ROW Warranty Procedures and Administrative Policies

Transcription

1 ROW Warranty Procedures and Administrative Policies May 1990 Table of Contents Section TOC / Page 1 TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS INTRODUCTION TO TRUCK WARRANTY DEALERSHIP RESPONSIBILITY WARRANTY SERVICE REPAIR POLICIES DEALERSHIP RESPONSIBILITIES FOR WARRANTY ADMINISTRATION SERVICE INFORMATION VEHICLE OWNER WARRANTY POLICIES CUSTOMER CONCERNS WARRANY SOLICITATION WARRANTY CANCELLATION BRANDED TITLE DEALER TERMINATION MIGRATORY VEHICLES PROVISIONS FOR WARRANTY COVERAGE DISTANCE REQUIREMENTS DEMONSTRATOR WARRANTY ESTABLISHING DELIVERY TO USER (DTU) DATE CHANGING DTU DATE/VEHICLES OWNER NAME REQUEST FOR DTU DATE AND/OR NAME CHANGE FORM VEHICLE CERTIFICATION FINAL VEHICLE CERTIFICATION OPTIONAL EQUIPMENT SUBSTITUTION SERVICE PERSONNEL ROLES AND RESPONSIBILITIES SERVICE MANAGEMENT RESPONSIBILITY: SERVICE WRITER RESPONSIBILITIES DISPATCHER RESPONSIBILITIES TECHNICIAN RESPONSIBILITIES PARTS DEPARTMENT RESPONSIBILITIES WARRANTY CLAIMS ADMINISTRATOR RESPONSIBILITIES DEALER PRINCIPAL TABLE OF CONTENTS... 1

2 ROW Warranty Procedures and Administrative Policies May 1990 Table of Contents Section TOC / Page MODEL CLASSIFICATIONS LIMITED WARRANTIES BY REGION TABLE OF CONTENTS WARRANTY ADMINISTRATION GUIDES NON-REIMBURSABLE CONDITIONS DELAY IN SUBMITTING DUE TO PARTS BACKORDER DEALER ADMINISTRATIVE LABOR TIME REPORTING REQUIREMENTS REIMBURSEMENT FOR LABOR LABOR TIME REPORTING REQUIREMENTS NON-REIMBURSABLE LABOR OPERATIONS: DIAGNOSIS TIME: OVERLAPPING LABOR BEYOND WARRANTY REQUEST HANDLING ALLOWANCE SHOP SUPPLIES OUTSIDE REPAIR INVOICE REQUIREMENTS TECHNICAL SERVICES HOTLINE BASE VEHICLE WARRANTY POLICIES DETERMINING VEHICLE COVERAGE NEW VEHICLE LIMITED WARRANTY DISTANCE REQUIREMENTS AND LIMITATIONS WARRANTY COVERAGE ON MODIFICATIONS, ADDITIVES, OR SPECIAL EQUIPMENT REPAIRS TO DEALERSHIP OWNED VEHICLES ORDERING NEW PARTS FOR UNSOLD IN-STOCK VEHICLES ITEMS NOT COVERED BY WARRANTY ABUSE OR MISUSE ACCIDENT ALTERATIONS OR MODIFICATIONS TO VEHICLE CONSEQUENTIAL ITEM CHARGES: OPERATION IN EXCESS OF STATED CAPACITIES: MISAPPLICATION OF VEHICLE: MISCELLANEOUS OVERTIME PICK-UP AND DELIVERY... 14

3 ROW Warranty Procedures and Administrative Policies May 1990 Table of Contents Section TOC / Page REPEAT REPAIR ROAD TESTING TEMPORARY REPAIRS TOWING SERVICE CALLS NON-NAVISTAR PARTS REQUIRED PARTS NOT IN STOCK BRANDED TITLES INSURANCE TOTAL LOSS MILEAGE ALTERATIONS SERVICE PARTS WARRANTY POLICIES PARTS WARRANTY COVERAGE COMPETITIVE VEHICLE LABOR REIMBURSEMENT PARTS PACKAGED INCORRECTLY OR DAMAGED PARTS WARRANTY LIMITATIONS TOWING PARTS WARRANTY COVERAGE, AND DEFECT VERIFICATION REPAIR VERSUS REPLACEMENT IDENTIFICATION OF WARRANTED PARTS BATTERIES OUTSIDE (OTHER) CHARGES ALLOWANCE PARTS CORE ALLOWANCES SUPPLIER EXTENDED PARTS WARRANTY MAJOR COMPONENT WARRANTY STATEMENTS MAJOR COMPONENT EXTENDED COVERAGE SUBSEQUENT OWNER WARRANTY VEHICLE SUBSEQUENTIAL OWNER WARRANTY SERVICE CONTRACTS SUBSEQUENTIAL OWNER WARRANTY ALLIED EQUIPMENT ALLIED EQUIPMENT INSTALLED BY INTERNATIONAL ALLIED EQUIPMENT INSTALLED BY DEALERS OR CUSTOMERS DETERMINING WARRANTY RESPONSIBILITY GROUP 01 FRAME GROUP 02 FRONT AXLE GROUP 03 CHASSIS SPRINGS GROUP 04 BRAKES... 26

4 ROW Warranty Procedures and Administrative Policies May 1990 Table of Contents Section TOC / Page GROUP 05 STEERING GROUP 06 DRIVESHAFTS GROUP 07 EXHAUST SYSTEM GROUP 08 ELECTRICAL SYSTEM GROUP 11 CLUTCH GROUP 12 ENGINES GROUP 13 TRANSMISSION GROUP 14 REAR AXLE GROUP 15 FUEL TANKS GROUP 16 CABS GROUP 22 BUS BODIES TOOLS AND EQUIPMENT INTERNATIONAL TOOLS SERV-EQUIP TOOLS INDUSTRIAL ENGINES OEM SERVICE REQUESTS COVERED BY WARRANTY SERVICE REQUESTS NOT COVERED BY WARRANTY EXCESSIVE LABOR TIME EXCESSIVE TIME OR MILEAGE, OR NO DEFECT TABEL OF CONTENTS WARRANTY COVERAGE GUIDES REPAIRS REQUIRING INTERNATIONAL PRIOR APPROVAL WHAT IS NOT COVERED: ADJUSTMENTS AND ALIGNMENTS MAINTENANCE/WEAR ITEMS: DAMAGE CAUSED BY IMPROPER MAINTENANCE STEAM CLEANING PRIOR TO WARRANTY REPAIRS FRAME WHAT IS NOT COVERED FRONT AXLE WHAT IS NOT COVERED CHASSIS SPRINGS WHAT IS NOT COVERED BRAKES... 12

5 ROW Warranty Procedures and Administrative Policies May 1990 Table of Contents Section TOC / Page WHAT IS NOT COVERED STEERING WHAT IS NOT COVERED STEERING WHEEL ALIGNMENT DRIVESHAFTS WHAT IS NOT COVERED EXHAUST SYSTEM WHAT IS NOT COVERED ELECTRICAL SYSTEM WHAT IS NOT COVERED GENERAL BATTERIES HEADLAMP ADJUSTMENT RADIOS, TAPE PLAYERS AND CD PLAYERS RADIO INSPECTION PROCEDURE COOLING SYSTEMS WHAT IS NOT COVERED SPEEDOMETER AND MISCELLANEOUS WHAT IS NOT COVERED SPECIAL PROVISIONS CLUTCH WHAT IS NOT COVERED ENGINE WHAT IS NOT COVERED RADIATOR/COOLING DUE TO INADEQUATE COOLING SYSTEM MAINTENANCE INTERNATIONAL DIESEL ENGINES INTERNATIONAL DIESEL ENGINES SPECIAL PROVISIONS TRANSMISSION WHAT IS NOT COVERED REAR AXLE WHAT IS NOT COVERED FUEL TANKS WHAT IS NOT COVERED... 34

6 ROW Warranty Procedures and Administrative Policies May 1990 Table of Contents Section TOC / Page CABS WHAT IS NOT COVERED SPECIAL PROVISIONS WHEELS WHAT IS NOT COVERED ACCESSORIES WHAT IS NOT COVERED BUS CHASSIS COMPONENTS WHAT IS NOT COVERED TABLE OF CONTENTS VEHICLE RECALL CAMPAIGNS DEALER/SERVICE LOCATION RESPONSIBILITY RECALL CAMPAIGN NOTIFICATION INITIAL OWNER/CUSTOMER NOTIFICATION RECALL CAMPAIGN PROCEDURE REPAIRS MADE WITHOUT AUTHORIZATION FOR RECALL SERVICE CARD RECORD KEEPING FIELD SERVICE RESPONSIBILITY... 5 SAMPLE OF AUTHORIZATION FOR RECALL SERVICE CARDS... 6 SAMPLE OF AUTHORIZATION FOR AUTHORIZED FIELD CHANGE CARDS RECALL SERVICE LETTER EXAMPLE AUTHORIZED FIELD CHANGE FIELD TESTS TABLE OF CONTENTS WHEN TO PURCHASE COVERAGE HOW TO REGISTER COVERAGE HOW TO TRANSFER COVERAGE PERFORMING COVERED REPAIRS REIMBURSEMENT FOR REPAIRS CUSTOM SERVICE CONTRACT PROPOSAL RETAIL PRICE WHAT TO DO WHEN YOU SELL THE COVERAGE HOW TO ACTIVATE THE COVERAGE EARLY CONTRACT TERMINATION... 5

7 ROW Warranty Procedures and Administrative Policies May 1990 Table of Contents Section TOC / Page SALES PROGRAM PROCESS REQUEST FOR CUSTOM SERVICE CONTRACT QUOTE... 7

8 ROW Warranty Procedures and Administrative Policies May 1990 Table of Contents Section TOC / Page SERVICE CONTRACT TRANSFER REQUEST TABLE OF CONTENTS GENERAL CLAIM INFORMATION ICLAIM ONLINE CLAIM SUBMISSION ISIS (INTERNATIONAL SERVICE INFORMATION SYSTEM) TRUCK SERVICE CLAIM PREPARATION CLAIM PREPARATION SIGNATURE REQUIREMENTS: BEFORE THE REPAIRS ARE STARTED ADD-ON/ADDITIONAL REPAIRS SIGNATURE REQUIREMENTS: AFTER THE REPAIRS ARE COMPLETED CLAIM PROCESSED OR RETURNED BY REGION WARRANTY CLAIM ADJUSTMENT / CORRECTION CODES CLAIM INQUIRIES FLEETRITE AND NAVISTAR BATTERY CLAIMS DISTRIBUTOR REQUEST FOR PARTS WARRANTY REIMBURSEMENT DTU PREPARATION PROCEDURES CLAIMS PENDING INVOICING INSTRUCTIONS RETURNED PARTS AND/OR MACHINES REIMBURSEMENT POLICY R-5180, WARRANTY CREDIT INVOICE SUMMARY R-5185, PARTS DISPOSITION AUTHORIZATION (PDA) R-5132, WARRANTY CREDIT INVOICE... 20

9 ROW Warranty Procedures and Administrative Policies May 1990 Table of Contents Section TOC / Page WARRANTY RECORD RETENTION WARRANTY RECORD RETENTION DOCUMENT RETRIEVAL APPEALS ON DENIED CLAIMS CLAIM APPEALS PROCESS STEPS REQUIRED TO APPEAL A CLAIM: ISIS CLAIM APPEALS FORM WARRANTY CLAIM POLICIES RECORD RETENTION LABOR RATE CHANGE REQUESTS APPROVED LABOR RATE APPROVED NON-US LABOR RATE CHANGE (USE THE FORM IN ) DEALER LABOR RATE CHANGE REQUEST FORM (NON-US) TABLE OF CONTENTS NEW VEHICLE RECEIVING PROCEDURES DEALER RECEIVING RESPONSIBILITIES INSPECTION PROCEDURES CARRIER DELIVERY AND INSPECTION RESPONSIBILITIES TRUCKS NOT BUILT TO ORDER CLAIM PROCEDURE POLICY COVERING SHORTAGES 0, S AND PDI CLAIMS (OVER, SHORT AND DAMAGE) BUILT-IN ERROR CLAIMS STORAGE PROCEDURES LOSS AND DAMAGE CLAIMS / IN-TRANSIT FAILURES LOSS AND DAMAGE CLAIMS TALK TO RS & DC FOR FURTHER REVIEW OF ICC LAW IN-TRANSIT FAILURES MAJOR ACCIDENT/COLLISION/BODILY INJURY IN-TRANSIT NEW TRUCKS DECLARED TOTAL LOSS DAMAGES RESULTING FROM ACCIDENT DAMAGES RESULTING FROM INCORRECTLY BUILT PRODUCT COMPLETION OF APPROPRIATE FORMS

10 ROW Warranty Procedures and Administrative Policies May 1990 Table of Contents Section TOC / Page 10 TABLE OF CONTENTS NEW VEHICLE PRE-DELIVERY SERVICE THE MOST COMMON METHODS FOR WRITING ON THE VIN PLATE ARE: CTS-1122, PRE-DELIVERY SERVICE IDENTIFICATION STICKER NEW VEHICLE PROCESSING DOCUMENTATION QUALITY INSPECTION REPORT CTS-1196, PRE-DELIVERY / QUALITY INSPECTION REPORT PRE-DELIVERY FORM (HEAVY DUTY MODELS)... 9 TABLE OF CONTENTS REPAIR ORDER ANALYSIS TOOL REPAIR ORDER ANALYSIS TOOL REPAIR ORDER ANALYSIS TOOL SUMMARY CATEGORY RECAP REPAIR ORDER ANALYSIS RECAP FORM DEFINITIONS KEY PERSONNEL CONTACT LIST POLICY AND PROCEDURE MANUAL INFORMATION CHANGE LOG POLICY AND PROCEDURE MANUAL SUGGESTION FORM... 12

11 ROW- Warranty Procedures and Administrative Policies May 1990 General Administrative Information Section 1 / Page 1 1 TABLE OF CONTENTS TABLE OF CONTENTS INTRODUCTION TO TRUCK WARRANTY DEALERSHIP RESPONSIBILITY WARRANTY SERVICE REPAIR POLICIES DEALERSHIP RESPONSIBILITIES FOR WARRANTY ADMINISTRATION SERVICE INFORMATION VEHICLE OWNER WARRANTY POLICIES CUSTOMER CONCERNS WARRANY SOLICITATION WARRANTY CANCELLATION BRANDED TITLE DEALER TERMINATION MIGRATORY VEHICLES PROVISIONS FOR WARRANTY COVERAGE DISTANCE REQUIREMENTS DEMONSTRATOR WARRANTY ESTABLISHING DELIVERY TO USER (DTU) DATE CHANGING DTU DATE/VEHICLES OWNER NAME REQUEST FOR DTU DATE AND/OR NAME CHANGE FORM VEHICLE CERTIFICATION FINAL VEHICLE CERTIFICATION OPTIONAL EQUIPMENT SUBSTITUTION SERVICE PERSONNEL ROLES AND RESPONSIBILITIES SERVICE MANAGEMENT RESPONSIBILITY: SERVICE WRITER RESPONSIBILITIES DISPATCHER RESPONSIBILITIES TECHNICIAN RESPONSIBILITIES PARTS DEPARTMENT RESPONSIBILITIES WARRANTY CLAIMS ADMINISTRATOR RESPONSIBILITIES DEALER PRINCIPAL Printed in the United States of America 2003 International Truck and Engine Corporation

12 ROW Warranty Procedures and Administrative Policies General Administrative Information Section 1 / Page INTRODUCTION TO TRUCK WARRANTY DEALERSHIP RESPONSIBILITY This manual is solely intended to demonstrate the method of handling, in a general way, warranties created and described in the Sales and Service Agreement, and creates no substantive rights between the Dealer and the Company, Navistar, Inc. Warranty language included herein for illustrative purposes, which is not included in a particular Sales and Service Agreement, shall have no effect on, nor create any rights between, parties to that particular Sales and Service Agreement. The Warranty Procedures and Administrative Policies (WP&P) manual spells out in detail the respective obligations of the Company and the Dealer in administrating vehicle warranty provisions. Dealerships have no formal input on the construction or content, but are held liable to its terms. For this reason, it needs to be as clear and specific as possible for the benefit of themselves and those enforcing it. Specific to the requirements needed for proper claims administration and subsequent payment obligations from the manufacturer, the following should be addressed in any policy development or addendum considerations to WP&P WARRANTY SERVICE A Dealer is authorized and required by its Sales and Service Agreement to service promptly and efficiently International vehicles in use in the area... that are covered by any Warranty policy agreement. The Dealer also agrees to investigate and resolve all complaints from users/customers of International vehicles and to report in detail to the Customer Service Organization those complaints which the Dealer is unable to resolve. Dealers must also be cognizant of their obligations with respect to their warranty repair and service requirements as specified in the International Truck and Engine Corporation Sales and Service Agreement. A failure to perform those obligations could result in the replacement or repurchase by the Company of an owner s vehicle due to faulty vehicle quality or dealership service. If it is clear that such replacement or repurchase is caused by the actions of the dealership, the Company may elect to charge to the Dealer the related net cost incurred by the Company. In the case of an entire vehicle buy-back, Dealers who believe they have been charged back unfairly may appeal to the Regional Service Manager. All other appeals should be directed to the Warranty Administration Group (Reference Section 8.1.1). The selling Dealer is responsible for issuing the applicable owner s Warranty Service Policy to all initial and subsequent users/purchasers of warrantable International vehicles. When presenting the customer with their Warranty Coverage Schedule the Dealer must retain a copy of the customer s signature of receipt as provided in the Record of Ownership section of the Warranty Coverage Schedule. This offers an excellent opportunity to establish positive customer relationships, as well as to promote a clear understanding between the new vehicle owner and the selling Dealer with respect to their obligations during the warranty period. This Policy also identifies the owner and provides the information to verify warranty qualification on the vehicle for the servicing Dealer. International will allow Remove, Repair, and Replace or Reinstall labor in accordance with procedures outlined in the Warranty Time Schedule or Standard Repair Time Manual. It is understood and agreed that any employees responsible for the submission of warranty claims to International will not be paid on any basis related to the monetary amount of warranty reimbursement. This includes, but is not limited to, incentives on the number of claims submitted and bonuses paid on any part of the reimbursed amounts.

13 ROW Warranty Procedures and Administrative Policies General Administrative Information Section 1 / Page REPAIR POLICIES Improper servicing techniques or practices performed in service centers, which affect vehicle safety or reliability, greatly exposes that Dealer to serious liability claims. Some examples include, but are not limited to, improper servicing techniques, including service operations, or the installation of various attachments or parts which the Dealer performs, or contracts for, through outside suppliers. When situations arise and a servicing location is in doubt as to either proper service procedure or proper installation of an attachment or part that could affect vehicle safety or reliability, the Dealer should contact Technical Services, the Technical Service Manager (TSM) or Regional Service Manager (RSM) for the necessary guidance DEALERSHIP RESPONSIBILITIES FOR WARRANTY ADMINISTRATION Provide the owner with applicable Owner s Warranty Service Policy. Advise owner that routine maintenance services are to be performed as specified in Operator s Manuals. Advise owner that tires, routine maintenance service and normal replacement of service items, damage from accidents, fire or other casualty, misuse, negligence or racing, failures caused by parts not supplied by International, and modification of any part of the vehicle is not covered by the warranty. Advise owner that all operators manuals contain the section, Owner's Assistance Guide, which informs the customer of the steps he should take to remedy any problems arising from a new truck purchase. Maintain appropriate parts and service facilities to meet service responsibilities. Be properly staffed and trained to administer International warranty and policy program. Implement controls to eliminate over-repair, improper repairs, or unnecessary repairs. Maintain a thorough file of all financial and service records, as well as all time documents relating to warranty work. Remanufactured parts should never be used to repair unsold new vehicles. Keep the following points in mind when administering International warranty: Diagnose the customer's problem, determine the specific cause of failure, and determine what repairs are necessary. Determine which warranty is applicable: Standard Basic, Emission Control System, Extended Warranty, etc. Determine if the customer concerns are included in Warranty Coverage Guides. Advise the owner promptly of any adjustment originally signed repair order, advise him of any extent to which he will share in the repair cost. Complete applicable Truck Service Order form, and, if over specified monetary limit, retain for review by the TSM or RSM. Dealers using or IClaim may submit claim per current instructions.

14 ROW Warranty Procedures and Administrative Policies General Administrative Information Section 1 / Page SERVICE INFORMATION International offers complete and up-to-date service information for Dealers. The following materials and services help Dealers fulfill their responsibilities to International vehicle owners: ISIS Home Page Diamond ISIS CD Operator s Manual Master Service Manual Service Letters Parts Letters Parts Manual Truck Service Tool Manual Service Meetings Training Meetings VEHICLE OWNER WARRANTY POLICIES International standard basic warranty policies are available via local regions and ISIS/Technical Publications/Warranty Information/CTS Warranty Form Matrix CUSTOMER CONCERNS Customer concerns originating from Dealer trade areas and received at the Customer Service Organization office will be referred to the Dealer for handling with his customer. The Customer Service Organization will also retain a copy of the concern, and forward a copy to the TSM or RSM. It is requested that the Dealer make contact with the customer within twenty-four (24) hours of receipt of the concern, and a completion report be made to the TSM or RSM at the Customer Service Organization within ten days. Following this procedure will help strengthen user/customer respect and confidence in their Dealer. The Dealer will establish a reputation as a place for customers to purchase trucks with confidence, knowing concerns with the product after purchase will be resolved promptly. It will also afford the opportunity to sell additional parts, service, and trucks to all prospective customers in the Dealer's trade area. See Section 8.1 for additional responsibilities of the Customer Service Organization WARRANY SOLICITATION Subject to the terms of the New Vehicle Limited Warranty, the Company will cover the cost of repairs for a defect in materials or workmanship when the customer presents the vehicle for repair during the warranty period. Except as noted below, Dealer solicitation of customers for the correction of warranty conditions is prohibited. Dealers may not solicit (advertise, contact by phone or mail, offer free warranty check-up, etc.) customers for warranty service. In those instances where it is determined that a Dealer has solicited a customer for warranty service, repairs may be subject to charge-back. Dealers must contact individual customers whose vehicles are involved in safety recalls.

15 ROW Warranty Procedures and Administrative Policies General Administrative Information Section 1 / Page WARRANTY CANCELLATION BRANDED TITLE The Company will cancel the New Vehicle Limited Warranty on any vehicle that has ever been reported stolen to the police, labeled or branded as dismantled, fire, flood, junk, reconstructed, or salvaged, or that has been determined to be a total loss by an insurance company. These include vehicles damaged because of an accident, natural disaster, terrorism, or civil disobedience. Elements of the warranty may also be canceled on engine, powertrain, paint or sheet metal due to abuse, misuse, or neglect. The Company will also cancel warranty on any vehicle in which the odometer has been tampered with and is not showing actual mileage These vehicles are also ineligible for Service Contract sales and some customer satisfaction programs. Because of emission standards, and in the interest of promoting safety, International will pay claims for safety recalls DEALER TERMINATION When a Dealer terminates, regardless of the reason, all credits or collections from International Truck and Engine Corporation (including payments for warranty and policy claims ) will be made to the Dealer of record on the day the vehicle was repaired. Questions related to credits or collections involving a terminated or replacing Dealer are to be directed to International Truck and Engine Corporation Customer Service Organization (CSO) MIGRATORY VEHICLES Migratory vehicles are trucks located in an export territory sold by another contracted International location for primary use in the export market. 1. Warranty coverage on migratory vehicles manufactured by Navistar for use in the export market is 12 months from the date of delivery to the original user-purchaser. 2. Warranty coverage on trucks purchased for use in the United States of America (U.S.A.), U.S. possessions, or Canada is not transferable to the export market. 3. U.S. Government Agency vehicles used outside the 50 states of the United States, U.S. possessions, and the District of Columbia are excluded from this coverage. When warranty repairs are requested, and assistance in verification of delivery date or warranty application is required, contact District or Region service personnel for advice. Assistance in performance of warrantable repairs should be extended to customers of migratory International vehicles upon verification of delivery date. Warranty claims should be processed in the usual manner, supported by photocopies of warranty/delivery documents.

16 ROW Warranty Procedures and Administrative Policies General Administrative Information Section 1 / Page VEHICLES SOLD / OPERATED OUTSIDE THE U.S. AND CANADA Vehicles sold by domestic U.S. and Canadian Dealers for use and/or operation outside of the U.S. and Canada are not eligible for U.S./Canada standard base warranty. To be eligible for the export warranty the selling Dealer must contact Central Sales Administration (CSA) with a SPA request, and notify them that the vehicle will be operated outside of the U.S. and Canada. CSA will advise the domestic Dealer of the terms and conditions of exporting to the specific country and whether the foreign country is represented by an International Distributor. In countries not represented by an authorized International Distributor, the vehicle will not be eligible for export warranty. If the selling Dealer does not notify CSA of the sale, or sells a vehicle in a country without an International distributor, export warranty policy will not apply. In this case, the selling Dealer will be responsible for all after sales support obligations including but not limited to repair, travel, meals, lodging expenses. Reference Sales Policy letter G U.S. AND CANADIAN VEHICLES TEMPORARILY OVERSEAS If a vehicle is purchased in the United States, U.S. Possessions, or Canada, and is temporarily used overseas, then the warranty issued with the vehicle will apply, and warranty service will be provided by an authorized overseas International Distributor. If an overseas International Distributor charges an owner for warranty repairs, the owner should obtain the repair order (marked Paid) and contact the Sales Region Office serving his area upon return. Sales Region Office locations are listed in the CTS-1081, International Distributor Directory.

