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.
-
Take Charge of Retirement Spending With This Simple StrategyTo make sure you're in control of retirement spending, rather than the other way around, allocate funds to just three purposes: income, protection and legacy.
-
Here's How To Get Organized And Work For YourselfWhether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
-
Europe Faces Economic and Political Headwinds Next YearThe Letter Challenges for Europe: Potential tariffs, high energy prices and more competition from China will weigh on the bloc in 2025.
-
Don't Sleep on Japan's Economic TransformationThe Letter After almost three lost decades, Japan — one of the world's biggest economies — is finally showing signs of life.
-
Kiplinger Outlook: Telecom Companies Brace for Tough TimesThe Letter The telecom industry is entering a new era that threatens profitability. But the coming Trump administration will make it easier for the major players to adjust.
-
Start-ups Trying to (Profitably) Solve the World’s Hardest ProblemsThe Letter More investors are interested in companies working on breakthrough science to tackle huge societal challenges. The field of deep tech has major tailwinds, too.
-
Will lower mortgage rates bring relief to the housing market?The Kiplinger Letter As mortgage rates slowly come down here's what to expect in the housing market over the next year or so.
-
The Big Questions for AR’s FutureThe Letter As Meta shows off a flashy AR prototype, Microsoft quietly stops supporting its own AR headset. The two companies highlight the promise and peril of AR.
-
China's Economy Faces Darkening OutlookThe Letter What the slowdown in China means for U.S. businesses.
-
AI Start-ups Keep Scoring Huge SumsThe Kiplinger Letter Investors continue to make bigger bets on artificial intelligence start-ups, even for small teams with no revenue. Some backers think a startling tech breakthrough is near.
