Headquarters Technical Center, I-6 Operations International Engine Group TM International Truck & Engine Corporation Sanjay Patel Environmental Manager Engine Group TM 1 International Engine Group Headquarters Technical Center, I-6 Operations International Truck and Engine Corporation Core Products • Truck Markets Served…Leadership in the Americas – Medium Truck (4000 Series) International engines exclusively – School Bus (3000 Series) International engines exclusively – Severe Service International engine option – Heavy Truck International engine option • Financial Services…North America • Distributor and dealer financing • Customer financing TM 2 International Engine Group Headquarters Technical Center, I-6 Operations International Truck and Engine Corporation Core Products • Engine Business On-highway, high technology products – I-6 Diesel Engine (DT 466, DT 530/Series 40/Perkins 1300) • Melrose Park, Illinois – “V” Diesel Engine (T-444E/Ford Power Stroke®, Series 30) • Indianapolis (7.3L current product, and new 6.0L V-8 in 2001) • Huntsville, Alabama (new 4.5L V-6 in 2001) TM • Canoas, Brazil (Maxion Motores - International Engine Subsidiary) 3 International Engine Group Headquarters Technical Center, I-6 Operations International Truck and Engine Corporation Who we are... • Core Businesses (2000 Sales) – International Engines Exclusively • Trucks - $6.6 billion • Engines - $2.6 billion • Financial Services - $0.3 billion – Geographic Focus • US, Canada, Mexico, Brazil • OEM / Worldwide – Truck and Engine Business • Technology leadership TM • Customer value as an integrated manufacturer 4 Headquarters Technical Center, I-6 Operations International Engine Group Product Leadership Through Technology 400 350 374 393 300 300 250 258 231 233 200 150 100 175 126 192 149 50 0 199 1 199 2 199 3 199 4 199 5 199 6 199 7 199 8 199 9 200 0 ENGINE SHIPMENTS (000s)- FY TM 940-0011-00 5 Headquarters Technical Center, I-6 Operations International Engine Group Growth Provides Industry Leadership 160-300 HP Class 393 INTERNATIONAL CUMMINS GM POWERTRAIN ISUZU MERCEDES BENZ HINO DEERE MIT MOTORS CAT IVECO VOLVO RENAULT TM 276 68 32 71 16 52 51 54 27 24 20 0 100 200 300 2000 Volumes (000’s) 400 500 6 International Engine Group Headquarters Technical Center, I-6 Operations Engine Customers • International Truck Businesses • Ford Motor Company • Mercury Marine Distribution Partnerships • Detroit Diesel • Perkins TM 7 International Engine Group Headquarters Technical Center, I-6 Operations International Truck Applications Medium Truck School Bus TM 8 International Engine Group Headquarters Technical Center, I-6 Operations Severe Service and Heavy Truck Conventional Severe Service 530 / Others Eagle 9900ix TM 9 Headquarters Technical Center, I-6 Operations International Engine Group Typical Ford Applications Excursion E-350 Van 7.3L Power Stroke F-250 TM 10 International Engine Group OEM Applications Headquarters Technical Center, I-6 Operations Snow Groomer Perkins - DDC 1300/Series 40 Agricultural Custom Fire Truck Street Sweeper TM Generator Set 11 International Engine Group Headquarters Technical Center, I-6 Operations Typical Mercury Marine Applications D-Tronic Marine Diesel Engine TM High Performance Speed Boat Fishing Boat 12 International Engine Group Headquarters Technical Center, I-6 Operations Environmental Management System Value and Measurement TM 13 Headquarters Technical Center, I-6 Operations International Engine Group International EMS International Cross-Plant Environmental Audits (Annual)* Policy Audits by Internal & External Financial Auditors (Annual) Environmental Procedures Customer-Processes-Supplier Business Plan Mission Statement - Policy Key Result Areas (KRAs) - Policy Elements Facility Internal Environmental Audits (Periodic) Corporate-wide objectives under KRAs Corporate- and facility-specific goals Corporate- and facility-specific action plans/expenditures** TM * Every 3 years, outside environmental consultants contracted to review and evaluate Company's auditing process ** Annually, facility and plant managers report on environmental status of their facility to Senior Vice President and General Counsel, who also annually