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18 ROW Warranty Procedures and Administrative Policies General Administrative Information Section 1 / Page PROVISIONS FOR WARRANTY COVERAGE The Dealer is to review the proposal forms, retail order forms, and other documents pertaining to the sale of vehicles to ensure he is properly extending the Company warranty to his user/purchaser. This information is required on all truck models, and applies to all export deliveries. The data is entered into a computer. The computer calculates the date and/or distance when the warranty coverage will expire DISTANCE REQUIREMENTS The distance traveled, as recorded on the odometer of the vehicle, will establish distance requirements for warranty administration determinations. As stated in the owner s Warranty Service Policy, The warranty shall not apply to any vehicle on which the odometer has been disconnected or the odometer reading has been altered and the vehicle s distance traveled cannot be readily determined DEMONSTRATOR WARRANTY Purchasers of both medium duty and heavy duty vehicles used in demonstrator service are entitled to any remaining portion of the standard basic warranty, and applicable extended major component warranty, based on time and/or distance traveled at the time of sale. Time limitations specified for standard basic warranty and applicable extended major component warranty will be determined by the date the unit is placed in demonstrator service. To ensure purchasers of demonstrator units receive the warranty protection they are entitled to, closely follow these procedures: Provide the customer an appropriate owner s Warranty Service Policy clearly identifying the vehicle as a demonstrator unit. Write the word `Demonstrator at the top of the Policy, and after the Vehicle Identification Number (VIN) on the Policy. Write the odometer reading, at the time of delivery to the purchaser, in the space marked 'Distance Traveled' on the Policy. On the Delivery Notice and Warranty Application record the date the unit was placed into demonstrator service in the space marked 'Delivery Date,' and record the odometer reading, when the unit was placed into demonstrator service, in the space marked 'Warranty Code.' ESTABLISHING DELIVERY TO USER (DTU) DATE The original Delivery to User (DTU) date is the date the vehicle is delivered to the first user/ purchaser. The Dealer establishes the DTU date as a part of the vehicle sale history file when he immediately upon the sale of the vehicle the customer update form (refer to DTU Preparation procedures) has been filled out on ISIS CHANGING DTU DATE/VEHICLES OWNER NAME The Company recognizes that there are occasions when additional work is required to complete a vehicle, which may delay placing the vehicle in actual service. In the event such a delay exceeds 30 days, and the delay is the result of installation of a body or specialized equipment, inspections by government agencies, or any other legitimate reason, the Company will consider changing the original DTU date. Currently you can submit your request using the form (Request For DTU Date and/or Name Change Form) found in section , or, you can log onto ISIS Home Page > Write-up > Customer Update> (at this point you will be prompted to log into the system) enter the chassis number and fill in

19 ROW Warranty Procedures and Administrative Policies General Administrative Information Section 1 / Page 9 the required fields. Submit the form electronically. You can check the progress of the DTU date change, or review reasons for denial following the same procedure. Requests received by Warranty Administration Group with incomplete, incorrect or missing data will be returned unprocessed. If the final user/purchaser s name and address are not known when the Delivery Notice and Warranty Application is processed, it will be necessary to report the name and address on the Request For DTU Date And/Or Name Change form when the vehicle is delivered to the user/ purchaser. The user/purchaser s name and address and DTU date are very important to the Company s sales history files, as this information may be utilized for subsequent owner warranty coverage and vehicle recall notification.

20 ROW Warranty Procedures and Administrative Policies General Administrative Information Section 1 / Page Request for DTU Date and/or Name Change Form REQUEST FOR DTU DATE AND / OR NAME CHANGE After review and approval from your TSM or RSM, send this form to: Warranty Claims Center Date: P.O. Box 1488 Warrenville, Illinois USA DTU Change Re: Warranty Group/DTU Update Name/Address Change Selling Dealer Name or Fleet Group Location Code: Account No: The following information must be complete and legible. Model VIN Current Odometer Reading Original DTU Date New DTU Date Customer Name: Address: City / State (Province) / Zip (Postal) Code: Reason for Requesting Change: This form, when processed, will be returned to the Dealer marked Processed. It will be the Dealer s or the National Account Manager s responsibility to correct the owner s Warranty Service Policy. Requested by: Date: Dealer Representative or National Accounts Manager Approved by: Customer Service Engineer or Fleet Service Manager (Reproduce locally) Date:

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22 ROW Warranty Procedures and Administrative Policies General Administrative Information Section 1 / Page VEHICLE CERTIFICATION FINAL VEHICLE CERTIFICATION It is important to remember that every vehicle manufactured for sale and sold must comply with the applicable local safety standards, and must be certified that it does comply. For more specific information pertaining to safety and compliance standards, refer to CT-471, Body Builder Book OPTIONAL EQUIPMENT SUBSTITUTION From time to time, Dealers may be requested to install or substitute optional equipment to satisfy customer wants. The customer should never receive substitutions that do not meet the high quality standards and specifications of factory-built, or International engineered items. Substitution of these and other options not engineered and approved by International may void the vehicle basic warranty or cause a vehicle to be in violation of vehicle certification and cannot be re-certified by International.

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24 ROW Warranty Procedures and Administrative Policies General Administrative Information Section 1 / Page SERVICE PERSONNEL ROLES AND RESPONSIBILITIES SERVICE MANAGEMENT RESPONSIBILITY: All aspects of claim preparation and submission. Supervise verification of each customer complaint, where possible, and document at the time of write-up any special circumstances under which the problem occurs; ask the customer what, when, where, how, type questions (e.g., at 70km/h, only when warm, when going over large bumps, etc.). Supervise all Company paid repairs. Verify, approve, and initial additional (ADD-ON) repairs that are required but discovered after the initial write-up. These additional repairs must be verified and approved, by the customer, by phone or fax if the customer is not waiting for the truck, and initialed by service management before being performed. Service management s approving initials must appear on the service (hard) copy of the claim, even if the repairs are written by service management, and must appear on the same line as the additional repairs on the shop copy of the claim. Approving use of non-oem part during an emergency repair situation. Requesting Goodwill consideration (code 98) from TSM/RSM. Tracking technician efficiency and productivity. Reviewing repeat repairs. Implementing controls to eliminate improper or unnecessary repairs. Ensuring complete and accurate claim preparation. Ensuring complete, accurate, and clear description of the vehicle problem(s) is entered on the repair order. Issuing clear repair instructions to the technician. Ensure employee(s) assigned to the repair are clearly identifying on the Repair Order. Verifying that the technician enters an accurate, complete description of the repair on the shop copy which identifies cause of failure Road testing if necessary Ensures labor operations are accurate for the repair. Ensure actual times (t-times) are accurate and not covered by, or overlap, available Standard Repair Times. Identifies all diagnostic equipment results test codes Verifying that all diagnostic equipment printouts (e.g., engine diagnostic sheets, computer alignment rack) are attached to the claim shop copy along with ISIS Home Page printout. In any instance, where diagnostic equipment is used which does not have print capability, handwritten documentation of tests and the test results must be noted on the claim shop copy. Identifying labor operation(s) from service labor time standards manuals and entering required time recording. Reviewing T-time entries for accuracy and initialing all T-time entries. In order to track service performance on a timelier basis the Service Manager should use the Repair Order Analysis Tool on a weekly basis using claim samples. (Reference Section and ) SERVICE WRITER RESPONSIBILITIES Entering service advisor identification number on claim.

25 ROW Warranty Procedures and Administrative Policies General Administrative Information Section 1 / Page 15 Perform write-up of repair order. This includes entering customer information: Name, address, VIN, telephone numbers, date, and description of customer concerns. Obtain customer signature on repair order. Check ISIS Home Page for outstanding recalls, warranty start date, warranty cancellation information, etc. Make preliminary evaluation whether work will be covered under warranty, Service Contract, Dealer internal repair, customer pay, etc. Obtain prior repair approval when required. Review customer service history for indication that current repair requests have been noted or repaired previously. Issuing repair instructions to technicians DISPATCHER RESPONSIBILITIES (At some Dealers, the Foreman performs this operation) Ensure that properly trained technician(s) assigned to the repair(s) Maintains technician s daily time and job tickets and records on and off times on each job to allow tracking of technician efficiency and productivity. Reviews parts and technician repair information and add appropriate Repair Time Standards Operations. Flags repair orders and forward for closeout and pricing TECHNICIAN RESPONSIBILITIES Ensure they are identified on the repair order using their unique dealership identification number Enter a complete description of the repairs performed including diagnostic test results, equipment readings (e.g., wheel alignment), and the cause of the problem. If more than one technician worked on the vehicle, each technician must indicate what work he/she performed. Comments defining how or why parts failed are vital to Company Engineering in their efforts to correct product concerns. Provide a detailed explanation of T time repairs when used. Enter any diagnostic test codes on the claim. Provide daily time and job ticket to dispatcher for clocking them on and off of each job when required. Attach EZ-Tech Electronic Service Tool diagnostic print-out sheet(s) to Repair Order Properly tag and turn in all warranty parts PARTS DEPARTMENT RESPONSIBILITIES Pull and stage, or deliver to technician, parts required for repairs. Records part numbers including quantity and price on work orders used to complete repairs. Records part name. Stamps, or signs, Repair Order to indicate warranty return parts have been turned into parts WARRANTY CLAIMS ADMINISTRATOR RESPONSIBILITIES Reviews completed work orders and verify that the appropriate customer concern and condition codes have been entered on the claim. Ensure all required invoices and receipts are attached to the work order. Ensure that the appropriate Service Labor Time Standards Operations have been entered on the claim. Submits claim to International for payment.

26 ROW Warranty Procedures and Administrative Policies General Administrative Information Section 1 / Page 16 Warranty parts storage, shipping and disposal. Tracking Credit Invoices and unbilled warranty Repair Orders Perform final Repair Order review to ensure parts charged on claim are supported by repair CCC. (Complaint, Cause, Correction) DEALER PRINCIPAL Prior to submission, all claims submitted to International for payment must be reviewed and signed by the Dealer Principal. This responsibility may be delegated to the Service Manager. If the Dealer Principal elects to delegate this responsibility to the Service Manager, he is still ultimately responsible for all claims submitted and their content. A written copy of this authorization should be kept on record at the dealership and must be available for review by Company personnel. In some instances, International may rescind the Dealer Principal s ability to delegate this responsibility and require his/her personal review and authorization of every claim submitted to International for payment. The Dealer Principal should hold monthly status meetings with the Service Manager to review warranty claims processed, and parts return status. NOTE: With the Dealer Principal s approval the Service Manager may authorize repairs on dealership vehicles in place of the Dealer Principal. Any warrantable repair work or adjustment, to be performed on the following vehicles that will result in a claim being submitted to the Company for reimbursement, must be authorized by the Dealer Principal, or Service Manager on the appropriate repair order. New vehicles in Dealer inventory Dealer demonstrator vehicles Used vehicles in Dealer inventory Dealership rental units Parts Department delivery truck IMPORTANT: Regardless of repair order type used, the authorized signature is based on knowledge and compliance with the following statement: I certify that the information on this claim is accurate and, unless shown, the services were performed at no charge to the owner. To my knowledge, this claim contains no parts repaired or replaced that are connected in any way with any accident, negligence, or abuse.

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28 ROW Warranty Procedures and Administrative Policies Warranty Coverage Guides Section 2 / Page 1 2 TABLE OF CONTENTS TABLE OF CONTENTS MODEL CLASSIFICATIONS LIMITED WARRANTIES BY REGION... 3 Printed in the United States of 2003 International Truck and Engine Corporation

29 Warranty Coverage Guides Section 2 / Page MODEL CLASSIFICATIONS Throughout this manual, the model classifications Bus Chassis, Medium Duty, Severe and Premium Model are used to identify specific categories of International vehicles. The particular Models, and/or Series falling within these categories are: Bus 3000RE Medium Duty/CityStar CF Series Medium Duty/DuraStar 4000 Series and 7300 (4X2) and 7400 (4X2) Models Severe Service/PayStar 5000i Series Severe Service/WorkStar 7300 (4X4), 7400 (4X4, 6X4, 6X6) 7500, 7600, 7700 Models. Premium/ProStar 9100i, 9200i, 9400i, 9900i, & 9900ix, ProStar Models NOTE: Original copies of the truck standard basic warranty policies are available from the ISIS Home Page: go to Technical Publications > Warranty Information > CTS Warranty Form Matrix.

30 Warranty Coverage Guides Section 2 / Page Limited Warranties by Region REGION Model LA NZ S. Africa Aust Russia S. Asia Europe Middle East North Africa 3000 CTS 8001 CTS CTS 8002 CTS 8011 CTS FBC/SFC CTS CTS 8012 CTS CTS 8003 CTS 8006 CTS 8007 CTS 8008 CTS 8011 CTS 8013 CTS CTS 8004 CTS 8006 CTS 8007 CTS 8009 CTS 8010 CTS 8014 CTS 8014 CF500/CF600 CTS 8005 A copy of the vehicles Base Warranty Coverage is provided to the owner at the time of purchase. Component coverage found within the owners individual CTS form always take precedent over general component coverage s that may be mentioned in this manual. A copy of the owners policy can be found on ISIS at Technical Publications > Warranty Information > CTS Warranty Form Matrix.

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32 Warranty Coverage Guides Section 3 / Page 1 3 TABLE OF CONTENTS TABLE OF CONTENTS WARRANTY ADMINISTRATION GUIDES NON-REIMBURSABLE CONDITIONS DELAY IN SUBMITTING DUE TO PARTS BACKORDER DEALER ADMINISTRATIVE LABOR TIME REPORTING REQUIREMENTS REIMBURSEMENT FOR LABOR LABOR TIME REPORTING REQUIREMENTS NON-REIMBURSABLE LABOR OPERATIONS: DIAGNOSIS TIME: OVERLAPPING LABOR BEYOND WARRANTY REQUEST HANDLING ALLOWANCE SHOP SUPPLIES OUTSIDE REPAIR INVOICE REQUIREMENTS TECHNICAL SERVICES HOTLINE BASE VEHICLE WARRANTY POLICIES DETERMINING VEHICLE COVERAGE NEW VEHICLE LIMITED WARRANTY DISTANCE REQUIREMENTS AND LIMITATIONS WARRANTY COVERAGE ON MODIFICATIONS, ADDITIVES, OR SPECIAL EQUIPMENT REPAIRS TO DEALERSHIP OWNED VEHICLES ORDERING NEW PARTS FOR UNSOLD IN-STOCK VEHICLES ITEMS NOT COVERED BY WARRANTY ABUSE OR MISUSE ACCIDENT ALTERATIONS OR MODIFICATIONS TO VEHICLE CONSEQUENTIAL ITEM CHARGES: OPERATION IN EXCESS OF STATED CAPACITIES: MISAPPLICATION OF VEHICLE: MISCELLANEOUS OVERTIME PICK-UP AND DELIVERY... 14

33 Warranty Coverage Guides Section 3 / Page REPEAT REPAIR ROAD TESTING TEMPORARY REPAIRS TOWING SERVICE CALLS NON-NAVISTAR PARTS REQUIRED PARTS NOT IN STOCK BRANDED TITLES INSURANCE TOTAL LOSS MILEAGE ALTERATIONS SERVICE PARTS WARRANTY POLICIES PARTS WARRANTY COVERAGE COMPETITIVE VEHICLE LABOR REIMBURSEMENT PARTS PACKAGED INCORRECTLY OR DAMAGED PARTS WARRANTY LIMITATIONS TOWING PARTS WARRANTY COVERAGE, AND DEFECT VERIFICATION REPAIR VERSUS REPLACEMENT IDENTIFICATION OF WARRANTED PARTS BATTERIES OUTSIDE (OTHER) CHARGES ALLOWANCE PARTS CORE ALLOWANCES SUPPLIER EXTENDED PARTS WARRANTY MAJOR COMPONENT WARRANTY STATEMENTS MAJOR COMPONENT EXTENDED COVERAGE SUBSEQUENT OWNER WARRANTY VEHICLE SUBSEQUENTIAL OWNER WARRANTY SERVICE CONTRACTS SUBSEQUENTIAL OWNER WARRANTY ALLIED EQUIPMENT ALLIED EQUIPMENT INSTALLED BY INTERNATIONAL ALLIED EQUIPMENT INSTALLED BY DEALERS OR CUSTOMERS DETERMINING WARRANTY RESPONSIBILITY GROUP 01 FRAME GROUP 02 FRONT AXLE GROUP 03 CHASSIS SPRINGS GROUP 04 BRAKES GROUP 05 STEERING GROUP 06 DRIVESHAFTS... 27

34 Warranty Coverage Guides Section 3 / Page GROUP 07 EXHAUST SYSTEM GROUP 08 ELECTRICAL SYSTEM GROUP 11 CLUTCH GROUP 12 ENGINES GROUP 13 TRANSMISSION GROUP 14 REAR AXLE GROUP 15 FUEL TANKS GROUP 16 CABS GROUP 22 BUS BODIES TOOLS AND EQUIPMENT INTERNATIONAL TOOLS SERV-EQUIP TOOLS INDUSTRIAL ENGINES OEM SERVICE REQUESTS COVERED BY WARRANTY SERVICE REQUESTS NOT COVERED BY WARRANTY EXCESSIVE LABOR TIME EXCESSIVE TIME OR MILEAGE, OR NO DEFECT... 32

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36 Warranty Coverage Guides Section 3 / Page WARRANTY ADMINISTRATION GUIDES This section is intended to assist dealership personnel in the determination of the appropriate administrative policies when performing warranty work. The warranty coverage information in this section is in addition to that contained in Warranty Statements and Coverage Guides. This section contains policies and procedures for filing both in warranty vehicle claims (code 01,03, etc) and service parts warranty claims (code 55) as well as specifically issued separate warranty service policies, e.g., Allied Equipment, Batteries, U.S. and Canadian Vehicles Overseas. It is intended as a supplement to the Owner's Service Policies section (section 2.0), which shows the actual policies. Legislation limits certain coverage and requires additional disclosure information be provided to users/purchasers. These requirements vary greatly by country, state and province. Therefore, it is the responsibility of each Dealer to fully understand applicable country, state and local laws. It is important that all Dealers use the International printed order form (containing the International written user warranty applicable to that particular state or province). This order form also provides that the user/purchaser has acknowledged receipt of a copy of the warranty (Reference ). NOTE: It is the Dealer s responsibility to determine if the customer concerns fall within the warranty coverage guidelines Non-Reimbursable Conditions Under some instances, the Vehicle Warranty does not provide coverage, and repairs are not reimbursable under warranty, when any of the following conditions/situations occur. Some examples of these instances include, but not limited to Damage resulting from: Accidents, collision or objects striking the vehicle. Theft, vandalism, or riot. Vehicles that have been labeled or branded as flood damaged, junk, rebuilt, or reconstructed. Fire or explosion Freezing Misuse or abuse of the vehicle, such as driving over curbs, overloading, shock load, racing, or using the vehicle as a stationary power source. Non-OEM parts installed on a vehicle after the vehicle leaves the Company s control, for example, parts installed by body builders or manufacturers other than OEM, or damage to OEM components caused by installation of non-oem parts other than certified emissions parts. Alteration or modification of the vehicle including the body, chassis, or components after the vehicle leaves the Company s control. Tampering with the vehicle electronic or manual engine controls, tampering with the emissions systems, or with other parts that affect these systems. Disconnecting or altering the odometer or allowing the odometer to be inoperative for an extended period of time with the result that the actual mileage cannot be determined. Using contaminated or improper fluids. Damages resulting from customer applied chemicals. Driving through water deep enough to cause water to be ingested into the engine. Vehicles that have been determined to be a total loss junk or salvage by an insurance company; this will void the New Vehicle Limited Warranty. Mileage or the date of repair has been misrepresented or altered to place a vehicle within the coverage period.

37 Warranty Coverage Guides Section 3 / Page 6 Repairs that are required to correct incomplete or improper previous repairs. Repairs that are made to improve appearance or performance beyond normal standards. Repairs that are not performed in accordance with the Warranty Coverage Schedule Guidelines (Review applicable CTS forms) at an International Dealership unless performed as an emergency repair or as a Dealer authorized sublet repair. Non-defective parts that are replaced to modify a vehicle to the latest production design levels, unless authorized by the Company. Repairs that alter the vehicle s original specifications. The part being replaced, repaired, or adjusted has no defect in factory-supplied materials or workmanship. Engine Noise (Internal Engine Problem) is not reimbursable if the engine has not been properly maintained. Spin-out conditions resulting in rear end or driveline failure is not reimbursable if there is evidence of abuse or abnormal operation. Damage caused by spilled liquids. Dealers should carefully examine electronic components (audio components, automatic temperature control heads, etc.) to ensure that the cause of failure was not liquid spillage. The presence of liquid residue (a sticky or shiny substance) or buttons/knobs which do not operate freely are evidence of abuse and will likely result in claim denial DELAY IN SUBMITTING DUE TO PARTS BACKORDER When a repair is delayed because parts are not available and/or are back-ordered the Dealer must retain all documents showing that: The parts were ordered within the vehicle warranty period. The parts were not received and the repairs were not completed until after the vehicle warranty period expired. Once the part is received, the Dealer should immediately contact the customer to schedule the repair. This time should not exceed 90 days from the original failure date. In the case of a multisection claim, it is recommended that the Dealer transfer the parts backorder section to a new Repair Order and close out the remaining sections on the original Repair Order DEALER ADMINISTRATIVE LABOR TIME REPORTING REQUIREMENTS The Dealer's Sales and Service Agreement requires Dealers to maintain records that will permit an adequate analysis of the Dealer's business REIMBURSEMENT FOR LABOR The Company agrees to credit a labor allowance for performing warranty service or service campaigns as follows: An amount equal to the servicing location's approved warranty labor reimbursement rate (not to exceed posted door rate; reference ) multiplied by the specified amount of time allowable for the particular service operation. The specified time allowable is found in the CTS or S00025, Warranty Time Schedule Manuals, or in Service Letters covering the specific service operation. If above item is not applicable, then an amount equal to the approved warranty labor reimbursement rate multiplied by the actual time reasonably spent performing the warranty service, which is subject to audit by the Company.

38 Warranty Coverage Guides Section 3 / Page LABOR TIME REPORTING REQUIREMENTS When mechanics perform warranty work on an hourly, percentage, or salary basis, a full accounting of actual time spent on the job must be made. Mechanics must use a time clock, which records month, day and time to record starting and ending times for each operation performed, either on the shop copy of a repair order, a time ticket, or within a computerized repair order system. A technician s time that is electronically recorded is an acceptable method of time recording provided that the computer system administrative controls are in place and operational. The Dealer must retain the Repair Order time punch summary report and daily time allocation report for one year, subject to local, and state, laws and regulations. The time record must include the identity (and clock number) of the technician performing the work, date of repair, the operation number, customer name, and invoice number. Inability to account for a mechanic's actual time spent performing warranty repairs may result in disallowance of warranty claims to which such employee s time is claimed to have been applied. In accounting for time, accountability must be made of all non-warranty repairs. NOTE: If a person fails to punch over onto another operation, time should be written in and initialed by that person and his supervisor. Warranty repairs must be clocked separately from other repair types (i.e. customer pay, internals, etc.) International Truck and Engine Corporation has created two manuals (CTS-1200 and S00025) that contain actual Standard Repair Times (SRT) allowances for most vehicle repair operations. These times manuals must be used in claims preparation. Only use an actual time (T-time) labor operation when there is no published labor operation in the SRT Manuals or other Company publications or in the case of highly unusual repair situations when additional time is required to complete the repair. T-time is not to be used just because you were not able to meet the published SRT for the repairs described. A full description of the need for the (T-time) operation must be listed on the repair form, and the request must be reasonable. The Service Manager must review T-time entries for accuracy and initialing all T-time entries. The Dealerships must comply with time recording requirements noted in this manual whenever actual time labor operations are claimed. The following requirements apply to all claims submitted to the Company for payment: Accurate time recording is the responsibility of service management. Technicians must explain on the hard copy why T-time was required. The reason T-time was required must be entered in the comments area of the claim. Record all time on the claim shop copy or on a daily time ticket affixed to the claim shop copy (This also includes body and paint repairs). Clearly identify all employees assigned to the repair. If there are no published Standard Repair Times available, the dealerships must time record T- Time repair operations. Record the start and finish times of each actual repair operation. This must include stopping and starting times if the repair is interrupted. If T-time is claimed and your time clock(s) measure time in minutes, each six minute time period equals 0.1 tenth. Round time up to the nearest tenth for additional three to five minute periods, and round time down to the nearest tenth for additional one to two minute periods (e.g., 44 minutes clocked = 0.7 hours + 2 minutes claim 0.7 hours).

