Work Truck Magazine May/June 2011 by Bobit Business Media

PROS & CONS OF CNG

PAGE 22

TRUCK ACQUISITION STRATEGIES

PAGE 28

THE RESOURCE FOR MANAGERS OF CLASS 1-7 TRUCK FLEETS

PG&E ELECTRIFIES BUCKET TRUCK FLEET

PAGE 36

WWW.WORKTRUCKONLINE.COM MAY/JUNE 2011 VOL. 5 NO. 3

4500/5500 NAMED 2011 MD TRUCK OF THE YEAR

STRATEGIES FOR HANDLING HIGH FUEL PRICES THE DRIVE (TIRE) TOWARD FUEL ECONOMY MITSUBISHI FUSO LAUNCHES 2012 CANTER FE/FG SERIES

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SMARTER. At Ford Fleet, we never stop learning. We believe in continually pushing ourselves to bring the best thinking and innovations to market. Our exclusive Crew Chief ™ feature* is just one example. It provides real-time telematics, for tracking routing times, fuel economy, vehicle performance/maintenance, engine idle times, even vehicle speed and location. With online access to Crew Chief’s customizable tools and displays, ﬂeet managers get critical, up-to-date information exactly when they need it. Ford Fleet. Get More.

ﬂeet.ford.com

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*Optional feature available on select models. Some features are unavailable while driving.

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IN THIS ISSUE

MAY/JUNE 2011 VOLUME 5 ISSUE 3

Features 16 RAM CHASSIS CAB NAMED 2011 MEDIUM-DUTY TRUCK OF THE YEAR Work Truck magazine names Class 4 and 5 Ram 4500/5500 Chassis Cab its 2011 Medium-Duty Truck of the Year.

18 STRATEGIES FOR DEALING WITH FUEL CHALLENGES Fuel costs are a top concern nationwide, and more so for fleets whose operations require the use of larger, more fuel-consuming vehicles and equipment. Truck fleet managers share their strategies for dealing with escalating fuel costs.

22 ARE NATURAL GAS VEHICLES RIGHT FOR YOUR FLEET? A growing number of fleets have already made the switch to compressed natural gas after weighing the benefits and challenges.

28 CASH, FINANCE, OR LEASE: WHICH TRUCK ACQUISITION STRATEGY WORKS BEST?

Determining the acquisition strategy that works best for individual company fleets is a daunting process. Industry experts pose and answer questions to help fleet managers make this important decision.

32 THE DRIVE (TIRE) TOWARD FUEL ECONOMY Tread design tweaks help lower resistance.

Departments 4 ON THE WEB

34 MITSUBISHI FUSO LAUNCHES ALL-NEW 2012 CANTER FE/FG SERIES WORK TRUCKS

6 LETTERS

Five all-new models were introduced for the Class 3-5 vocational market under the Canter name for the first time in North America.

■

Speed Limiters on MD Trucks Definition of a Truck

8 TRUCK NEWS 36 PG&E ADDS HYBRID-ELECTRIC BUCKET TRUCKS

■

Pacific Gas & Electric Company (PG&E) added about 100 hybrid-electric bucket trucks in 2010 and has ordered 125 more as part of its fleet greening efforts.

■

Truck Tire Prices Rise Freightliner’s New SmartPlex Electrical System

12 STATS ■ ■

2010 Operating Costs for Full-Size Vans Total Fleets Purchasing “Green” Trucks in 2011

38 TRUCK PRODUCTS ■ ■

DuraClass Dump Bodies Supreme Corp. Aero Body

40 END OF FRAME EDITORIAL

Traits of Successful Truck Fleet Managers

WORK TRUCK MAGAZINE (CDN IPM# 40013413) is published bi-monthly, by Bobit Business Media, 3520 Challenger Street, Torrance, California 90503-1640. POSTMASTER: Send address changes to Work Truck P.O. Box 1068 Skokie, IL 60076-8068. Please allow 8 to 16 weeks for address changes to take effect. Please address Editorial and Advertising correspondence to the Executive Offices at 3520 Challenger Street, Torrance, California 90503-1640. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission.

2 WORK TRUCK MAY/JUNE 2011 www.worktruckonline.com

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ROB HOYSGAARD Utility Fleet Expert

As a power industry specialist, Rob focuses his energy on innovative ﬂeet management solutions that help ARI’s utility partners succeed.

Partners at Work

For our fleets in Big Sky Country and beyond, the sky’s the limit. Vehicle reliability and readiness are always critical. But perhaps never more than when you’re managing a 1,000-vehicle fleet covering three northwestern states. ARI ensures every passenger car, pickup, bucket truck and digger derrick is at the ready. Our team also helped reduce fleet expenses by $1.3 million over three years while the fleet size grew 30%! From acquisition and maintenance to fuel and compliance services, to consulting and remarketing, there’s no limit to what ARI can do. Some call it going “above and beyond.” We call it, “partners at work.”

Read the full story and more at:

Driven Fleet Professionals. Driving results.

WT0511toc.indd 3

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what you’re reading www.worktruckonline.com w What We’re Blogging About

the 5

WORKTRUCKONLINE.COM TOP 5 MOST POPULAR STORIES AS OF APRIL 12, 2011

FREIGHTLINER TRUCKS TO OFFER PRE-WIRE OPTION FOR TELOGIS TELEMATICS PLATFORM

Available in Cummins-equipped Freightliner Business Class M2, 108SD, and 114SD vocational trucks.

NREL RELEASES HYBRID ELECTRIC FLEET STUDY

The year-long technology evaluation of gasoline hybrid electric trucks in the FedEx fleet can be accessed at www.worktruckonline. com/Channel/Green-Fleet.

NEW INTERNATIONAL WORKSTAR FEATURES SLOPED HOOD, UPGRADED INTERIOR

The new sloped hood option provides best-in-class visibility for the driver while the completely refined interior has ergonomic enhancements and improved comfort features.

MARKET TRENDS By Mike Antich www.worktruckonline.com/ blog/markettrends.aspx

ANTICH

April 1 Time to Add a New Component in Calculating Total Cost of Ownership March 11 Beware of Expunged MVR Records February 28 Higher Raw Material Costs Put Upward Pressure on Replacement Tire Prices February 15 In a Slow Economy, Driver Violations Increase CHATTY CHASSIS By Lauren Fletcher www.worktruckonline.com/ Blog/Talking-Truck.aspx

MITSUBISHI FUSO TO RESUME TRUCK PRODUCTION

The company announced it would start limited vehicle assembly on March 29, 2011 at its main Kawasaki, Japan plant, in a move intended to support the company’s customers around the world.

ENERGY XTREME WINS THE WORK TRUCK SHOW 2011 GREEN AWARD

The company is recognized for its new U36 Crossover mild-hybrid plug-in system.

THE FLEET CHANNELS Industry Trendss

Telematics

Safety

Remarketing

Fuel

Use the navigator on the WorkTruckOnline.com home page to browse the latest articles from the channels. Enter a channel to view in-depth news, articles, tools, calculators and more related to that specific topic. May/June’s Web Channel Highlight: MOBILITY View strategies for how to increase real-time control and communication within your fleet. The resources provided in this channel will educate you on how to enhance the capabilities of your drivers and field workers to meet customer expectations. ▲ Siemens Streamlines Vehicle Relocation ▲ Managing Your Off-Road Fleet from a Desktop ▲ Bright Ideas Energize Fleet Management ▲ 9 Mistakes to Avoid When Playing ‘Musical Cars’ ▲ How Can Telematics Help Your Fleet?

FLETCHER

March 22 Hitting the Road: Freightliner in Las Vegas March 8 Hitting the Road: The Work Truck Show – The Products March 7 Hitting the Road: The Work Truck Show – The Events

FLEET BLOGS The Voice of the Fleet Community (www.fleetblogs.com)

April 8: Musings on the Eve of the Fleet Executive of the Year Award by Wayne Smolda April 6: Myth Busted: Changing your air filter saves MPG by Steve Fowler March 30: Here’s a Tip, and Keep the (Annoying) Change by Elisa Durand March 23: Increase Your Net Worth by Anonymous Public Fleet Manager Interested in starting your own blog? Go to www.fleetblogs.com for more information

4 WORK TRUCK MAY/JUNE 2011 www.worktruckonline.com

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WT1110fordhigherlevel FPAR00293_D195530_

A higher level.

That’s what you get with Ford gas engines and transmissions. A higher build level means you’re getting engine and transmission assemblies built to the exacting speciﬁcations of Ford Motor Company. So you not only get the quality build you expect in an assembly from Ford, but also one that’s built by using parts that keep it speciﬁc to year, make and model as well as emissions calibrations.

Introducing the all-new 3-Year Unlimited-Mile Warranty – No Commercial Exceptions Ford gasoline engines and transmissions are covered by a three-year/unlimited-mile warranty.* All warranties are backed by Ford Motor Company. They’re also supported by more than 3,500 Ford and Lincoln Mercury Dealerships nationwide as well as at their originating place of service. Plus, unlike some competitors, the warranty is good for ﬂeet vehicles. That means you get the same advantages and coverage for commercial use, no exceptions. For technical questions, contact the Powertrain Assistance Center at 1-800-392-7946 or visit FordParts.com. *See dealer for limited-warranty details. Remanufactured diesel engines are covered by a two-year/unlimited-mileage warranty.

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LETTERS TO THE EDITOR Will Medium-Duties be Next? I read your End of Frame editorial entitled, “NHTSA Proposes Speed Limiters on HD Trucks: Will Medium-Duties be Next?” (See March/April WT.) It was excellent. Here are my thoughts: With medium-duties (MD), I’m not sure there would be as much resistance to a road governor/speed limiter compared to a mandate for heavy-duty (HD) rigs. (In fact, if I remember correctly, MD trucks, like the Isuzu NPR, already come standard with road governors, set somewhere in the high 60s/ low 70s mph. The GMC C-series’ governors were set somewhere around 72 mph.) Here’s my initial hypothesis: 1. MD trucks tend to be driven by employees versus owner-operators. Company principals/fleet managers want to limit maximum speed for safety and fuel economy reasons, without having to micromanage drivers on speed issues. Moreover, MD trucks usually run routes “close to home,” rarely needing to exceed the speed set by a road governor. 2. HD rigs, on the other hand, used primarily in over-the-road applications for long-distance trips, are often driven by owner-operators who would be more likely to reject speed limiters because the mandate impacts them directly. Sean Lyden Professional Writer Ft. Lauderdale, Fla.

Is it Really a Truck? In response to the Chatty Chassis blog post, “Is it Really a Truck,” (see www. worktruckonline.com/blog/ChattyChassis.aspx). I have to say: Well said, or more accurately, well asked! I support re-categorization by all parties — NHTSA, state DMVs, the industry, insurance companies, etc. In my opinion, the issue is carrying capacity and intent. If it’s primarily designed to move materials, like a pickup, it’s a truck. Carrying 10 or more passengers would be an exception, so a bus-like vehicle is also a truck. Everything designed to move fewer than 10 passengers is a car. The NHTSA definition of a truck is unworkable and needs to be changed. Joseph McKinney President Oregon Roads, Inc. Eugene, Ore.

In Favor of Speed Limiters I am in favor of governing speed (see March/April WT). It is common sense. Unfortunately, more and more regulations keep coming into our lives. I would not be surprised to see all cell phone use eliminated in three to five years. The speed for a truck should be limited to 68 mph; however, many will argue they need the speed to get out of jams.

