Big-rig makers are eager to jump on the plug-in bandwagon, joining automakers in the scramble to take advantage of government incentives for vehicles that run on batteries. Next year, Navistar, with the aid of a $39-million federal stimulus grant, will build 400 midsize trucks powered by batteries and intended for the urban parcel and product delivery market. Navistar’s production at a shuttered Monaco Coach motor home plant in Elkhart, Ind., is expected to ramp up to make thousands of electric trucks with a 100-mile range, within a few years.
Others with plug-in electrics in the works: Smith Electric Vehicles U.S. and Altec Industries jointly are producing electric utility-type trucks with aerial ladders for Pacific Gas and Electric. Their plan is to manufacture thousands of plug-in trucks at Smith’s Kansas City, Mo., plant that would replace diesel- and gasoline-powered trucks on deliveries and service calls.
Manufacturers are also bringing out diesel hybrids for longer hauls of 100 miles or so, with Kenworth, Mack, Navistar and Peterbilt targeting large nationwide, regional and private fleets. The market won’t be confined to just the big-rig behemoths. Balqon Corp. is set to make medium-size battery-powered trucks at its Harbor City, Calif., plant that can haul seven tons of cargo and go 90 miles or so on a single charge.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Cost will limit the appeal of the fuel efficient rigs for several years. Hybrid diesels and electrics will initially run 40%-50% more than standard trucks. But in time, freight haulers and delivery companies will buy them in significant numbers. “Fuel economy is a huge issue for fleet owners due to the surge in diesel fuel prices in recent years,” especially firms such as retailers that can’t recoup fuel costs with surcharges, says Tim Kraus, president and COO of the Heavy Duty Truck Manufacturers Association, a trade group.
But tough fuel standards likely in coming years will give them a jolt. Odds are Congress will adopt the recommendations of the National Academy of Sciences by early next year to nearly double standards for fleet owners who’ll then have to achieve an average of at least 15 miles per gallon for their truck fleets.
For weekly updates on topics to improve your business decisionmaking, click here.
-
Stock Market Today: Have We Seen the Bottom for Stocks?Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
-
The Economic Impact of the US-China Trade WarThe Letter The US-China trade war will impact US consumers and business. The decoupling process could be messy.
-
AI Heads to WashingtonThe Kiplinger Letter There’s big opportunity for AI tools that analyze MRIs and other medical images. But also big challenges that clinicians and companies will have to overcome.
-
The AI Doctor Coming to Read Your Test ResultsThe Kiplinger Letter There’s big opportunity for AI tools that analyze CAT scans, MRIs and other medical images. But there are also big challenges that human clinicians and tech companies will have to overcome.
-
The New Space Age Takes OffThe Kiplinger Letter From fast broadband to SOS texting, space has never been more embedded in peoples’ lives. The future is even more exciting for rockets, satellites and emerging space tech.
-
Rising AI Demand Stokes Undersea InvestmentsThe Kiplinger Letter As demand soars for AI, there’s a need to transport huge amounts of data across oceans. Tech giants have big plans for new submarine cables, including the longest ever.
-
What DOGE is Doing NowThe Kiplinger Letter As Musk's DOGE pursues its ambitious agenda, uncertainty and legal challenges are mounting — causing frustration for Trump.
-
A Move Away From Free TradeThe Letter President Trump says long-term gain will be worth short-term pain, but the pain could be significant this year.
-
The Explosion of New AI ToolsThe Kiplinger Letter Workers and consumers soon won’t be able to escape generative AI. Does that mean societal disruption and productivity gains are right around the corner?