39 Warranty Coverage Guides Section 3 / Page 8 If T-time is claimed and your time clock(s) measure time in hundredths round up or down as follows. For time periods of.01 to.04 round time down to the nearest tenth. For time periods of.05 to.09 round time up to the nearest tenth (e.g hours clocked - claim 1.1 hours). Retain any document that shows time recording.

40 Warranty Coverage Guides Section 3 / Page 9 The T-time claimed (or any part of it) for a repair must not be included in another labor operation (i.e. overlapping operation). IMPORTANT: Actual time (T-Time) may not be claimed for time spent calling the Technical Services Hotline, other Company Hotlines, prior approval lines, or for checking ISIS Home Page records, or vehicle road tests Non-reimbursable labor operations: Inspections, adjustments, alignments, and cleanup included in pre-delivery. Adding oils, lubricants, and other fluids (except refrigerant). Inflating tires Diagnosis Time: Typically, a diagnostic time allowance is included in each standard repair time. It is not reimbursable separately unless specified in the CTS-1200 or S00025 Time Standard manual OVERLAPPING LABOR Overlapping labor is not reimbursable. Overlapping labor is that in which two operations include duplicate repair steps. The overlapping labor amount must be deducted from the second operation; the remaining labor amount of the second operation must be claimed as actual time (T-time) BEYOND WARRANTY REQUEST The CSE or FSM, at their discretion, may approve a request for beyond warranty repair payment for an out of warranty repair. When considering the request for beyond warranty consideration the CSE or FSM will check to see if the customer has purchases a Service Contract for the vehicle (ref section 6). The cost of these Service Contracts will be considered by the CSE/FSM when considering beyond warranty requests. The customer must be made aware that in order to extend the vehicle s basic warranty Service Contracts are available for purchase any time within the first six months of vehicle ownership HANDLING ALLOWANCE When a Dealer furnishes a part in fulfillment of a Vehicle Warranty, Service Contract, or service campaign, (warranty codes 01, 03, 38, 39, 40, 55), International agrees to reimburse the Dealer an amount equal to 100% of the Dealer net value of the part at time of repair completion plus the applicable handling allowance, provided the parts used for the repair are genuine International parts. Parts not purchased from International are not entitled to the handling allowance. Dealers holding Detroit Diesel, Cummins, or Caterpillar contracts, who use such parts from Dealer inventory for necessary repairs related to a failure attributed to an International part, will receive the applicable handling allowance. Parts purchased from outside sources will be reimbursed at 100% of Dealer cost ONLY and will be considered as other charges requiring a copy of the supplier's invoice for substantiation. Handling allowance changes will be administered thru the issuance of Warranty Policy Letters. The current Warranty Parts Handling Allowance policy letter is G SHOP SUPPLIES Shop supplies are not warrantable.

41 Warranty Coverage Guides Section 3 / Page OUTSIDE REPAIR INVOICE REQUIREMENTS Every effort should be made to use new OEM parts or remanufactured parts authorized by the Company on sublet repairs. If a major component fails and needs to be repaired/rebuilt by the outside shop the Service Manager should check the price of a new or Reman component from International and consider shipping the component to the outside repair shop if this would be a more cost efficient repair. The outside repair invoice will be retained with the original Repair Order and shall contain the following information: The name, address and phone number of the sublet facility A pre-printed sublet invoice number The date of repair The dealership repair order number and purchase order number The VIN of the vehicle being repaired The mileage of the vehicle being repaired A list of all parts (including description and part number) used to complete the sublet repair, and the cost of each part. A complete description of all work performed Separate parts and/or labor totals NOTE: Customer concerns must be verified by dealership service management prior to any repair work being initiated by an outside repair facility. Warranty repairs sublet to an outside repair facility that is owned (in part or entirely) by the Dealer (e.g., offsite body shop) may not be claimed as a sublet repair. When there is a comparable Service Labor Time Standards operation, either the standard operation or the actual OSL (Outside Labor) amount may be claimed. If the actual OSL charge is claimed, the OSL amount CANNOT exceed the standard operation amount at the Dealer s approved warranty labor rate. Actual time must be listed separately, and payment is based on actual cost if the cost is reasonable TECHNICAL SERVICES HOTLINE Technical Services Hotline cannot authorize warranty coverage, repair times, prior approval, or policy consideration. All warranty policies and procedures outlined in this manual as well as Standard Repair Times listed in the CTS-1200 and S00025 must still be applied to repairs. The Authorization does not exempt the Dealer from complying with the policies and procedures outlined in this manual.

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43 Warranty Coverage Guides Section 3 / Page BASE VEHICLE WARRANTY POLICIES The Dealer agrees that only genuine International parts will be used in the repair of International vehicles during the vehicle warranty period. The Dealer also agrees that they will not sell, or offer for sale, for use on International vehicles, or use in the repair of those International vehicles as genuine International service parts, any part or parts except those manufactured by or for the Company, or approved by the Company and designed for use on International vehicles. Approved parts installed by a contracted International servicing location on International vehicles, during the vehicle s published base warranty period, will receive warranty coverage for the balance of the vehicle s published warranty DETERMINING VEHICLE COVERAGE A component with one coverage may fail and damage another component covered for a different length of time or mileage. To determine if the repair is reimbursable, check the coverage of the component that caused the failure. If the component that caused the failure is covered and damages a component that is no longer covered, the entire repair is reimbursable on the same basis as the failed component. If the component that caused the failure is beyond coverage and damages a component with remaining coverage, the entire repair is not reimbursable NEW VEHICLE LIMITED WARRANTY Within the time and distance traveled requirements, as stipulated in the applicable owner's Warranty Service Policy issued to the customer at time of purchase. International warrants to the customer, (i.e., first and subsequent user/purchaser), that it will reimburse the customer for repairs, or replacement of parts (according to the guidelines described within this manual) which prove defective in normal use except as described under WHAT IS NOT COVERED (ref Section 4) DISTANCE REQUIREMENTS AND LIMITATIONS The distance traveled, as reflected on the odometer of the vehicle at the time of delivery to the end user, will establish distance requirement for warranty administration determinations. The warranty shall not apply to any vehicle on which the odometer has been disconnected or the reading has been altered, and the vehicle's actual distance traveled cannot be readily determined WARRANTY COVERAGE ON MODIFICATIONS, ADDITIVES, OR SPECIAL EQUIPMENT Warranty coverage will not be voided by the installation or use of special equipment, additives or other chemicals designed to improve vehicle performance, non-navistar parts, or by the modification of any part of the vehicle, unless, there is specific authorization, in writing, from Navistar. HOWEVER, IF THE USE OF SUCH DEVICES, MODIFICATIONS OR ADDITIVES CAUSES A FAILURE, THE COST TO REPAIR OR REPLACE THE FAILED PART OR COMPONENT IS NOT REIMBURSABLE. Intermediate and final stage manufacturer modifications or additions to International truck chassis, cab-chassis, or flat back or windshield cowl chassis may result in the completed vehicles being used for purposes which International neither designed nor intended. International will not provide any warranty coverage for component failures resulting from system modifications or additions made to incomplete vehicles by either intermediate or final stage manufacturers.

44 Warranty Coverage Guides Section 3 / Page REPAIRS TO DEALERSHIP OWNED VEHICLES Any warrantable repair work or adjustment, excluding safety and emission recalls, to be performed on the following vehicles that will result in a warranty claim being submitted to the Company for reimbursement, must be authorized by the Dealer Principal, or Service Manager on the appropriate repair order. New vehicles in Dealer inventory Dealer demonstrator vehicles Used vehicles in Dealer inventory Dealership rental units Parts Department delivery truck Service Department courtesy shuttle ORDERING NEW PARTS FOR UNSOLD IN-STOCK VEHICLES When a new part is required for an unsold in-stock vehicle in which the service part exists only as remanufactured, follow these instructions: The parts department is to use normal parts procurement methods. When a new replacement part is required for an unsold vehicle because certain laws and/or International policy prohibit the sale of a new vehicle using remanufactured parts the RSM/TSM should be contacted. When a new part cannot be identified, Technical Parts Specifications should be contacted for assistance in identification and procurement of the new part ITEMS NOT COVERED BY WARRANTY The New Vehicle Limited Warranty does not cover damage caused by failure to properly maintain the vehicle. Failures caused by, but not limited to, improperly maintaining the vehicle, or using the wrong part, fuel, oil, lubricants, or fluids will not be covered by warranty Abuse or Misuse Failures resulting from abuse or misuse of the vehicle by the operator or carrier are not covered by warranty Accident Work required to repair accident damage, or corrections of failures occurring as a result of accident damage are not covered by warranty Alterations or Modifications to Vehicle Failures on units that have been repaired, modified, or altered affecting stability or reliability are not covered by warranty. Correction of failures, which are attributed to deviations in recommended service specifications or tolerances are not covered by warranty Consequential Item Charges: Charges such as hotel accommodations, telephone calls, meals, loss of goods, loss of perishables, commercial loss, storage, salaries, earnings, or commissions that result from any vehicle down time are not covered by warranty Operation in Excess of Stated Capacities: Any failure resulting from the vehicle being operated in excess of the factory-rated speed, torque, or horsepower capacities are not covered by warranty.

45 Warranty Coverage Guides Section 3 / Page Misapplication of vehicle: Failure of any kind resulting from using the vehicle in a type of service for which the vehicle was not designed or built, or beyond the Gross Axle Weight Rating (GAWR), Gross Vehicle Weight Rating (GVWR) or Gross Combined Weight Rating (GCWR) are not covered by warranty Miscellaneous Routine or scheduled maintenance or inspection services recommended by International are not covered by warranty. Inspection, minor alignments, and adjustments included in new vehicle predelivery schedules are not covered by warranty. (These adjustments would not normally be charged to the customer and would be the Dealer's responsibility.) Items replaced or adjusted due to normal wear are not covered by warranty Overtime Premium for overtime or shift differential are not covered by warranty Pick-up and Delivery Pick-up and delivery of the customer's vehicle and/or parts for warranty repairs are not covered by warranty Repeat Repair Any repair work that must be repeated or duplicated because of prior improper diagnosis or inadequate repair work by the Dealer are not covered by warranty. Repeat repairs are subject to chargeback by the Warranty Administration Group. NOTE: The Company pays Dealers one time only for repairs or adjustments unless a part failure occurs. Dealer s repairs that do not fix the root cause of the failure are not covered by warranty Road Testing Road Testing is not covered by warranty except when included in a published SRT. A few published SRT s already allow for a supplemental time allowance to perform a pre or post-repair road test in order to verify a customer issue, or correction of a condition. Exceptions include: When instructed by Tech Services in order to isolate an issue. The Tech Service case file # must be submitted on the warranty claim. When the Engine Group instructs a dealer to perform an extensive road test in order to have EZ- Tech record a snap shot to capture a fault code. In this case, the Engine Group will notify the Warranty Administration Group (SPG) to provide a claim authorization to the dealer to allow up to two hours of drive time. The SPG will send that authorization to the dealer without any further follow up by the dealer. The authorization # must be submitted on the warranty claim. The dealer contacts their RSM/TSM in order to discuss other repairs, which may require a road test, such as a vibration issue. The RSM/TSM will provide the dealer with an authorization # to be submitted on the warranty claim. Road tests, when performed as part of a quality check of a completed repair are considered to be the responsibility of dealership service management unless otherwise specified within the CTS Temporary Repairs Temporary repairs are not covered by warranty Towing Reimbursement of normal towing charges beyond the provisions stipulated in the owner s Warranty Service Policy is not covered by warrantable.

46 Warranty Coverage Guides Section 3 / Page 15 Towing expense, as an outside charge, will be submitted at cost, for the time period stipulated in the owner's Warranty Service Policy, or Service Contract. Towing expense is limited to charges incurred in towing the vehicle from the point where it became inoperative or unsafe to the nearest International Dealer authorized to service that specific vehicle or engine. A copy of the towing bill must be attached to the claim, and retained according to the record retention policy. The tow bill should be itemized to show all charges such as: hook-up fee, mileage, trailer drop fee, drive shaft removal and/or installation fee. Any failure attributable to a diesel engine not manufactured by Navistar, or to an Allison transmission, is not covered by Navistar s warranty Service Calls On-site repairs are authorized in lieu of towing any time it is the more practical or the least costly method of repair. Service calls are not covered by warranty beyond the provisions stipulated in the owner's Warranty Service Policy or Service Contract coverage Non-Navistar Parts Non-Navistar parts installed on a vehicle are not covered by warranty. For example, parts installed by body builders or manufacturers other than Navistar, or damage to Navistar components caused by installation of non- Navistar parts are not covered by Navistar Warranty Required Parts not in Stock It is the responsibility of each International Dealer to maintain adequate parts inventory to make timely repairs to customer vehicles. The time to remove needed parts from a stock truck, to use in a warranty repair, is not covered by warranty Branded Titles Vehicles that have ever been labeled or branded as dismantled, fire, flood, junk, rebuilt, reconstructed, or salvaged ; void the remaining New Vehicle Limited Warranty from the date of branding are not covered by warranty Insurance Total Loss Vehicles that have been determined to be a total loss by an insurance company are not covered by warranty Mileage Alterations If the mileage or the date of repair has been misrepresented or altered to place a vehicle within the coverage period the repairs are not covered by warranty.

47 Warranty Coverage Guides Section 3 / Page SERVICE PARTS WARRANTY POLICIES Navistar warrants to its Dealers that it will repair or replace any service or ReNEWed part, distributed through its Parts Distribution Center (PDC) system; or Fleetrite or direct-shipped part, found to be defective in material and/or workmanship for the time and distance as outlined in this section. Or the time and distance as stipulated in the appropriate section of the PL-320, Direct-Ship and All Makes Parts Price List, applying to the specific type part, in the original Parts Policy Letter, or as stipulated on the parts on line system. Approved parts installed by a contracted Navistar servicing location on International vehicles, which are still within the vehicle warranty period, will receive warranty coverage for the balance of the vehicle warranty. Parts furnished in fulfillment of the International Service Part s Warranty sold over the counter or installed by a contracted International servicing location will receive the balance of the published warranty, as listed in the PL-320 of the original purchased service part. The Dealer agrees that only genuine Navistar parts will be used in the repair of Navistar vehicles during the vehicle warranty period. The Dealer also agrees that he will not sell, or offer for sale, for use on Navistar vehicles, or use in the repair of those Navistar vehicles as genuine Navistar service parts, any part or parts except those manufactured by or for the Company, or approved by the Company and designed for use on International vehicles. This warranty coverage applies regardless of the make of vehicle in which the part was installed. This warranty is IN LIEU OF ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, all representations to the user/purchaser and all other obligations or liabilities including liability for incidental and consequential damages, on the part of the Company or the seller. No person is authorized to give any other warranties or to assume any other liabilities on the Company's behalf unless made or assumed in writing by the Company. Nothing herein shall limit or reduce the coverage of any new vehicle warranty issued by the Company. This warranty does not cover parts which fail due to abuse, misuse, neglect, alteration, or accident, or which have been improperly lubricated or repaired, or are cleaned, adjusted, or replaced as a part of normal maintenance, i.e., oil, filters, etc., nor is progressive damage covered. Service or ReNEWed parts, Fleetrite and direct-shipped parts purchased in the United States or Canada and subsequently transferred outside the United States or Canada have no warranty. Items contained in the Accessories Catalog (MT-519) that are not listed in the other MT or PC catalogs are warranted by their respective manufacturers, and are not covered by this warranty. Those items available as Fleetrite and/or other vendor `all makes' products are not covered unless identified in the PL- 320 or in Parts Policy Letters (Refer to Fleetrite) PARTS WARRANTY COVERAGE All service parts sold through the Navistar Parts Division will be warranted for 12-months/unlimited miles, 100% parts from the date of sale, if sold over the counter; or the repair completion date if installed by an International Dealer. Labor will also be covered if service parts are installed by a contracted International Dealer Service Center. This warranty includes Parts

48 Warranty Coverage Guides Section 3 / Page 17 Distribution Center (PDC) supplied service parts, direct-shipped, Fleetrite, and ReNEWed parts. IMPORTANT: When a service part or accessory fails and is replaced or exchanged under Service Parts Warranty, the replacement part or accessory assumes only the remaining, unexpired portion of the warranty on the originally purchase replacement part or accessory. The warranty period does not start over Competitive Vehicle Labor Reimbursement Labor amounts allowed for replacing or repairing a part installed in a competitive make vehicle shall not exceed the amount that would have been allowed had the part been installed in a comparable International vehicle Parts Packaged Incorrectly or Damaged Claims initiated for the following reasons must be filed according to specific instructions found in Parts Letter G A and should not be submitted to the Warranty Administration Group (WAG). Incorrect or unidentifiable part Incorrect packaging Damage, as a result of shipment, handling or storage Lost or missing parts* Note: A warranty claim for replacement of missing material from a package/kit/assembly may be filed, where the cost to replenish the shortage is substantially less than the total cost of the original part (package, kit or assembly) Parts Warranty Limitations This warranty is for the defective part only, and other affected parts are not covered under this warranty. Labor is not reimbursable for repair or replacement of any other part, nor is progressive damage covered by this warranty Towing The Parts Warranty does not cover towing expense or travel expense to or from a job site Parts Warranty Coverage, and Defect Verification In the event a part is returned to the Dealer as defective, the Dealer should obtain a copy of the original sale document, determine if the failure was caused by defective material rather than by customer workmanship, abuse or negligence, then repair or replace the part for the customer according to current policy. In the event the customer requests a part of greater value, the cost difference between the failed part and the upgraded part is charged to the customer Repair Versus Replacement Parts that fail during the warranty period may be repaired, rather than replaced, provided the cost of parts and labor to make such a repair does not exceed 50% of Dealer cost of the part. Labor for removal and reinstallation of parts sold over the counter is not reimbursable. For example, if the part is originally purchased over the counter and installed by the customer, but now the customer requests the International Dealer to replace the failed part, the expense to Remove and Replace the part cannot be calculated as part of the 50% repair cost mentioned above.

49 Warranty Coverage Guides Section 3 / Page Identification of Warranted Parts Service Parts are identified as all parts listed in the applicable MT or PC parts catalog for specific models, excluding items listed in the MT-519, Accessories Catalog. Any part number contained in the Master Part Index Catalog is covered. ReNEWed Parts are identified as those items contained in the ReNEWed Catalog, and related Parts Policy Letters. Fleetrite and Direct-Shipped Parts are identified in the PL-320, and related Parts Policy Letters. Engines, Trimmed or Stripped, are identified as those assemblies having at least cylinder heads, oil pan and front cover installed at the assembly plant. Short Block Assemblies are identified as skeleton engines or bare blocks having no more than crankshaft, rods, camshafts and pistons installed by the assembly plant Batteries Service parts batteries sold over the counter, or installed in the Dealer service center, are warranted for one (1) year from date of sale, or installation, 100% parts (and labor, when installed in a contracted International servicing location). International supplied batteries are the recommended replacement of factory installed Fleetrite batteries. Navistar shall replace, within the period specified, at no charge to the purchaser, at any authorized International Battery Distributor (the distributor ), any battery purchased from Navistar which fails to hold a charge (note merely discharged), provided the failed battery is returned to the distributor by the purchaser, and is replaced with a Fleetrite or International battery within the time periods as stated above. Batteries purchased locally will be allowed only to the value of a replacement Fleetrite or International battery. When a Dealer furnishes a battery in fulfillment of the Vehicle Warranty or Parts Warranty, International will reimburse the Dealer at Dealer net cost plus the applicable current parts handling allowance, provided, in either circumstance, that the battery furnished is a genuine International supplied battery. The above limited warranty policy does not apply to: The recharging of discharged-only batteries, or the use of rental batteries. Batteries that fail because they were not used in the application for which they were designed. Batteries that fail due to the use of compounds, additives, or electrolyte other than recommended by International, or a smaller group size than that recommended by the vehicle manufacturer. Batteries with damaged containers or covers, or that fail because of misuse, neglect, improper installation, freezing, or failure to regularly perform maintenance service. Loss of use of the vehicle, loss of time, inconvenience, or other consequential damages. Failed batteries must be tested by the distributor according to diagnostic procedures as outlined by Navistar. Coverage for batteries installed as Service Parts will be found in the applicable PL -320 manual.

50 Warranty Coverage Guides Section 3 / Page Outside (Other) Charges Allowance To assist in offsetting costs associated with outside charges incurred when performing in-warranty repairs, an allowance of 1%, calculated on Dealer cost of Company approved parts and miscellaneous parts used in all warrantable repairs, will be listed and paid as a separate item on the R-5132, Warranty Credit Invoice. Additional handling allowance is not allowed on Outside Charges! Parts Core Allowances Certain failed parts have a ReNEWed core value, which will be credited to the Dealer through warranty. Core credit will be allowed through warranty for ONLY those parts requested to be returned to Company locations. Marshfield Core Center returns are credited as a regular core credit after the failed part is received at Marshfield, not on the warranty claim Supplier Extended Parts Warranty Some suppliers publish warranties applicable to their products that are more extensive than our standard warranty. These are warranties of the respective manufacturers and not warranties of International and form no part of the International standard warranty. However, Dealer and International personnel should, in the interest of customer goodwill and owner satisfaction, assist customers in arranging for warranty service under such extended warranties whenever possible. International will not administer suppliers' extended part warranties unless a specific agreement to do so exists between the supplier and International.

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52 Warranty Coverage Guides Section 3 / Page MAJOR COMPONENT WARRANTY STATEMENTS MAJOR COMPONENT EXTENDED COVERAGE An extended major component warranty becomes effective upon the expiration of the standard basic warranty on qualified models. When filing direct to Supplier s for Extended Warranty coverage the amount of reimbursement is governed by the suppliers extended warranty policy not the Internationals basis warranty coverage.

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54 Warranty Coverage Guides Section 3 / Page SUBSEQUENT OWNER WARRANTY VEHICLE SUBSEQUENTIAL OWNER WARRANTY Subsequent owners of International vehicles, or gliders, are entitled to any unexpired coverage in the original standard warranty applicable to the vehicle being transferred. US warranties and service are not transferrable to export or global market if the vehicle is subsequently sold outside the USA SERVICE CONTRACTS SUBSEQUENTIAL OWNER WARRANTY Reference Section for information on transferring service contract coverage to subsequent owner.

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56 Warranty Coverage Guides Section 3 / Page ALLIED EQUIPMENT All alterations or modifications of International vehicles must be done in compliance with all applicable International Truck and Engine Corporation, State and Federal Statutes and Regulations. The installation/use of any non-oem product will not necessarily void the Vehicle Limited Warranty. If, however, the non-oem product fails or causes an OEM part to fail, the New Vehicle Limited Warranty does not cover the cost of the repair and any related damage. The vehicle owner would need to look to the manufacturer or installer of the non-oem product for repairs, not to International When a vehicle is sent to an Allied Equipment Company or Truck Equipment Manufacturer for completion it is the responsibility of these parties to install the Incomplete Vehicle Certification Sticker. These stickers can be found in the door pocket in the envelope containing the Owners Manual. If the stickers are not found with the Owners Manual packet, they are available thru the PDC part number C1 (U.S.) or C1 (Canada). Reference CTS International will only put the Vehicle Certification Sticker on completed trucks equipped with a fifth wheel ALLIED EQUIPMENT INSTALLED BY INTERNATIONAL All allied equipment installed or furnished by International will be covered by the terms of the standard basic warranty in effect for that particular vehicle. However, since the allied supplier also warrants allied equipment, the Dealer is to make every effort to have the warrantable repairs handled by the local allied equipment distributor. If this cannot be accomplished, then the claim should be processed through regular channels with proper supporting documents, i.e., sale order, special Preparation and Delivery (P&D) invoice, etc ALLIED EQUIPMENT INSTALLED BY DEALERS OR CUSTOMERS The cost of modifying correctly built vehicles to install allied equipment will not be warranty expense. This expense should be considered part of the installation cost and charged to the customer. Allied equipment installed by Dealers or customers is not warranted by International, except for the parts themselves, if purchased from International and qualified for parts warranty. The cost of removing and replacing allied equipment to perform warranty repairs on International vehicle components will be warranty expense barring unusual or unreasonable expenses. A vehicle altered or modified by someone other than International will not necessarily void vehicle warranty unless that alteration and/or modification was the cause of such failure. Intermediate and final stage manufacturer modifications or additions to International truck chassis, cab-chassis, or flat back or windshield cowl chassis may result in the completed vehicles being used for purposes which International neither designed nor intended. International will not provide any warranty coverage for component failures resulting from system modifications or additions made to incomplete vehicles by either intermediate or final stage manufacturers. When a failure occurs, determination must be made as to the cause. If such failure was not the result of the modification and/or alteration, the vehicle warranty will apply. Should there be a question as to the cause; the Dealer should consult with his TSM/FSM.

