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.
-
Social Security New Rule: Overpayments Must Be Paid Back 100%. Why It MattersAs of March 27, the SSA will require beneficiaries who have been accidentally overpaid to repay 100% of the money, reversing a previous policy that allowed for only 10% recoupment.
-
Medicare and Medicaid Employees Offered New Buyouts: What You Need to KnowFederal HHS workers who inspect food, research diseases and administer Medicare and Medicaid are offered $25,000 buyouts
-
Trump’s Whirlwind Month of Crypto MovesThe Kiplinger Letter The Trump administration wants to strengthen U.S. leadership in the cryptocurrency industry by providing regulatory clarity.
-
Excitement Over AI Propels IT SpendingThe Kiplinger Letter IT sales set to surge in 2025 as businesses rush to adopt generative AI.
-
Donald Trump Tests His LimitsThe Kiplinger Letter President Encounters Legal Obstacles in Pursuit of Ambitious Agenda.
-
Another Down Year for AgricultureThe Kiplinger Letter Farmers brace for falling incomes, widening trade deficits
-
What To Know if You’re in the Market for a New Car This YearThe Kiplinger Letter Buying a new car will get a little easier, but don’t expect many deals.
-
How AI Will Impact Our Lives in 2025 and BeyondThe Kiplinger Letter Now that breakthrough artificial intelligence is here, the next decade of computing will be dominated by AI.
-
What Could Derail the Economy This Year?The Letter While the outlook for the U.S. economy is mostly favorable, there are plenty of risks that bear watching.
-
Three Ways President Trump Could Impact the EconomyThe Letter Some of Trump's top priorities could boost economic growth, but others risk fueling inflation.