provides environmental report to Navistar Board of Directors 14 International Engine Group Headquarters Technical Center, I-6 Operations International Environmental Policy Model TM 15 International Engine Group Headquarters Technical Center, I-6 Operations Key Results Areas (KRAs) (key Performance Metric) • • • • • • • 1 - Compliance 2 - Environmentally Friendly Facilities & Product 3 - Continual Improvement 4 - Pollution Prevention 5 - Employee Involvement 6 - Government Partnering 7 - Environmental Management Programs TM 16 International Engine Group Headquarters Technical Center, I-6 Operations KRA1 - Compliance • Compliance with all laws and regulations is expected, but at International we often do more than what is required to help the environment. • Measure against CAA, CWA, RCRA, EPCRA, local and state requirements, etc TM 17 International Engine Group Headquarters Technical Center, I-6 Operations KRA2 - Environmentally Friendly Facility & Product • Sustainable Product.(www.greendieseltechnology.com) • Design, construct and operate facility in environmentally friendly way. • Energy efficient process and equipments • Energy conservation policy. TM 18 International Engine Group Headquarters Technical Center, I-6 Operations KRA3 - Continual Improvement KRA4 - Pollution Prevention TM • Monitor and assess environmental and energy performance • Keeping appraised of proposed legal requirements. • Reduce generation & disposal of Hazardous and Non-hazardous wastes • Develop energy efficient product to minimize environmental impact. 19 International Engine Group Headquarters Technical Center, I-6 Operations KRA5 - Employee Involvement • Employee participation through subcommittee, training, submit p2 ideals to ISO committee, etc • Supporting ISO14001 program by taking responsibilities of associated aspect and impacts. TM 20 International Engine Group Headquarters Technical Center, I-6 Operations KRA6 - Government Partnering • Work with government and nongovernmental agencies to develop regulations. • Sharing and partnering with variety of agencies for the benefit of environment • Monitor and interpret proposed regulation, laws and policies. TM 21 International Engine Group Headquarters Technical Center, I-6 Operations KRA7 - Env. Management Programs • Environmental business planning • Achieve/Maintain ISO14001 Registration • Develop, maintain and implement procedures and processes. TM 22 International Engine Group Headquarters Technical Center, I-6 Operations EMS Value - $$$ • Bottom line $$$ = Pounds waste produced • Dollars saved in waste disposal • Eliminate potential of N.O.V • Savings on raw material usage reduction. TM 23 International Engine Group Headquarters Technical Center, I-6 Operations Hazardous Waste TM 24 International Engine Group Headquarters Technical Center, I-6 Operations Non-Hazardous Waste TM 25 International Engine Group Headquarters Technical Center, I-6 Operations Energy TM 26 International Engine Group Headquarters Technical Center, I-6 Operations EMS Value - P2 • Eliminated all TRI chemicals from manufacturing operations. • Water based paint costs $5 less than high-solid paint reducing air emissions by 60% (3.2 to 1.28 lbs. VOM/gal) • Replaced hazardous cold parts cleaning solvent by substitution. TM 27 International Engine Group Headquarters Technical Center, I-6 Operations EMS Value - Recognition TM • Won Illinois Governor’s Pollution Prevention Award Seven times. • Partners with Clean Air Program Chicago • Members of Multi-state working group • Charter Member of the National Achievement Track Program USEPA. • ISO14001 Registered. 28 International Engine Group Headquarters Technical Center, I-6 Operations EMS Value - Stakeholder relationship • Participants of Small business P2 education/training program • Employees / Management Environmental Awareness • Friendly Community relationship. • Great exposure to media, state and federal agencies. TM 29 International Engine Group Headquarters Technical Center, I-6 Operations Key to successful EMS • • • • • Commitment Leadership Relentless pursuit Teamwork Continual improvement TM 30 Headquarters Technical Center, I-6 Operations International Engine Group TM TM 31