Propane Autogas on a Roll With Roush CleanTech A Q&A with Roush CleanTech’s Todd Mouw, VP, sales and marketing By Propane News staff Contact: Burney Simpson, 202-452-8975 Q&A w/Todd Mouw — Todd Mouw brings more than 15 years of experience in the automotive and high tech industries to Roush CleanTech. He manages the national sales staff, leading the charge in helping Fortune 500 fleets find ways to reduce their carbon footprint and operating costs through utilizing alternative fuel technologies. Mouw has been working with fleets to incorporate liquid propane autogas vehicles into their fleet programs and has seen great interest in Roush CleanTech propane autogas vehicles. Q: Where does Roush CleanTech fit in the fleet vehicle market today? A: Roush CleanTech designs, engineers, manufactures and installs propane autogas fuel systems for light and medium-duty Ford vehicles. We are the premier provider of propane autogas fuel systems for the alternative fuels market. Current Roush CleanTech customers include state and local government, school districts and Fortune 500 companies. Q: How would you describe Roush CleanTech’s major selling points? A: We deliver a product that is safe and reliable while reducing our customer’s operating costs and carbon footprint. All vehicles equipped with the Roush CleanTech liquid propane autogas fuel system are in compliance with California Air Resources Board, Environmental Protection Agency, NHTSA, FMVSS, and NFPA-58 regulations, which is a reflection of the safety and reliance of our fuel systems. Consider these major selling points. Propane autogas: can bring up to a 40 percent reduction in operating costs, which includes a decrease in fuel prices and maintenance costs significantly reduces greenhouse emissions (24 percent), nitrogen oxide emissions (20 percent), and carbon monoxide emissions (60 percent) when compared with gasoline Roush CleanTech systems offer the same horsepower, torque and towing capacity as their gasoline-powered equivalents propane autogas is domestically produced – 97 percent is produced from North America. Q: How many Roush CleanTech autogas vehicles are on the road today? A: At the end of 2012 we will have over 3,500 propane autogas powered vehicles on the road. Q: What Roush CleanTech autogas vehicles are now available? A: Blue Bird Vision Class C School Bus (6.8L V10) Micro Bird Class A School Bus (6.8L V10) Ford E-150, E-250, E-350 (5.4L V8) Cargo and Passenger Vans Ford E-450 DRW Cutaway (6.8L V10) Chassis Cab. Retrofits available: Ford F-250/F-350 (5.4L V8) 2009-2010 Pickup Trucks Ford E-350 DRW Cutaway (5.4L V8) 2007-2011. In addition, we have received CARB approval of our propane autogas fuel system for retrofitting 2010 model year 5.4-liter Ford E-150, E-250 and E-350 cargo vans and wagons. The CARB approval of our 2009, 2011 and 2012 propane autogas fuel systems for the Ford E-150, E-250 and E-350 cargo vans and wagons will be coming soon. Q: What Roush CleanTech vehicles should we be looking for in the next 12 months? A: We will launch the following new products: 2012 Ford F-250/350 (6.2L V8) Pickup Truck (October 2012) 2012 Ford F-650 (6.8L 3V) (Q2 2013) 2011 Ford F-450/550 (6.8L 3V) Chassis Cab (Q2 2013) 2013 Ford Transit (3.7L V6) (Q4 2013). We will continue to look at the market and other products of interest such as the Ford F-59 Strip Chassis. Q: How does Roush CleanTech interact with local marketers when it sees a fleet sales opportunity? A: The Roush CleanTech team and propane marketers need to contribute an equal effort in initiating interest in a fleet sale. Propane suppliers already have a built-in customer base for our systems. We will discuss the capabilities and technology of the propane autogas fuel systems while propane marketers explain the propane autogas infrastructure available. When a Roush CleanTech sales rep visits a fleet manager we get into such variables as fuel consumption, vehicle platforms, areas of operation and refueling options. We provide the customer the demo vehicle they would like to test. They can then learn the vehicle and the refueling infrastructure. And the firm’s mechanics have the opportunity to develop their technical knowledge of the propane autogas fuel system. It is important that our propane marketers have demo models to offer to our customers when they exhibit interest in propane autogas. That’s one way