57 Warranty Coverage Guides Section 3 / Page DETERMINING WARRANTY RESPONSIBILITY This section will aid the Dealer in determining warranty responsibilities related to chassis modified by an allied equipment or body supplier account such as, but not limited to, school buses, fire trucks, ambulance conversions, mobile libraries, trailer totes, forward-control and rear engine buses, etc. Generally, good common sense diagnosis will result in the repairing location's determining warranty responsibility and administering it properly. If, for any reason, responsibility for a particular repair cannot be determined, the TSM/FSM must be contacted for assistance. The following includes, but is not limited to, repairs that may not be warrantable by International and may not be warrantable under the terms of the allied equipment or body supplier chassis warranty Group 01 Frame Broken or cracked frames due to wheelbase alterations, improper drilling of holes in flange or web, or improper welding of mounting brackets and supports. Front or rear frame extensions. Bent or damaged frames due to improper body mounting. Frame damage due to removal or installation of crossmembers to accommodate specific body mounting or special equipment Group 02 Front Axle Front end stabilizing devices not indicated on the line set ticket or failures resulting from such installation, to include front axle bushings and steering linkage Group 03 Chassis Springs Any hydraulic stabilizing equipment or its mounting. Not to include leveling jacks or shock absorbers installed as original equipment as reflected on the line set ticket. Spring breakage or sag due to exceeding Gross Axle Weight Rating (GAWR) or Gross Vehicle Weight Rating (GVWR). Side-to-side lean attributable to uneven load distribution. Rear spring modifications Group 04 Brakes Brake failure or premature wear attributed to loads in excess of the Gross Axle Weight Rating (GAWR), Gross Vehicle Weight Rating (GVWR) and/or Gross Combined Weight Rating (GCWR). Bleeding of hydraulic brake system whenever alterations to brake system have occurred. Attachments or connections to brake system resulting in fluid, air, or vacuum leaks, damaged fittings, or other associated failures. Modifications or alterations to band-type parking brake. Installation of any locking devices. Brake failure due to body mounting interference with hydraulic lines, air lines, or control cables Group 05 Steering Failures related to mounting, relocation, or alteration of steering column, steering gear, or steering linkage. Steering wheel alignment. Failure of, or an adjustment to, steering column mounting bracket.

58 Warranty Coverage Guides Section 3 / Page Group 06 Driveshafts Failures attributed to modifications affecting length, angularity, or phasing. Modifications to drivelines to accommodate or other shaft-driven attachments Group 07 Exhaust System Failures to exhaust system resulting from, or due to, installation or operation of waste disposal system. Any failure to any system not installed as indicated on the line set ticket Group 08 Electrical System Chassis on which the allied equipment or body manufacturer assembles component parts to cowl assemblies such as instrument panels, instrument panel covers, instrument clusters, switches, and wiring. The failure of any of these parts due to handling, installation, or connection of harnesses and switches is not warrantable. Electrical failures of an item installed by a body company or damage to wiring harness resulting from such installation or item failure. Failures of electrical systems resulting from routing by an allied equipment or body manufacturer in close relation to hot or rotating part. The relocation of batteries or failures resulting from such relocation. The installation of electrical cut-off switches or failures resulting from such installation. Failures attributed to overloading of alternator capacity by the installation of additional electrical equipment. Failures of, or damage resulting from failure of, all interior lighting. All body-mounted electrical equipment from the cowl area to the rear (conventional school bus only). All wipers, and lights (except headlights), parking, and signal devices Group 11 Clutch Failure of, or failures resulting from, incorrect pedal mounting. Installation of, or failures resulting from, installation of, remote-control devices, including clutch adjustment and release bearing failures Group 12 Engines Modifications of, or failures resulting from modifications to air cleaners or air intake system. Modifications of, or failures resulting from, modification or additions to, throttle or accelerator linkage. Failure of, or damage to, throttle control cable resulting from interference by allied equipment or body manufacturer installed equipment. Repairs to, or failures resulting from, any cruise control device not listed on the line set ticket. Repair or damage resulting from the allied equipment or body manufacturer failing to provide adequate clearance or air flow in the engine compartment. Failure of heat exchangers, or caused by incorrect hook-up of heat exchanger. Failures of, or caused by installation of, coolant make-up lines or coolant recovery systems not listed on the line set ticket. Failures of, or caused by installation of, front end PTO drives not indicated on the line set ticket.

59 Warranty Coverage Guides Section 3 / Page Group 13 Transmission Transmission control cable routing or transmission damage caused by routing or interference with any allied equipment or body manufacturer installed item. Failure of, or damage resulting from failure of, any auxiliary transmission oil cooler not installed as listed on the line set ticket. Failures of, or damage resulting from failure of, any PTO not installed as listed on the line set ticket. Interference of shift housing or shift lever with floor pan or tunnel cover. Failure resulting from installation of gear locking devices. Failures resulting from angularity modifications. Failure of heat exchangers, or caused by incorrect hook-up of heat exchanger Group 14 Rear Axle Failure resulting from any rear axle modification Group 15 Fuel Tanks Failure resulting from any fuel tank modification Group 16 Cabs Failures to, or damage resulting from, any automotive type air conditioner except those that are listed on the line set ticket. Failure of any body attachment to the chassis. Failure of, or damage resulting from failure of, any component within and attached to the body, except electrical gauges as defined in the Electrical section. Failure of toe board seal, hand brake lever mounting, automatic transmission control tower mounting, and seat belts, including anchors. All interior and exterior lights and wiring excepting headlights, parking lights, and headlight harness. Speedometer head and cable failures related to routing and/or interference by allied equipment or body manufacturer installed features. Failures of heater cores or heater hoses, or caused by leaking or ruptured heater cores or heater hoses, not listed on the line set ticket. Failure of heat exchangers, or caused by incorrect hook-up of heat exchanger. Installation of add-on air-conditioning systems that result in overheating, water pump bearing failures, etc Group 22 Bus Bodies Claims for conventional bus bodies installed on stripped 3800 chassis are the responsibility of the body manufacturer. Warranty claims for these bodies are to be filed directly to the body manufacturer.

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61 Warranty Coverage Guides Section 3 / Page TOOLS AND EQUIPMENT INTERNATIONAL TOOLS Shop Grade (U.S. manufacture) tools ordered on a direct ship basis or through the Parts Distribution Center (PDC) in accordance with instructions contained in current Parts G Letters carry a lifetime guarantee and are warranted by the supplier. Field Grade (import) socket sets have no warranty. Refer to the current G letter for warranty provisions SERV-EQUIP TOOLS All tools ordered through the Serv-Equip Program and warranted by the respective supplier. Refer to supplier catalogs for warranty provisions and filing procedures.

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63 Warranty Coverage Guides Section 3 / Page INDUSTRIAL ENGINES OEM International sells International engines directly and through other engine manufacturers/distributors to power equipment such as compressors, generator sets, irrigation pumps, cranes, earth moving machinery, etc. At the time of delivery to consumer, purchasers of such equipment receive a product owner s information manual that describes warranty coverage time guidelines and components included. This manual also describes the appropriate communication procedures to address questions pertaining to authorization to perform service under warranty and the reimbursement process for such work. Servicing Dealer questions should be referred per the communication procedures in the owner s manual. If a manual is not available, the Original Equipment Manufacturer (OEM) should be contacted directly SERVICE REQUESTS COVERED BY WARRANTY If service on such equipment is authorized for reimbursement directly by International, local repair order, Truck Service Order should be utilized. (See Section 7.CLAIM PREPARATION AND REIMBURSEMENT PROCEDURES in this manual.) Claims for reimbursement directly by International are to be sent to regional office SERVICE REQUESTS NOT COVERED BY WARRANTY EXCESSIVE LABOR TIME BEFORE REPAIRS ARE PERFORMED, servicing location that is authorized by International to perform service on this equipment must estimate labor time for repairs. Consult with OEM, or OEM selling Dealer, about labor time estimates that, because of configuration of OEM installation, are more than 1.1 times International labor time for a comparable repair in an International chassis. Such excessive labor time is not covered by International warranty EXCESSIVE TIME OR MILEAGE, OR NO DEFECT BEFORE REPAIRS ARE PERFORMED, servicing location is to consult OEM, or OEM selling Dealer, when it is determined that International warranty does not apply.

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65 Warranty Coverage Guides Section 4 / Page 1 4 TABEL OF CONTENTS TABEL OF CONTENTS WARRANTY COVERAGE GUIDES REPAIRS REQUIRING INTERNATIONAL PRIOR APPROVAL WHAT IS NOT COVERED: ADJUSTMENTS AND ALIGNMENTS MAINTENANCE/WEAR ITEMS: DAMAGE CAUSED BY IMPROPER MAINTENANCE STEAM CLEANING PRIOR TO WARRANTY REPAIRS FRAME WHAT IS NOT COVERED FRONT AXLE WHAT IS NOT COVERED CHASSIS SPRINGS WHAT IS NOT COVERED BRAKES WHAT IS NOT COVERED STEERING WHAT IS NOT COVERED STEERING WHEEL ALIGNMENT DRIVESHAFTS WHAT IS NOT COVERED EXHAUST SYSTEM WHAT IS NOT COVERED ELECTRICAL SYSTEM WHAT IS NOT COVERED GENERAL BATTERIES HEADLAMP ADJUSTMENT RADIOS, TAPE PLAYERS AND CD PLAYERS RADIO INSPECTION PROCEDURE COOLING SYSTEMS... 22

66 Warranty Coverage Guides Section 4 / Page WHAT IS NOT COVERED SPEEDOMETER AND MISCELLANEOUS WHAT IS NOT COVERED SPECIAL PROVISIONS CLUTCH WHAT IS NOT COVERED ENGINE WHAT IS NOT COVERED RADIATOR/COOLING DUE TO INADEQUATE COOLING SYSTEM MAINTENANCE INTERNATIONAL DIESEL ENGINES INTERNATIONAL DIESEL ENGINES SPECIAL PROVISIONS TRANSMISSION WHAT IS NOT COVERED REAR AXLE WHAT IS NOT COVERED FUEL TANKS WHAT IS NOT COVERED CABS WHAT IS NOT COVERED SPECIAL PROVISIONS WHEELS WHAT IS NOT COVERED ACCESSORIES WHAT IS NOT COVERED BUS CHASSIS COMPONENTS WHAT IS NOT COVERED... 42

67 Warranty Coverage Guides Section 4 / Page WARRANTY COVERAGE GUIDES The warranty coverage guides provided in this section are intended to assist Dealer personnel in correctly applying standard International warranty policy to warranty work involving specific components and items. Questions that may arise concerning warranty coverage of a particular vehicle component are addressed in this section REPAIRS REQUIRING INTERNATIONAL PRIOR APPROVAL Repairs requiring prior approval from International Warranty Codes 01, 03, 02, 98 require prior approval and an authorization number from the TSM. The Dealer is responsible to determine if the failure is within the warranty guidelines. The dealer must obtain and document the repair prior approval, and approval number on the warranty claim in the beginning of the Complaint write-up section of the claim. Please have the following information available prior to calling for authorization. Dealer Location and Account Number i.e. ( ) Repair Order Number Vehicle Identification Number (Last Eight Digits) Completed Diagnostic Forms and Cause of Failure Analysis Tech Service Case File Number (If Applicable) Detailed Estimate for Body/Paint Repairs and Digital Photos Prior Authorization is needed for the following components/failures. 1) CAB / BODY / PAINT /FRAME (REPAIRS TOTALING OVER $ /claim U.S.) Cab or Cab Structure Repair or Replacement Hood Repair or Replacement Paint / Fiberglass Repairs Frame Rail Repair or Replacement Note: Please have a detailed estimate and photos available for the above repairs. 2) MAJOR COMPONENT REPLACEMENT REQUIRING PRE-APPROVAL Complete Engine Assembly Crankcase / Engine Block Crankshaft CF Model Transmission Replacement (contact Tech Central for all repairs). Two or more Injectors replaced requires Tech Central Case File # in the claim 3C s field. NOTE: Under some circumstances, these dollar call-in limits may be changed on an individual basis at the discretions of the Territory Service Manager (TSM) or Regional Service Manager (RSM). Authorization does not ensure payment for warranty claims. The Dealer is responsible to determine if the failure is within the warranty guidelines. A claim requiring prior approval that is submitted without prior approval will be considered an improper warranty submission, and rejected by the Warranty Center. The Dealer also needs to contact their TSM/RSM for approval prior to repairs being made on these items. Vehicle Modification or Alteration modification or alteration to vehicle in order to resolve a problem otherwise not correctable. Non-International Parts replacement of defective parts with non-international parts

68 Warranty Coverage Guides Section 4 / Page 4 Excessive Oil Consumption to correct excessive oil consumption as outlined under ENGINES. Vehicles under Investigation repairs to vehicles involved in Company investigations. Field Test Units any repairs to a vehicle involved in an International Field Test WHAT IS NOT COVERED: Adjustments and Alignments Adjustments required to correct factory defects (no parts replaced) are not reimbursable if they are: Not listed on the Pre-Delivery Service Form (check-sheet) as a required adjustment. Performed to improve vehicle appearance or performance beyond normal standards. A scheduled maintenance requirement. Tightening of loose clamps and fasteners. To correct prior improper, or incomplete Dealer adjustments. (The Company reimburses dealerships only once for an adjustment unless a AFC or recall is subsequently issued.) Prohibited elsewhere in this Manual or in other Company publications. Alignments to the front axle are not warrantable Maintenance/Wear Items: Parts and Labor needed to maintain the vehicle and the replacement of parts due to normal wear and tear (consumables) are the responsibility of the vehicle owner and are not covered under warranty. These maintenance/wear items are listed in addition to those excluded items listed under the What is Not Covered section of the following Group component level items found in the remainder of this section. Examples include but are not limited to: Oil changes, Brake linings/pads, Oil filters, Clutch linings, Air filters, Clutch brake, Desiccant cartridge, Fire extinguishers, Fuel filters, Fluorescent ballast and tubes, Tire rotation, Fuses, Cleaning/polishing, Gladhand and gladhand rubbers, Engine tune-up, Trailer air hoses, Adding oils, Hose tenders, Lubricants and other fluids (except Trailer electrical cables, refrigerant), Light bulbs, Tightening of air intake and coolant Mattress, clamps, Mud flaps, Ashtray, Mud flap mounting bracket, Cigarette lighter element, Windshield wiper blades, Belts, Windshield washer nozzles, Damage Caused by Improper Maintenance The New Vehicle Limited Warranty does not cover damage caused by failure to maintain the vehicle, improperly maintaining the vehicle, or using the wrong part, fuel, oil, lubricants, or fluids Steam Cleaning Prior to Warranty Repairs CLEANING (as taken from the Standard Repair Time Manual S00025) Time allotted for cleaning is included in the repair operations and is related to cleaning of the part or assembly and mating

69 Warranty Coverage Guides Section 4 / Page 5 surfaces. It does not include cleaning other areas of the vehicle when the failure of the warranted part or assembly makes additional cleaning necessary. In the cases of a catastrophic failure, such as a high pressure hose that bursts & sprays liquid all over the area of the failure, an additional 0.3 T-time per claim may be added for cleaning the surrounding area.

70 Warranty Coverage Guides Section 4 / Page FRAME WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Repainting of frame. (Chatham built vehicles only.) Reference G. Coincidental prints/scuffs in frame paint from wood blocks or binding devices used by drive away company. Frame repairs or modifications. Broken or cracked frames due to: Welding of mounting brackets, supports, or wheelbase alterations; Non-drilled holes in flange or web; Drilled holes in flange. Add-on front or rear frame extensions. Bent or damaged frames due to improper body mounting. Frame damage due to installation or removal of crossmembers to accommodate specific body mounting or special equipment. Modifications to frames to allow for variable wheelbase.

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72 Warranty Coverage Guides Section 4 / Page FRONT AXLE WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Weepage a small amount of lubricant wetness or seepage at gasketed surfaces, seal inside diameter, or at the wheel-bearing hubcap is considered normal. Front end stabilizing devices not included on the line set ticket, or failures resulting from such installation, to include front axle bushings and steering linkage. Modifications. Front end axle alignment is not warrantable; reference G. NOTE: Bearings, wheel ends, steering components, e.g., drag links, arms, tie rods, etc., are covered by standard Basic Warranty only.

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74 Warranty Coverage Guides Section 4 / Page CHASSIS SPRINGS WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Modifications. Spring breakage or sag due to exceeding Gross Axle Weight Rating (GAWR) or Gross Vehicle Weight Rating (GVWR). Side-to-side leaning attributable to uneven load distribution.

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76 Warranty Coverage Guides Section 4 / Page BRAKES WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Brake failure or premature wear attributed to loads in excess of the Gross Axle Weight Rating (GAWR), Gross Vehicle Weight Rating (GVWR) and/or Gross Combined Weight Rating (GCWR). Modifications affecting the original factory brake system. Installation of all non-approved locking devices. Reimbursement for cleaning of brake system, and adjustments to the brake pedal linkage and brake shoes beyond the provisions stipulated in the owner's Warranty Service Policy. Lining and/or pad replacement due to normal wear. Modifications to upgrade to amended FMVSS-121; reference G. Due to brake composite changes, brake squeal is not uncommon. Brake squeal is not a warrantable defect if brake performance is not affected.

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78 Warranty Coverage Guides Section 4 / Page STEERING WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Reimbursement for service adjustments on the steering system beyond the provisions stipulated in the owner's Warranty Service Policy STEERING WHEEL ALIGNMENT When special bodies, equipment, or accessories are added to a vehicle (i.e., chassis modification, cabs, plows, etc.), front axle alignment and steering wheel alignment are not reimbursable under warranty.

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80 Warranty Coverage Guides Section 4 / Page DRIVESHAFTS WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Repainting of driveshafts or brackets. Failures attributed to modifications affecting length, angularity, or phasing.

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82 Warranty Coverage Guides Section 4 / Page EXHAUST SYSTEM WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Failure of exhaust systems resulting from modifications.

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84 Warranty Coverage Guides Section 4 / Page ELECTRICAL SYSTEM WHAT IS NOT COVERED General Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. All wipers, lights (except headlights) if installed by an Allied Equipment or body manufacturer. Reimbursement for headlight adjustment beyond the provisions stipulated in the owner's Warranty Service Policy. Failures resulting from modifications, connections, and/or attachments to the original electrical system Batteries Batteries that fail due to the use of compounds, additives, or electrolyte other than recommended by International, or use of a smaller battery group size than that recommended by the vehicle manufacturer. Batteries with damaged containers or covers, or that fail because of misuse, neglect, improper installation, freezing or failure to regularly perform maintenance service. Modifications Headlamp Adjustment Adjust only when beyond specification Headlamp adjustment required because of special bodies added to incomplete vehicles or because of special equipment installation (modification-conversion) after the vehicle leaves the assembly plant is not reimbursable Radios, Tape Players and CD Players AUDIOVOX, DELPHI, and PANASONIC Equipment (AM, AM/FM, AM/FM/Tape Player and/or CD Player) original equipment, factory-installed by International, and/or service parts purchased through an International Parts Distribution Center (PDC) are covered as follows: Original equipment, factory-installed radios/tape players/cd players warranty follows the vehicles basic warranty coverage as specified in the applicable CTS form. Service parts (Parts Distribution Center purchased, excluding direct shipped) are warranted for twelve (12) months. These radios/tape players/cd players are identified by International part number and logo on the bottom plate. They have a serial number on the bottom plate as well, which must be recorded on the warranty claim.

85 Warranty Coverage Guides Section 4 / Page 21 Upon request for warranty service, the International Dealer will perform necessary diagnostics to determine a defective unit. Reimbursement for replacement of defective units will be allowed on Dealer installed service parts and original equipment within the warranty period, as outlined/allowed in the CTS-1200, Warranty Time Schedule manual, or S00025, Standard Repair Time manual Radio Inspection Procedure The Company DOES NOT cover damage to, or failure of, an audio component caused by abuse or neglect. The following inspection criteria must be used by dealership personnel to determine if an audio product (radio, tape, CD player, etc.) is eligible for warranty repair/replacement. Carefully inspect bezel face for liquid residue (sticky or shiny substance). Determine if all buttons and knobs operate freely - liquid frequently causes buttons to stick or require excessive pressure to actuate. After unit is removed from instrument panel, inspect top and bottom cover for signs of liquid residue. Inspect player door area and interior of player for pry marks, especially if tape/cd is in the deck and will not eject. Open player door and look carefully at levers and head assembly to see if they are bent or broken. Also, look for loose parts or foreign objects (such as coins) If any of the above conditions exist, the unit is not covered under warranty. Please contact the customer immediately and advise them that the failure did not occur as a result of a factory defect.

86 Warranty Coverage Guides Section 4 / Page Cooling Systems WHAT IS NOT COVERED When doing warranty work on radiators, replace the radiator rather than repair. Warranty claims submitted for radiator work must have the serial number on the claim form.

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88 Warranty Coverage Guides Section 4 / Page SPEEDOMETER AND MISCELLANEOUS WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Any vehicle on which the odometer has been disconnected or the odometer reading has been altered and the vehicle's actual distance traveled cannot be readily determined. Speedometer head and cable failures related to routing and/or interference with allied equipment or body manufacturer installed items SPECIAL PROVISIONS When the speedometer head is replaced during the warranty period, the reading on the odometer at the time of replacement must be noted on the owner s Warranty Service Policy and a copy of this notation filed with the claim. On vehicles that have had the speedometer head replaced subsequent warranty claims must be accompanied by a legible copy of the owner s Warranty Service Policy to prevent claim rejection due to an apparent odometer rollback.

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90 Warranty Coverage Guides Section 4 / Page CLUTCH WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Worn clutch linings replaced due to normal wear. Reimbursement for service adjustments on the clutch system beyond the provisions stipulated in the owner's Warranty Service Policy. Modifications.

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92 Warranty Coverage Guides Section 4 / Page ENGINE WHAT IS NOT COVERED Radiator/Cooling due to inadequate cooling system maintenance Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Failures due to inadequate cooling system protection. Failures caused by modification or connections to the original factory cooling system. Installation of add-on air-conditioning systems that result in overheating, water pump bearing failures, etc. Tightening or repositioning of hose clamps. (Part of regular Preparation and Delivery [P&D]) Use of anti-freeze not formulated to International specifications, or to the industryrecommended standard, for use in medium duty and heavy duty diesel engines International Diesel Engines Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Engine tune-up. Reimbursement for adjustments on drive belts, and for cleaning of fuel system on all International engines beyond the time and distance traveled stipulated in the owner's Warranty Service Policy. Engine valve grinding unless required by failure of parts that were defective in material or workmanship. Lubricants, fluid, and filter replacement unless associated with a primary failure within the standard basic engine warranty period. Weepage a small amount of wetness or seepage at gasketed surfaces is considered normal. Failure attributed to modifications of the air intake system, accelerator linkage, or any device added by allied equipment or body manufacturer that interferes with the original design.

93 Warranty Coverage Guides Section 4 / Page 29 Performance and/or power complaints are not warranted if seals are broken (indicating alien tampering), or if repair is made without performing a diagnostic test and completing a Problem Analysis Guide. Engines that are non-international engines are warranted by the respective manufacturer, and not by International. Modification or alteration to International diesel engine fuel, air induction, or exhaust system by unauthorized adjustment or installation of aftermarket, non-certified components are not recommended. A failure resulting from these adjustments or installations will not be warranted International Diesel Engines SPECIAL PROVISIONS NOTE: These engines are completely rebuildable, and only failed or damaged parts should be replaced. Replacement of short block assembly or complete International engine, e.g., International 530E, DT 466E, T 444E, etc., is not warranted unless prior approval is given by the TSM/RSM. Fuel system repairs for the engine fuel injection system are warrantable, providing an engine diagnostic test, using the appropriate Problem Analysis Guide, is completed to identify and confirm the actual problem. All claims submitted for consideration must include component serial numbers of both the old and new fuel injection pumps, turbocharger, and short block. Injectors If diagnostic tests confirm an injector problem, the injector(s) must be replaced. If full sets of injectors are defective, you must contact the TSM/RSM before replacing the entire set. When performing repairs to an International Engine a copy of the diagnostic check sheet must be attached to the Repair Order. High oil consumption that is caused by dust or dirt entering the engine is not warrantable; reference Excessive Oil Consumption International Diesel engine excessive oil consumption is warrantable within the standard basic vehicle warranty providing the following procedures are followed. Work performed to correct excessive oil consumption requires prior approval. Diagnosis of excessive oil consumption must include: o Examination for external oil leaks. o Pressure check of air induction system and restriction check. o Examination of crankcase breather element and tube for cleanliness. o Intake manifold pressure. o Operating fuel pressure. o Engine crankcase pressure. Have the customer keep accurate records of the additional oil consumption. Determine the initial oil consumption rate and trend at 1,000 miles (1 600 km) and again at 5,000 miles (8 000 km). In cases of excessive oil consumption, consider the rate of 1 liter every 1600km (1 quart every 1000 miles) as normal consumption

94 Warranty Coverage Guides Section 4 / Page TRANSMISSION WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Weepage a small amount of wetness or seepage at gasketed surfaces and seal inside diameter is considered normal. Allison automatic transmissions are warranted by the manufacturer and not by International. Warranty repairs should be performed by an authorized Allison facility and the warranty claim filed with the Allison distributor. Lubricant beyond the standard basic vehicle warranty, unless required in conjunction with a covered failure. Modifications. Failure of, or damage resulting from failure of, any PTO not installed by International as listed on the line set ticket. Reimbursements for service adjustments beyond the provisions stipulated in the owner's Warranty Service Policy. NOTE: Shift lever, shift knob, transmission tower (TTC), and attachments are covered by Standard Basic Warranty only.