A speed limited of 75 mph is for clear and dry pavement. The argument for reduced speeds can be made for congested areas, inclement weather, and at night. A number of states have reduced speed limits at night for heavy vehicles. Also, there are speed restrictions for various types of vehicles. Ford has the new MyKey solution, geared around teenage drivers. My company has standardized it to all of our fleet vehicles. For example, if you have a driver who keeps showing up as speeding, traveling 80-85 mph when the speed limit is 65 mph, you can govern his or her vehicle to 70 mph. Drivers must understand the limit of your equipment. I would much rather have 40,000-50,000 lbs. traveling 65 mph than one traveling 75 mpg; stopping distance would be greatly improved. Mike Butsch Director, Global Fleet Operations Joy Global Milwaukee

CSA & Vicarious Liability In response to the January/February WT editorial, I would add that vicarious liability will not apply to the owner if the vehicle is leased out to someone else and a contract for indemnification is in place. E-mail from Stroman

Vol. 5 No. 3 Publisher Sherb Brown Editor/Associate Publisher Mike Antich mike.antich@bobit.com Managing Editor Lauren Fletcher lauren.fletcher@bobit.com Senior Editor Grace L. Suizo grace.suizo@bobit.com Associate Editor Thi Dao thi.dao@bobit.com Web Editor Greg Basich greg.basich@bobit.com Production Director Kelly Bracken Production Manager Brian Peach (310) 533-2548 Art Director Armie Bautista For Subscription Inquiries (888) 239-2455 BobitPubs@Halldata.com Great Lakes Sales Manager Robert Brown Jr. 1000 W. University Dr., Ste. 209 Rochester, MI 48307 (248) 601-2005 Fax: (248) 601-2004 Regional Sales Managers Eric Bearly (310) 533-2579 Joni Owens (310) 533-2530 Sales Coordinator Tracey Tremblay Business and Editorial Offices Bobit Business Media 3520 Challenger St. Torrance, CA 90503 Fax: (310) 533-2503 Chairman Edward J. Bobit CEO Ty Bobit Chief Financial Officer Richard E. Johnson Editorial Consultant Howard Rauch Au

otive Fle et tom

Change Service Request Return Address Hallmark P. O. Box 1068 Skokie, IL 60076-8068

6 WORK TRUCK MAY / JUNE 2011 www.worktruckonline.com

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BusinessLink helps eliminate the potholes that can slow your business down. The vehicles your business needs. The service you deserve. At Dodge and Ram, we know there’s no time for downtime. Your BusinessLink dealer will help you find solutions that cut vehicle costs and help you save time, avoid hassles and keep your business vehicles running smoothly. BusinessLink means convenient one-stop sales and service: • Free membership, no dues, no fees • Priority “next-available bay” service • Extended service/repair hours • Free loaners for selected vehicles • Free shuttle service • On The Job* incentives — including up to $1,000† allowances for commercial upfits, commercial accessories or extended service contracts • Commercial vehicles in stock • Expertise in commercial financing options • 24/7 towing service available See why more businesses choose BusinessLink.

The fast lane for small business business.

dodge.com/businesslink . 877-2THELINK

* On The Job is a retail incentive program, see your dealer for of⇒cial program rules. †Inquire about eligibility by calling 877-ONTHEJOB or by logging on to ramtrucks.com/programs_discounts. The purchaser or lessee must be a quali⇒ed commercial customer for more than 30 days prior to the date of vehicle purchase. An of⇒cial ON THE JOB Customer Acknowledgement Form must be signed by the customer (provided by the dealer). Offer expires 12/31/11. ©2011 Chrysler Group LLC. All rights reserved. BusinessLink, Dodge, Ram and Mopar are registered trademarks of Chrysler Group LLC.

Properly secure all cargo.

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TRUCK NEWS Spartan Motors to Assemble Isuzu N-Series Gasoline Trucks ANAHEIM, CA – Isuzu Commercial Truck of America, Inc., announced production of gasoline-powered Isuzu NSeries trucks began April 18 at the Spartan Motors, Inc., facility in Charlotte, Mich. Gasoline-powered NPR (12,000-lb. GVWR) and NPRHD (14,500-lb. GVWR) trucks are available in Single Cab models with wheelbases of 109, 132.5, 150, and 176 inches, and in Crew Cab configurations with 150- and 176-inch wheelbases. Units were expected to arrive at Isuzu dealerships beginning early May, as of press time. N-Gas models are powered by a General Motors Vortec 6.0L V-8 engine that produces 297 hp at 4,300 rpm and generates 372 lb.-ft. of torque at 4,000 rpm. In addition, a version of the engine compatible with compressed natural gas (CNG) and liquefied petroleum gas (LPG) will be available. Both versions of the gasoline powerplant are mated to a GM powertrain 6-speed automatic transmission with double overdrive. Previous N-Series gasoline models offered only a four-speed automatic.

With units expected to arrive at Isuzu dealerships this spring, the gas-powered NPR trucks are available in Single Cab and Crew Cab configurations.

Truck Tire Prices Rising AKRON, OHIO – Several tire manufacturers announced increased pricing for commercial truck tires, according to Modern Tire Dealer. Continental Tire the Americas LLC increased the price of its Continental, General, and AmeriSteel brand truck tires by 10 percent effective April 1 for replacement sales channels in the United States only. Yokohama Tire Corp., implemented a price increase on all of its light and medium commercial truck tires in the U.S. effective April 1. Prices were raised an average of 8 percent, with in-line adjustments. Double Coin and China Manufacturers Alliance LLC (CMA) hiked commercial tire prices an average of 13 percent on March 1. The price increases applied to the Double Coin radial truck and bus tires, all of its private brand radial truck and bus tires, and Double Coin radial OTR tires. Toyo increased prices on its commercial truck and OTR tires by an average of 8 percent, with in-line adjustments, on March 1. Michelin increased prices on its commercial products in the U.S. effective March 1. The company also raised prices an average of 12 percent on Michelin and BFGoodrich truck tires and Michelin Retread Technologies and Oliver retread products. Hankook increased prices on its medium truck tires by a weighted average of 9 percent. The increases went into effect on tire shipments made on or after March 15. Cooper Tire raised its commercial truck tire prices 12 percent across the board during the week of Feb. 6.

Sill Installed as 47th NTEA President INDIANAPOLIS – Steven Sill, president of Aspen Equipment Company in Bloomington, Minn., was installed as the 47th president of the National Truck EquipSILL ment Association (NTEA) at The Work Truck Show 2011, held in Indianapolis. Sill accepted the gavel from immediate Past-President Allen Birmingham, national sales manager for Tommy Gate Co. in Phoenix, at the President’s Breakfast & NTEA Annual Meeting. Sill began his career as the first thirdgeneration employee in the family business, Road Machinery & Supplies (RMS), in high school. On July 1, 1994, Aspen Equipment was separated from RMS and was born under Sill’s leadership as president. “My primary focus over the next year as president of the NTEA will be to help fellow NTEA member companies to better position themselves to take full advantage of the rapidly revitalizing economy,” Sill said.

8 WORK TRUCK MAY/JUNE 2011 www.worktruckonline.com

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TRUCK NEWS

CONTINUED

Freightliner Introduces New SmartPlex Electrical System INDIANAPOLIS – Freightliner Trucks introduced the SmartPlex Electrical System for the Freightliner 114SD and Business Class M2 platforms. The electrical system provides flexibility for truck equipment manufacturers (TEMs) when configuring a truck to suit specific

body installations, according to Freightliner. The SmartPlex Electrical System uses Freightliner’s proprietary control modules that connect to the J1939 data bus, controlling power to lights and TEM equipment. SmartPlex also introduces the SmartPlex flex switch

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and lamp module — capacity for up to 24 switches is located in the overhead compartment — which can be installed, programmed, and labeled by TEMs for specific body needs. Laser-etched plastic inserts with icons that are appropriate for each industry and/or the type of truck are also provided, allowing TEMs to snap the inserts into corresponding switches. The system expands the total number of switches and lamps that can be connected to 35 (includes dash switches), a significant increase. The SmartPlex Electrical system is accessed using Freightliner ServiceLink software, which communicates directly with the Freightliner proprietary control modules. ServiceLink allows TEMs to configure programming for unique needs — all in the comfort of their own facility. This provides traceability back to Freightliner dealers, easing service in the field for trucks with TEM equipment.

Build your fleet on our strong foundation.

Leggett & Platt & Landi Renzo Partner on NGVs

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ATLANTA – Leggett & Platt Commercial Vehicle Products (L&P CVP) partnered with Landi Renzo USA to implement alternative-fuel systems using compressed natural gas (CNG). As a Qualified Vehicle Modifier (QVM) of Ford vehicles, L&P CVP will install Landi Renzo’s CNG fuel system at its Ford ship-thru facility in Elyria, Ohio and will offer three- and four-tank options for installation on Ford’s E-250 and E-350 cargo and passenger vans. The 21- and 27-gasoline-gallonequivalent tanks are part of a system that complies with Federal Motor Vehicle Safety Standards and Regulations, is certified by the EPA, and is 50-state

10 WORK TRUCK MAY/JUNE 2011 www.worktruckonline.com

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Navistar & Women In Trucking Award ‘2011 Influential Woman of the Year’ SAN DIEGO – Navistar, Inc. and the Women In Trucking Association (WIT) presented the inaugural “Influential Woman of the Year” award to Rochelle Gorman, chief executive officer, CalArk International (an irregular route, general commodities, and contract TL carrier), at a ceremony during the Truckload Carriers Association (TCA) annual meeting. The “Influential Woman of the Year” award seeks to recognize a woman in the trucking industry who makes or influences key decisions in a corporate, manufacturing, supplier, owner-operator, driver, sales, or dealership setting. Other criteria for the award include demonstrating a record of responsibility and success in mentoring other women. Gorman accepted her award immediately following a panel discussion about overcoming the challenges women often face in the trucking industry. “Women today have the opportunity to lift each other up in ways that provide inspiration, leadership, and encouragement that may not have

compliant through the California Air Resources Board. The L&P CVP/Landi Renzo CNG conversion system allows NGVs to perform just like gasoline vehicles, can be serviced by local dealers, and will be backed by a comprehensive warranty. “To increase their efficiency, our customers have asked for alternative-fuel options for their fleets and NGVs make economic sense,” said John Fischer, VP new business and product development for L&P CVP. “We also strive to make the conversion process seamless. For Ford vans, simply check the option code (31V – effective April 1) on the vehicle order form to have it upfit with the CNG fuel system and delivered to a dealer anywhere in the country at no additional transportation cost.”

existed when I entered the industry,” Gorman said. “We are now trusted to promote the good and positive of the trucking industry.” Two runners-up for this year’s award were also rec-

ognized at the TCA event: Shelley Simpson, executive vice president, J.B. Hunt Transport, Inc. and Andreea Raaber, vice president, business development, Bendix Commercial Vehicle Systems, LLC.

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www.worktruckonline.com MAY/JUNE 2011 WORK TRUCK 11

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STAT SHEET Average U.S. National Per-Gallon Diesel Fuel PriceTrend

$3.97

$3.54 $3.38

$2.93

Mar. 10

Apr. 10 May 10

June 10

July 10

$3.06

$2.95

Aug. 10 Sept. 10 Oct.10

$3.14

Nov. 10 Dec. 10 Jan. 11

2010 Operating Costs: Full-Size Vans

SOURCE: AF RESEARCH DEPT.

