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Commercial Vehicle 

2013 Volume and mix Performance Currency effects 2014 

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Reduced sales resulting from currency ef fects in our Commercial Vehicle segment were due primarily to a weaker Brazilian real. After adjusting for the ef fects of currency , sales in our Commercial Vehicle segment in 2014 were up about 2% from the previous year. Increases in Class 8 and medium truck production in North America of 22% and 9% were the primary drivers of the volume-related sales increase. This was largely offset, however, by the effects of a reduction of about 27% in medium/heavy truck production in South America where we have a significant commercial vehicle market presence. 

Commercial Vehicle segment EBITDA in 2014 of $172 was $22 lower than in 2013, with EBITDA margin of 9.4% for 2014 being down from the 10.4% realized in 2013. Segment EBITDA  in 2014 was adversely impacted by about $11 of increased cost from supply chain inef ficiencies associated with the transition to new suppliers and increased warranty expense of $8. Material commodity cost increases af fecting this business approximated $17, with material cost savings of $10 and net pricing improvement of $7 providing improved EBITDA. 

Off-Highway 

2013 Volume and mix Performance Currency effects 2014 

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Sales in our Off-Highway segment were down about 7% from 2013. The reduction was due principally to lower demand levels, with global agriculture and construction/mining segment vehicle production in 2014 being down about 8%. 

Off-Highway segment EBITDA of $169 was $6 higher than in 2013, resulting in an EBITDA  margin of 13.7% in 2014 compared to 12.3% in 2013. Performance improvement was driven by material cost savings of about $22 and pricing improvement of $2 which more than of fset a $4 increase in warranty cost and $3 of other cost increases. 

Power Technologies 

2013 Volume and mix Performance Currency effects 2014 

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Power Technologies primarily serves the light vehicle market, but also sells product to the medium/heavy truck and of f- highway markets. Sales in 2014, net of currency ef fects, were up 4%. Sales volumes benefited from stronger global light vehicle engine production of 3% and increased medium/heavy truck production levels in North America. 