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96 Warranty Coverage Guides Section 4 / Page REAR AXLE WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Weepage; a small amount of lubricant wetness or seepage at gasketed surfaces and at the axle flange is considered normal. Lubricant beyond the standard basic vehicle warranty, unless required in conjunction with a covered failure. Reimbursement to correct rear axle alignment as stipulated in Warranty Policy Letter G. NOTE: Axle shafts, brakes, wheel ends/bearings, controls and attachments are covered by published Standard Basic Warranty only.

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98 Warranty Coverage Guides Section 4 / Page FUEL TANKS WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Removal of the protective covering from polished tank(s).

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100 Warranty Coverage Guides Section 4 / Page CABS WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Soft trim that has been worn soiled, torn or cut, burned, punctured, or deteriorated due to use or exposure. Repair or replacement of bright metal finished components damaged by dents, nicks, scratches, or deterioration due to exposure. Glass replacement, unless it can definitely be established as defective in material or workmanship. Items such as scratches, pitting or chips are not warrantable. Repainting of dents, chips, pitting, nicks, scratches, impact cracks, bird droppings, tree sap, road salt, hail or other acts of nature or normal paint deterioration due to exposure or washing chemicals is not reimbursable, nor is painting of any component not normally painted. Reimbursement for service adjustments on doors, and for the elimination of outside water and air leaks beyond the provisions stipulated in the owner's Warranty Service Policy. Reimbursement for repairs required as the result of improper storage practices. Damages due to collision, accident damage or owner abuse SPECIAL PROVISIONS Air Conditioner/Heater Warranty coverage for the air conditioner and heater on all models is one year unlimited miles or basic warranty. In the event of warrantable failure of the air conditioner compressor, replace only with a like-part number: R-12 Refrigerant Systems HFC-134 Refrigerant Systems The amount of air conditioning refrigerant that can be claimed for an air conditioning system repair is limited to the actual amount used, not to exceed the refrigerant capacity of that vehicle. For occasional situations where leak checking is necessary, a small additional amount can be claimed. International approved air conditioning service equipment must be used when performing warranty service on air conditioning systems. Repairs performed without the use of approved equipment are not eligible for reimbursement.

101 Warranty Coverage Guides Section 4 / Page Perforation from Corrosion Warranty Perforation corrosion coverage only covers corrosion resulting from rust that starts from the inside and migrates to the exterior surface. It excludes: o Corrosion due to accidents or impact damages, chips, dents, nicks, scratches, chemical fallout pollution damages, gravel or salt damage, and corrosion or surface corrosion. o Corrosion due to lack of maintenance o Exhaust system components Fiberglass Repair Fiberglass repairs (Reference Section 3.00 page 2. Paint and/or Fiberglass Repairs over $1,000 U.S.) require a specific description of the defect, its location, and what was required to correct the defect. Use the following defect terms when applicable: o Cluster more than one large or small porosity bunched together o Craters dish-like condition of surface after paint o Fracture break completely through the material o Gouge deep scratch effect below plastic surface o Orange peel regular rough surface o Porosity, large hole in surface larger than a pinhead o Porosity, small pinhole in surface, no larger than a pinhead o Scratch light surface scratch, not below plastic surface o Surface craze light spider web effect due to material o o o Waviness uniform peaks and valleys, material flow-back Three (3) photographs are to be provided for review by the TSM/FSM: One (1) photograph of the vehicle VIN plate. One (1) photograph taken from a distance to show the specific defect; One (1) photograph close-up showing the damaged area. The second photograph listed above should be taken from a sufficient distance to show the entire part, i.e., hood, fender, etc., and marked so as to point out the location of the defect on the part.

102 Warranty Coverage Guides Section 4 / Page WHEELS WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Weepage a small amount of lubricant wetness or seepage at gasketed surfaces and at the axle flange is considered normal. Reimbursement for wheel or tire balancing beyond the provisions stipulated in the owner's Warranty Service Policy. Tires and tubes that are warranted by their respective manufacturers. Navistar and Goodyear have developed a Customer Satisfaction Program for steering axle tire wear on 8000 and 9000 Series tractors; reference G for additional information NOTE: Proper tire inflation is part of the Preparation and Delivery (P&D) responsibility.

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104 Warranty Coverage Guides Section 4 / Page ACCESSORIES WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Ether Start Bottles It will be the selling location's responsibility to supply and install the bottle on units equipped with ether start systems. Initial cost of the bottle and its installation is not warranty. Plug and Wire for CB or 2-Way Radio The plug and wire is available for purchase through service parts and is no longer furnished as part of the factory installed code. Initial cost of the plug and wire, and its installation is not warranty. Jake Brake The Jacobs Manufacturing Company engine brake is installed by the engine manufacturer and failures due to installation are the responsibility of the respective engine manufacturer. Failures due to components of the Jake brake are the responsibility of the manufacturer, Jacobs Manufacturing Company. C Brake Cummins Engine Company, Inc. engine brake, known as C brake, is installed by the engine manufacturer and failure due to installation is the responsibility of the engine manufacturer. Failure due to components of the C brake is also the responsibility of Cummins Engine Company.

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106 Warranty Coverage Guides Section 4 / Page BUS CHASSIS COMPONENTS WHAT IS NOT COVERED Normal wear and tear or components that have failed through abuse, lack of maintenance, improper modifications or repair, or damage through a misapplication, such as using an onhighway component for an off-highway purpose. Normal maintenance as stipulated in the Operator s Manuals includes maintenance and service items that are subject to consumption or wear out during their normal operating life. Ether Start Bottles It will be the selling location's responsibility to supply and install the bottle on units equipped with ether start systems. Initial cost of the bottle and its installation is not warranty. Note: Contact IC Corporation TM, or consult their Warranty Policy and Procedures manual for additional information on their bus body component coverage s.

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108 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page 1 TABLE OF CONTENTS TABLE OF CONTENTS VEHICLE RECALL CAMPAIGNS DEALER/SERVICE LOCATION RESPONSIBILITY RECALL CAMPAIGN NOTIFICATION INITIAL OWNER/CUSTOMER NOTIFICATION RECALL CAMPAIGN PROCEDURE REPAIRS MADE WITHOUT AUTHORIZATION FOR RECALL SERVICE CARD RECORD KEEPING FIELD SERVICE RESPONSIBILITY... 5 SAMPLE OF AUTHORIZATION FOR RECALL SERVICE CARDS... 6 SAMPLE OF AUTHORIZATION FOR AUTHORIZED FIELD CHANGE CARDS RECALL SERVICE LETTER EXAMPLE AUTHORIZED FIELD CHANGE FIELD TESTS... 18

109 Recalls, Authorized Field Changes, and Field Tests 5.1. VEHICLE RECALL CAMPAIGNS Section 5 / Page 2 When appropriate, Navistar International Transportation Corp. may determine that a certain number of vehicles were built with a defect that might have adverse affects on their safe operation. In view of the seriousness associated with this type of situation, a recall campaign will be initiated and owners of vehicles requiring inspection, or correction will be notified. This notification will be communicated to distributors by their Navistar Regional Office. Keep in mind the prime objective of a recall is to correct the defect or non-compliance condition, as soon as possible, with as little disruption to the customer; in order to bring the vehicle in full compliance with the recall requirements DEALER/SERVICE LOCATION RESPONSIBILITY The Distributor s responsibility to his/her customers and to Navistar is set forth in Article 15 of the Distributor s Sales and Service Agreement, which states the following: The Distributor agrees that he/she will install in accordance with instructions received from Navistar, field improvement packages determined by Navistar to be advisable. In reimbursement of the Distributor of the costs of performing this service, Navistar will establish a flat fee for labor hours it deems reasonable for the installation of any such field improvement package. If labor hours have been established, Navistar will credit the Distributor with an amount equal to such specified hours multiplied by the Distributor s established regular hourly labor rate RECALL CAMPAIGN NOTIFICATION CAMPAIGN NOTIFICATION When a recall program is initiated, notification to all Distributors will be made in a Service Letter. The letter will outline the problem involved, the parts needed, and instructions for procurement, correction procedure, reimbursable time allowed, and other pertinent information relative to the campaign. With the letter, each Distributor will receive a listing of affected vehicles sold or currently in inventory. Accompanying the listing will be an Authorization for recall Service card for each vehicle. Distributors can also use ISIS to lookup VINs and find information related to associated recalls. NOTE: See the end of this section for samples of Authorization for Recall Service cards and owner notification letter. The front side of the Authorization for Recall Service card will show: 1. Owner s name and address, when known. 2. Model of vehicle. 3. Vehicle Identification Number (VlN). 4. Recall campaign number. 5. Location Code of controlling region.

110 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page 3 6. Account number of the selling distributor. 7. Property control number Initial Owner/Customer Notification Owners may be notified by an authorized International Distributer. For each vehicle for which the owner s name and address are on record, the Distributor may send directly to the owners by mail the Authorization for Recall Service Card and owner notification letter. As a rule, the distributor should send this out one week after the Recall Service Letter has been sent to Distributors/Service Locations from the Navistar regional office. For any unit that has been sold in the interim between the initiation and release of the recall, the Dealer should also mail the notifications (card and letter) to the owner RECALL CAMPAIGN PROCEDURE The Recall Service Letter, list of affected units (green bar reports) and accompanying information is sent to the Navistar Regional office by the Navistar compliance group. The regional office will provide the recall information to the Navistar Distributor. The Distributor personnel once they receive the recall information should take the following steps: Note material requirements and special ordering instructions. Promptly place an initial parts order; only order the quantity of parts you expect to use in a reasonable length of time. The parts will be shipped freight prepaid. Review the list and the Authorization for Recall Service cards accompanying it. o If any unit listed as inventory has been sold or transferred, enter the name and address, date and sign the card, and forward it and the owner notification letter to the new location. o If one of these conditions exists: service not desired, vehicle scrapped, vehicle stolen, vehicle exported, the dealer should mark the appropriate box on the Authorization for Recall Service card and return the card to the address on the card. Contact owners of vehicles who have not responded to the recall notice. Be Sure To Note All Contacts In The Campaign File (refer to subheading Record Keeping). Provide assistance to determine the recall status of a vehicle when requested (refer to subheading Repairs Made Without Authorization For Recall Service Card). Inspect/correct all new and used inventory vehicles prior to sale or transfer. Inspect/correct all customers vehicles as required. Prepare a CTS-1075, Recall Completed Identification Label for each vehicle inspected/ corrected according to the Recall Service Letter instructions. Write the following information on the label with a pen. o Campaign number o Vehicle Identification Number o Service location code number NOTE: This procedure applies only to recall campaigns so identified in the Recall Service Letter. Field changes and other campaigns do not require this label. Dealer reimbursement: When recall inspection and/or corrections are completed, submit warranty claims via iclaim to the Regional Service Manager/Warranty Administration Group

111 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page 4 (WAG). Service performed on vehicles suspected of having a defect will be reimbursed at the approved labor warranty rate multiplied by the allowable time. Any parts expense associated with the suspected defect will be reimbursed at the Dealer s cost plus the applicable parts mark-up. Preparation and Reimbursement Procedures section. iclaim iclaim subscribers may use the system to submit all recall campaign claims that meet the other restrictions for iclaim claims. DO NOT RETURN the Authorization for Recall Service card if a Claim is filed. Every effort should be made by the Dealer to submit AFC/Recall claims as soon as possible to ensure proper credit and eliminate duplicate repairs. iclaim Submissions (CUSTOMER REIMBURSEMENT) iclaim subscribers may use the system to submit customer reimbursement claims for pre-recall repairs covering parts and labor costs. The parts and labor amount should be listed under OTHER CHARGES and be described as Customer Reimbursement. A copy of the customer invoice detailing these charges along with proof of payment (cancelled check, copy of money order or paid receipt) must be retained at the Dealer location, as backup, in the event it is requested for documentation.

112 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page REPAIRS MADE WITHOUT AUTHORIZATION FOR RECALL SERVICE CARD There may be instances when a customer brings their vehicle to a Dealer/Service Location without the Authorization for Recall Service card, or owner notification letter. In this instance, the Dealer/ Service Location should: Check the vehicle for a CTS-1075, Campaign Identification Label. If the unit is identified with a label for the specific campaign requested, it does not require rework. Make sure the vehicle complies with build date, model, and involved components of suspect vehicles as listed in the applicable Recall Letter. If you are reasonably sure the unit is suspect, but cannot verify, an electronic ISIS Home Page Inquiry should be made by the Dealer to verify completion status RECORD KEEPING It is imperative for Dealers/Service Locations to maintain complete records of Safety Recalls. For each Recall and Field campaign establish and maintain for five (5) years a complete file of information. Be sure to record every contact with and comments from owners telephone calls, mailings, in-person contacts, etc. Document the complete recall file containing all printouts and recall activity. Provide for prompt retrieval of completion records (Repair Order). Document (copy) all completed Recall Service cards, BH-290, U.S. when checking a disposition box. Note: This card is not used with electronically submitted warranty claims using the online iclaim system FIELD SERVICE RESPONSIBILITY It is the responsibility of the Field Service representative to ensure the Distributor/Service Location promptly responds to all recalls and that appropriate records are maintained. The Field Service representative may also assist in locating customers/owners, and providing technical assistance as required.

113 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page 6 Sample of Authorization for Recall Service cards Sample of Authorization for Authorized Field Change cards

114 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page RECALL SERVICE LETTER EXAMPLE This is an example of the first page of a typical dealer letter. SERVICE PROCEDURE G DECEMBER 2008 SUBJECT: SAFETY RECALL (U.S.) FRONT AXLE BEARINGS on certain 3200, 4100, 4300, 4400 truck models and HC commercial bus models built 8/18/08 thru 10/20/08 and equipped with an 8000 lbs or 12,000 lbs front axle. DEFECT DESCRIPTION The front axle bearings may not have been sufficiently lubricated during assembly. Inadequate bearing lubrication may cause bearing seizing. A seized bearing on a front axle may result in a vehicle crash possibly causing property damage, personal injury, or death. MODELS INVOLVED This Safety Recall involves certain 3200, 4100, 4300, 4400 truck models and HC commercial bus models built 8/18/08 thru 10/20/08 and equipped with an 8000 lbs or 12,000 lbs front axle. PARTS INFORMATION Parts that WILL BE required. o 8000 lbs front axles (F08 wheel end) Part Number Part Description Quantity C1 Hub Cap Gasket Cotter Pin 2 o 12,000 lbs front axles (F12 wheel end)

115 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page 8 Part Number Part Description Quantity C1 Hub Cap Gasket Cotter Pin 2 Parts that MAY BE required. o 8000 lbs front axles (F08 wheel end) Part Number Part Description Quantity CR28758 Hub Seal 2 FPJM Inner Bearing Cup 1 FP25820 Outer Bearing Cup C91 Inner Bearing Cone C91 Outer Bearing Cone 1 o 12,000 lbs front axles (F12 wheel end) Part Number Part Description Quantity CR35066 Hub Seal 2 FPHM Inner Bearing Cup 1 FP3720 Outer Bearing Cup C91 Inner Bearing Cone C91 Outer Bearing Cone 1 SERVICE PROCEDURE WARNING! TO PREVENT UNEXPECED MOVEMENT OF THE VEHICLE AND POSSIBLE SERIOUS PERSONAL INJURY OR DEATH, BLOCK THE WHEELS TO PREVENT THE VEHICLE FROM MOVING IN BOTH DIRECTIONS. WARNING! TO PREVENT SERIOUS EYE INJURY, ALWAYS WEAR SAFE EYE PROTECTION WHEN PERFORMING VEHICLE MAINTENANCE OR SERVICE.

116 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page 9 1. Park the vehicle on a hard level surface; set the parking brake; turn the engine off; block the wheels to prevent the vehicle from moving in either the forward or rear direction; and put the front axle on floor stands such that the front tires do not touch the floor. 2. The following instructions should be followed on each front axle wheel end. 3. Place a support under the tire to prevent cocking of the hub when the outer bearing is removed. Disassemble hub cap, cotter pin, retaining nut, and outer bearing from the front hub assembly. Discard the hub cap gasket and cotter pin. 4. Inspect the outer bearing and hub cavity. The bearing should be fully packed with grease and the cavity completely filled with grease all the way around. o If the bearing/cavity is fully packed/filled with grease, reassemble the hub using a new hub cap seal and cotter pin. Do not install the cotter pin. Skip to step 11. o If the bearing/cavity is not fully packed/filled with grease, continue with step Remove the hub assembly from the front axle wheel end. Remove the hub seal and inner bearing. Discard the hub seal. 6. Thoroughly clean all front wheel hub assembly parts. 7. Visually inspect all front wheel hub assembly parts and the spindle for spalling, gouging, abnormal wear, heat damage, or other defect. Pay particular attention to the roller bearings and bearing cups in the hub. 8. Discard and replace any defective material. Obtain a new hub cap gasket, cotter pin, and hub seal. 9. Install the hub seal and reassemble the front wheel hub assembly on the axle except for the cotter pin. Take care to thoroughly pack the bearings and hub cavity with grease. Do not install the brake drum or wheel. 10. Seat the bearings to insure maximum service reliability. Tighten the bearing adjustment nut to 200 ft-lbs (271 N-m) while rotating the hub. Back off the adjusting nut ½ turn. Install the brake drum and wheel. 11. Torque the adjustment nut to 50 ft-lbs while rotating the wheel. Back off the adjustment nut 1/8 turn.

117 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page Use a dial indicator to measure hub end play with respect to the spindle. Mount a dial indicator at the bottom of the wheel. Grasp the tire at 3 o clock and 9 o clock position. First push, then pull evenly on the tire to measure the amount of end play. Note the total indicator reading. 13. Tighten or loosen the adjustment nut accordingly until the total bearing end play is to inch ( to mm). 14. Install the cotter pin. Backing off adjustment nut slightly for pin to hole alignment is permissible. 15. Install hub cap, gasket, and bolts. Tighten bolts to 16 to 20 lb-ft (13.5 to 27 N-m). 16. Tighten wheel nuts to specification and readjust front axle slack adjusters if truck is equipped with air brakes. 17. Remove vehicle from floor stands.

118 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page 11 END OF SERVICE PROCEDURE LABOR INFORMATION Operation Number Description Time A Inspection Only 0.6 A Inspection & Bearing R&R 1.6 CAMPAIGN IDENTIFICATION LABEL Each vehicle corrected in accordance with this campaign must be marked with a CTS-1075 Campaign Identification Label. Complete the label and attach on a clean surface next to the vehicle identification number (VIN) plate. ADMINSTRATIVE/DEALER RESPONSIBILITIES UNITED STATES AND POSSESSIONS The National Traffic and Motor Vehicle Safety Act, as amended, provides that each vehicle that is subject to a vehicle recall campaign must be adequately repaired within a reasonable time after the owner has tendered it for repair. A failure to adequately repair within 60 days after a tender of a vehicle is prima facie evidence of failure to repair within a reasonable time. If the condition is not adequately repaired within 60 days, the owner may be entitled to replacement

119 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page 12 with an identical or reasonable equivalent vehicle at no charge, or to a refund of the purchase price less a reasonable allowance for depreciation. Dealers must correct all vehicles subject to this campaign at no charge to the owner, regardless of mileage, age of vehicle, or ownership, from this time forward. Dealers should proceed immediately to make necessary correction to units in inventory. All inventory vehicles subject to this recall campaign must be corrected prior to sale, transfer or delivery. If vehicles have been sold or transferred and you are in receipt of Customer Notification Letters and Authorization for Recall Service cards for those vehicles, the transfer location or customer must be notified immediately from your dealer location. Dealers must make every effort to promptly schedule an appointment with each owner to repair his or her vehicle as soon as possible. However, consistent with the customer notification, dealers are expected to complete the repairs on the mutually agreed upon service date. Dealers involved in the recall process will be furnished a listing of owner names and addresses to enable them to follow up with owners and have the vehicles corrected. Use of this listing must be limited to this campaign because the list may contain information obtained from state motor vehicle registration records and the use of such motor vehicle registration data for purposes other than this campaign is a violation of law in several states. WARRANTY CLAIMS Refer to Dealer Warranty Manual for procedures to conduct Recall Campaigns. It is important that the Recall Coding be completed properly to assist in processing the warranty claim. Complete instructions will be found in the Warranty Manual, Section 7-1. Special attention should be given to Items 39 through 44:

120 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page 13

121 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page 14 EXPORT Export Distributors should proceed immediately to make necessary correction to units in inventory. All inventory vehicles subject to this recall campaign must be corrected prior to sale, transfer or delivery. If vehicles have been sold or transferred and you are in receipt of Customer Notification Letters and Authorization for Recall Service cards for those vehicles, the transfer location or customer must be notified immediately from your distributor location. Export Distributors are to submit warranty claims in the usual manner making reference to this recall number. Export Distributors are expected to provide full cooperation and follow-up with respect to this important subject matter. If you have any questions or need further assistance, please contact the Regional Service Manager at your regional office.

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123 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page AUTHORIZED FIELD CHANGE An Authorized Field Change (AFC) is a Field Campaign designed to implement product improvements that are not safety related on a customer s vehicles that will maintain the best interest of both the customer and the Company. However, the main objective is to eliminate any condition as quickly as possible, with minimum disruption to the customer. AFC s are to be completed within one year from the date of issue. The AFC notification letter contains an expiration date, if the AFC is not completed by this date the iclaim system will automatically mark the required AFC with an X on the iclaim and ISIS Home Page vehicle inquiry screens. In certain cases, AFC s may be extended beyond one year. In this case, the X will appear in iclaim beyond the end of the expiration period DEALER/SERVICE LOCATION RESPONSIBILITY The Distributor/Service Location has the responsibility to contact the owners of the affected vehicles and advise them of the AFC. The Distributor will receive copies of the AFC letter with a list of vehicles needing work, the inspection and repair procedure to be followed, and the reimbursement rate. The Dealer should immediately Review the service letter for special ordering instructions to determine parts requirements. Place the initial parts order promptly to have parts available when vehicles are brought in for repair. Note the disposition of removed parts in the AFC letter Notification Mailings AFC campaigns can be conducted with or without customer notification. As a rule customers should be notified one week, after the Dealer has been notified. The Dealer is to discard the address card attached to the customer letter, and contact the customer to schedule work on the vehicle Reimbursement Claims for reimbursement can be made through the iclaim system. The vehicle mileage is required for each repair, as is the warranty claim submission on AFC s FIELD SERVICE RESPONSIBILITY To minimize customer concerns and warranty expense, the Regional Field Service representative will ensure prompt response by the Dealer to all AFC s. The representative can also assist in locating customers, and help provide technical assistance as needed. Because of possible owner dissatisfaction, AFC inspections and corrections should be finished as quickly as possible.

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125 Recalls, Authorized Field Changes, and Field Tests Section 5 / Page FIELD TESTS From time to time, International conducts field tests on selected components and/or vehicles in order to develop a better product for its customers. Before any repair work can be performed on field test vehicles, prior approval must be obtained from the Regional Technical Service Manager (TSM) or Fleet Service Manager (FSM) EXPENSE REIMBURSEMENT Expense for work done on field test units will be handled through the normal warranty system with the following requirements: the words Field Test and the field test number must be identified utilizing the Claim Additional Comments section in iclaim the Regional Service Manager and/or Technical Service Manager will have approved such testing All supporting documentation has been received by the Regional Service office.

