2014 Distributor Meeting Atlantic City, NJ POWERTECH ENGINES, INC. Overview • Industrial Ford Business • (10:00 – 10:15) Break • Ford Component Sales Presentation/ Industrial Ford Business • Marketing and Advertising • Ford 1.6L – 1.5L Transition • Ford 2.5L • (12:00 – 1:00) LUNCH • Introduction of the Ford 3.7L • Ford 6.8L & Turbo CAC • Transmissions & Gear Reductions 2 Key to Success Sales + Service = Survival 3 Distributor Territory • Distributor Territories • Service Dealers within Territories • Current list of service dealers within your distributor territory • Growing your service territory (Better Service Network for our customers) • Once we establish a service network, EDI would like to have this listed on our website. • Distributor/Service Training • EDI can offer in-house training or on-site at your location • Service • Technical Support 4 5 Warranty Procedure • New 5 Year/5000 hr. warranty for OEM’s • 5 year program must be approved by EDI’s engineering department. • Service/Warranty Department must approve all Ford related warranties prior to service work. • Our Service Department needs to be involved in any issues that are deemed catastrophic or a down situation. Our group of Customer Service and Engineers will work through the steps of evaluating the issues. • Our warranty statement can be found on our Google site: https://sites.google.com/site/edifordinfo/Engines-Home 6 Current Market Strategy and Competitors • Discuss future growth opportunities within territories • Competitive Strategy • New OEM opportunities • EDI and FCS will support on the sales, technical, service and warranty side. • Contact EDI for support with pricing and technical information for large volume OEM’s. • New Product Offerings • • • • 1.0L 1.5L 3.7L 6.8L Charged air Cooled Turbo 7 Automotive Advantage • The Ford Industrial Market Gas and Diesel has a huge advantage over our Industrial diesel counterparts. • Quality through millions of engines produced. • Incremental Cost Pricing: Method of pricing an engine in which the price of a unit produced (after all fixed costs of production have been met) is based on variable costs (and not on the total cost) incurred in its production. Includes sustained pricing with minimal increases. • Availability: The ability to receive engines in lead times that are not even available through the Diesel Industrial Markets. • Latest Ford technology available to Industrial Percentage of Revenue 2014 9 Example of a Gas Customer from Diesel VAC-CON 2012 – 6% Gross Profit – All Diesel 2013 – 8% Gross Profit – 75% Gas/25% Diesel 2014 – 12% Gross Profit – 90% Gas/10% Diesel Increased profit selling the Ford with market share gain 10 11 Increased share in the following markets • • • • Air compressor Turf Ground support for major companies and carriers Irrigation with new markets continually embracing the Ford engines • • • • • Pork farmers FL Orchards and sugar industry Delaware/Maryland Farmers Midwest Farming region Florida Tradewinds – PO issued $1.3M for 6.8L & 2.5L Engines • Largest Citrus Juice provider in the country • Man Lifts • Generation Power USA and Abroad 12 EPA and CARB Program • Currently every engine in our line-up is EPA certified. Please note our engines meet or exceed all CARB and EPA regulations. Our engines are near zero NOx to the point we are cleaning the air in some situations. • Due to regulations by CARB for our current status, EDI is required to do a Deterioration Factor known as DF testing. EDI is required to select one model for testing that will encapsulate the CARB cert for the entire LSI line. We have selected the V10 gas to mimic the worse case scenario. Our testing is complete for the CARB DF test. FedEx supplied a V10 with high hours for CARB to perform the DF Testing. We are CARB Certified for all models. 13 Engine Order Lead Times • Distributor Stocking Levels • Ford Engines & Parts • 6 - 8 week lead time on new engine orders • Distributors stocking parts in-house for parts sales, service and warranty repairs. • Distributor Forecasts • Forecasted Volumes • Reduce lead times and allow us to stock appropriately. 14 Engine Application Review • Engine Application Review is extremely Important • Eliminates issues resulting from improper installation • Product name and Distributor is not tainted due to Improper Install • Longevity of our Product and eliminates faulty warranty claims • Methods Documented • • • • Engine Application Reviews (Current and Future OEM’s) Emission Install Instructions Wire Diagrams Air to Boil • EDI Application Review Form Available on Google Site 15 LSI Engine Line Documentation • All manuals are available on the Google site https://sites.google.com/site/edifordinfo/Engines-Home • • • • • Operators Handbook Service Parts Manual Service Manual (available within the next month) Specification sheets and power curves Same fault codes and diagnostic tools as 2.3L • Installation Instructions • Emission install instructions • Body side wiring • Heat rejection, fan flow and coolant flow • 2D and 3D drawings are available as well 16 Propane Providers Get to know your local Propane Provider • They are very aggressive to sell fuel and will provide the necessary means • Fuel quality 17 Propane is NOT Created Equal • Fuel rating is extremely important when selecting Propane. • It is a misconception that all Propane is equal. • Ratings are given as an HD rating. HD5 is the acceptable fuel for vehicle and our engines. Anything with a higher number is not