we work closely with marketers in our sales efforts. We have three sales representatives for government, school and propane accounts that cover the West, Central and East regions of the United States: Brad Beauchamp, West Region – brad.beauchamp@roush.com, 734.679.2756 Robert Little, Central Region – robert.little@roush.com, 734.679.7526 Chelsea Jenkins, East Region – chelsea.jenkins@roush.com, 734.812.1965 We also two sales representatives for private, Fortune 500 companies: Eric Bates, West Region – eric.bates@roush.com, 602.989.5086 Peter King, East Region – peter.king@roush.com, 313.529.8518. Q: Once you’ve got an order how does the job get fulfilled? What are the steps in meeting a specific order? A: Let me answer that by citing a recent contract win. DHL Express, the world’s leading international express services provider, announced its commitment to purchase 100 Roush CleanTech propane autogas Ford E-250 cargo vans for pickup and delivery services. The vans were ordered directly from Ford and will be shipped to National Fleet Services, a certified upfitter, for the installation of the Roush CleanTech fuel system. After the installation is complete, the vans will be shipped to several different Ford dealerships for the wide variety of DHL locations. That’s a very efficient system. To get there, we developed a ship-through delivery process that significantly reduces the order to delivery timing. To best meet our customer needs we ask them these questions: 1. 2. 3. 4. 5. 6. 7. 8. 9. What applications are commonly used in your fleet? What is your minimum range requirement? Where do you prefer the propane autogas fuel system to be located on the vehicle? What wheelbase and cab to axle do you require? What cab configuration is primarily used? Will you be using public or private fueling? What is your alternative fuels strategy? Describe your current alternative fuels profile. Do you purchase the vehicles in your fleet through a Ford dealer or leasing company? How much are you expecting to reduce your operating costs? Do you have an estimated time of when you want to receive your return on the investment? 10. What is the next twelve month budget for vehicle replacement? Q: Are customers more or less open to propane autogas vehicles than they were a few years ago? A:Demand for and awareness of propane autogas vehicles have increased dramatically since we launched the Ford F-150, 5.4-liter, V8 back in 2007. In the last two years, we’ve worked with large customers such as Sears, Microsoft, Time Warner, Blue Bird, Frito Lay, DirecTV and DHL. On the public side we are working with Cincinnati, Indianapolis, King County (Washington) and several other federal, state and local governments. That kind of customer adoption brings credibility to our brand, our product and to propane autogas. Roush CleanTech is getting more coverage in the media than ever before, helping to make propane autogas better known. Our press activities have generated over 570 million impressions in 2012 so far (January through July), and we are active in trade shows. We have now reached thirteen vertical markets, including telecommunications, food and beverage, utilities, medical equipment providers, and more in just the last two years. Q: Where do you see the autogas market in five years? A: We have invested almost $30 million since the inception of this initiative and believe that by 2014 we will sell 8,000 to 10,000 units a year. The incremental demand for propane as we ramp up our introduction will be in excess of 100 million incremental gallons of autogas annually. The typical life cycle of a Roush CleanTech propane autogas fuel system is seven to eight years. That translates to roughly one billion gallons of propane autogas being used per propane-powered vehicle in the marketplace. With continued support from the propane industry, we will continue to see fleet adoption of propane autogas from Fortune 100 Companies, and public accounts. Greater fleet adoption will drive an increase in the fueling infrastructure. Major fleet adoption stories like DHL, DirecTV, Sears, Frito Lay and Time Warner will become more commonplace during the next five years. The momentum is not going to stop now – businesses are just beginning to realize why propane autogas is such a feasible option for their fleets. Thanks Todd, we appreciate your time and information. ## 30 ##