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127 Service Contracts Section 6 / Page 1 6 TABLE OF CONTENTS TABLE OF CONTENTS WHEN TO PURCHASE COVERAGE HOW TO REGISTER COVERAGE HOW TO TRANSFER COVERAGE PERFORMING COVERED REPAIRS REIMBURSEMENT FOR REPAIRS CUSTOM SERVICE CONTRACT PROPOSAL RETAIL PRICE WHAT TO DO WHEN YOU SELL THE COVERAGE HOW TO ACTIVATE THE COVERAGE EARLY CONTRACT TERMINATION SALES PROGRAM PROCESS REQUEST FOR CUSTOM SERVICE CONTRACT QUOTE SERVICE CONTRACT TRANSFER REQUEST... 8

128 Service Contracts Section 6 / Page SERVICE CONTRACT ADMINISTRATIVE PROCEDURES WHEN TO PURCHASE COVERAGE Published and custom service contracts are available for a fee. These service contracts must be purchased at the time of new vehicle sale or within six (6) months of the initial date of delivery to the first purchaser/user. Service contracts can also be purchased from 181 days through 365 days from the initial date of delivery to the first purchaser/user for an additional fee. Published service contracts are available via the Service Contract website located in ISIS. Current price pages at time of sale of extended warranty must be used. Note: All Service Contracts are published at retail price. The link to the Service Contract website is as follows: Select the Standard Price Pages from the Pricing drop down menu to view published service contracts and pricing. When the published coverage does not fit your needs, you may obtain a price quotation from the Service Contract Center (SCC) for custom coverage. There are four options for submitting a custom quote request; submitting online, ing, faxing and mailing. Please complete the entire form entitled Request For Custom Service Contract Quote (see sample form under subheading of this section). If faxing, fax the completed form to (260) If ing, send the request to servicecontracts@navistar.com and if submitting online use the following link: Service Contracts will not be available for vehicles that are not owned by the original purchaser or vehicles that have accumulated more than 100,000 miles (160,000 km)/ or 3600 hrs or are past 365 days from DTU. Upon receipt, a price quotation will be developed and a custom service contract proposal will be returned to you via either fax or within 24 hours. Note: If the request for custom service contract quote form has not been completely filled out or is missing information, this will delay the processing and possibly cause the request to be returned for additional information, If you are requesting to have a price locked in for a period of time, please note this on the request prior to submittal. This will be reviewed, and confirmed as to eligibility. Service contracts purchased at time of sale for incomplete vehicles undergoing further manufacture are transferable to the final end user provided that the original purchaser requests a DTU date and/or vehicle owner name change as detailed in Section Required transfer information includes; Customer name and complete mailing address Complete 17 digit Vehicle Identification Number (VIN) Service Contract number being changed Delivery to User (DTU) date to end user

129 Service Contracts Section 6 / Page HOW TO REGISTER COVERAGE The correct CTS form to use for policy registration is listed in the appropriate section of the Service Contract price pages. The current version of all CTS forms is available for printing or downloading at the Service Contract website. Select Forms from the drop down menu and select extended warranty forms to view published extended warranty forms All published and custom service contract registration forms must be filled out completely prior to submitting for processing. This includes, contract number, months, miles and hours, if applicable. Include SPA #, if applicable, at top of form. The selling Dealer designate must sign and date the forms. Completed forms are to be mailed or faxed to: Navistar, Inc Service Contract Center P.O. Box Fort Wayne, IN Re: Service Contract Registration Fax: All published and custom service contracts will be validated and registered by the Service Contract Center (SCC) within 30 days. The Dealer net cost of the contract will be debited to the Dealer s open account and will appear on the monthly statement as recurring journal entry number. If any questions arise regarding service contract registration or charges, call the Service Contract Center option HOW TO TRANSFER COVERAGE Coverage remaining in any published service contract issued at time of sale to the first purchaser/user may be transferred to a subsequent purchaser/user only at the time of sale for a fee of $100 per vehicle. Similarly, some custom service contracts may qualify for transfer, depending on the verbiage in the contract. Please contact the Service Contract Center for transferability. To transfer coverage remaining on any published or qualified custom service contract, the Dealer must prepare a Service Contract Transfer Request form (see sample form under subheading of this section) and either mail, to servicecontracts@navistar.com or fax (260) the completed form to the Service Contract Center (SCC). A new contract will be developed

130 Service Contracts Section 6 / Page 4 with updated customer name and address and sent to the Dealer. The Dealer is responsible for delivery of the new contract to the new customer. This Service Contract Transfer form is available via the service contract website in the forms library. This link is as follows: PERFORMING COVERED REPAIRS Prior to performing service contract covered repairs on a vehicle, the servicing location must verify questions regarding service contract coverage in several ways. Individual service contract coverage information may be found at: ISIS>Service Contracts>Service Contract Policy Coverage. Enter the policy number into the blank field. The drop down fields will display covered groups & nouns for the individual contract. iclaim > Inquiries>Service Contract information ISIS>Chassis Number>Service Contract>View Policy Lastly, you can call the Warranty Administration Group (WAG) between the hours of 7:30 A.M. and 4:30 P.M. CST, Monday through Friday at Remember service contract coverage is based on the individual failed causal part. The failures causal part # group noun must be listed on the service contract for coverage to apply. At the present time, most contracts are available for display. Prior verification of coverage allows servicing locations to perform service contract repairs with the confidence that the causal failed part is covered under the contract REIMBURSEMENT FOR REPAIRS Reimbursement for repairs performed that are covered by a service contract must be performed at a Navistar authorized repair facility. Once repairs are completed submit a service contract claim through iclaim. as described in section 7 of this manual. Submit the claim as Warranty Code 39 and ensure the service contract number appears in the field marked Service Contract Number. 'The WAG will be unable to process any service contract claim without the proper service contract number.

131 Service Contracts Section 6 / Page CUSTOM SERVICE CONTRACT PROPOSAL Retail Price When you receive the printed copy of a Custom Service Contract Proposal, it will show retail price. This has been done to make it more convenient if you wish to show the proposal to the customer. The Dealer net price is 50% of the listed retail price. Each Custom Service Contract Proposal is valid until 60 days after documentation of the vehicle(s) delivery to the customer. For future deliveries to the same customer, prices are not automatically extended. Check with the Service Contract Center (SCC) as to whether the prior price is still valid What To Do When You Sell The Coverage Check the name of the customer on the proposal to make sure it is spelled correctly and is, in fact, the right name. At the bottom of the form, see example below, you only need to date it, sign it, and fill in the exact number of contracts required. If you already know the VIN(s), please supply them. Fax the signed proposal to Service Contract Center. The contract will be sent to you within thirty (30) days. If the contract is needed by a specific date, just write a needed by date across the top of the form. If you prefer to return the form by mail, the address is at the bottom of the proposal How To Activate The Coverage When the custom service contract is returned to you, complete the registration form as soon as the vehicle is DTU d. The number to be inserted in the Service Contract Number space is supplied in the cover letter. Make two (2) copies. Keep one (1) copy for your file and mail one (1) copy to the address supplied in the cover letter. This is extremely important. If it is not done, the customer s vehicle cannot be registered for the coverage. Give the original policy to the customer. DO NOT send the original to us. A copy should be mailed to us as soon as possible after delivery of the truck. Upon receipt, of the completed Service Contract registration form, the vehicle will be registered for the coverage and your Dealer account will be debited for the cost of the coverage within 30 days. At no time should you send a check. All transactions are completed by journal entry. Failure to submit your Service Contract registration form prior to a failure could result in the dealership being responsible for the repair Early Contract Termination Early termination of a contract will only be approved for units that have been stolen, scrapped or totaled. In this case, a document stating proof of loss along with a written request is required. At that time, the refund will be prorated based on the time already in service.

132 Service Contracts Section 6 / Page Sales Program Process Follow instructions provided on G-Letter. After 30 days from DTU, if the sales program has not been applied you may contact the Sale Program Administration Manager (630) for status. If upgrading from an existing sales program use the custom quote request to request this upgrade. Please note program number on the request.

133 Service Contracts Section 6 / Page REQUEST FOR CUSTOM SERVICE CONTRACT QUOTE

134 Service Contracts Section 6 / Page SERVICE CONTRACT TRANSFER REQUEST

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136 Warranty Processing Section 7 / Page 1 7 TABLE OF CONTENTS TABLE OF CONTENTS GENERAL CLAIM INFORMATION ICLAIM ONLINE CLAIM SUBMISSION ISIS (INTERNATIONAL SERVICE INFORMATION SYSTEM) TRUCK SERVICE CLAIM PREPARATION CLAIM PREPARATION SIGNATURE REQUIREMENTS: BEFORE THE REPAIRS ARE STARTED ADD-ON/ADDITIONAL REPAIRS SIGNATURE REQUIREMENTS: AFTER THE REPAIRS ARE COMPLETED CLAIM PROCESSED OR RETURNED BY REGION WARRANTY CLAIM ADJUSTMENT / CORRECTION CODES CLAIM INQUIRIES FLEETRITE AND NAVISTAR BATTERY CLAIMS DISTRIBUTOR REQUEST FOR PARTS WARRANTY REIMBURSEMENT DTU PREPARATION PROCEDURES CLAIMS PENDING INVOICING INSTRUCTIONS RETURNED PARTS AND/OR MACHINES REIMBURSEMENT POLICY R-5180, WARRANTY CREDIT INVOICE SUMMARY R-5185, PARTS DISPOSITION AUTHORIZATION (PDA) R-5132, WARRANTY CREDIT INVOICE WARRANTY RECORD RETENTION WARRANTY RECORD RETENTION DOCUMENT RETRIEVAL APPEALS ON DENIED CLAIMS CLAIM APPEALS PROCESS STEPS REQUIRED TO APPEAL A CLAIM: ISIS CLAIM APPEALS FORM WARRANTY CLAIM POLICIES... 27

137 Warranty Processing Section 7 / Page RECORD RETENTION LABOR RATE CHANGE REQUESTS APPROVED LABOR RATE APPROVED NON-US LABOR RATE CHANGE (USE THE FORM IN ) DEALER LABOR RATE CHANGE REQUEST FORM (NON-US)... 29

138 Warranty Processing Section 7 / Page GENERAL CLAIM INFORMATION To apply for reimbursement for repairs or replacement of parts covered under the provisions of the International warranty, one of the claims described below must be submitted for the type of failure indicated. Additionally: PARTS must be listed at Dealer net price. LABOR must be charged at the approved warranty rate. NOTE: Labor allowance credit will not include premium or overtime labor costs, hauling expense, distance traveled charges or travel time. Claims must be submitted within 30 days of the service completion date. All other provisions pertaining to the applicable Sales and Service Agreement will apply when allowing compensation for warranty service ICLAIM Online Claim Submission iclaim is not just a method to reduce administrative costs, but a system that can save time and reduce errors that help lessen warranty repair costs. For this larger purpose, it is essential that the dealership and TSM or FSM maintain a good working relationship, and that the TSM or FSM identify proficient repair strategies. All Dealers submitting warranty must use iclaim to submit all claims to Navistar. In some exceptional cases, the region may also accept paper claims. Paper/iClaim claims can be submitted without prior TSM or FSM review, provided that each claim meets the following criteria: TSM or FSM has allowed for claim submissions to be processed without their prior approval. Reimbursement is covered under the Basic Warranty, Service Contract, Loss and Damage, or Service Parts coverage (Warranty Code 01, 03, 38, 39, 40, 55, or 59). Completed in-warranty claims formerly placed in TSM/FSM HOLD will be submitted with other claims that require no prior TSM or FSM approval Some restrictions apply, as follows: Beyond Warranty Policy Claims (Warranty Codes 98, 02, and approved overage submissions) do require prior approval and TSM or FSM release. Continue to submit these claims directly to the TSM/FSM for review. Complete Component Replacement, as described in Section 5.00 of this manual, does require prior approval. All failed warranty parts must be held at the dealership until claims are paid, unless instructed by the region to hold for review, or for shipment to the regional office for inspection ISIS (INTERNATIONAL SERVICE INFORMATION SYSTEM) Each Dealer should have access to ISIS, Internationals service information system. The ISIS Home Page provides you with the information you need to immediately service your customers. It contains links to: Master Service Manual s, warranty coverage, technical letters, service tools, standard repair time procedures, and supplier links. ISIS Home Page also includes a vehicle

139 Warranty Processing Section 7 / Page 4 information section, which provides service department staff with one, easy-to-use location for: DTU data, AFC s/recalls, warranty history, and service contracts. NOTE: This system should be available at the write-up desk to enable full customer / Dealer benefits.

140 Warranty Processing Section 7 / Page TRUCK SERVICE CLAIM PREPARATION When applying for reimbursement under the applicable vehicle warranty use the online warranty application called iclaim, as outlined in this section. NOTE: Labor allowance credit will not include premium or overtime labor costs, hauling expense, distance traveled charge or travel time. No compensation will be made to the Dealer unless a claim is submitted within 30 days of the warranty service repair completion date. All other provisions pertaining to the applicable Sales and Service Agreement will apply when allowing compensation for warranty service. (For instructions regarding how to submit electronic claims on the iclaim system, refer to the, iclaim Users Guide in appendix X of this manual.) CLAIM PREPARATION When submitting claims, Dealers must be able to substantiate failures in an amount above $ (U.S. dollars)/or other amount specified by the Region. Claims requiring supporting documentation will need attachments ed or faxed to the Regional office for review. Supporting documents include clear photographs of the failed parts showing the area of defect and correspondent diagnostic information not enterable via iclaim. This policy pertains to all failed parts including those which have been visually inspected by your TSM or Regional Service Manager. Requests for reimbursement for adjustments under the Standard Vehicle or Parts Warranty, Distributors will complete a Distributor Request for Reimbursement on Truck Service Order Form CTS-1013 or other comparable regional document. NOTE: Labor allowance credit will not include premium or overtime labor costs, hauling expense, distance travel charge or travel time. No compensation will be made to the Distributor unless a written claim is submitted to the District or Region Service Manager within 30 days of the date the Distributor furnished warranty service. All other provisions pertaining to the applicable Sales and Service Agreement will apply when allowing compensation for warranty service. Claim Submission The filing, processing and approval of claims represent a financial transaction involving a request for money. It is important that sound business principles dictate and those requirements are followed before requests for reimbursement can be reviewed and approved. Warranty administrators at the dealership are expected to complete the required training offered by Navistar on warranty administration and the system for processing warranty claims. All Navistar dealers are required to submit warranty claims using the online claim submission system (iclaim) unless otherwise authorized by their Regional Service Manager.

141 Warranty Processing Section 7 / Page 6 NOTES ON CLAIM SUBMISSION 1. Claims must be filled out correctly using iclaim. Dealers must input accurate diagnostic information, serial numbers, etc. as outlined in the iclaim User Guide (attached in the appendix of this manual) and in the iclaim online course SM0714. All Warranty claims must be submitted in iclaim within a reasonable period after the repairs have been completed. 2. After the warranty claims are submitted by the dealer, the TSM or RSM will review the submissions and either approve or deny the claim. Approved claims will be sent for payment and the credited amount will appear on the dealer open account statement Signature Requirements: Before the repairs are started Whether using a Repair Order form (CTS-1013) to write-up your claim, or comparable electronic version provided by your (Business Management System) the customers signature must be obtained before for the work requested is started. In the event your customer has dropped off their truck for service after hours, the Service Manager/Advisor must call the customer for repair authorization. The Service Manager/Advisor should note the time of the phone call and the name of the person who authorized the repairs to the truck.

142 Warranty Processing Section 7 / Page ADD-ON/ADDITIONAL REPAIRS After the initial repairs have been authorized, the service manager and customer must authorize any additional repairs that are required, which were not included when the customer originally signed the Repair Order before starting the additional repairs. If additional repair sections are added you must still retain the original hard card containing the customer s signature Signature Requirements: After the repairs are completed After repairs have been completed, before releasing the truck to the customer you need to again have the customer or his representative sign your Repair Order to acknowledge the repairs have been completed satisfactorily Prior to submission, all claims submitted to Navistar, Inc. for payment must be reviewed and signed by the Dealer Principal or Service Manager. A written copy of this authorization to submit claims should be kept on record at the dealership and must be available for review by Company personnel. In some instances, Navistar Inc. may rescind the Dealer Principal s ability to delegate this responsibility and require his/her personal review and authorization of every claim submitted to Navistar for payment. IMPORTANT: Regardless of repair order type used, the authorized signature is based on knowledge and compliance with the following statement: I certify that the information on this claim is accurate and, unless shown, the services were performed at no charge to the owner. To my knowledge, this claim contains no parts repaired or replaced that are connected in any way with any accident, negligence, or abuse.

143 Warranty Processing Section 7 / Page CLAIM PROCESSED OR RETURNED BY REGION Warranty claims may be returned by the TSM/RSM for correction, additional information, or because the request for reimbursement has been denied. The reason for the return of any claim may be communicated by the TSM/RSM to the dealer by telephone, written communication or in-person visit. A. CLAIM RETURNED CODES If the claim was returned to the Distributor for correction of additional information, it should be corrected or completed and resubmitted by the Distributor within 30 days from the date of return. B. CLAIM DENIED CODES If the claim request for reimbursement was denied in part or whole, it cannot be resubmitted. However, if the Distributor feels he can substantiate a reconsideration of a denied claim, then a new claim must be submitted further explaining the denied repair work. (A copy of the rejected claim along with proper documentation) must accompany the new submission to the TSM or RSM. If, after following this procedure, the claim is again denied, no further consideration will be given. C. CLAIM CHANGED CODES If the claim was approved but changed as shown by one of the codes on the warranty history section in ISIS then no further resubmission of that claim is required by the Distributor.

144 Warranty Processing Section 7 / Page WARRANTY CLAIM ADJUSTMENT / CORRECTION CODES AA Excessive Time Or Overlap AB Flat Rate Operation AD Incorrect Labor Rate AE Parts Priced Incorrectly AF Core Charge Not Applicable Or Allowed Part Not Requested AG Incorrect Part Number Used AH Other Charges Not Allowed AO Paid / Repaid In Different Section AP Internal Audit By International AR Progressive Damage Not Covered By Parts Warranty AT CSE Requested Adjustment AW Claim Adjusted WAG Error / Internal Audit AZ Other Adjustment CA Parts Not Received CB Parts Tested Serviceable CC Customer Responsibility CD Improper Servicing Or Repairs (Contamination / Lube, Etc.) CE Insufficient Maintenance CF Parts Do Not Support Claim CG Parts Returned Damaged / Disassembled CH Not Warranty File w/parts Distribution Center (PDC) / Carrier / Supplier CI Unable To Test Parts Wires Cut, Mutilated, Etc. CJ Repeat Repair / Duplicate See Claim Number CK Should Have Repaired Rather Than Replaced CL Core Not Allowed CM Not International Parts CZ Other Chargeback Reason DA Out Of Warranty DB Not Warranty / Customer Responsibility DC Vehicle Modification DD DE DF DG DK DS DT DZ FM IF RA RB RI RJ RK RL RM RN RO RP RQ RR RT RU RV RW RZ SA Vendor Responsibility Component Not Factory Installed Pre-Delivery Responsibility Parts Do Not Apply To Failure Recall / Authorized Field Change (AFC) Already Performed Less Than Single Repair Minimal Dollar Coverage Shown In Service Contract Storage Related Failures Not Warranty Other Reason For Denial Authorized Fleet Maintenance (99008S) Incoming Freight Vehicle Identification Number (VIN) Incorrect Or Missing Distance Traveled Incorrect Or Missing Damages Or Shortages Not On Carrier Freight Bill More Than One Vehicle Identification (VIN) On Claim Not Legible Prior Approval Not Attached More Than One Failure In A Section Insufficient Failure Or Repair Information Vehicle Not Built To Order File With Customer Response Center (CRC) Failed Component Serial Number Required Distance Traveled Rollback No Supporting Documents Freight Bill, O/C Invoice, 55 Backup, Etc. DTU Date Missing Or Incorrect Duplicate Claim Service Contract Not Registered No Service Contract Authorization Number Other Reason For Reject Invalid Part Number Provide Correct Number Or O/C Invoice SB Invalid Causal Part Number TC Tow Charges Paid Warranty Claim

145 Warranty Processing Section 7 / Page CLAIM INQUIRIES All claim Inquiries must be sent to the TSM or Region Service Manager with a letter or memo explaining what is wrong. Inquiries must include a copy of the claim, credit invoice, supporting documents, etc. Distributor account number should be included. All claim inquiries for claims that have not been settled within a 90 day period must be directed to your Regional Office. Any claim inquiry that exceeds a six month business period from the date of completion of repair will not be considered. 7.2 FLEETRITE AND NAVISTAR BATTERY CLAIMS All Truck Group battery claims are to be submitted to the District or RSM. Battery claims are to be filed using iclaim and must be submitted within thirty (30) days. The warranty label insert must be removed from the tailed battery and attached to the Request for Reimbursement. Battery claims will not be allowed it the warranty label insert is not attached. (Fax copies/ ) It is the Distributor s responsibility to perform tests as outlined in the Battery Service Handbook, Form No OR1, to assure that the tailed battery is non-functional and qualifies for a warranty adjustment. The District or Regional Service Manager must review claims and submit same to the Warranty Processing Center. Failed batteries must be retained by the Distributor until the District or Regional Service Manager has reviewed the claim and notified the Distributor to scrap failed batteries. Batteries that fail during the limited warranty period should be replaced at no charge to the customer. Nocharge replacements can be made only when time or distance traveled limits of the warranty have not been exceeded. 7.3 DISTRIBUTOR REQUEST FOR PARTS WARRANTY REIMBURSEMENT A. WARRANTED IDENTIFIED COMPONENTS INSTALLED BY CONTRACTED INTERNATIONAL VEHICLE DISTRIBUTORS If an identified component is installed by a Distributor and that component fails within the warranty period, the cost of parts and labor necessary to repair or replace that component will be reimbursed. Claims to recover labor and parts expense to repair or replace components are to be submitted on a warranty claim in the regular manner. These claims must have a copy of the original installation document attached. Labor is not allowable on service parts items not classed as identified components or engines. Labor amounts allowed for repairing or replacing an identified component installed in a competitive-make vehicle shall not exceed the amount that would have been allowed had the identified component been Installed in an International vehicle.

146 Warranty Processing Section 7 / Page 11 B. WARRANTED PARTS SOLD OVER THE COUNTER In the event a qualified service part or identified component is returned to the Distributor as defective, the Distributor should obtain a copy of the original sales document and determine if the failure was caused by defective material rather than by customer workmanship, abuse or negligence, then replace or repair the part or identified component for the customer. Repair costs are not to exceed 50% of Navistar s current net export price for that item. Labor to replace over the counter components is not reimbursable. 7.4 DTU PREPARATION PROCEDURES In order to inform Navistar of the Deliver To User (DTU) date which will be the Warranty Period starting date Distributor must fill out the Customer Update form in ISIS located in the Write up menu 7.5 CLAIMS PENDING Failed Material must be retained by the Distributor pending finalization of claims and receipt or R MATERIAL RETURN AND REQUEST FOR RETURN GOODS Should the TSM or Region request return of tailed goods, the following instructions apply.

147 Warranty Processing Section 7 / Page 12 Failed material is to be cleaned suitable for inspection, packed carefully to avoid further damage and returned to designated address ONLY upon authorization by your Region. All renewed or remanufactured parts which tail under warranty and are requested for return to the Navistar Product Review Center in Fort Wayne, Indiana, must be returned with a core tag included with the part(s). The warranty parts disposition notice will continue to be provided on the Warranty Credit Invoice (R-5132). A copy of the R-5132 invoice and a copy of the claim must be included with the part, when shipped. Where applicable, credit due by core to parts will be credited by the TSM directly to the dealer account or by warranty claim as required and the TSM will determine how to process the claim. PARTS WILL NOT BE RETURNED. Please review this policy with the appropriate personnel responsible or returning warranty failed materials. For your reference, the following suppliers typically require core process (and/or forms) to be included with the core: R.H. Sheppard Springfield Remanufacturing Champion Parts Rockwell Reman Eaton Reman Dana/Spicer Reman Franklin Power Products Fuller (Pro Built) Note: Non-Warranty Parts returned only for core credit should continue to be returned DIRECTLY through the parts process. The core credits for Non-Warranty Parts will be issued by the parts group per the existing practice. All hazardous and/or flammable materials have been excluded from the warranty return listing for return to the Product Review Center at Fort Wayne. Indiana. In the unlikely event that a Warranty Credit Invoice (R-51 32) erroneously requires subject material to be returned DO NOT RETURN SCRAP LOCALLY. Associated claim(s) will not be charged back for failure to return to the Product Review Center. If a specific situation arises, the TSM should be notified. Those materials include but are not limited to) the following items: Batteries, Tires, Paint, All Flammable Fluids and Lubricants, Anti-Freeze, Fire Extinguishers, Flares, Gasket Remover Solvents, Freon, Acids, and All Aerosol Products. Also, DO NOT RETURN any Fuel Tanks (gas or diesel) that have been installed in a vehicle. Remove fuel tank metal identification tag from the tank and only return the tag, the associated R-5132 and the claim, to PRC. Local statutory requirements may prohibit the transportation of the subject materials associated with some warranty failed parts. Improper labeling and shipping of the above types of materials may cause health and fire hazards to personnel required to handle and transport those materials. Long-term environmental damages could also result from the unknowing transportation of these materials. As a result, the initial shipping location may be subject to receiving substantial fines from various governmental agencies for mislabeling hazardous and/or flammable material as USED AUTO PARTS.