TOTAL UNITS: 85,083

<24,000 MILES

24,000- 48,000 MILES

48,001-80,000 MILES

CENTS PER MILE

DOLLARS CENTS PER PER MONTH MILE

GASOLINE

0.1800

$279.79

0.1635

$305.75

OIL

0.0042

$5.07

0.0055

$6.82

0.0043

$6.97

TIRES

0.0042

$7.36

0.0099

$18.23

0.0164

$25.38

MAINTENANCE/REPAIR

0.0156

$16.84

0.0227

$34.91

0.0328

$73.00

WARRANTY RECOVERY

(0.0001)

($1.25) (0.0001)

($0.95)

TOTAL OPERATING COSTS

0.2039

($0.35) (0.0007) $308.71

Fleets Purchasing ‘Green’ Trucks in the Next 6-12 Months for State & Federal Clean Air Requirements

58%

No 58%

42%

Yes 42%

SOURCE: NATIONAL TRUCK EQUIPMENT ASSOCIATION (NTEA)

0.2009 $364.46

DOLLARS PER MONTH

0.1611 $322.95

0.2145 $427.35

How Much Does the Payload Weigh? Here are weights for common materials hauled in dump bodies: Crushed stone ...............2,500 lbs. per cubic yard Gravel..............................2,700 lbs. per cubic yard Sand (dry)........................2,700 lbs. per cubic yard Soil....................................2,500 lbs. per cubic yard For more material weights, visit www.age.psu.edu/extension/ factsheets/h/H20.pdf. SOURCE: PENN STATE UNIVERSITY DEPARTMENT OF AGRICULTURE AND BIOLOGICAL ENGINEERING

SOURCE: WEX

$2.96

$2.91

$2.96

Feb. 11 Mar. 11

Class 4-7 Truck Body Length vs. Cab-to-Axle* BODY LENGTH

APPROX CA*

9 ft. 10 ft. 12 ft. 14 ft. 16 ft. 18 ft. 20 ft. 22 ft. 24 ft. 26 ft. 28 ft.

60 in. 72 in. 84 in. 108 in. 120 in. 138 in. 150 in. 162 in. 175 in. 190 in. 205 in.

SOURCE: WORK TRUCK MAGAZINE

$3.07

$3.05

$3.24

297,084 Number of Class 3-6 trucks on AF’s 2011 Top 300 Commercial Fleets SOURCE: AF RESEARCH DEPT.

12 WORK TRUCK MAY/JUNE 2011 www.worktruckonline.com

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4/12/11 1:53:37 PM WT0511firestone.indd

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4/12/11 7:27:07 AM

2011 RAM 4500/5500 CHASSIS CAB NAMED “MEDIUM-DUTY TRUCK OF THE YEAR” BY WORK TRUCK MAGAZINE

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fleet.chrysler.com

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800-999-FLEET

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CHASSIS CAB NAMED 2011 MEDIUM-DUTY TRUCK OF THE YEAR Work Truck magazine named the Class 4 and 5 Ram 4500/5500 Chassis Cab its 2011 Medium-Duty Truck of the Year. By Lauren Fletcher

he Class 4 and 5 Ram 4500/5500 were named Work Truck magazine’s 2011 Medium-Duty Truck of the Year. Nineteen vehicles were included in an online ballot and voted on by professional fleet managers, who were asked to consider which medium-duty truck model best fit their fleet requirements, including application effectiveness, durability, quality, servicing, maintenance, and lifecycle costs. “We are very pleased that the Ram 4500/5500 Chassis Cab was named the 2011 Medium-Duty Truck of the Year,” said Pete Grady, vice president, Network DevelGRADY opment & Fleet for the Chrysler Group LLC. “We take pride in this truly fleet-oriented award, as it was

AT A GLANCE The 2011 Medium-Duty Truck of the Year provides truck fleets with: ■ Max Tow – a towing package

available on both regular and crew cab models and in 4x2 and 4x4 configurations. ■ Maximum upfit-friendliness with

an industry-standard 34-inch frame rail spacing and flat, clean frame rails on a one-piece C-channel rear-frame rail with 50,000-psi steel strength. ■ Programmable features, including

speed limiters and shut-down timers.

Work Truck magazine Associate Publisher Robert Brown (second from right) presents the 2011 Medium-Duty Truck of the Year Award to the Ram Chassis Cab team, (left) Joe Veltri, vice president, Product Planning; Fred Diaz, president and CEO Ram Truck Brand and head of National Sales; and Scott Kunselman, senior vice president, Engineering. Shown in back is the 2011 Ram 4500 Chassis Cab.

selected by professional fleet customers from across the country.” BUILT FOR TOWING Ram Chassis Cab trucks are specifically designed for towing. The new Ram 4500/5500 Chassis Cab GCWR upgrade is part of an optional “Max Tow” package, available on both regular and crew cab models and in 4x2 and 4x4 configurations. The Ram Max Tow package includes a new transfer case gear set as well as chain and sprocket upgrades, recalibrated transmission software, and an enhanced collection of thermal management devices.

Ram 4500 and 5500 Chassis Cab trucks come equipped with the commercial-grade 6.7L Cummins Turbo Diesel engine that produces 305 hp at 2,900 rpm and 610 lb.-ft. of torque at 1,600 rpm. Max Tow is available on Ram Chassis Cab trucks equipped with the optional commercial-grade Aisin 6-speed automatic transmission and 4.88 rear-axle ratio. A 4.44 axle is standard on 4500 models and not available with the Max Tow package. A class-exclusive 6-speed manual transmission is standard on Ram 4500 and 5500 Chassis Cab models. The 30,000-lb. GCWR gives the Ram Chassis Cab a 4,000-lb. increase

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in trailer-towing capabilities, up to a maximum of 22,300 lbs. on a Ram 4500 or 5500 Chassis Cab equipped with a 6-speed automatic transmission on Class 4 Chassis Cab trucks. “The commercial truck segment is all about total cost of ownership,” said Fred Diaz, Ram Truck president, CEO, and head of U.S. sales – Chrysler Group LLC. “When you account for fuel economy, brake wear, tire wear, and the best powertrain warranty in the business, Ram Chassis Cab trucks offer the lowest cost of ownership.” PROVIDING UPFIT FRIENDLINESS Maximum upfit-friendliness is achieved with industry-standard 34-inch frame rail spacing and flat, clean frame rails on a one-piece C-channel rear-frame rail with a best-in-class 50,000-psi steel strength, according to Ram Truck. All chassis components are below the frame surface, allowing easy adaptability and versatility for upfit applications. Further improving upfitter-friendliness, 2011 Ram 4500 and 5500 Chassis Cabs feature four all-new upfitter switches integrated on the instrument panel. Each switch is linked to an auxiliary power distribution center (PDC) located under

the hood, which includes one fused 20amp battery feed and one fused relaycontrolled 20-amp ignition. In addition to these feeds, the PDC supports four new customizable switches. Two switches are ignition-fed, and the remaining two are either battery- or ignition-fed. Switch outputs are found under the hood in a connector for further ease of upfit. A seven-circuit trailer harness and a special upfitter jumper cable — a wiring harness for ancillary power needs — are both standard. Upfitter wire circuits and electrical schematics are identified in the manufacturer’s Body Builder Guide. With built-in tandem PTO capability, all models feature a heavy-duty cooling system in order to meet additional heat loads that are often generated from PTO upfits and/or extreme hauling. A special capped auxiliary fuel line on the fuel tank facilitates the use of auxiliary equipment running on fuel. The fuel filler is routed through the frame, and an optional 22-gallon midship fuel tank frees up more space behind the rear axle for special upfit applications. Fuel and brake lines are routed together on the frame’s driver side to make better use of space along the frame, which also provides clear-

ance for rear exhaust routing. Ram Chassis Cab also employs a Cummins commercial-grade DEF system that is placed out of the way of upfit zones, saving time and money in the upfit process. PROGRAMMABLE FEATURES For 2012, the Ram Chassis Cab has a customer-selectable maximum speed. Ram Chassis Cabs can be ordered from the factory — or programmed by a Ram Truck dealer at no charge — with 55, 60, 65, 70, or 75 mph speed limits. According to the manufacturer, Ram 4500 and 5500 Chassis Cab trucks have a best-in-class standard 87 mph top speed, an important feature for fire, ambulance, and other safety and rescue roles. A five-minute shutdown timer is also available. The 2012 Ram 4500 and 5500 medium-duty Chassis Cab commercial trucks will be available with an optional 30,000-lb. GCWR, an increase from 26,000 lbs. The 2012 Ram Chassis Cab with Max Tow will reach dealerships in the third quarter of 2011. Max Tow pricing will be announced closer to launch. For more information, visit www. ramtrucks.com/commercial. WT

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STRATEGIES FOR

FUEL CHALLE CHALLEN

Fuel costs are a top concern nationwide, and more so for fleets whose operations require the use of larger, more fuel-consuming vehicles and equipment. Truck fleet managers share their strategies for dealing with escalating fuel costs. By Grace L. Suizo & Thi Dao

il prices are all over the radar, especially as unrest in oil-producing countries has contributed significantly to increased cost. While an average commuter can complain about a hike in fuel prices, fleets purchasing fuel for hundreds or thousands of vehicles have more to be concerned about. In a recent survey of commercial fleet managers, the rapid escalation of fuel prices was cited as one of the top challenges facing fleets in 2011. Retail gasoline prices were up to a nationwide average of $3.69 per gallon as of April 5, while diesel was at $3.99, according to OPIS (Oil Price Information Service), a provider of petroleum pricing and news information. Compare this to $3.07 gasoline prices at the beginning of this year ($3.32 diesel), and many fleets have reason to be concerned prices may rise even higher.

FACTORS AFFECTING OIL PRICES According to Denton Cinquegrana, senior markets editor, west coast, for OPIS, the three factors affecting fuel prices are geopolitics, equities, and the value of the dollar. Supply is not so much the issue — while the oil market has already taken into account that some countries won’t be CINQUEGRANA exporting oil, what it doesn’t like is uncertainty in MENA (the oil-producing countries of the Middle East and North Africa). “The unrest in the oil-producing countries really have this market on edge,” Cinquegrana said. In addition, oil prices are in tune with equities and inversely related to the dollar — if the dollar weakens, oil prices will most likely go up, he said. The high cost of diesel is a top con-

cern for truck fleet managers, and the price difference between oil and gas seems to be rising. Cinquegrana doesn’t think the early-April 30-cent fuel price difference is going away any time soon. “I think the disparities are going to stay pretty wide,” he said. While the U.S. is more gas-centric, “a lot of other nations around the world, particularly developing nations, are more diesel-centric, so diesel is more in tune to economic factors around the globe,” he explained. Cinquegrana believes this is why diesel has been more expensive than gasoline over the past couple of years. RIGHTSIZING & IDLE REDUCTION With rising fuel prices significantly impacting fleet budgets, many fleet managers have done their part to prepare as best as possible. Several of Automo-

AT A GLANCE DIESEL VS. GAS BASIS IN CENTS PER GALLON

Fleet managers have enacted some of the following techniques to handle rising fuel prices:

100.0 80.0

■ Rightsizing vehicles. ■ Reducing idling through GPS

tracking.

