Meritor Air Disc Brake Supply Constraint
02/28/2024 * General News ¢ Critical

Meritor Air Disc Brake (ADB) — Supply Constraint and New SpecPro Update

Daimler Truck North America production is exceeding the allocated supply of Meritor Air Disc Brake
assemblies available for vehicle production. Due to these constraints, Truck Change Orders (TCO) were issued
for certain Cascadia orders in the backlog to change from Meritor to an equivalent Bendix Air Disc Brake
starting with schedule dates of February 19, 2024.

If you receive a TCO changing trucks in the backlog that were ordered on or before February 29") from Meritor
ADB to Bendix and the customer will not accept the change, you will have 7 calendar days to cancel and
forfeit the slot. Options for trucks that are changed inside of 75 days from scheduled build date that you'd like
to cancel will need to be discussed with your District Manager.

Our expectation is that the supply constraint will continue throughout CY24. Thus, effective for orders received on or

after March 1st, DTNA is requiring a selection in Module 97E for Cascadia and 57X. The new data codes will give
dealers the option to “opt-in” to receive either Air Disc Brake brand upon availability at time of build:

© 97E-002 Dealer/customer allows DTNA to choose brakes brand to maintain build schedule
* 97E-003 Dealer/customer requires brake brand selection be maintained as specified

You should continue to select your preferred brake under modules 402 Front Brakes and 423 Rear Brakes. 97E-9XX
set as default and incompatible. This will require the dealer to select either 97E-002 or 97E-003 to clarify flexi
on brakes brand.

This new module as well as the associated data codes will be implemented in SpecPro on February 29th,

If your customer will accept any brand of ADB based on availability, please make sure to select 97E-002. If your customer
requires a specific brand of ADB and will not accept a substitute, please make sure to select 97E-003. Please be aware
that Meritor ADB supply is dynamic and approximate first opening is currently in July. Requiring Meritor brand ADB
WILL impact build dates for trucks currently scheduled outside of 75 days as well as any future orders and may ultimately
result in an inability to schedule the trucks.

If you choose 97E-002, your order will be scheduled at first opens based on your requested delivery date(s). If a TCO is
subsequently required to change ADB brands, you will also be price protected to the lower price of the two. Example:
Dealer selected Meritor brakes and 97E-002 then if there is an internal TCO to Bendix or Wabco, they will pay
original Meritor price.

TCOs will be accepted for trucks outside of 75 days from scheduled build date to apply either the 97E-002 or 97E-003 data
codes. But please be advised that once DTNA has exhausted our Meritor ADB supply for CY24, trucks calling out Meritor
ADB with the 97E-003 data code will be cancelled on a LIFO basis and slots will be forfeited. Trucks will NOT be rolled into
cY25.

We thank you for your continued patience and support as we continue to navigate supplier shortages while optimizing our
ability to honor committed CY24 Plan volume.

Sincerely,
New Truck Pricing, Sales, SpecPro and CAE