148 Warranty Processing Section 7 / Page 13 Failure to comply with the statutory requirements can result in a loss of warranty credit to offset local hazardous material disposal costs incurred by the Product Review Center. Return of failed material must be made in the most economical manner. All bills of lading must be labeled Old Used Auto Parts Having Salvage Value Only to take advantage of the lower freight rate. Shipment must be made by the most economical method. ALL SUCH SHIPMENTS MUST BE PREPAID To FINAL DESTINATION IMPORT INSTRUCTIONS FOR RETURN GOODS FROM OFFSHORE LOCATIONS In order to expedite return of material tome various Navistar locations in the U.S.A., the mailing of the proper documents to the proper personnel in sufficient quantities is of the utmost importance. The following instructions for proper mailing of the document and preparation of shipment must be followed to eliminate lost material at port of entry or terminals, and avoid unnecessary additional costs in the form of storage and/or demurrage charges or the possibility of a shipment going unclaimed and being sold at Customs Auction. 7.6 INVOICING INSTRUCTIONS RETURNED PARTS AND/OR MACHINES A commercial invoice must be prepared for all shipments being returned to the United States. The commercial invoice should include the following information: 1. Quantity 2. Part Number(s) and/or Component Model Number 3. Description 4. Price 5. Total Value 6. Signature Articles that are of U.S. origin (i.e., were made in the United States) are allowed duty free entry when returned to the U.S.; therefore, such articles must be identified, grouped and subtotaled separately on the invoice. In addition, the following declaration must appear on the invoice when the value of the articles of U.S. origin exceeds $1, (U.S. dollars). declare that to the best of my knowledge and belief, the articles hereon specified are products of the United States; that they were exported from the United States, from the port of * on or about * 20_; that they are returned without having been advanced in value or improved in condition by any process of manufacture or other means. Signature Date

149 Warranty Processing Section 7 / Page 14 All other articles (i.e., those articles made in some country other than the United States) must be identified, grouped and subtotaled separately on the invoice. Please be certain that your invoice clearly indicates that the above mentioned declaration applies only to those articles of U.S. origin. It should be noted that many articles that are shipped (exported) from the U.S. were originally manufactured in a foreign country and imported into the U.S. If such articles are later returned to the U.S., they are again subject to U.S. Custom duty and cannot be returned duty free under the provisions of the above declaration. The mere fact that they were (a) dutiable when first imported, and (b) later exported does not relieve their dutiable status on any subsequent importation. lf unknown insert unknown. SHIPPING INSTRUCTIONS SURFACE ROUTED SHIPMENTS 1. Shipping Marks: (On Each Package) RIG (PRA) S # IMP# 2. A. Shipments Returned From Europe, Middle East, Africa Consign and Mail Documents To: Navistar Inc. c/o Universal Transcontinental Corporation 325 Spring Street New York, New York B. Shipments Returned From Latin America Consign To and Mail Documents To: Navistar Inc N.W. 36th street Miami, Florida C. Shipments Returned From Asia/Pacific Consign To and Mail Documents To: Navistar Inc. 010 Universal Transcontinental Corporation 450 Mission Street ( 20O San Francisco, California Name and Location of Final Destination: See Return Authorization for Final Destination. 4. Documents; No later than 72 hours after date of Ocean Bill of Lading, the following documents must be sent by registered air mail to the address indicated above. A. Ocean Bill of Lading 2 Negotiable Copies 2 Non-Negotiable Copies B. Packing List (3 copies) Indicating:

150 Warranty Processing Section 7 / Page 15 Number and Type of Package. Net and Gross Weight Dimensions and Cubic Dimensions and Cubic Displacement C. Commercial invoice (3 copies) Indicating: Quantities Price Part Number(s) and/or Component Model Number Total Value Description Signature 5. Additional Documents A. One copy of each commercial invoice, air mail to: The destination location. SHIPPING INSTRUCTIONS AIR ROUTED SHIPMENTS 1.Shipping Marks: (On Each Package) RIG (PRA)S # IMP# 2. Consign To: Navistar Inc. c/o Jack Lewin Associates, Inc. O hare International Airport Chicago, Illinois Airway bill must also show name and location of final destination; also person s name (Attention To:) 3. Name and Location of Final Destination See Return Authorization for Final Destination. 4. Documents: Following documents must be affixed to original airway bill and accompany shipment marked for attention: Jack Lewin Associates, Inc. 165 Armstrong Road Des Plaines, Illinois A. Airway Bill 1 Original 1 Copy B. Commercial Invoices (3) Indicating: Quantities. Price Part Number Total Value Description Signature 5. Additional Documents:

151 Warranty Processing Section 7 / Page 16 A. One copy of each commercial invoice, air mail to: Navistar Inc., c/o Warranty Administration Group 4201 Winfield Rd Warrenville, IL 60555

152 Warranty Processing Section 7 / Page REIMBURSEMENT POLICY Freight cost reimbursement will be considered only on the following guidelines: 1. Failed material is in fact attributed to product defect rather than other causes, i.e., shock, abuse, overload, misuse, misapplication, negligence, hazardous conditions, etc.; otherwise, the cost will be that of the Distributor. 2. Prior approval from Regional Service Manager. For reimbursement of freight costs for the contracted Distributor, the prepaid freight receipt must be approved by the RSM/TSM and the exact amount of the reimbursement will be determined by the regional office R-5180, WARRANTY CREDIT INVOICE SUMMARY A-B Int l Trucks Inc Hanover Ave 1 Allentown PA Navistar International al Transportation Company Wty Credit Inv Summary TSR 139 Location R /08/97 Page 1 Claim 5 Invoice 6 Chassis 7 Parts 8 Parts 9 Core 10 Labor 11 Freight 12 Other 13 Outside 14 Total 15 Parts 16 Adj. 17 No. No. Hndlng Chrg Disp Sect. Allow PT SCRAP A H SCRAP AB VC SCRAP A VH SCRAP A TH RETURN A TC SCRAP AB VH RETURN A SH SCRAP A SH SCRAP A TH SCRAP A TC SCRAP A VH SCRAP A TOTAL NUMBER OF CLAIMS: Name and Address of Account 2. Controlling Region Office number 3. Account number 4. Form Identification number 5. Claim number 6. Invoice number, if applicable 7. Chassis # starting with RE indicates a rejected claim, starting with PT indicates a parts claim, and all others are last 8 digits of VIN 8. Total price of all parts credited on claim 9. Parts handling allowance, if applicable 10. Amount of Core, if applicable 11. Total labor credited for claim 12. Total amount of freight credited, if applicable 13. Total other charges credited 14. Outside Charges allowance 15. Across line total for that claim 16. Disposition of parts is listed. The three items are Scrap, Return or Hold 17. Sections that have dollar adjustments 18. Total dollars per Summary Column

153 Warranty Processing Section 7 / Page R-5185, PARTS DISPOSITION AUTHORIZATION (PDA) Example of a Return to Fort Wayne Parts Distribution Authorization - R PARTS DISPO SITION AUTHORIZA TIO N RETURN TO : FORT W A YNE PA GE 2 2 CUSTOMR: EATMORE FRUIT COMPANY A-B INT L TRUCKS IN C. CLAIM: A N SHERMAN STREET HANOVER AVENUE LOCATION; ALLENTO W N PA ALLENTO W N PA BA R COD E: BV W V 7 (Y) RETURN DISALLOW ED VIN: 1HTSCAA L9VH DTU 12/26/96 PARTS PARTS MODEL: FAIL 02/26/97 13 MISC COMP S/N : 15 CREDITED 03/08/97 16 OTHER M ILES: FILM N LA BOR M 18 MARKUP LU BE GROUP NOUN 23 CAUSE TYPE 24 % 25 CAUSAL PART 26 REPL SERIA L NU M BER 27 CORE NHB 169 D 01P 100 TOTAL SENDER, CAM POSITI MAT L DEF 30 UNIT TOWED FOR NO START CONDITION CODE 145 ACTIVE TROUBLE- SHOOT FOUND DEFECTIVE CMP REMOVE AND REPLACE CMP ADJUST PER SERVICE LETTER 31 QTY 32 PART NUMBER 33 DESCRIPTION 34 VENDOR 35 QTY 36 PART NUMBER 37 DESCRIPTION 38 VENDOR C98 TRNSMTR FASCO IND INC C91 PACKAGE ************* RETU RN TO : 40 FORT WAYNE ************** *** THIS IS YOUR AUTHORIZATION TO RETURN ALL PARTS IN THIS SEC. CLEAN & DRAIN MATERIAL BEING RETURNED *** *** EACH ITEM/ MUST BE TAGGED (ATTACH COPY OF PDA FORM R-5185). *** *** M ARK BILL O F LAD IN G U SED A UTO PARTS - SALVA GE V A LU E ON LY *** *** SH IP COLLECT VIA PERFERRED CARRIERS *** *** SH IPM ENTS 150 LBS OR LESS SH OU LD BE SH IPPED U PS CON SIGNEE BILLIN G W HERE AV A ILABLE *** Example of a Return to Marshfield Parts Distribution Authorization R PARTS DISPOSITION AUTH ORIZATIO N RETURN TO : M ARSHFIELD PAGE 1 03/08/97 C U S T O M R : J P FO O D S V C A -B IN T L T R U C K S IN C. CLAIM : A PARKW AY DR 2131 HANO V ER AV ENUE LOCATIO N; HAN OVER M D ALLEN TOW N PA BAR COD E: Y ) RETURN DISALLOW ED A R T S V IN : 1H T H C A T R 3 T H D T U 0 7/27/95 P A R T S M ODEL: 8100 FAIL 02/25/97 M ISC 0.00 COM P S/N : CRED ITED 03/08/97 OTHER M ILES: M FILM N LABOR MARKUP L U B E G ROUP NOU C A U S E T Y P E % C A U S A L P A R T R E P L S E R IA L N U M B E R C O R E N LD T 729 D 01P 100 TOTAL D R IV E N D IS C (S ) M A T L D E F PICER DRIVE LINE W ARRANTY CLUTCH ADJTING FROZEN DEFECTIVE CAN NOT ADJ CLUTCH REMOVE AND REPLACE CLUTCH A SSY PER H. W. BU FFIN G TO N TSM 206 Q TY PART NUM BER DESCRIPTION VENDOR QTY PART NUMBER DESCRIPTION VENDOR 1 C M R CLUTCH DAN A CORP SPICER DIV ** RETURN TO: ** CENTRAL CORE MARSHFIELD FOR CORE CREDIT * * L IS T W A R R A N T Y C O R E S O N S E P A R A T E C E N T R A L C O R E R E C E IV IN G R E C O R D (G F-2 59-L ). ** * * * A T T A C H C O P Y O F P D A R T O A L L W A R R A N T Y C O R E. *** * * C O M B IN E W A R R A N T Y & N O N -W A R R A N T Y C O R E R E T U R N S T O M E E T M IN IM U M S H IP M E N T W E IG H T R E Q U IR E M E N T S **** * * A U T H O R IZ E D C A R R IE R S FO R C O R E R E T U R N S M U S T B E U S E D. *** * * MM MM AAAAAA RRRRRR SSSSSS H H FFFFFF IIIIIII EEEEEE L DDDD * * * * * M M M M A A R R S H H F I E L D D * * * * * M M M A A R R S H H F I E L D D * * * * * M M M AAAAAA RRRRR SSSSSS HHHHHHH FFFF I EEEE L D D * * * * * M M A A R R S H H F I E L D D * * * * * M M A A R R S H H F I E L D D * * * * * M M A A R R SSSSSS H H F IIIIIII EEEEEE LLLLLL DDDD * * *

154 Warranty Processing Section 7 / Page Form Identification 2. Number of pages involved for reference 3. Not applicable 4. Customer name and address 5. Claim number 6. Account number 7. International Use Only 8. Indicator to return parts which have been determined to be good by International or vendor 9. Vehicle Identification Number (VIN) 10. Delivered To User (DTU) date 11. Total price of all parts on this section 12. Vehicle Model number 13. Failure date 14. Total of all Miscellaneous Parts on this section 15. Failed Component serial number 16. Date claim was credited 17. Total other charges credited 18. Miles on Vehicle at time of failure 19. Not applicable 20. Total labor credited 21. Parts handling allowance, if applicable 22. Amount of Lube, if applicable 23. Failure codes for section 24. Type part identifier for failure 25. Percentage allowed Dealer 26. Part number of the part that caused the failure 27. Replacement serial number 28. Amount of Core, if applicable 29. Total paid for section 30. Failure code description 31. Description of Condition, Cause and Correction 32. Quantity of specific part to be returned 33. Part number of part to be returned 34. Description of part to be returned 35. Vendor that supplied part 36. Quantity of specific part to be returned 37. Part number of part to be returned 38. Description of part to be returned 39. Vendor that supplied part 40. Location where part is to be returned

155 Warranty Processing Section 7 / Page R-5132, WARRANTY CREDIT INVOICE A-B Int l Trucks Inc. 1 Navistar International 2131 Hanover Ave Transportation Company Allentown PA Wty Credit Inv Summary TSR 139 Location Claim No R /08/97 6 Page 1 8 VIN PARTS MODEL DTU / / FAILURE DATE 12/20/96 MI/KM PTS OUTSIDE S PAD WC T PTS HNDLG CORE LABOR FRT OTH CHG TOTAL TSM COM L ALLOW A S DB DB DB DB DB 118 CD FAIL CODES D DRIVING REAR AXLE GEARS, RING&PINION MAT L DEF PART NO. 25 FPMU1307TM FP C C C C1 DESCRIPTION 26 BRG BRG SEAL SPACER SPACER SPACER QUANTITY EXT. PRICE PART NO C C91 DESCRIPTION. SEALANT GEAR QUANTITY EXT. PRICE CLAIM 29 PARTS OUTSIDE SUMMARY PARTS HANDLING CORE LABOR FREIGHT OTHER CHG ALLOW TOTAL TOTAL INVOICE NO Name and Address of Account 2. Controlling Region Office number 3. Account number 4. Form identification 5. Claim number 6. Date of warranty claim credit 7 Not applicable 8. Number of pages involved for reference claim number 9. Section letter from your warranty claim 10. Percentage allowed on claim 11. Warranty code for failure 12. Type part identifier for failure 13. Total price of all parts used in that section of the claim, if applicable 14. Parts handling allowance, if applicable 15. Amount of Core, if applicable 16. Total labor credited 17. Total amount of freight paid, if applicable 18. Total other charges credited on claim in that section 19. Outside Charges allowance 20. Across-line total for that section 21. International Customer Service Engineer (CSE) number 22. Denied, Returned or Changed comments, if applicable. If everything on that line totals zero and you have a comment listed, that section and/or claim was Denied, Returned or Changed 23. Not applicable 24. Failure codes for section failure 25. Part number used in section 26. Description of part used in section 27. Quantity of parts used in section 28. Total of item price items quantity 29. Claim Summary Totals for all sections of claim 30. Warranty credit invoice number

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157 Warranty Processing Section 7 / Page WARRANTY RECORD RETENTION Warranty Record Retention All records supporting warranty claims are to be retained and available for one (1) year (or in accordance with country law if longer) following the date of payment of each claim for inspection by representatives of Navistar Inc. The warranty records must be filed in an orderly manner so that they will be available for reference and thorough inspection when needed. The documentary evidence used to substantiate claims includes, but is not necessarily restricted to, the following: Basic journals, ledgers, and records. Dealer file copy (or copies) of each warranty claim. Related repair orders hard copy and office copy. Payroll records, including time tickets, or time documentation, and employment records. Records supporting the dealership's parts inventory control system. Sublet invoices. Supplier invoices. Preparation and Delivery (P&D) service records Document Retrieval Complete vehicle service histories including internal, warranty/customer, and accounting copies as well as all associated supporting documentation must be accessible by vehicle identification number. Retention must be structured so that complete service histories, including all associated supporting documentation, such as, but not limited to, outside invoices, and time documentation can be provided within one (1) business day of a request. The following is an example of some, but not all, records that may be needed to support claims and other payments reimbursed by International: Accounting copy of all claims submitted Diagnostic equipment printouts Engine and/or Transmission Diagnosis Sheet required. Bill of Lading/Delivery Document Body shop estimate (copy) Copies of computer-generated claims Dealer Core Receipt (if Core applicable) Original invoices of tow bills, transportation charge receipts, and record of payment Internal dealership repair orders Maintenance service repair orders (copy) New vehicle factory invoices ISIS Home Page printout for each repair visit Owner refund repair invoice and Customer-paid repair orders Owner invoices for new and used vehicle sales Payroll records (Detailed records used to prepare payrolls e.g., daily time and job tickets) Delivery Checklists If used, a copy of the dealership customer signed repair write up sheet. Service copy (hard copy) of claim Service-installed/over-the-counter parts and accessories claim including supporting documentation. This includes: o Repair order for accessory or previous warranty claim CTS-1101 BP 01/2009

158 Warranty Processing Section 7 / Page 23 o o o Owner-paid repair order or over-the-counter parts sale invoice Transportation-charge receipts for parts returned to the Company Any other records which support claims reimbursed by the Company. 7.9 Appeals on Denied Claims One of the responsibilities of the Service Performance Group along with the regional representative is to administer the authorization requests to replace a component assembly rather than repair it, as well as review warranty claim appeal requests. Pre-authorization is necessary to improve vendor recovery, prevent over repair, reduce claim charge backs and help insure customer satisfaction Claim Appeals Process It is possible for the RSM/Warranty Administration Group (WAG) to adjust your claim for a variety of reasons, such as parts pricing, unexplained labor, unsupported freight, or outside charges to name a few. The Appeals Process is the process used to present your request for additional consideration of a claim that has already been paid. Appeals to claims already paid may be made by fax or mail utilizing the appeals form available on ISIS (reference section ). The form can be found on the Dealer Administrative page under the Request drop down window. Complete the form; print it locally and fax it along with your supporting documents to the Regional Service office Steps Required to Appeal a Claim: On your appeal form review how your claim was submitted and how it was paid. Determine what was adjusted or left off of your claim when submitted originally. Review the analyst s comments and adjustment coding. Determine what area of the claim you are appealing. Provide the related supporting documentation and attach a copy of the repair order with technician s write-up along with a copy of his time punches. Write your request in the comments section of the appeal form. Be specific in stating which part or outside charge was omitted or which operation was paid short or left off the original claim submission. Provide any additional documentation that shows it was performed. If your claim was adjusted for excessive t-time you need to break down the T time to explain what repair procedures are included (T-time must be the actual time spent to perform the operation). Do not lump all the time together. T-time must be a separate time punch for each procedure. Fax the ISIS appeals form and supporting documents to your Regional Service Manager Note: Please ensure that when a claim is appealed all required documentation is sent along with the appeals form. All T-time must be broken down to its lowest possible form, and the repair description must be clarified if needed. If T-times are combined and not segmented then the RSM will determine what the actual time is for each step. If you have any questions about a closed appeal claim call the Regional or Technical Service Manager to discuss the decision. Do not submit another claim appeal form! CTS-1101 BP 01/2009

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160 Warranty Processing Section 7 / Page 25 What Determines Credit from an Appeal? If your request is a valid requirement of the repair and you have provided the needed documentation. If a request is for additional labor. Provide documentation that the operation was required, technician write-up states he performed the repairs, and time punch support the time submitted to perform operation. Provide additional information that may not have been presented on your original claim. Refer to any assistance given to you from Navistar Inc. Dealer s ability to clearly state the repairs performed. Be specific on what step you were not paid to perform ISIS Claim Appeals Form CTS-1101 BP 01/2009

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162 Warranty Processing Section 7 / Page Warranty Claim Policies This section illustrates industry accepted best practices for performing warranty repairs, receiving claim assistance from International, and the Repair Order Analysis Tool and dealer-counseling program RECORD RETENTION The dealer is required to maintain complete individual service history files for all vehicles sold and serviced by the dealership. In order to locate and review complete service history in a quick manner it is recommended that these files be maintained by the vehicle identification number of the serviced vehicle. The records and documents should be retained as long as the vehicle is within warranty, or beyond that time, if required by applicable local country laws following Company notification of payment. Notification of payment can be either by receipt of Company check or through electronic payment. The supporting documents must be available for Company examination (in the Dealership or upon request sent to a company location) for one year after the required record retention period. Supporting documents may include mail audit requests for supporting documentation involving outside labor, actual time, service part warranty, customer refunds, etc CTS-1101 BP 01/2009

163 Warranty Processing Section 7 / Page LABOR RATE CHANGE REQUESTS Approved Labor Rate The approved warranty labor rate shall not exceed the posted daytime hourly rate which the Dealer charges its customers. This policy is also to be applied to Maintenance Takeovers involving warranty repairs made in a separate facility other than the dealership. The warranty labor rate for these separate facilities will not exceed the rate charged customers at these facilities, and must be pre-approved by Navistar Inc. prior to any warranty repairs being made at the separate maintenance facility Approved Non-US Labor Rate Change (Use the form in Section ) To change an approved Non-US warranty labor rate each location (secondary, new associate,, etc.) requires a separate form to be processed/submitted. The Dealer principal must fill out the Request For Customer Labor Rate Change and submit it to the assigned Technical Service Manager (TSM) or Fleet Service Manager (FSM) for approval. The requested revised labor rate shall not exceed the Dealer s posted customer daytime hourly labor rate. The Technical Service Manager (TSM) or Fleet Service Manager (FSM) will verify labor rates the Dealer is charging to his customers and check the Dealer s survey of local competitor s customer labor rates. The TSM records his/her approval on the Form, and forwards it to the Regional Service Manager. Labor rate changes become effective thirty (30) days after being approved by the Regional Service Manager and/or the Regional leadership. NOTE: A Special Account Labor Rate update form is available from your Technical Service Manager (TSM) or Fleet Service Manager (FSM) for labor rate changes to Idealease. CTS-1101 BP 01/2009

164 Warranty Processing Section 7 / Page Dealer Labor Rate Change Request Form (Non-US) Complete form and fax to Regional Service Manager Date: The following Dealer requests a customer labor rate change as shown. The undersigned has verified that the revised warranty labor reimbursement rate does not exceed the Dealer s regular daytime customer hourly labor rate, and that the new rate will only be effective for work performed thirty (30) days after final approval. Dealership Name: City / State *: * Separate form required for each location. Dealer Account Number: Customer Labor Rate Change Per Hour: From: $ To: $ Dealer s Effective Date of Labor Rate Change: Dealer Principal Signature: YES NO FRANCHISE YES NO 1st 2nd 3rd Tech Central Cummins, Shifts/Open ICLAIM CAT, or Detroit Diesel Survey of Competitive Customer Labor Rates (To be confirmed by Technical Service Manager) Competitor Rate City Phone Number Date Surveyed Chevrolet / GMC Ford Freightliner Kenworth Mack Peterbilt Volvo / White GMC Other: (Please specify) This form, when processed, will be returned to the Dealer marked Keyed. Approved by: Date: Service Manager (Reproduce locally) CTS-1101 BP 01/2009

165 Transportation, Receipt, and Storage of New Vehicles Section 8 / Page 1 8 TABLE OF CONTENTS TABLE OF CONTENTS NEW VEHICLE RECEIVING PROCEDURES DEALER RECEIVING RESPONSIBILITIES INSPECTION PROCEDURES CARRIER DELIVERY AND INSPECTION RESPONSIBILITIES TRUCKS NOT BUILT TO ORDER CLAIM PROCEDURE POLICY COVERING SHORTAGES 0, S AND PDI CLAIMS (OVER, SHORT AND DAMAGE) BUILT-IN ERROR CLAIMS STORAGE PROCEDURES LOSS AND DAMAGE CLAIMS / IN-TRANSIT FAILURES LOSS AND DAMAGE CLAIMS TALK TO RS & DC FOR FURTHER REVIEW OF ICC LAW IN-TRANSIT FAILURES MAJOR ACCIDENT/COLLISION/BODILY INJURY IN-TRANSIT NEW TRUCKS DECLARED TOTAL LOSS DAMAGES RESULTING FROM ACCIDENT DAMAGES RESULTING FROM INCORRECTLY BUILT PRODUCT COMPLETION OF APPROPRIATE FORMS... 12

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167 Transportation, Receipt, and Storage of New Vehicles Section 8 / Page NEW VEHICLE RECEIVING PROCEDURES For additional information concerning receiving procedures, consult the CTS-1029, New Vehicle Processing Manual DEALER RECEIVING RESPONSIBILITIES It is the Dealer s responsibility to inspect new vehicles received by the dealership and document any damage to the vehicles or any conditions that caused them to differ from the new vehicle order. The Dealer must: Establish a vehicle inspection procedure within the dealership and train adequate personnel to be responsible for receiving new vehicles according to established procedures. Inspect each vehicle in the carrier representative s presence. Describe all transportation loss and damage on all copies of the bill of lading/delivery receipt accurately and in detail. Sign for delivery by clearly writing the name of the Dealer s representative, the date, and the time of delivery. All Dealers are to maintain adequate undecking facilities or arrange for alternative undecking facilities at their expense, if applicable. Have available, for the driver's use, the prescribed decking or undecking tool set, if applicable - ZTSE4441 Undecking Adaptor for 2000 and 5000i Series, and 9400i Models with center tow pin, and ZTSE4280 Undecking Sling for use with 1000, 2000, 3000, 4000, 7000, 8000, and 9000i Series. The Dealer's vehicle inspections must take place both before and after undecking. Dealers who request delivery of a vehicle to a body company must arrange with the body company to properly undeck and inspect the vehicle upon receipt, and immediately report any damage or shortage to the carrier driver or selling location as noted in subheading Inspection Procedures, numbers 2 and 3, below INSPECTION PROCEDURES Dealers must arrange for a prompt vehicle inspection, since tariff regulations permit the carrier to charge for excessive delay beyond the allowable one-hour free waiting time per truck. The one-hour free waiting time begins after all vehicles have been unloaded. All damages, shortages or variations must be noted in detail on both the carrier and consignee copies of the delivery receipt. Specific damage codes must be indicated on the delivery receipt. Vehicles frequently can arrive in a dirty condition. It is the Dealer's responsibility to immediately have the unit washed and inspected, as it is possible for a truck to be delivered with concealed damage. When discovered, the Dealer must immediately notify the carrier and Region Office of all such concealed damage within 48 hours. (Active Transportation Corporation) Refer to CTS-1157, Loss and Damage Claims Manual. IMPORTANT: Failure to do any of these things will, in most cases, relieve the carrier of liability, which may make it necessary for Navistar to deny such claims to the Dealer.

