Mobile Equipment Exclusion and Traffic Accident

The insured's auger was being transported in the insured's pickup truck. The auger gear box came loose (a cotter pin was missing) and fell into traffic causing a multicar accident. The auto insurer paid for the property damage claims and now wants reimbursement from the CGL carrier. The claim is that the damage was caused by a failure of the auger equipment and not from the transportation of that equipment.

Does exclusion (h), mobile equipment, on the CGL form apply in this instance?