CENTS PER GALLON

■ Revising fuel budgets.

60.0 40.0 20.0

■ Ensuring fuel card compliance.

efficient driving. ■ Utilizing fuel hedging programs. ■ Exploring alternative-fuel

programs.

0.0 -20.0 -40.0 1/1/2000 5/1/2000 9/1/2000 1/1/2001 5/1/2001 9/1/2001 1/1/2002 5/1/2002 9/1/2002 1/1/2003 5/1/2003 9/1/2003 1/1/2004 5/1/2004 9/1/2004 1/1/2005 5/1/2005 9/1/2005 1/1/2006 5/1/2006 9/1/2006 1/1/2007 5/1/2007 9/1/2007 1/1/2008 5/1/2008 9/1/2008 1/1/2009 5/1/2009 9/1/2009 1/1/2010 5/1/2010 9/1/2010 1/1/2011

■ Educating drivers about fuel-

A cost comparison of diesel and gasoline prices show that in late 2008, diesel cost almost $1 more per gallon than gasoline (94.1 cents in November 2008). As of March, the disparity hovered just under 40 cents per gallon. SOURCE: OPIS

DATE

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DEALING WITH PHOTO: ©ISTOCKPHOTO.COM/HENRIK5000

LLENGES LENGES

MONTHLY COMPARISON (AVERAGE PRICES) $4.0

UNLEADED PRICE DIESEL PRICE

$3.5 2.91 2.85 2.88 2.84 $3.0 2.77 2.71 2.65

DOLLARS PER GALLON

tive Fleet’s 2010 Top 100 Truck Fleets shared strategies for dealing with fuel over the past year. Joy Global, parent company of P&H Mining and Joy Mining Machinery, operates a global fleet of 1,400 work trucks, 700 of which are in the U.S. and Canada. These include Ford Escapes, F-150 and F-250 pickups, some F-550s, heavier service trucks, and semis. Smaller vehicles operate on gasoline (about 75 percent of the fleet), and the rest are diesel-powered. According to Mike Butsch, director of global fleet operations for Joy Global, having learned from fuel price hikes in the past, the company began “an BUTSCH aggressive program of rightsizing.” The company began moving from F-150s to Escapes and Fusions for its sales positions beginning in 2007. All applicable vehicles will be switched out by MY-2012, and lifecycle savings on the approximately 150 rightsized vehicles is expected to total $1.5 million. Switching smaller vehicles (F-550 and smaller) to run on gasoline has also resulted in decreased fuel spend. In addition, since deploying fleet

3.04

3.08 2.84

2.97 2.72

3.89 3.54 3.52

3.37 3.25 3.16 3.16 3.09 3.07 2.97 2.98 2.96 2.95 2.85 2.79 2.72 2.73 2.70

$2.5 $2.0 $1.5 $1.0 $0.5 $0.0

JAN 10 FEB 10 MAR 10 APR 10 MAY 10 JUN 10 *Through March 28, 2011

JUL 10 AUG 10 SEP 10 OCT 10 NOV 10 DEC 10 JAN 11 FEB 11 MAR 11* DATE

In January January, monthly average unleaded gasoline prices exceeded $3 for the first time since October 2008. Diesel prices as of March were escalating toward $4, a price not seen since 2008. SOURCE: OPIS

management software and satellitebased GPS tracking, the fleet has reduced idle time by about 75 percent, further reducing fuel use, he said. With these measures already in place, Joy Global is not as affected by fuel prices as it could be. “We’ve effected enough of a decrease in use to make up for the increase in cost,” Butsch said. As for budgeting for fuel prices, “We always budget a little more than what

we think we’re going to use to allow for some fluctuation,” he said. In fact, Butsch, forecasting rising costs this year, budgeted $4 per gallon, but also budgeted for reduced consumption. National auto and home insurance provider State Farm has also switched to smaller, more fuel-efficient models. “Rising fuel costs have had quite an impact on our operating costs,” according to Dick Malcom, fleet manager for State Farm. “These vehicles are neces-

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Fuel Management sary for us to take care of our cusemployed with the company is all fuel economy, such as idling reductomers and our facilities.” provided on a daily basis to ention, new preventive maintenance alerts, State Farm’s total fleet numsure their PINs are deactivatand driver behavior. With the help of its bers nearly 13,000 vehicles, with ed and no unauthorized chargrisk management solutions company, close to 3,000 vans (2,815) and es are incurred. new “green” driver training modules 160 trucks that run on gasoline, In addition, drivers must enand policies have been added to ensure flex fuel, and diesel. In fall 2010, ter the odometer total, which enall individuals understand their role in MALCOM State Farm began moving its ables mpg to be tracked so dismaximizing fleet fuel efficiency. The Claim representatives out of full-size crepancies can be easily identified if training is conducted at pre-hire and vans into four-cylinder Ford Transit they are not correct to the type of veafter an accident. Gilchrist estimated Connect models. hicle driven. “This also enables us to these initiatives will help reduce CO2 “The Transit [Connect] provides much monitor mpg by vehicle type for future emissions by 9,000 metric tons. better fuel economy, and yet has the specs and track fuel gallons purchased Other recent Safelite AutoGlass fuel space necessary to allow us to install to make sure it matches the size of the initiatives include more fuel-efficient our upfit package,” Malcom said. fuel tank on the vehicle this driver is vehicle selectors, exploring alternativeusing,” Lahr said. fuel programs, and utilizing lighterMONITORING & Weekend and after-hours fuel use is weight interior upfit components. CONTROLLING COSTS also tracked with exception reports that Fleets are working with drivers to monprovide the time, date, gallons, amount NOT $5 PER GALLON itor and control fuel use as well as reof fuel purchased, type of fuel, and staANY TIME SOON evaluating their budgets. tion location. What are the fuel price predictions for Mike Lahr, director of LoAll fuel cards are put into a the near future? Most of the commergistics for LKQ Corporation, lock box at night, along with the cial fleet managers surveyed by AF said said rising fuel costs have subkeys to the trucks. Lahr said both they foresee fuel price volatility constantially affected his fleet’s card and key stay together on the tinuing for the balance of 2011 and exoperating budget. LKQ is a nasame keychain. tending into calendar-year 2012. tional provider of aftermarErin Gilchrist, fleet managFormer President of Shell Oil John LAHR ket collision replacement, reer for Safelite AutoGlass, said Hofmeister in December 2010 predictcycled OEM parts, and refurbished fuel prices have challenged her fleet ed a possible $5 per gallon of gasoline OEM collision replacement products. as well.Safelite AutoGlass, a national at the pumps due to growing global deThe LKQ fleet totals 3,700 vehicles, auto glass repair and replacement sermand for oil, tighter supplies, and incomprised of 1,400 trucks (80-percent vice provider, operates nearly 6,000 veadequate responses by the U.S. govdiesel and 20-percent gasoline); 2,175 hicles: 4,400 vans, 90 gasoline trucks, ernment. vans (98-percent gasoline and 2-per190 diesel trucks, 150 pickup trucks, However, Cinquegrana of OPIS doesn’t cent diesel); and 125 tractors running and 1,100 cars. think prices will go that high. “I don’t on 100-percent diesel. One of the ways the company has see it,” he said. “The talk of $5 I think “We will probably have to revise our dealt with escalating fuel prices is fuel is a little ridiculous, and it’s a little bit budget to account for the offset in rishedging, to “[give] us some reof fear mongering.” ing fuel prices. We are not sure where prieve,” Gilchrist said. Fleet managers may be reor when it will stop or if it will reverse For many years, Safelite Autolieved at his prediction for the this trend and head back down again,” Glass has also managed its “Turn next few months: “We’ll probaLahr said. it off, idling gets you nowhere” bly peak out somewhere not far Close monitoring of costs is key to anti-idling campaign. The profrom where we are now [in early helping LKQ ensure no abuse/fraud is gram was recently revamped with April], probably in the $4 area taking place. Fuel for vehicles is purnew “green” signage and goals, as GILCHRIST nationally,” he said. This is conchased using an assigned fuel card, well as enhanced mileage and excepsidering patterns continue as they have and drivers are assigned a PIN that tion reporting and field training to supbeen and there are no unforeseeable allows them to drive any truck. “We port Safelite AutoGlass’ overall 2011 events that drive prices upward. are working on 100-percent complifuel initiative to reduce consumption Of course, California, Hawaii, Alasance to this fuel card, as we can conby 10 percent. ka, and other more expensive martrol the gallon maximum per day per In the fleet’s efforts to achieve this kets will see higher fuel prices, and fill and limit the amount of fill-ups per goal, Gilchrist worked with Safelite Aua few stations may show the $5 sign, day,” Lahr explained, noting the hours toGlass’ fuel card provider to develop a but “it’s going to be certainly more of use of each card can also be limited. Web seminar focusing on the key comthe exception than the rule,” CinqueA listing of drivers who are no longer ponents necessary to maximize overgrana said. WT 20 WORK TRUCK MAY/JUNE 2011 www.worktruckonline.com

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ARE

NATURAL

GAS VEHICLES RIGHT FOR YOUR FLEET? A growing number of fleets have already made the switch to natural gas after weighing the benefits and challenges.

In October 2010,

growing number of busiVerizon announced its order of 501 new nesses are transitioning their 2011 Ford E-250 vans fleets to run on compressed to be converted to natural gas (CNG) or liqueCNG. fied natural gas (LNG) as alternatives to gasoline and diesel. Delivery giant United Parcel Service (UPS), which began using natural gas vehicles (NGV) in 1989, now operates more than 1,300 CNG package delivery trucks in a dozen markets and recently announced it was adding another 48 LNG-powered tractors to its western freight fleet. AT&T has deployed nearly 3,000 NGVs, comprised primarily of Ford E-250 vans upfitted to CNG at time of purchase, and dition to the opmore recently ordered 101 CNG portunity to reduce Chevrolet Express cargo vans their vehicles’ cardirect from GM. Through 2013, bon footprint.” the telecom company anticipates Jerome Webber, senior purchasing up to 8,000 NGVs as In October 2010, Verizon Wirevice president of AT&T Global Fleet Oppart of its commitment to deploy less Inc. ordered 501 new Ford erations, agrees. “CNG vehicles provide 15,000 alternative-fuel vehicles E-250 CNG vans in what coma reduction in carbon emissions — by apthroughout its fleet. pany offi cials indicate is the fi rst proximately 25 percent compared with WEBBER phase of what will be a multi-year our traditional gasoline vehicles. That AT A GLANCE deployment of NGVs. supports our corporate commitment to Why are these and other businesses reduce our impact on the environment. Be aware of the facts about commaking the switch to NGVs? We also expect a decrease in our overall pressed natural gas (CNG) before making the switch: “Corporate and government fleets fuel costs, especially as gasoline prices ■ How CNG systems work. are the strongest adopters of natucontinue to trend upwards. His■ Cost of CNG conversion. ral gas vehicles” said Dave Hurst, torically, CNG is 30-40 percent ■ Benefits of CNG from a business senior analyst for Pike Research, cheaper than unleaded gasoline, perspective. which recently published a report so adding this many CNG vehi■ Payback. analyzing global clean technolocles to our fleet will have a pos■ Limitations. gy markets. “More and more fleet itive impact both economically ■ Best applications. managers are attracted to the lowand environmentally.” ■ Future of CNG. YBORRA er fuel costs of natural gas, in adDespite these advantages, NGVs’ 22 WORK TRUCK MAY/JUNE 2011 www.worktruckonline.com

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NGV Analysis need for fueling infrastructure has hindered more widespread adoption. “NGVs are a good fit for fleets like UPS, AT&T, and Verizon because they have relatively high fuel use and are either return-to-base or repetitive route applications,” said Stephe Yborra, director of market development at NGVAmerica. “Investments in fueling infrastructure, whether company-owned and operated or provided by a utility or independent fuel retailer, are driven by fuel use.” Yborra said that while the transit, airport, and refuse sectors account for more than 75 percent of vehicular natural gas use, there’s been significant growth in work truck fleets applications, such as utilities, food and beverage distributors, textile rental services, and localregional freight delivery companies. He noted that as more truck platforms become available to meet different fleets’ needs, and the gap between natural gas and petroleum fuel prices grows, economics will drive additional investment in fueling infrastructure. “NGVs are not for everybody — yet,” said Yborra. “Fleet operators need to weigh the benefits and challenges against their corporate goals.” “Our greatest challenge in deploying CNG vehicles continues to be the limited availability of public refueling facilities,” said AT&T’s Webber. “It’s our hope that by applying our market size, we’re also helping our nation’s infrastructure. To help meet our needs, we’ve teamed with the DOE [Department of Energy] Clean Cities organizations across the nation to help match and time our deployments with public refueling infrastructure.”

