2
3
MxF 7
Common Cab Over
1
Common Global Chassis
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Common Aero Cab (NGV)
MxF DT
MxF
11/13/15
5
Typical Truck Total Operating Cost Breakdown
Administrative:
Payments, Insurance,
Licenses, etc.
Initial Price
20%
Fuel
Efficiency
Residual
Value
30%
40%
Fuel, Oil, etc.
Wages, Benefits
Weight
Driver
Satisfaction
Uptime,
Reliability,
Durability
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• Payload
• Productivity
10%
Maintenance
• Parts
• Service
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Maintenance: Mileage Based Oil Intervals
Maintenance Interval Future Target =
100,000 miles
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Next Heavy Duty Engine Oil Category:
Proposed Category (PC)-11
Navistar’s & industry’s goal:
Have the next engine oil category ready for first licensing in early 2016.
Short-term goal: Set PC-11 Parameters (CJ-4 to CK-4) by end of 2011.
The main objective of PC-11 is fuel economy with other performance considerations:




Oxidation Control
TBN depletion and TAN increase (improved test reliability)
Shear Stability
Aeration Control


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Turbo Deposits Control
Biodiesel Compatibility
Emulsion Stability
Use of Engine Oil for Hydraulic Fluid
Fuel economy is correlated with High Temperature High Shear (HTHS)* oil viscosity.
Heavy Duty engine oils today must have a minimum of 3.5 HTHS
Oil Viscosity
Fuel Economy Improvement over 15W-40 (~4.2 HTHS)
5W-30 (3.5 HTHS)
~ 2%
PC-11 (2.9 HTHS)
~4%
Engine design can be optimized for <3.5 HTHS to give equivalent engine life.
Conclusion: The industry will look to lower HTHS engine oils to maximize fuel economy and reduce
Green House Gas emissions.
Note: TBN (Total Base Number) & TAN (Total Acid Number) are measures of neutralization capacity and acidic components in the oils, and used to assess oil drain intervals.
*HTHS is an evaluation method that tests oil viscosity at the shear rate & temperature representative of those in the bearings of automotive engines in severe service.
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Conclusion
 Maintenance is one important component of the total truck operating costs.
 Navistar’s “1+2+3” strategy for commonality minimizes maintenance & service costs.
 Navistar continues to invest in innovation that helps our customers save money.
 Collaboration with the DoD is critical to accelerate new technology development.
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