Timeline for Vehicle and Engine Timeline for Vehicle and Engine Integration -- Facilitating Field TestingIntegration -- Facilitating Field Testing

VOLVO POWERTRAIN CORPORATIONVOLVO POWERTRAIN CORPORATION

Bob ErnharthBob Ernharth

Chief Project ManagerChief Project Manager

The Volvo Group OrganizationThe Volvo Group Organization

RenaultVI

VolvoTrucks

Volvo Aero

FinancialServices

Trucks

AB VolvoBusiness Areas

Business Units

3P

Powertrain

Parts

Information Technology

Buses VCE VolvoPenta

Mack/North

America

Volvo Powertrain is now the worlds largest producer of heavy duty engines from 9 to 16 liters.

Volvo Powertrain

The Volvo Group OrganizationThe Volvo Group Organization

Volvo Trucks North America

Mack Trucks

• Volvo Powertrain is an integrated supplier of

powertrain solutions to two North American Truck

Customers

Volvo Powertrain

The Volvo Group OrganizationThe Volvo Group Organization

Powertrain: Engine development to address engine-out emissions

Mack Trucks

Volvo Trucks North America

Truck: Vehicle development to incorporate after-treatment

PowertrainTruck interfaces address

packaging, cooling, validation, schedule, etc.

US 2007 Engine OfferingsUS 2007 Engine Offerings

Volvo Powertrain will offer a complete line of Volvo Powertrain will offer a complete line of diesel engines which fully comply with US07 diesel engines which fully comply with US07 requirements.requirements.

Engines supplied to Mack Trucks and Volvo Engines supplied to Mack Trucks and Volvo Trucks North America will be customized to Trucks North America will be customized to meet their unique market needs and customer meet their unique market needs and customer expectations.expectations.

US 2007 ChallengesUS 2007 Challenges Best technology solution for end userBest technology solution for end user Technology selection by VPT and Truck considers:Technology selection by VPT and Truck considers:

– Engine attributesEngine attributes

– Vehicle attributesVehicle attributes

– Interface issues Interface issues » PackagingPackaging

» CoolingCooling

» ValidationValidation

» ScheduleSchedule

– Product Continuity (2007 ... 2010)Product Continuity (2007 ... 2010) Technology selection expected Sept 2003Technology selection expected Sept 2003

Diesel Diesel Particulate Particulate

FilterFilter

Pre-Catalyst

Filter 90+% Efficiency

• All potential 2007 technologies require DPF

Particulate matter is burned in catalytic filter

Diesel Particulate FilterDiesel Particulate Filter Volvo Powertrain ExperienceVolvo Powertrain Experience

– 450 trucks in European field test 450 trucks in European field test » 23 Million Miles23 Million Miles

– US field test initiatedUS field test initiated» 7 trucks in service7 trucks in service

» 58 planned58 planned

– Experience growing in US retrofit Experience growing in US retrofit market (trucks)market (trucks)» Primary issues have been Primary issues have been

plugging, heat damage, and plugging, heat damage, and cracking.cracking.

DPF on MACK VehicleDPF on MACK Vehicle

US07 Product Development & ValidationUS07 Product Development & Validation

Must demonstrate:Must demonstrate:– FunctionalityFunctionality– DurabilityDurability– ReliabilityReliability

Product development includes a combination of Product development includes a combination of analytical, laboratory, and field test resourcesanalytical, laboratory, and field test resources

Planned US07 Validation ActivitiesPlanned US07 Validation Activities

InternalInternal CustomerCustomer

DPF Vehicle testing (in process)DPF Vehicle testing (in process)

US07 Engine testingUS07 Engine testing

US07 Vehicle testingUS07 Vehicle testing

US07 Reliability testingUS07 Reliability testing

2003 2004 2005 2006Q1 Q2 Q3 Q4

2003 2004 2005 2006

US07 AvailabilityUS07 AvailabilityQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Pre-Prod

Production

ReliabilityConfirmation

Reliability Forecast

RED = Base Engine

GREEN =Base+A/T+Interface

Internal Validation (Prototypes)

Pre-Pilot w/ Prod Tool.

Pilot w/ Prod Tooling

Technology Selection

Customer Field Test (Prod Design, limited quantities)

The Volvo Group is confident The Volvo Group is confident that we can draw on our Global that we can draw on our Global

expertise to deliver proven expertise to deliver proven US07 products that meet the US07 products that meet the

expectations of our Customers.expectations of our Customers.