What is Vehicular Natural Gas? Vehicular natural gas is the same “blue flame” gas that is used in factories, businesses, and homes for industrial processes, heating, water heating, cooking, and other domestic uses. Natural gas is comprised primarily of methane (CH4), an energy dense single carbon molecule that produces far fewer harmful emissions than either gasoline or diesel when combusted. While most natural gas used today is a fossil fuel extracted from deposits found deep within the earth, a

General Motors’ Chevrolet Express and GMC Savana CNG vans use a fourtank system, with three tanks placed in underfloor locations and one in the cargo area on the driver’s side. A three-tank system is also available.

growing amount of renewable natural gas produced from landfills, sewage plants and agricultural waste (referred to as bio-gas or bio-methane) is being utilized, including by some fleets. Since nearly 98 percent of all natural gas used in the U.S. comes from North America, proponents argue that increased use, especially in the transportation sector which currently relies heavily on imported oil, is a viable path for the United States to achieve greater energy independence now and for the foreseeable future. “The existing and growing U.S. reserves of well gas and bio-methane are more than enough to absorb tremendous growth in the transportation sector,” said Yborra. “The 115,000 NGVs on U.S. roads today account for less than one-half of 1 percent of all U.S. natural gas use, so there’s lots of room to grow.”

How Do NGVs Work? NGVs use internal combustion engines that are very similar to those that run on gasoline or diesel. Most NGVs available today use spark-ignited engines, although some of the largest natural gas engines use compression ignition, utilizing a small amount of diesel “pilot” fuel. Light-duty sedans and pickups and some smaller medium-duty trucks use spark-ignited engines that may be either dedicated (runs exclusively on natural gas), or bi-fuel (designed to run either on natural gas or gasoline but not both at same time). Nearly all spark-ignited medium- and heavy-duty engines run dedicated only. Natural gas may be stored onboard in one of two ways, either as CNG or LNG, although in all but the largest natural gas engines, fuel is fed to the combustion process as a gaseous vapor at pressures similar to gasoline or diesel. LNG is currently used in less than 5 percent

of NGVs with nearly all used by heavyduty trucking and some transit bus operations because its density allows for a smaller fuel system footprint. CNG is far more prevalent and the fuel system is available in all light-duty vehicles and most medium-duty work trucks. Today’s CNG systems operate at 3,600 lbs. per square inch (psi) although some older NGVs still on the road today were designed using 3,000 psi fuel storage systems and many CNG stations still offer both pressures. Different fuel nozzles and receptacles ensure that the higher pressure gas may not be errantly loaded into the lower pressure vehicles. CNG systems comprise: ■ Storage cylinder(s). Four types of cylinders are available. At one end of the spectrum are steel cylinders, which are cheapest but heaviest. At the other end are composite materials cylinders which are more expensive but lighter. All meet the same stringent strength and safety regulations. ■ High-pressure fuel line, which serves as the pathway for CNG to travel from the cylinders to the engine compartment. ■ Pressure regulator, which drops the gas pressure to the required fuel-injection system pressure. ■ Fuel injectors, which modulate the amount of gas for combustion based on demand. ■ Pressure relief device, which is a built-in fire safety feature to allow for controlled venting of the gas at pressures well below the cylinders’ design “burst” pressure. ■ Various shut-off valves that allow for CNG system maintenance and operation. ■ Brackets, protective plates, and other hardware to secure and protect CNG system components.

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NGV Analysis Purchase Price Premium for NGVs Factory built heavy-duty NGVs for delivery fleets, public works and other larger work truck applications (Class 6 and larger) are available from many of the major truck manufacturers including Freightliner, Peterbilt, Kenworth, and International. In addition, conversions are available on Class 5-7 Workhorse, Freightliner Custom Chassis Corp. (FCCC), and Isuzu trucks ordered with gasoline engines. The premium on these OEM and conversion vehicles varies widely based on the amount of fuel storage installed but may range from $20,000 to as much $50,000. In the light heavy-duty and mediumheavy duty (Class 2b-Class 5) work truck arena, GM offers CNG Express and Savana 2500/3500 cargo vans at a list price premium of $15,910. For other GM and Ford trucks as well as Isuzu, FCCC, and Workhorse trucks ordered with gasoline engines, EPA- and CARB-certified conversions systems are available from several approved manufacturers and their upfitter installers. According to NGVAmerica, the premium for these conversions may range from $10,00022,000 depending on amount of fuel storage specified.

Business Case for NGVs The environmental benefits of using NGVs are compelling. According to NGVAmerica, NGVs produce up to 95 percent less overall toxics compared to gasoline and diesel vehicles. Greenhouse gases are reduced between 2030 percent. However, with a $10,000-$22,000 (or more) premium for an NGV, what is the business case — beyond being a good corporate citizen — for fleets to operate NGVs? “I think the biggest driver is the grow-

ing differential between the operating cost of running on natural gas versus gasoline or diesel,” said Yborra, who estimated savings of $1.25-$2 per equivalent gallon of gasoline or diesel. For higher fuel use applications, Yborra said the payback on the premium for the right fleet application typically ranges between three to four years. “If a company runs its trucks eight to 10 years, that’s a good five, six, or seven years that it’s running that vehicle with all that fuel savings going back in its pocket. And that’s without considering grants or tax credits,” he said. Yborra is referring to federal income tax credits for vehicles, which expired Dec. 31, 2010, for the purchase of a dedicated NGV, covering 50 percent of the incremental cost (or conversion cost) of the vehicle, plus an additional 30 percent if the vehicle met certain tighter emission standards. Put into effect in 2006, these credits helped drive NGV growth by significantly reducing their incremental cost, shortening the payback time, in some instances, to as little as one to two years. Yborra said the industry is committed to getting those tax credits reinstated, noting that a bill introduced in Congress in early April — the NAT GAS Act — does just that and more. In the meantime, there are still many states that offer tax incentives and/or grants that lower NGV purchase cost premiums. (To learn more about what is available in your state, visit www.ngvamerica.org/ incentives/stateNGV.html.)

CNG Payback Analysis Suppose, for example, you’re considering replacing a gas-powered Chevrolet 2500 Express cargo van with the CNGversion of the Express. How long will it take to recoup the investment? (See “CNG

CNG PAYBACK PROJECTION CNG VAN GASOLINE VAN CNG premium $15,000 $0 Fuel $1.75 $3.75 Miles 24,000 24,000 MPG 12 12 Gallons per year 2,000 2,000 Fuel cost per year $3,500 $7,500 Replacing a gasoline-powered van with a CNG model can result in annual fuel savings of $4,000 after approximately 3.75 years.

AT&T has deployed nearly 3,000 natural gas vehicles, the majority of which are Ford E-250 vans.

Payback Projection” chart.) Estimate the CNG premium at $15,000, without factoring in any available tax credits. Suppose the van travels 24,000 miles per year. At an estimated 12 mpg, that’s 2,000 gallons of fuel burned per year. Since gasoline and CNG offer comparable fuel economy, estimate 12 mpg for both. Plug in $3.75 for regular unleaded and $1.75 for natural gas. The annual fuel cost differential, therefore, is $4,000, in favor of natural gas. Under these assumptions, the payback is approximately 3.75 years. Keep in mind these numbers are based solely on the estimated fuel cost differential, which may fluctuate considerably over the next five years. For example, if gasoline spikes to $4.50 per gallon and CNG rises more modestly to, say, $2.10 gasoline gallon equivalent (GGE), the payback time shortens to 3.125 years. Also, this projection doesn’t factor in any differences in maintenance cost, investment in on-site fueling infrastructure, available or future tax credits (that could lower the CNG cost premium), and other variables. Instead, its purpose is to provide a quick snapshot to help determine whether to look deeper into CNG for the fleet’s application.

Limitations of CNG Despite fuel cost advantages, there is one primary constraint impeding widespread fleet adoption of natural gas, even in high-mileage applications: infrastructure. Currently, there are about 1,000 CNG fueling locations in the U.S., but only 50 percent are open to the public. A listing of public CNG refueling stations is available at: www.eere.energy.gov/afdc/fuels/ natural_gas_stations.html.

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Best Applications for Natural Gas With the advantages and limitations in mind, which fleet applications work best for NGV use? “Any metro market business that has return-to-base operations, with repetitive routes, and always comes back to a fueling site or at least passes a fueling site on the route,” Yborra said. He recommended using the following questions as a guide: ■ Will the vehicle run sufficient miles per year to justify the incremental cost for CNG? ■ Will the vehicle be used on daily routes that require one tankful or less of fuel? ■ Will on-site CNG fueling or convenient access to public CNG refueling stations be available? If the answer all three of these questions is “yes,” a compelling business case for CNG conversion is possible.

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What Does the Future Hold? “The overall economies of scale are starting to kick in, and I think they will kick in even more for engine suppliers and all the available systems that are related to supplies in the CNG market,” said Yborra. “So we’re right on the verge of what I think can be a very important growth time. And growth always means more availability of components such as engines, valves, injectors, pumps, pipes — you know, all the various pieces of the systems. This economy of scale is bringing down the premium [to convert to CNG].” Yborra also expects the number of public access CNG fuel stations to continue its growth trend, especially in major metro markets. “This will make the hill less steep for fleets to convert to CNG. And more public access to fueling will be available as more and more fleets adopt this technology.” “As alternative-fuel technologies evolve, we’ll continue to explore them to determine if they’re right for our company,” said AT&T’s Webber. “For now, CNG is a good option for our fleet and the technology for our vehicles is readily accessible. We plan to continue deploying CNG vehicles as long as it makes sense to do so.” WT

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CASH,

FINANCE,

ACQU IS

WHICH TRUCK

hen it comes to truck acquisition strategies, one size does not fit all. There are several factors to consider, including vehicle replacement cycles, tax strategy, and corporate accounting, just to name a few. Even within the same fleet, some trucks are better suited for finance and others for lease, depending on the type of equipment upfits, special financing or leasing offers at time of acquisition, and anticipated mileage.

