Presented By Ken EggenDirector of Business Development

Introduction to Ervin

What is an Ervin Glider

Why an Ervin Glider

Warranty

Maintenance and Cost Savings

Agenda for Today’s Meeting

Trailing equipment solutions

Finance options for leasing or buying

Used truck buys / trades

Turn-key Glider solutions

Logistics

Private Company founded in 1981 by Greg Ervin.

Headquartered in Toledo, Illinois.

Worldwide operations, most of which is in North America and Mexico.

Extensive fleet customer base.

North America’s largest volume trailer dealer, selling new and used dry van, tanker, lowboy, flatbed and oilfield trailers.

Ervin has a complete value chain including trailers, funding (lease or buy) and relationships to keep you moving.

Who is Ervin and Why Buy their Brand?

DTNA Gliders Sold by Year

Brief History of Gliders1969

First Government legislation of Gliders in 1969. Completely factory built using customer supplied components.

1980’s “Mom & Pop” shops saw advantages to offering very low cost

replacements for wrecks. Factory didn’t include any component, or drill frame. All work completed by the assembler.

1990’s Freightliner Trucks begins to add rear suspension and rear axle with

Glider.

2000’s Freightliner Trucks begins adding engine to truck. Now local fleets and

dealers have an easier time build Gliders.

2007 New engine technology inhibits fleets’ ability to make money. Gliders

are now seen as an alternative to “new” trucks, not just a wreck replacement.

2013….

In 2013, Ervin realized that a low cost solution was needed that genuinely addressed the industry challenges.

Ervin saw an opportunity with Glider kits, but wanted to make sure the product was as close to new as legally possible and was built to a quality standard that would meet the customer needs of today’s marketplace.

Keeping that in mind, Ervin started a Glider division and partnered with an authorized Freightliner and Western Star Trucks dealer to provide a tool that will stay on the road longer and at less cost than the industry can offer today in a new truck.

Industry Challenges

Truck prices have increased as much as 60% since 2004.

Truck maintenance costs have increased by as much as 40% since 2004.

Today’s trucks weigh up to 1,200 lbs. more than a pre-EGR truck.

Decreased reliability equals less productivity.

Less productivity means fleets must own more assets to do the same amount of work.

So how can fleets be more productive with reduced capital expenditure?

The answer is:

Introduction to Ervin

What is an Ervin Glider

Why an Ervin Glider

Warranty

Maintenance and Cost Savings

Agenda for Today’s Meeting

You are what you eat, eat, and why not get what we eat to a processing plant faster, easier and more profitably that you do today?

New cab, interior, chassis, electronics, wiring and airlines. All of these components are factory installed by Freightliner or Western Star, ensuring correct installation by the “pro’s.”

Remanufactured engine, transmission and rear differentials. The engine is factory installed; the transmission and rear axles are installed by an authorized Freightliner and Western Star dealer to maintain integrity and extended warranty options.

Ervin Gliders are titled as a current model year tractor / truck.

Ervin Gliders come with a factory warranty and it can be performed at any Freightliner or Western Star dealer or Detroit distributor in North America.

What is an Ervin Glider?

Introduction to Ervin

What is an Ervin Glider

Why an Ervin Glider

Warranty

Maintenance and Cost Savings

Agenda for Today’s Meeting

You are what you eat, eat, and why not get what we eat to a processing plant faster, easier and more profitably that you do today?

Why Ervin Glider Kits?

OEM warranty – the best in the industry

Pre-emission engine – factory installed

High residual value

North American Dealer Support – over 450 locations to serve you

Built by an authorized Freightliner and Western Star dealer

Only built with genuine new and remanufactured components

Immediate availability – or order per spec

Competitive prices on all makes and models

Engine simplicity EPA98 vs. the complicated GHG14 engines available today in a new

truck.

Increased Uptime Less sensors, more simplicity and more service outlets mean more

uptime for your truck and more profit in your pocket.

Decreased maintenance expense Fleets are realizing significant cost savings year over year with an

EPA98 engine vs. EPA10/14.

Weight savings Glider kits can weigh as much as 1,000 pounds less than a new

tractor, allowing you to carry more freight, or meet weights for specific applications.

Lower total cost of ownership All this means your Glider kit may cost less over the life of the truck.

General Benefits of a Glider

Other Benefits of a Glider

No EGR!

No DPF!

No DEF!

No SCR!