168 Transportation, Receipt, and Storage of New Vehicles Section 8 / Page 4 Claims for damages, shortages or variations not properly documented during vehicle inspection and/or concealed damage not properly communicated within time limits will be returned unprocessed by the RSM/Warranty Administration Group. Prior to test-driving the vehicle the receiving Dealer is responsible for retorquing axle flange nuts to specification per Preparation and Delivery (P&D) guidelines. IMPORTANT: All new vehicle receiving personnel and the delivery driver should try to distinguish between damage to be reimbursed by the carrier and a factory defect to be reimbursed by the Company. Add any comments, which clarify and support descriptions of damage to the bill of lading/delivery receipt. Factory defects must not be noted on the Bill of Lading / delivery receipt CARRIER DELIVERY and INSPECTION RESPONSIBILITIES Carriers are permitted to deliver vehicles only between 8:00 A.M. and 4:00 P.M., local time or specified times approved by the Regional Sales Office, unless prior arrangements have been made to accommodate earlier or later delivery. Unloading or undecking a shipment of vehicles is the strict responsibility of the carrier. Carriers are to install properly fitting axle gaskets on all units from which the axle shaft has been removed for transport. New gaskets must be installed on 100% of decked units. A complete inspection for proper gasket replacement must be performed. Failure to note leakage of old gaskets not replaced will result in Loss and Damage or warranty claim denial. At destination, axle flange studs must be tightened to prevent oil leakage between the axle flange and hub, and any leaked lubricant wiped clean by the carrier. In some cases, 4x2 trucks may have the driveline pulled for transportation instead of the axle shaft. In this case, the carrier is responsible for reinstalling the driveline and the receiving Dealer is responsible for inspecting the installation and torqueing the mounting bolts. Reference SFN Claims should be filed against the carrier for damage caused by leakage and/or improperly fitted axle plates. At destination, all items removed or altered for transit of the vehicle(s) are to be reassembled to original condition by the carrier.

169 Transportation, Receipt, and Storage of New Vehicles Section 8 / Page TRUCKS NOT BUILT TO ORDER Not built to order conditions should be identified at time of receipt during check-in inspection. Dealers should initiate their not built to order claim request immediately no later than (90 days after the vehicle invoice date. When it appears that a truck or glider kit has been received from an assembly plant with incorrect, insufficient, or excessive components, there may be grounds for filing a claim. Only errors or deficiencies involving complete line setting codes and items appearing on pages 1 and 2 of the submitted order are claimable through the Regional Service Office or local assembly company for trucks built at non-us facility. Use Truck or Glider Kit Not Built To Order Claim form (refer to sample form below). All other deficiencies, e.g., partial code items, and package items, are to be submitted to the Regional office. The claim must be signed and dated by a Service Management Representative of the dealership. Items lost or damaged while in the carrier's control are to be handled according to procedures described under the subheading Loss and Damage Claims.

170 CLAIM PROCEDURE Transportation, Receipt, and Storage of New Vehicles Section 8 / Page 6 Compare original of truck order with: Confirming copy of order Order entry list Order content report Line set ticket for the vehicle If the components on the vehicle match those on the order entry list and/or order content report there is no basis for a claim, since the opportunity to correct errors in a timely way (the purpose of these reports) has expired. If the vehicle was correctly ordered and the discrepancy involves a complete, coded item, report the problem fully and describe the solution in detail (including the disposition of any parts removed) using the Truck or Glider Kit Not Built To Order Claim form illustrated in this section. The claim must be fully supported by all documents substantiating the case, including: Copy of original order as confirmed Order entry list Order content reports Line set tickets Factory invoice Job tickets Parts requisitions Photographs Claims should be submitted using iclaim within ninety (90) days after the unit is invoiced from the assembly plant or the Truck Sales Process Center (TSPC). Claims not submitted within ninety (90) days will be rejected. Claims accepted and approved by Regional Service Manager/Warranty Administration Group (WAG).

171 Transportation, Receipt, and Storage of New Vehicles Section 8 / Page POLICY COVERING SHORTAGES 0, S and PDI Claims (OVER, SHORT AND DAMAGE) BUILT-IN ERROR CLAIMS In general, it will be found that shortages are due to theft or pilferage while the equipment is in transit. Shortages of items such as bumpers, bumper guards, spare tires, tire locks, tire covers, tool and accessory cartons or their contents, radiator caps, fuel tank caps, etc. should be considered as proper claims against the shipper and/or Insurance Company. 0, S and D Report for shortages and/or wrong shipments due to a fault or error on the part of Navistar Inc. or the suppliers will be considered when accompanied by satisfactory evidence that such is the case. Claims for shortages and/or wrong shipments should be filed on form a warranty claim code 03 To enable Navistar or affiliate to Investigate and consider an 0, Sand D Report for a specific shortage and/or wrong shipment, the Claim MUST BE SUBMITTED AND RECEIVED ATTHE APPROPRIATE OFFICE WITHIN A REASONABLE PERIOD OF TIME AFTER THE EQUIPMENT IS RECEIVED BY THE DISTRIBUTOR. The Claim should show the date of arrival of the equipment at destination, number of days in customer or pier storage and other pertinent information which will aid In the investigation. It is, therefore, important and in the interest of both the Distributors, Navistar or affiliate that equipment be carefully checked immediately upon arrival. On receipt by the Truck Sales Region of the Distributor s report, an investigation will be made to ascertain whether the items claimed were omitted in production, or pilfered in transit or elsewhere. Subsequent advice as to the findings of the Investigation will be forwarded to the Distributor and claim disposition made accordingly. If an investigation cannot be carried through as the result of a Distributor s delay in filing a report, Navistar or affiliate will be obliged to reject such a claim. FACTORY PRODUCED SET-UP UNITS Over, short and damage claims relating to chassis produced as set-up vehicles will be handled at the Truck Sales Region. Parts required to replace short or damaged items must be ordered through the local Parts Distribution Center. However, should the unit not be built to order, i.e., a coding error resulting in a wrong or missing item, the form (shown on the following page) should be completed and submitted to the Region, together with all supporting documents. This form relates to complete codes only, not to individual parts. Claims for Allied Equipment should be directed to your Regional Office. Damage claims resulting from improper handling in transit should be processed through the general settling agents who are identified on the backside of the insurance certificate. This procedure only applies on transactions where Navistar Inc. insures goods to named port or inland point.

172 Transportation, Receipt, and Storage of New Vehicles Section 8 / Page 8 COLLATERAL, PICK AND PACK, CKD, AND MKD Claims or inquiries should be directed to: Your Navistar Inc. Regional Office NOTE: Claim submissions are to be made using iclaim NAVISTAR INTERNATIONAL TRANSPORTATION CORR TRUCK GROUP CLAIM REPORT To: Region Name Date: Attention Regional Service Manager Order # Lot # Quantity Model Chassis(s) # Problem: Solution: Ordering Location:

173 Transportation, Receipt, and Storage of New Vehicles 8.3 STORAGE PROCEDURES Section 8 / Page 9 Adequate protection and storage of new vehicles is a strict responsibility and expense of the Dealer/distributor. When vehicles are delivered directly to body builders, the Distributor is responsible for arranging with the body builder to properly maintain the vehicles while in their possession. It is advisable for the Distributor involved to forward a copy of the storage procedures outlined to the body builder storing his vehicles. Claims arising from loss and damage that occur while the vehicle is in storage will not be considered for reimbursement. Check your own arrangements against the following and correct situations which create unnecessary expense and selling problems. A. PARKING AREA 1. Whenever possible, vehicles should be stored indoors in a dry, well ventilated area and protected from sunlight. When circumstances do not permit, definite precautions must be taken to eliminate conditions which would result in product deterioration, unwarranted expense, and later customer dissatisfaction. 2. Do not park near transformers or electrical motors, as, when the protection wax contained in the tire compound cracks, ozone in the air will attack the exposed area of the tire. 3. Do not park near trees, or where high weeds or grass exist. This will prevent damage from birds, tree and weed sap or insects which cause stain. 4. Do not park near railroad tracks, industrial smoke areas, paint shops, or where street and road splash could contact vehicle. 5. When the vehicle cannot be parked on a level surface, block wheels. B. STORAGE (Two Months Maximum) 1. When the vehicle will be in storage at least one month, but not to exceed two (2) months upon delivery from the shipping location, the following must be performed: 2. Wash vehicle. Washing should be followed by wiping of horizontal surfaces to remove any water. Never wash the vehicle in the direct rays of the hot sun nor when the sheet metal is hot to the touch, as this may cause streaks on the finish. Do not use hot water or strong soaps or detergents or wipe off dirt when the surface is dry, as this will scratch the paint. 3. Carefully check the paint and touch up all exposed primed or raw metal surfaces to prevent rust. Apply a thick coat of wax to vehicle, including all chrome and stainless steel metal parts, to prevent discoloration from the elements. 4. Park vehicle. (Refer to parking area instructions.) 5. Cover end of vertical exhaust stacks. 6. Check battery water level and specific gravity. If voltage is under volts, recharge battery. IMPORTANT It is recommended that once a week during this one (1) month storage interval the vertical exhaust stack covers be removed and the engine started and operated at fast idle until normal engine operating temperature is reached. Stop engine and cover vertical exhaust stacks.

174 Transportation, Receipt, and Storage of New Vehicles Section 8 / Page 10 STORAGE (Long Term Two or More Months) When the vehicle will be In storage two or more months upon delivery from the shipping location, the following must be performed: 1. Wash vehicle. (See washing instructions.) 2. Carefully check the paint and touch up all exposed primed or raw metal surfaces to prevent rust. Apply a thick coat of wax to vehicle, including all chrome and stainless steel metal parts, to prevent discoloration from the elements. 3. When vehicles are stored outside, particularly along coastal areas, paint and bright metal deterioration will be more rapid due to prevailing salt water atmosphere and high humidity. For this reason, it may be necessary to wash the vehicle and wax the chrome and stainless steel metal parts once a month. The frequency of this operation will be determined by the Distributor. 4. Check battery water level and specific gravity. If voltage is under volts, recharge battery. Check radiator coolant level. Also, check coolant for adequate freeze protection. Check (visually) to assure all tires are inflated. 5. Drive vehicle to parking area. (Refer to parking area instructions.) 6. Stop engine. Drain air brake reservoirs, then close draincocks. 7. Cover end of vertical exhaust stacks. Disconnect battery(s) ground cable. This will prevent accidental starting, or parasitic electrical loads from discharging the battery. 8. To prevent fading of the interior trim when the vehicle is exposed to the ultraviolet rays of the sun, spray or apply a coating of Bon-Ami or similar substance on the inside of the windshield and windows. IMPORTANT It is recommended that once a month during the two or more month storage interval the following be performed: 1. Remove the vertical exhaust stack covers. 2. Connect battery(s) ground cable. 3. Start engine and operate at fast Idle until normal engine operating temperature Is reached. To remove surface charge from the battery, built up from previous startings and short idle periods, perform the following: 4. Operate heater and/or air conditioner for a few moments. 5. Turn on headlights. 6. Shift transmission in various ranges. 7. Engage and disengage clutch and parking brake. 8. Apply and release service and parking brake systems. 9. Check tire pressure visually. 10. Turn off heater and/or air conditioner and headlights. 11. Stop engine. Cover vertical exhaust stacks. 12. Drain air brake reservoirs, then close draincocks.

175 Transportation, Receipt, and Storage of New Vehicles Section 8 / Page LOSS AND DAMAGE CLAIMS / IN-TRANSIT FAILURES Navistar Inc. will assist the Dealer in processing claims that may occur while the vehicle is in transit from the assembly plant to the Dealer LOSS AND DAMAGE CLAIMS TALK TO RS & DC FOR FURTHER REVIEW OF ICC LAW Notify the carrier in writing (certified mail with return receipt recommended) or by fax within 48 hours (two working days) of all concealed loss or damage discovered after delivery. A claim must be filed to International within 90 days of receipt of the vehicle. Missing items subject to theft or loss, are carrier responsibility and should be claimed as loss and damage, not as a not built to ordered vehicle claim. Hold for the carrier any parts removed from the vehicle due to transportation damage for 90 days or until advised of disposition. The Dealer shall properly prepare a warranty claim, clearly identify it as a Loss and Damage Claim, and together with a copy of the receiving record signed by the carrier's driver, and all other supporting documents (where applicable or when requested), present it to the RSM/Warranty Administration Group (WAG). Parts on claims submitted for loss and damage repairs are to be priced at Dealer net price and must not include any mark-up or other element of profit. The RSM/Warranty Administration Group will automatically add the applicable parts handling allowance on all genuine International parts used in loss and damage repair when affecting payment. Repairs must be completed within an appropriate time as deemed by the Regional Service Office after damage/shortage is noted. Claims must be submitted within thirty (30) days after repair completion date. A claim that is not supported by proper evidence will be charged back to the submitting Dealer. Refer to the CTS-1157, Loss and Damage Claims Manual for further information IN-TRANSIT FAILURES Vehicles that fail in-transit are to be taken to the nearest International dealership. Warrantable repairs up to $1, U.S.D. ($1, in Canada) can be implemented without prior approval and submitted on a warranty claim form. When estimated repairs exceed this amount, the repairing Dealer must contact their RSM for authorization to proceed with the repairs. The warranty claim must reflect the name of the RSM who authorized the repairs. The following information should be provided to the RSM: The name of the carrier. The date of failure. Model and chassis number of the disabled truck. Nature of failure. Estimated cost of repair. Estimated amount of downtime. Destination of failed truck. Model and chassis number, as well as destination, of all decked or towed units. Freight bill number (S.O. number). Note: Claims showing warranty repair work for in-transit failures must document downtime (time and date received, time and date work completed).

176 Transportation, Receipt, and Storage of New Vehicles Section 8 / Page MAJOR ACCIDENT/COLLISION/BODILY INJURY After notifying the proper local authorities, either fire or police, all major accident/collision damages to the vehicle, while in the carrier's possession, must be reported to the ordering locations Technical Service Manager (TSM) for investigation and disposition with the carrier. All expenses related to such repairs are to be filed direct with the carrier and not with the Warranty Administration Group. In those accidents which include bodily injury contact the Regional Service Manager IN-TRANSIT NEW TRUCKS DECLARED TOTAL LOSS Damages Resulting From Accident When a vehicle in-transit to a Dealer's location is involved in an accident which results in the vehicle being declared a total loss, the Dealer is to settle the claim with the responsible carrier and provide the carrier, or the carrier's insurance representative, with a certificate of origin and a sale document Damages Resulting From Incorrectly Built Product When a new vehicle in-transit to a Dealer's location incurs damage as a result of the International assembly, design, or parts failure, as determined by the International investigating representative(s), the following procedure will apply: Immediately after being notified by their driver, the carrier involved will telephone the Regional Service Office of the ordering location and advise circumstances, extent of damage estimate, and location of the affected vehicle(s). If the vehicle location is outside the ordering region's territory, the regional service department will notify the other region of the above circumstances for their management of the investigation/disposition. The Technical Service Manager (TSM) representing the territory where the damaged unit is being held will be responsible for expeditiously investigating the cause of failure with assistance from Product Integrity, Product Reliability, Engineering, etc., and securing an estimate for repairs. Repairs exceeding 50% of the invoice price of the vehicle will justify the vehicle being declared a total loss. The local TSM servicing the Dealer where the damaged unit is being held will secure three bids for the salvage, handle disposition to the highest bidder, and ensure proper credit to the warranty account with funds received Completion of Appropriate Forms The ordering Dealer will, in either of the above circumstances, complete the DGE-1050, or electronic Delivery Notice and Warranty Application, indicating the name and address of the purchaser and identify the unit as a Total Loss or Wrecked vehicle by reflecting in the Service Contract Policy Number section. The DGE-1050 should then be forwarded to the International Accounting Center for input into the system. International Accounting Center will, in turn, forward this data to the RSM/Warranty Administration Group for input into the warranty policy file. The ordering Dealer will be reimbursed by submitting an iclaim. Adherence to these policies will

177 Transportation, Receipt, and Storage of New Vehicles Section 8 / Page 13 expedite Dealer reimbursement, manage the orderly disposal of Company assets, and preclude total loss vehicles from being extensively repaired and subsequently sold as new vehicles.

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179 Pre-Delivery Inspection Section 9 / Page 1 9 TABLE OF CONTENTS TABLE OF CONTENTS NEW VEHICLE PRE-DELIVERY SERVICE THE MOST COMMON METHODS FOR WRITING ON THE VIN PLATE ARE: CTS-1122, PRE-DELIVERY SERVICE IDENTIFICATION STICKER NEW VEHICLE PROCESSING DOCUMENTATION QUALITY INSPECTION REPORT CTS-1196, PRE-DELIVERY / QUALITY INSPECTION REPORT PRE-DELIVERY FORM (HEAVY DUTY MODELS)... 9

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181 Pre-Delivery Inspection Section 9 / Page NEW VEHICLE PRE-DELIVERY SERVICE A complete review has been made of the pre-delivery service operations and sequential procedures established for the Inspection of the new vehicles to assure customers receive vehicles in the best possible condition. Three separate procedures are established and covered by the following forms: 1. S00137 Severe service 2. S00134 Medium Duty 3. S00136 Heavy Duty 4. S00142 CF Product. 5. CTS-1199 School Bus Chassis, Stripped Chassis. You can find the PDI Forms on ISIS Selling locations are to retain PDI records as part of the vehicle sales history file. Instructions concerning recordkeeping will be found on the forms. Refer to New Vehicle Processing Manual. S10005 in ISIS for additional Information concerning recordkeeping.

182 Pre-Delivery Inspection Section 9 / Page 4 A. ALLIED EQUIPMENT OR BODY MANUFACTURERS CHASSIS Original equipment manufacturers (Allied Equipment or Body Manufacturers) extensively modify vehicles sold to them by Navistar, thus there is usually a considerable delay in delivering the completed vehicle to the ultimate user. Because of this delay, normal pre-delivery inspections and adjustments are not performed until the ultimate user takes delivery of the vehicle. B. SCHOOL BUS CHASSIS All school bus chassis will be pre-delivery serviced prior to their release from the school bus body manufacturer. This policy is effective, regardless of the method utilized in transporting the completed unit from the body manufacturer to the ultimate user.

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184 Pre-Delivery Inspection Section 9 / Page The most common methods for writing on the VIN plate are: With ballpoint pen, writing directly on the plate. With an electric pen or stylus. With steel stamps and hammer. Should it become necessary to replace a vehicle identification plate, it can be obtained by requesting a replacement marker plate from the regional or local assembly company. A charge, as specified in a current applicable Parts Policy letter, will be assessed to the ordering Dealer's account for each new data plate requested. INTERNATIONAL TRUCK AND ENGINE CORP.

185 Pre-Delivery Inspection Section 9 / Page CTS-1122, Pre-Delivery Service Identification Sticker CTS-1122, Pre-Delivery Identity Sticker has been developed for use as an easy visual identification of vehicles that have been serviced. All servicing locations are instructed to complete the required information on the sticker and place it on the inside, lower right-hand corner of the windshield on all pre-delivery serviced vehicles. The sticker may be utilized as a consistent method of identifying stock units that have been serviced for delivery. Vehicles that are serviced for display or demonstration purposes should also have the sticker affixed for easy identification. Supplies of these forms should be ordered through Navistar s Printing vendor.

186 Pre-Delivery Inspection Section 9 / Page New Vehicle Processing Documentation To assist the Dealer in performing pre-delivery service operations four pre-delivery and quality inspection manuals are available: CTS-5022, Pre-Delivery and Quality Inspection Manual for Medium Duty and Heavy Duty Trucks/Tractors, CTS-5067, Pre-Delivery and Quality Inspection Manual for F/C, Bus and Stripped Chassis. S10009, Pre-Delivery/Quality Inspection Instruction Manual for Medium Duty Models / S10011, Pre-Delivery/Quality Inspection Instruction Manual for Severe Service and Regional Haul Models / They are included as part of the CTS-1029, New Vehicle Processing Manual or can be purchased individually through International Printing and Distribution Services, Battle Creek, MI. The CTS-1196, CTS-1197, CTS-1199, S00021, S00022 and S00023 Pre-Delivery/Quality Inspection Reports incorporate and replace any previous pre-delivery and quality inspection documents. The CTS-1029, New Vehicle Processing Manual explains in detail the proper use of these forms. Complete the Pre-Delivery form before separating the two pages. The first page needs to be filed in the vehicle s sale history file. After completing the Quality Inspection Report on the back side the second page is to be mailed to International, Attn: Product Evaluation Manager, 3033 Wayne Trace, P.O. Box 10088, Fort Wayne, IN Note: An example of the CTS-1196, Pre-Delivery/Quality Inspection Report Medium Duty Models is illustrated on the next two pages. CTS-1197, Pre-Delivery/Quality Inspection Report Heavy Duty Models and CTS-1199, Pre-Delivery/Quality Inspection Report FBC/Bus, Stripped Chassis Models are similar Quality Inspection Report The Quality Inspection Report, available from Navistar s Print Vendor, is used to indicate product deficiencies that require repair or adjustment beyond normal pre-delivery inspection, and functions as an early warning to factory and engineering managers of product issues. For this reason, it is imperative that completed reports be forwarded promptly. The following list shows which form to use with each model truck/tractor. Heavy Duty Form 1197 FBC/Bus, Stripped Chassis Form , 4300, 4400 Model Form S Model Form S , 7400, 7500, 7600, 8500, 8600 Model Form S00023

187 Pre-Delivery Inspection Section 9 / Page CTS-1196, Pre-Delivery / Quality Inspection Report Pre-Delivery Form (HEAVY DUTY MODELS)

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190 Appendix Section 10 / Page 1 TABLE OF CONTENTS REPAIR ORDER ANALYSIS TOOL REPAIR ORDER ANALYSIS TOOL REPAIR ORDER ANALYSIS TOOL SUMMARY CATEGORY RECAP REPAIR ORDER ANALYSIS RECAP FORM DEFINITIONS KEY PERSONNEL CONTACT LIST POLICY AND PROCEDURE MANUAL INFORMATION CHANGE LOG POLICY AND PROCEDURE MANUAL SUGGESTION FORM... 12

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192 Appendix Section 10 / Page Repair Order Analysis Tool REPAIR ORDER ANALYSIS TOOL 1. R.O.# - Repair Order number of claim being reviewed. 2. Date RO Opened Date RO was written 3. Advisor# Clock number of Service Advisor who wrote up customer issues. 4. Tech # (all) Clock number of Technician(s) who completed repair issues. 5. Customer Signature on Repair Order Did customer sign Repair Order to authorize repairs (or service manager signature required on internal vehicle repairs)? 6. Submitted labor match payroll records Does the total labor amount submitted on the Warranty Claim match payroll records? 7. Prior repair claim history reviewed Was the vehicles claim history reviewed prior to repairs using either ISIS or DDEW to look for recent similar repairs? 8. Hand written or altered time stamps authorized Has a member of the Service Management Team reviewed and approved any time alterations? 9. Accurate & complete description of concerns Are the customers repair issues described in details? Who, What, When, Where, Why, and How? 10. Accurate & complete Technician description of diagnosis & repairs Are the technicians description of the cause and corrective repairs to the customers vehicle concise and thorough? Does the technicians write-up substantiate the time submitted? 11. Are T-times at or below actual time stamps Is the T-time submitted equal to, or below, the actual time ticket or electronic time entries? 12. SRT overlap Is there overlap between SRT s submitted within a section, or between sections, of the same claim? 13. Add-on repair authorization Has the Service Manager, or their designee, authorized and initialed add-on repairs? 14. Warrantability Was this repair, or any part of it, potentially customer responsibility? Such as maintenance items, body builder issues, adjustments? 15. All RO documentation attached to RO hard copy Are all items related to the Repair Order such as Diagnostic Test Forms, tow bills, outside repair invoices attached to the hard copy? Are outside repair invoices submitted at Dealer net pricing?