AT A GLANCE When acquiring medium-duty trucks for fleet, fleet managers need to decide between: ■ Cash: The potential for lower

acquisition costs, greater control over depreciation, lower insurance costs, and tax benefits. ■ Financing: The finance option

offers many of the same ownership benefits of the cash purchase, while allowing the ability to conserve cash by providing the means to pay off the balance over time. ■ Leasing:

A lease finances the use of a vehicle; [loans] finance the purchase of a vehicle.

How should fleet managers determine whether to purchase, finance, or lease the next truck? What is the best way to discern which is the better deal? Here’s an overview of how each strategy works and the pros and cons of each to provide a guide to evaluating truck acquisition options.

■ CASH PURCHASE MUST CASH BE AVAILABLE TO PURCHASE A TRUCK OUTRIGHT? “Many small firms don’t have the large amounts of cash needed for major capital acquisitions in the first place,” said Ken Sibley, CPA, founder and managing director of Dallas-based accounting firm Sibley and Company. When cash is not an option, fleet managers look to financing or leasing to conserve cash and spread out truck payments on a monthly basis for a specified term. IF CASH IS AVAILABLE, WHAT ARE ADVANTAGES TO PURCHASING TRUCKS OUTRIGHT? ■ Potential for lower acquisition cost. When a vehicle is financed or

leased, interest charges, leasing fees, etc., are added to the vehicle’s acquisition costs. When a fleet purchases a vehicle outright, those fees are not charged. ■ Greater control over depreciation. Depreciation is the difference between the original purchase price and the proceeds received at vehicle resale. When a company owns a vehicle outright, it controls the resale pricing, with the potential to sell it at retail pricing versus wholesale. ■ Lower insurance cost. With loans and leases, the bank or leasing company will require low insurance deductibles, from $250-$1,000, which can drive up insurance costs. When a company owns a vehicle outright, it controls what the deductibles will be. The higher the deductible, the lower the cost. ■ Tax benefits. Vehicle purchases may qualify for bonus depreciation and/or IRS code Section 179 expensing. (See sidebar on page 28.) Consult the company’s CPA for specific recommendations.

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OR LEASE:

U ISITION

STRATEGY WORKS BEST? IS PAYING FOR A TRUCK IN FULL THE BEST USE OF A COMPANY’S CASH? “It really boils down to, ‘If I don’t use this cash for this purchase, what will I use it for? And what is the opportunity cost associated with that?’ ” said Mark Smith, strategic consulting services leader for GE Capital Fleet Services. Sibley agrees. “A straight cash purchase using a firm’s existing funds will almost always be more expensive than the lease or loan options because of the loss of use of funds.”

HOW SHOULD A FLEET DETERMINE WHETHER OR NOT TO PAY CASH? “When deciding whether to pay cash or borrow to purchase trucks, take the after-tax return on investment in the business and compare it to the after-tax cost of borrowing,” explained Bill Smith, managing director, CBIZ MHM, a New York-based full-ser-

When cash is not an option for purchasing vehicles, fleet managers look to finance or leasing.

vice certified public accounting and management consulting firm to Fortune 500 companies. “If a company earns 10-percent gross on whatever is pumped back into the business, and pays a 40-percent combined tax rate, the after-tax return is 6 percent. If borrowing at 10 percent and the company is able to deduct the amount, the aftertax cost is 6 percent. In this example, paying cash or borrowing is a ‘wash’ because it costs 6 percent to keep money out of the business and 6 percent to finance the trucks.” Therefore, the variables to plug into an analysis are the tax rate, gross profit, and borrowing cost (interest rate). If a company’s after-tax profit is greater than the finance or lease cost (the cost of borrowing), then money produced by the business is best reinvested in the company.

■ FINANCE PURCHASE WHAT ARE THE ADVANTAGES OF FINANCING? The finance option offers many of the same ownership benefits of the cash purchase, while conserving cash by providing the means to pay off the balance over time. Also, the purchase might qualify for tax savings from bonus depreciation and IRS code Section 179 expensing (see sidebar on page 28) without having to pay the full price of the equipment up-front.

WHAT ARE THE DRAWBACKS TO FINANCING? “The most obvious downside of [financing] versus leasing is the monthly payment, which is usually higher on a financed vehicle,” said Sibley of Sibley and Company. “Also, the dealers usually require a reasonable down payment, so the initial out-of-pocket cost is higher when financing a vehicle compared to what’s typically required for leasing.” Sibley also points to the potential of negative equity — if fleet intends to cycle out of the vehicle prior to the end of the loan term — as a significant drawback. “Presumably, as the vehicle loan is paid down, companies have the ability to build equity in the vehicle,” Sibley said. “Unfortunately, this is not always the case. When purchasing a vehicle, the payments reflect the whole cost of the vehicle, usually amortized over a four- to six-year period. However, depreciation can take a nasty toll on a vehicle’s value, especially in the first few years. As a result, buyers who put down modest down payments can end up financing a considerable portion of the vehicle and even find themselves in an ‘upside-down situation,’ in which the vehicle comes to be worth less than what the buyer stills owes on it at a given time.” How does this happen? Sibley explained: “Like the monthly payments of a mortgage, monthly vehicle payments are divided between paying principal

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While conserving cash, a finance option offers many of the same ownership benefits of a cash purchase and may qualify for tax savings.

and interest, and the amounts dedicated to each vary from payment to payment. In the first years in which a vehicle loan is paid back, the majority of each payment goes toward interest rather than principal. But in the first few years after being purchased, most new vehicles depreciate 20-40 percent. The loss in equity is a double whammy: the vehicle depreciates dramatically. Because the monthly payments have mostly gone toward interest rather than the principal, a company is left with very little equity in the vehicle.”

■ LEASING WHAT ARE KEY DIFFERENCES BETWEEN LOANS AND LEASES? “Leases and purchase loans are simply different methods of vehicle financing,” explained Sibley of Sibley and Company. “[The lease] finances the use of a vehicle; [loans] finance the purchase of a vehicle.” In other words, a loan finances the total purchase price of the vehicle, including full sales tax, dealer fees, and tag and title fees, minus the down payment. A lease, in contrast, finances the spread between the vehicle purchase price, without sales tax included, and the residual (projected vehicle disposal) value at lease end. This spread represents the “use” or depreciation of the vehicle. Therefore, if a truck costs $30,000 and the residual is set at $10,000 at the end of the lease term, essentially the company is financing the “use” — the difference, of $20,000 — instead of the full amount. Unlike with a loan, when at the end of the term a company owns a vehicle

outright, a number of scenarios should be considered at lease end. Depending on how the lease is structured, options may include purchasing the vehicle, turning it back in to the lessor, or trading it in on the acquisition of another vehicle. WHAT ARE THE ADVANTAGES OF LEASING? “Perhaps the greatest benefit of leasing a vehicle is knowing exactly what the monthly cost will be when acquiring and maintaining the vehicle,” said Sibley. “Leases may require a lower down payment and there are no up-front sales tax payments. Also, monthly payments are often lower [than comparable loans], and vehicles can be updated every few years.” According to Smith of GE Capital Fleet Services, “[Companies] don’t have to come up with the entire amount up front and pay only for the amount used. They also get — in most states — rental tax treatment versus sales tax treatment [in which taxes are paid on the monthly rent payment, not sales tax on the full purchase price].” “Leases are classified as either capital leases (off-book) or operating leases (off-book) from an accounting perspective based on how they are structured and if they pass the IRS requirements for operating leases,” Smith noted. Companies should consult their own tax and accounting departments to ensure that their leases are being properly recorded. Why is this relevant? It impacts debtto-equity ratios when a company applies for business loans and other forms of financing. The “off-book” treatment for certain types of leases does not show as a liability on a balance sheet, which enhances the debt-to-equity ratio. “Leasing also provides an alternative when financing the vehicle is not an option,” Sibley said. “Many banks will not lend more than $30,000 for a vehicle loan. So, if a company plans to acquire a vehicle worth more than that, leasing may be the only option.” LEASING AND BODY-BUILD TIME CONSIDERATIONS “Often, when acquiring a medium-

WHAT’S THE IMPACT OF BONUS DEPRECIATION AND IRS CODE SECTION 179 ON TRUCK ACQUISITIONS?

ill Smith, managing director, CBIZ MHM, a New York-based fullservice certified public accounting and management consulting firm to Fortune 500 companies, offers this explanation. “The 2010 Tax Relief Act enables taxpayers to deduct 100 percent of the cost of qualifying property (tangible personal property used in a trade or business, including trucks) placed in service between Sept. 9, 2010 and Dec. 31, 2011. For 2012 (and before Sept. 9, 2010), the bonus deprecation percentage is reduced to 50 percent. Bonus depreciation is only available for new property. PHOTO: ©ISTOCKPHOTO.COM/WAKILA

Truck Acquisition

For 2011, Section 179 allows small businesses to elect to deduct the cost of qualifying property placed in service during the year rather than depreciate those costs over time. Under the Small Business Jobs Act, the maximum Section 179 deduction is $500,000, limited to taxable income, and is reduced by the amount the total eligible investment exceeds $2 million (‘phase out’). For 2012, the maximum is reduced to $125,000 and the phase out will start at $500,000. The Section 179 deduction applies to used property as well as new property.”

duty truck, a significant amount of upfitting can take place, which can take several months to complete,” said Smith of GE Capital Fleet Services. “One advantage to leasing is that a company can finance that process and capitalize the cost of the finished asset over

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WHAT ARE THE DRAWBACKS OF LEASING? “By leasing a vehicle, a company always has a vehicle payment. If [a company] doesn’t like that prospect, leasing is probably not right,” said Sibley of Sibley and Company. “Also, if the vehicle will travel high miles during the year, consider instead a loan or an open-end lease. Most closed-end leases restrict mileage to 15,000 miles per year (sometimes even as low as 12,000 miles per year). If the allotted miles are exceeded, a company pays extra: the going rate is about 15-25 cents or more for every mile over the limit.” HOW DOES LEASING IMPACT INSURANCE COSTS? “Insurers usually charge higher coverage costs for leased vehicles. However, depending on driver age, driving record, and place of business, the additional cost may be nominal,” Sibley said. Sibley also advised: “When entering a lease agreement, be aware of any clauses in the contract regarding additional charges for ‘excess wear and tear’ or above-average costs for additional mileage. You want to minimize any surprise costs as much as possible.” CLOSED-END VS. OPEN-END LEASES: WHAT’S THE DIFFERENCE? “Closed-end leases allow a company to walk away from the vehicle at the end of the lease term. If the company owes for any mileage coverage or unusual wear and tear, this is when it would be

paid for,” said Sibley. “With an openend lease — also known as an equity lease — the vehicle must be purchased at the end of the lease period for a predetermined amount. This is often the type of lease used by businesses or individuals who drive a lot.” Smith at GE Capital Fleet Services recommends that, for many commercial fleets, the open-end lease is a better fit because of the flexible terms and lack of mileage restrictions. “Let’s say a company leases a medium-duty truck on a closed-end lease,” Smith posed. “If you signed up for a 12,000-mile-per-year lease, and the vehicle is only driven 8,000 miles, a company will have overpaid significantly for that lease. And, there’s nothing that can be done about it. Or, if a company signed up for a 12,000mile lease and ends up driving it 20,000 miles, it will be hammered with overmileage fees.“ “With the open-end lease, fleets reap the benefit of taking care of the vehicle and having less mileage on the vehicle rather than give that benefit to the leasing company,” said Smith. “With an open-end lease you tell us what kind of an asset you want to drive (or we can help you select and design one) and we will set up the lease in a series of rental payments. At the end of the life of the vehicle, whether you choose to keep it three years, four, five, or whatever, we’re going to sell the vehicle on your behalf. And if you

Limitations of Leasing & Taking Advantage of Either Bonus Depreciation or Section 179 Expensing

ccording to Ken Sibley, CPA, founder and managing director of Dallas-based accounting firm Sibley and Company, “The lessee is not able to take direct advantage of bonus depreciation or Section 179 expensing; however, since the [leasing company] may be able to use these tax advantages, the indirect benefit could be reflected in a reduced lease cost.”

a period of time. Some of our customers with medium-duty truck applications might have an upfit period in excess of 12 months, as custom bodies are created. What we can do in that period is pay for the chassis and we charge an ‘interest-only’ scenario until the entire truck is built. Then, what we do is add the cost of the body to it, capitalize it, and begin depreciating it when the whole truck is ready. What this does is basically allow a company to defer the cost of the asset, and the cash flow associated with the asset, until it can go ‘on-road’ and begin generating revenue.”