Ervin partners with one of the best dealers in N.A. to complete their Glider.

The dealer only builds with genuine new and remanufactured components.

The engine, transmission and rear axle are completely remanufactured by the OEM (Detroit, Eaton and Dana). All other components are genuine new parts supplied by Freightliner or Western Star.

All parts carry a warranty, with many parts having extended service coverage.

There is no donor vehicle requirement .

Ervin supplies the donor vehicle for the customer and will buy your “would be donor” for the right price.

All of this comes with an industry competitive price, saving you thousands over the price of a new truck.

Immediate availability – Freightliner and Western Star models.

Benefits of an Ervin Glider

Ervin offers many different models and sleeper sizes.

Ervin stocks Freightliner and Western Star day cabs and sleepers for immediate availability.

Ervin Gliders are market priced, and are ready for fast delivery. These are a great solution if your need is urgent and you can’t wait lead time for your own spec.

Day cabs: two seats, 210” & 220” wheel base, 24” airslide 5th wheel, dual 80 gallon fuel tanks, airliner suspension, 10 speed transmission, 3.70 axle ratio.

Sleepers: 70” MRXT’s and Condo’s, refrigerators, full cabinetry, 260” wheelbase with 24” airslide 5th wheel, dual 120 gallon fuel tanks, airliner suspension, 10 speed transmission, 3.70 axle ratio.

We also offers fleet specific Gliders, per spec, at the DTNA factory lead time plus two weeks for a personalized Glider kit that meets the customer specifications and requirements.

Ervin Turn-Key Glider Offering

Available Models

Daycabs, Mid-roofs, and Condo’s

Freightliner Models: Columbia Coronado Argosy

Western Star Models: 4900SF and 4900SB 4900EX 6900XD

Columbia Configurations

Day Cab (No Sleeper Box)

34” Mid-Roof Sleeper Cab

48” Mid-Roof Sleeper Cab

58” Mid-Roof Sleeper Cab

58” Raised Roof Sleeper Cab

70” Mid-Roof Sleeper Cab

70” Mid-Roof XT Sleeper Cab

70” Raised Roof Sleeper Cab

An authorized Freightliner and Western Star Dealer orders an incomplete Glider kit from Daimler Trucks North America (DTNA), manufacturer of Freightliner and Western Star new trucks and Gliders.

DTNA manufactures Glider per the ordered specs and delivers incomplete Glider to our authorized dealer partner. Gliders leave the factory with a remanufactured engine, but without a transmission or rear axle assembly.

Authorized location completes the Glider by installing a new clutch, remanufactured transmission, new driveshaft and remanufactured rear axle. They PDI the truck to ensure proper build and that there are no defects in the completed Glider.

Ervin purchases the completed Glider from our Dealer partner and resells to the customer. This is important because Ervin absorbs the donor vehicle requirement and the Federal Excise Tax (F.E.T.) risk, thus allowing you to purchase a lower cost alternative to a current emission vehicle that may not work for your application, resolves you from all risk and keeps you in proven engine technology, all while saving you ten’s of thousands of dollars over the price of a new truck.

Ervin specs out Glider kit(s) with customer, matching all available options to meet customer needs. Ervin and customer agree on truck spec and price and then the Glider build process can begin. Ervin orders Glider(s) from an Authorized Freightliner Dealer.

Glider Order Process

AFD

AFD

Gliders, by definition, are completed using both new and used components.

But not all Gliders are built and completed the same.

Ervin Gliders are built using the following new and used components:

What Ervin Gliders are Made of

Component New Used or Remanufactured

Cab & Chassis X

Steer Axle X

5th Wheel X

Engine Genuine Remanufactured by Cummins

Starter/Alternator/A/C Compressor X

Front and Rear Suspension X

Clutch X

Driveshaft X

Ujoints/Center Bearings/Yokes X

Transmission Genuine Remanufactured by Eaton

Rear Axle Housing X

Differential Genuine Remanufactured by Dana

Wheel ends/Brakes/Hubs/Drums X

Wheels and Tires X

All Gliders have components factory and dealer/customer installed.

But, again, not all Gliders are built and completed the same.