acceptable. California allows HD10, which will gum the valves. The rating number represents the amount of propylene. As you may know this is part of the composition of plastic. • We’ve encountered dirty fuel that was HD-5 rated, so always be on the look out 18 Valves from an engine operating on bad LP 19 V10 Irrigation Package 20 Example of WSG1068 Irrigation Application 21 Diesel vs. Propane & Gasoline • Compared the WSG1068 (Gasoline and LP) vs. a Deutz TCD2012L04 2V • HP Levels shown are continuous • One day = 8 hours • One year = 52 five day weeks = 260 days (2080 hours) • Pricing per Gallon • Gasoline: $3.75 • Diesel: $4.00 • LPG: $1.50 22 WSG1068 vs. Diesel Fuel Price Per Year $90,000 $80,000 Fuel Price Per Year [S] $70,000 $60,000 $50,000 V10 Gasoline V10 LPG $40,000 Deutz Diesel $30,000 $20,000 $10,000 $0 2000 2200 2400 Engine Speed [RPM] 23 2600 24 Distributor Contribution Costs/Marketing • Diesel Progress (12 month ad) • Prime spots within the magazine • Ground Support Worldwide • Tree Care – TCI • We are currently budgeted at $144,306.00 per year for the above advertising. We are currently in the process of re-negotiating our 2015 budget. ARA will be an addition for 2015. We will provide a breakdown and cost once finalized. EDI 50% - Distributor Body as a whole 50% • Tradeshows (2015) 25 10:00 – 10:15 BREAK 26 Ford Component Sales Presentation Ford Presentation EDI Account Managers Nicholas D’Adamo Ford 1.6L – 1.5L Transition • 2015 Distributors Forecasts for the 1.6L • 2015 Demand • Blanket Orders to cover transition • Current or Potential OEM’s within your territory • Engine Lifecycle – 1.5L • New production Ford engine • Supports multiple Ford vehicles • Production Release Date – 1.5L • Target March 2015 28 Ford 1.5L Key Features and Benefits • DOHC valve train with four valves per cylinder • Aluminum die-cast cylinder head, with hardened valves and seats • Cast aluminum, low friction coated pistons • Aluminum open deck cylinder block with iron bore liners • Distributor less Ignition • Port Injection gasoline fuel system 29 30 1.5L Sigma Engine 31 1.5L Automotive Power Curve 100 100 80 80 60 60 40 40 Power 20 20 0 600 1100 1600 2100 Engine Speed (rpm) 32 2600 3100 0 3600 Power (PS) Torque (ft-lb) 120 Ford 2.5L (MSG425) Transition Complete The 2.5L Transition is complete • EPA and CARB Certified on Gasoline, LPG, LP Vapor and (C)NG • Genie has five machines in production with increased orders!! • TUG has three builds running with increased orders! • 2015 Distributor Forecasts – 2.5L • 2015 Demand • Current or Potential OEM’s within your territory • Application Review • Engine Lifecycle – 2.5L • New production Ford engine • Supports multiple Ford vehicles 33 12:00 – 1:00 LUNCH LUNCH Ford 3.7L V6 Introduction (CSG637) • Potential Markets and OEM’s • Competitive Information • • • Engine Lifecycle – 3.7L • • New production Ford engine Production Release Date • • Market Data Competitive Pricing January 2015 Technical data will be added to Google Site over the next quarter 35 Ford 3.7L V6-Cylinder Specifications Ford 3.7L Key Features and Benefits • Twin independent Variable Cam Timing (Ti-VCT) • Deep Sump Oil Pan • Four mains with side bolts through the block for strength & durability • Piston cooling jets for improved fuel economy • Coil on plug ignition • Injectors are E85 capable 37 38 39 Ford 3.7L OPU V6 Dimensions 40 V10 Current Business State • V10 Engine production is at 6 to 8 weeks lead times. • This year our orders continue to increase from our large current OEMS, generator markets, ground support and Irrigation. • We need a push to take the irrigation business by storm and take market share away from Bucks. • Large Industry leading Corporations in Ground Support, Agriculture, Generation, Equipment Mfg. and Irrigation have chosen the Ford Product for the future. 41 Are we getting our share of Irrigation? 42 Ford 6.8L Turbo and Charge Air Cooled Platform • Goal will be 125kw @ 1800 RPM max speed • Same fuel system as the current certified Natural Aspirated engine. • Same Cat Muffler • New CAC will be side by side radiator package • NG/LPG Capable • Preliminary Drawings to follow • Front & Side View • Production Release Date (middle 2014) 43 Ford 6.8L Turbo with CAC Front View Side View Transmissions & Gear Reductions 6R80 & 6R140 • 6R80 Transmission • New from the plant, not remanufactured • Electronically Controlled • Adjustable shift points • Communicates with the Engine ECU via J1939 • Six forward gears • Available with and without a parking brake. • Mates directly to CSG637 and MSG425 via an adapter housing 6R80 with parking brake • Specification sheet available on Google site • 3D drawings available on Google site • • TUG has multiple prototypes running with a Diesel Other OEMs Running with MSG425 45 6R140 • Early stages • New from plant • Six forward gears • Electronic Shift Control • Uses same TCU as 6R80 • 37,000 lbs. GCVW • Comparable to an Allison 2000 series for GVW • Directly mates with the WSG1068 46 Propane vs. Diesel – 130hp 1000 hrs. 47 Propane Council results of testing 48 Updated EDI Website Launching Soon!!! • New updated design • Distributor search map • Type in City or Zip Code and closest distributor will appear • Possibly add a Ford dealer locator • Distributor login (password protected) • All Google documents will be moved here • Certain Google documents will only be accessible from here (3D Drawings) • Latest pricing sheet available here 49 50 Open Floor Discussion Questions? 51