One of the greatest benefits of leasing a vehicle is knowing exactly what the monthly cost will be when acquiring and maintaining a vehicle.

overpaid your rental payments, we’re going to give you a refund. If you underpaid, we’re going to send you a bill for the difference. Either way, you have much more control.’ ” PUTTING IT ALL TOGETHER Sibley of Sibley and Company poses a few questions to help fleet managers think through what’s important in determining acquisition strategies: ■ Is long-term cost savings more important than lower cash monthly payments? Advantage: Cash, Finance. ■ Is having a new vehicle every two or three years with no major repair risks more important than long-term cost? Advantage: Leasing. ■ Is having ownership in your vehicle more important than low up-front costs and no down payment? Advantage: Cash, Finance. ■ Is the certainty of the vehicle’s depreciation amount in a lease more important than the uncertainty of the residual value in a purchase/finance transaction? Advantage: Leasing. ■ Is it important to pay off the vehicle and be debt-free for a while, even if it means higher monthly payments for the first few years? Advantage: Finance. THE BOTTOM LINE How does a company determine which strategy is right for its fleet? Know the objectives. Consider the impact of each strategy on cash flow, insurance costs, and taxes. Then consult a CPA, fleet management company, or other trusted business advisors for help structuring the vehicle acquisition strategy that best aligns with the company’s operations. WT

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( ) THE DRIVE TIRE

TOWARD FUEL ECONOMY Tread design tweaks help lower resistance. By Mike Manges

rends in the medium-duty truck tire market come and go, but the drive to reduce rolling resistance levels is here to stay, according to Donn Kramer, Goodyear Tire & Rubber Co. director of marketing for commercial tires. This extends not only to steer and trailer tires, but drive axle tires as well. That’s why more drive tires are rolling off the assembly line with closed shoulder tread designs, Kramer noted. “Open shoulder designs, which may be more attractive in terms of performance, are worse on fuel economy. There are more voids in the tread so there’s less rubber in contact with the road. Also, there are generally more sipes. Those extra sipes hurt rolling resistance,” Kramer said. In addition, open shoulder designs are more susceptible to uneven wear, which reduces tread life. Kramer said 60 percent of a drive tire’s fuel economy is derived from tread elements. The rest is derived from other components, such as compounding. To reduce rolling resistance, “you have to change the dynamics of the tire’s lug elements, meaning they should be stiffer. The stiffer they are, the better it is for (lowering) rolling resistance. But you can’t get them too stiff because that won’t be as good for traction,” Kramer said. Technologies exist to inter-lock tread lugs, Kramer noted, “and that’s what is happening with closed shoulder drive tires. You’re trying to stiffen the lug elements as the tire rolls through its footprint.” Truck tire manufacturers also are switching to silica-based compounds, an

Sixty percent of a drive tire’s fuel economy is derived from its tread elements, said Donn Kramer, Goodyear Tire & Rubber Co. director of marketing for commercial tires.

effort driven by government-mandated fuel economy requirements. MAJOR SHIFT LOOMING? Kramer said the focus on reducing rolling resistance will continue as the government pushes for more fuel-efficient commercial trucks. In June 2010, President Barack Obama directed the U.S. Department of Transportation (DOT) and the U.S. Environmental Protection Agency (EPA) to boost the fuel efficiency of mediumand heavy-duty trucks, starting with 2014 model-year vehicles.

The DOT and EPA are developing rulemaking proposals to achieve the objective. A final rule will be issued next summer. “If (fuel efficiency) standards similar to automobiles and light trucks go into effect for trucks at some point in the not-too-distant future, you’re going to see tremendous emphasis on trying to hit (low rolling resistance) targets,” Kramer said. If fuel efficiency standards are set, original equipment truck manufacturers “will decide upon tire sizing and to a greater extent tread designs.” WT

DON’T FORGET CASINGS (They’re an important component, too)

big part of drive tires is their casing construction and how many times a fleet can utilize that casing by retreading it,” said Chris Hoffman, manager, TBR and retread product marketing, Bridgestone Bandag Tire Solutions. “That’s pretty important as fleets try to keep their total operating costs low.” All manufacturers, he said, want to design “a ‘super tire’ with the lowest rolling resistance and the longest tread wear, (but) there are different stresses put on a driven tire versus a free rolling tire.” As tiremakers continue to develop new drive axle tires, “over time, you’re going to see changes in tread designs, you’re going to see changes in compounds, and you will see changes in casing construction, too,” Hoffman said.

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LAUNCHES ALL-NEW 2012 CANTER FE/FG SERIES WORK TRUCKS

Five all-new models were introduced for the Class 3-5 vocational market under the Canter name for the first time in North America. By Lauren Fletcher AT A GLANCE Mitsubishi Fuso Trucks of America (MFTA) launched five all-new Canter models in the North American market: ■ FE125, FE160, and FE180 in 12,500-, 15,995-, and 17,995-lb GVWR. ■ FE160CC (seven-passenger crew cab model): 15,995-lb. GVWR. ■ FG4X4 (four-wheel-drive mediumduty cabover): 14,050-lb. GVWR.

itsubishi Fuso Truck of America (MFTA) is bringing the name Canter to its North American models for the first time. The automaker introduced five new models at the 2011 NTEA Work Truck Show in Indianapolis, covering weight ratings from Class 3-5 and addressing vocational market needs. The lineup includes:

Weight Class Class 3 Class 4 Class 4 Class 4 Class 5

Model

GVWR

FE125 FE160 FE160CC FG4X4 FE180

12,500 lbs. 15,995 lbs. 15,995 lbs. 14,050 lbs. 17,995 lbs.

“This is the most extensive redesign we’ve undertaken in seven years,” said Todd Bloom, president and CEO of MFTA. “We had to develop new drive-

trains to meet EPA 2010 regulations, of course. But we asked our designers and engineers to go beyond that and put everything they’ve learned about powertrain technology and efficiency into the new Canter FE/FG series of commercial trucks.” The 2012 Canter lineup was designed to significantly lower the overall cost of ownership. MFTA has improved fuel economy by 10-20 percent and extended service intervals to 18,000 miles. In addition, payload advantages are up to 2,200-lbs. over the current leading cabover with parts pricing at 20-percent below the current market leader, according to the manufacturer. These trucks are ideal for vocational needs, such as dry freight, refrigerated delivery, landscaping, delicate cargo transport, municipal roadwork, and snow plowing.

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Headline Here

The Canter FG (left) and Canter FE Crew Cab models are ideal for vocational needs, such as dry freight, refrigerated delivery, municipal roadwork, landscaping, and more. Offering a 10- to 20-percent improvement in fuel economy, the full line of Canter FE and FG trucks include the industry’s only fi ve-year 175,000-mile powertrain warranty.

CANTER FE MODELS ENABLE EASE IN UPFITTING The Canter FE series features standardwidth 33.5-inch straight ladder frames, designed with patterned holes at regular intervals along its length and height, to enable ease in body mounting and to save weight without strength loss. The frame is made with 56,565-psiyield-strength steel. The 2012 model Canters feature fully trimmed cabs that provide ample driver space plus room for two passengers. The turning diameter for Canter FE models with a 110.2-inch wheelbase is 34.1 feet. These models also feature dual-caliper hydraulic disc service brakes with vacuum servo assist and ABS on all four wheels. The Canter series also includes an electronic brake priority override system for added safety. All FE models feature a 30-gallon fuel tank. FG4X4 4WD CABOVER Still the industry’s only four-wheeldrive cabover, the Canter FG4X4 goes where no other trucks can, thanks to excellent ground clearance, locking hubs, and front constant velocity joints for sure-footed tracking and turning, according to MFTA. Plus, the vehicle uses heavy-duty axles, all-terrain

tires, transfer case, and more. With a 14,050-lb. GVWR, it’s ideal for off-road use, light construction as a dump truck, stake body, or utility body — even snow plowing. No matter how sloppy or slippery conditions get, the FG4X4’s DUONIC automated transmission feeds continuous power to all four wheels to help maintain maximum traction. The FG4X4 uses hydraulic drum service brakes with ABS all around and includes electronic brake priority override system for added safety. The FG4X4 features a 33-gallon fuel tank. STANDARD FEATURES OFFERED ON ALL MODELS MFTA’s new 4P10 dual-overheadcam (DOHC), common-rail injected, dual-turbocharged, intercooled fourcylinder diesel engine is coupled to an advanced Mitsubishi Fuso DUONIC 6-speed, dual-clutch automated manual transmission. Adoption of Daimler Commercial Truck’s BlueTec emissions control system with selective catalytic reduction (SCR) emissions technology brought the new drivetrain into EPA 2010 compliance. All models include easy-to-read instrumentation, with the instrument multi information display pan-

el located in the driver’s direct lineof-sight. Power windows and door locks are standard, with one-touch up and down on the driver’s window. For added safety, the window drive mechanism immediately stops the window’s upward travel if it encounters an obstacle. The center and right-hand seats fold down to provide a work area for the driver, and extra storage compartments have been added to the cab area. Models are available in five cab colors (Natural White, Arcadia Silver, Jupiter Green, Mars Red, and Shannon Blue), and blue seat cloth is standard on all models. Doors include a crush control beam to increase frontal impact protection. Offset door hinges allow the doors to open 70 degrees, then push forward several inches to provide full access while limiting door extension into traffic or curbside obstructions. The collapsible steering column offers tilt and telescoping adjustments via a single lever control. The full line of Canter FE and FG series trucks includes a three-year/unlimited mileage bumper-to-bumper warranty, four-year/unlimited mileage rust-through warranty, and fiveyear/175,000-mile powertrain limited warranty. WT

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PG&E

ADDS HYBRID-ELECTRIC BUCKET TRUCKS Pacific Gas and Electric Company (PG&E) added about 100 hybrid-electric bucket trucks in 2010 and has ordered 125 more as part of its fleet greening efforts. By Carly Lanning

acific Gas and Electric Company (PG&E) continues its efforts to protect the environment and reduce its carbon emissions with the purchase of just under 100 hybrid-electric bucket trucks that delivered at the end of 2010, and has ordered and additional 125 units that will deliver in the first half of 2011. Of the company’s 12,000-vehicle fleet, 3,072 already run on alternative fuel or are on order. PG&E has been working to reduce its carbon footprint for the past 15 years, contributing to the development of natural gas, plug-in, and hybrid vehicles throughout its own fleet and with other vehicles within the community such as school buses, taxi cabs, and passenger cars. The addition of these hybridelectric bucket trucks is another step in the “green” direction. DEVELOPING IN THE RIGHT DIRECTION PG&E operates throughout a 75,000square-mile service territory, ranging from north of Los Angeles to the northern California border. The San Francisco-based company replaces 500 to 1,600 vehicles annually, but it expects to be on the higher end of the range for the next several years. The bucket trucks are built on Ford F-550 chassis with Altec AT37 aerial devices that will be powered by

The bucket trucks are “trouble trucks,” the first vehicles to arrive on the scene in the event of an emergency or service interruption.