Ervin Gliders are built using the following factory and dealer installed components:

DTNA Factory Installed or Dealer Installed

Component Factory Installed

Dealer Installed

Cab & Chassis X

Steer Axle X

5th Wheel X

Engine/CAC/Radiator X

Starter/Alternator/A/C Compressor

X

Front and Rear Suspension X

Clutch X

Driveshaft X

Ujoints/Center Bearings/Yokes X

Transmission X

Rear Axle Housing X

Differential OEM Installed

Wheel ends/Brakes/Hubs/Drums

OEM Installed

Wheels and Tires X

Introduction to Ervin

What is an Ervin Glider

Why an Ervin Glider

Warranty

Maintenance and Cost Savings

Agenda for Today’s Meeting

You are what you eat, eat, and why not get what we eat to a processing plant faster, easier and more profitably that you do today?

Freightliner Chassis Warranty Overview (100% on-highway)

Basic vehicle – 1 year / 100,000 miles Coverage includes all factory-installed components of the vehicle/chassis

that are not excluded elsewhere in the warranty. Items covered under Brightwork, Corrosion, Chassis Paint or Paint not included in Basic Vehicle)

Optional extended service coverage's available

Brightwork – 6 months / Unlimited Cab corrosion or Perforation – 5 years / Unlimited Cab structure – 3 years / 300,000 miles Chassis paint – 6 months / Unlimited Corrosion – 6 months / Unlimited Crossmembers – 6 years / 750,000 miles Frame rails – 6 years / 750,000 miles Paint – 1 Year / 100,000 miles Towing

One year tow coverage available for $200 dollars on Gliders

Note: Warranties may differ by brand and vocation.

SAME CHASSIS

WARRANTY AS A NEW TRUCK!

Different Glider builders offer different factory and build warranties on the powertrain.

Ervin Gliders offer the best warranty in the industry:

All Ervin warranty can be performed at any Freightliner or Western Star dealer or Detroit Diesel distributor in North America for the life of the warranty.

All Ervin components are listed in the Daimler Trucks warranty system and in PartsPro, so every dealer in North America can perform warranty on your Glider.

Ervin Glider Powertrain Warranty

Component

Ervin Competitor A Competitor B

Engine3 year / 300K Nationwide

3 year / 300K Nationwide

3 year / 300K Sellers

Transmission 3 year / unlimited 3 year / unlimited 3 year / unlimited

Rear Axle 5 year / 750K mile 3 year / 300K mile 3 year / 350K mile

DTNA Extended Service CoverageTime

Distance Km Price

2 YEARS

200,000 320,000

Quote250,000 400,000

300,000 480,000

3 YEARS

200,000 320,000

Quote300,000 480,000

375,000 600,000

450,000 720,000

4 YEARS

200,000 320,000

Quote400,000 640,000

500,000 800,000

5 YEARS200,000 320,000

Quote500,000 800,000

Basic Vehicle Climate control system Starter / Alternator

Starter motor, solenoid & brackets

Steering system Cooling system Suspension Front & Rear Chassis wiring & connectors Gauges and switches Charge air cooler Interior components

Towing 6-month to 4 year tow

coverage available for additional fee

Extended Service Coverage Available

Annual Maintenance Cost Compare – Major Fleet

The cost to service a DD15 engine is significantly higher than a S60. $1,381 per unit/year for 50 units is $69K in additional maintenance expense annually.

Introduction to Ervin

What is an Ervin Glider

Why an Ervin Glider

Warranty

Maintenance and Cost Savings

Agenda for Today’s Meeting

You are what you eat, eat, and why not get what we eat to a processing plant faster, easier and more profitably that you do today?

Savings Calculator

Used Glider vs. Used “New Truck” Values

“We are seeing the same depreciation for a Glider as a new truck if built with Detroit S60 engines and remanufactured Eaton Fuller transmissions,” Amy Alexander, Daimler Trucks

Financial Corporation.

A 2

011

Glid

er is

sel

ling

for

mor

e

than

a 2

011

“new

tru

ck.”

There are many different Glider options to choose from, but:

The difference is clear - Ervin provides the best Glider in the industry.

The best availability The best partnership The best components The best warranty

Ervin Gliders are completed by an authorized Freightliner and Western Star dealer, allowing full service at any Freightliner or Western Star dealer in North America.

Ervin Gliders are powered with genuine EPA98 Detroit S60 engines, the best selling engine of all time, with a 3 year / 300K mile warranty.

Ervin Gliders are completed with genuine remanufactured Eaton transmissions and Dana rear axles, both with extended warranties.

Ervin Gliders are offered at a very competitive price, saving you ten’s of thousands of dollars over the retail price of a new truck.

Ervin Glider Summary