UPS (UPS) Purchases 125 Hybrid-Electric Delivery Trucks

September 9, 2015 9:32 AM EDT

UPS (NYSE: UPS) announced it has purchased 125 new technology hybrid electric delivery trucks, as part of a broader program to deploy electric-powered vehicles with greater range and performance.

The new trucks will deliver significant fuel economy equivalency gains - up to four times the fuel economy of a gasoline powered vehicle, compared to a 10 to 15% improvement with previous hybrid designs. They will be deployed in Arizona, Texas, Nevada, Mississippi, Alabama, Georgia and Florida the first half of 2016.

The trucks were purchased under UPS's commitment to utilize advanced technologies to reduce the environmental impact of its fleet. While the new electric vehicles will cost UPS slightly more than a similar truck with a conventional engine, the company's sustainability commitment influenced the purchase decision. The vehicles are being manufactured by Workhorse Group, Inc., a Cincinnati-based company which manufactures electric drive systems for commercial trucks and can equip them with electric engines.

"These vehicles are a bridge to the delivery trucks of tomorrow," said Mark Wallace, UPS senior vice president global engineering and sustainability. "This investment will help create and grow the market for ground-breaking alternative propulsion systems that reduce environmental impact, reduce operating costs and save fuel."

UPS, with its suppliers, continues to work toward development of the next generation, zero emission trucks. UPS is collaborating with Workhorse to develop a more intelligent electric vehicle to determine when and where the batteries will be charged and re-charged. The initiative is part of UPS's Rolling Laboratory, a cutting-edge approach to optimizing the use of alternative fuel and advanced technology vehicles.

"These trucks are designed specifically to meet the stop and start needs of UPS's urban delivery routes," said Steve Burns, CEO of Workhorse Group Inc. "They rely on a very small internal combustion engine and lithium ion battery to deliver a 50 to 60-mile per day range. We are thrilled to work with UPS to develop and deliver innovative solutions to today's transportation challenges."

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Corporate News, Management Comments