JEMS48 hybrid units. “We selected this application for a variety of reasons, but primarily due to the duty cycle of the vehicle. The operation of the aerial device, tool circuit, and climate control in the cab are the primary contributors to the idling issue, and this system was designed to help eliminate that,” said Dave Meisel, director of transportation services, PG&E. The trucks are shut off once they arrive at the worksite, and the systems are then battery-powered. PG&E expects the battery to last a normal operating shift, but in the event the battery were to run low, the vehicle will automatically restart to power the circuits and recharge the battery. While always looking for new alternatives and ideas on how to better the environment, Meisel recognizes that there must always be a balance between the type of “green” vehicle and the function it will perform. “You need to understand the application when applying vehicles and fuel to certain situations,” he said. “There must

be an alignment between the application of our technology and the product.” A RICHER FUTURE The goal of PG&E is to provide operators with safe, reliable, and costeffective equipment while continuing its fleet greening efforts. “This purchase, while significant, is the first of many that will continue to show PG&E’s environmental leadership. We believe that through technology, we can improve our environment while reducing our operating costs,” Meisel said. PG&E expects the use of hybridelectric bucket trucks will reduce fleet operating costs, enhance operator safety, and produce cleaner emissions. For the future, PG&E will be pushing toward purchasing plug-in hybrids that have been adapted for pickup trucks and SUVs. “A major initiative in our operation today is to electrify our fleet, and by doing so use clean energy to power clean vehicles. There is no better time for us to influence this process and to encourage others to adopt clean technologies,” Meisel said. WT

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➠TRUCK BODIES ➠ PRODUCT HIGHLIGHTS:

➠ DURACLASS DUMP BODIES

All medium-duty DuraClass dump bodies are designed to incorporate maximum durability and useability. Fully enclosed front posts are included for added strength and resistance to corrosion. Rear corner posts are full depth, which helps keep body dimensions true and rigid, according to the manufacturer. High tensile steel provides superior strength and lighter body weight than comparable dump bodies. SL: Features an interlaced understructure to support the body floor on a grid of 8-gauge crossmembers laced to J-section longmembers. This design saves weight and adds floor support, minimizing washboarding. The SL design utilizes two vertical side braces with radius bends, slanted forward for a contemporary look. SL316: The DuraClass SL316 features a crossmemberless understructure, which provides dirt and corrosion resistance, leaving a clean look. The dump The DuraClass medium-duty dump body body features a horizontal side brace and tailgate brace. is available in SL, SL316, HM, and HH HM: The HM utilizes a stacked understructure with structural channel 4-inch models. crossmembers and 6-inch I-beam longmembers for additional strength and rigidity. A six-panel tailgate and vertical side braces complement the sturdy, traditional design, according to the company. HH: For tougher loads, the DuraClass HH features a stacked understructure of 4-inch I-beam crossmembers and 6-inch I-beam longmembers that provide maximum floor support. Six-panel tailgate and vertical side braces are standard. Website: www.DuraClass.com

➠ TRUCKCRAFT TC-300/310 COMBO SERVICE/DUMP BODY TruckCraft engineered the TC-300/310 body and subframe to handle greater hauling and storage loads on trucks 10,000-lbs. GVW and up. The TC-300 series has dump body capacities of 2.75 or 3 cubic yards, storage capacities of 57 or 64 cubic feet, and handles 4 foot x 8 foot sheets with the tailgate closed. The entire side pack set is built of treated steel for years of rust-resistant life, according to the manufacturer. The dump body’s electrohydraulic-powered three-stage telescopic hoist uses efficient hydraulic principles for a 25-second raise time. The cylinder operation is smooth and effortless, and allows the bed to be mounted 8-10 feet lower than a comparable scissors hoist, according to TruckCraft. A one-hand tailgate unlatch lever, low floor height, built-in handhold, and step bumper all combine to make operator entry to the dump body fast and easy. Features: ● Pre-assembled body, hoist, and base frame. ● Three-stage chromed telescopic cylinder. ● 10 guage A-60 Galvanneal steel dump body. ● Multiple height pintle hook location. ● Safety chain keyslots. ● Step and handhold for easy bed entry. ● Dash light notifying operator when the dump bed is raised. ● Removable 18-inch corner standards. ● Storage cabinets pre-fitted for mounting.

The TruckCraft TC 300 TC-300 series has dump body capacities of 2.75 or 3 cubic yards.

Options: ● Roll-up tarp assembly. ● Coal chute. ● Trailer plug. ● Pintle hook. ● D-ICER tailgate replacement. ● Salt spreader. ● D-ICER mounting brackets. ● Quick latch. ● Aluma boards. Website: www.truckcraft.com

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➠ SUPREME CORP. AERO BODY The Aero Body by Supreme Corp. offers a streamlined appearance and proven practicality, according to the manufacturer. Long-lasting LED lights protected by a sealed wiring harness use less energy while decreasing risk of electrical damage and downtime. The Aero Body also provides a three-year/36,000-mile bulkhead-to-bumper warranty on all body components along with a five-year structural warranty, which covers roof, wall, and floor structures. Standard features include: Aerodynamic body design with nested wind faring. ● Curved composite sidewalls. ● Custom fiberglass rear frame. The Aero Body by Supreme Corp. provides a threeyear/36,000-mile bulkhead-to-bumper warranty on all ● Fiber panel front wall. body components. ● Full-width pooched step bumper with grab handle. ● Custom access door in skirting. ● Body length skylight that allows ambient light inside. ● Todco ToughShell rear roll-up door. ● Superbright LED recessed stop, turn, and tail lights with sealed wire harness. ● 12 volt dome light with cab switch. ● Seamless non-slip FRP floor with textured/grit surface. ●

Popular options: ● Aluminum slider ramps. ● Cargo Control options including “E” track, rope ties, and floor ties. Website: http://aerobody.supremecorp.com

➠ UNICELL TRUCK BODIES All Unicell truck bodies are constructed of a one-piece molded fiberglass outer shell. This means no seams to separate and leak, no metal to rust and dent, and no paint to scratch and peel, according to the manufacturer. Unicell bodies have an uninterrupted, smooth, and glossy gel coat exterior, making it the perfect surface for company logos and graphics, according to the manufacturer. The new Servicell combines the visual appeal and long life construction of Unicell Body Company’s one-piece fiberglass Hi-Cube body with the versatility and function of Knapheide Truck’s utility body. A roomy interior offers stand-up height with a well-lit cargo and workspace. On the outside, practical and secure storage compartments allow for exterior access to tools and parts. The Servicell is available in 12- and 14-foot lengths and two body styles for Ford, Chevrolet, or GMC dual rear-wheel cutaway vans. Custom lengths and options are available. Unicell fiberglass bodies are backed by a five-year warranty. Website: www.unicell.com

The Servicell truck body has onepiece fiberglass construction, offers stand-up height, and is available in 12- and 14-foot lengths.

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END OF FRAME EDITORIAL

BY MIKE ANTICH

10 Traits of Successful Truck Fleet Managers

how me a well-run truck fleet and I will show you a top-notch fleet manager. Although every fleet is unique, there are common traits found among great fleet managers — attributes that ensure their fleets are operating at the optimum level. Here are my observations as to the traits they have in common: 1. Goal-Oriented Fleet Management Great fleet managers are goal-setters. They are goal-oriented in all aspects of fleet management, including driver productivity, safety, accident management, and so forth. They strive to reduce not only hard costs, but also soft costs. They link fleet to the corporation’s overall mission and then keep management informed as to how fleet is helping improve the corporate mission. 2. Focus on the Internal Customer These fleet managers have established a cooperative, working relationship with all internal corporate functions associated with fleet operations. They keep senior management informed on fleet performance, budget requirements, new products, and programs. These fleet managers keep the company’s interests foremost in all fleet management decisions. 3. Develop Strategic Partnerships with Suppliers These fleet managers work with suppliers and other partners to optimize performance. Some employ supply-chain management techniques, such as bringing suppliers together as a team to facilitate communication with each other to provide efficient, low-cost service to the fleet. Just as important, these fleet managers never stop learning and confer with suppliers to be on top of the latest products and services in the market. 4. Practice Strategic Fleet Management Strategic fleet management stresses the importance of achieving objectives and using metrics to benchmark progress. It recogniz-

es the strategic aspect of fleet management and views truck acquisition, replacement planning, funding alternatives, and sourcing alliances with manufacturers and suppliers as high-level strategic corporate decisions. 5. Ability to Implement Effective Fleet Policies Great fleet managers use a strategic perspective to control costs by implementing the right fleet policies and selecting the right vehicles and suppliers. A fleet manager who reduces annual fleet expenses by $100,000 generates the equivalent of $1 million in sales, if a company operates at a 10-percent net profit margin. 6. Expertise in Cost Containment A successful fleet manager uses a strategic and proactive management style to run the truck fleet. These fleet managers proactively seek to maximize the productivity and revenue-generating capacity of each company driver at the lowest possible cost to make their fleet operations more efficient. 7. Management’s Encouragement to be Innovators Great fleet managers have autonomy to implement innovative initiatives to drive cost out of their fleet operations. Senior management recognizes the fleet manager as the in-house expert on all matters dealing with truck fleet management. These fleet managers have the full backing and support of senior management when decisions are implemented. These fleet managers are valuable members of the company’s management team, managing a multimillion dollar asset. Fleet is viewed as a critical revenue-generation component of a company’s business plan. 8. Knowledge Transcends Fleet Management These fleet managers rise above the level of simply managing day-to-day fleet work. Their understanding of the company’s busi-

ness transcends fleet management. Besides having fleet management expertise, these fleet managers are intimately aware of their company’s product line and services, marketing objectives, corporate culture, and user group needs. They are proactive and anticipate changes in their corporate environment. These fleet managers implement fleet programs that contribute to the achievement of overall company goals. 9. Manages Fleet with a Long-Term Perspective It is impossible to run a truck fleet without long-term planning. In addition to producing both fleet and departmental budgets each year, these fleet managers develop strategies for cost containment and reductions. They employ the critical skill of turning strategies into tactics. They set strategic goals and develop the tactics to implement them. 10. Excellent Communicator with Sound Judgment Fleet managers interact with more people in more areas of the company than just about any other department head, and using good judgment is the foundation for such interactions. These fleet managers have excellent communication skills and sound business judgment. Their credibility with management is due to demonstrated truck fleet management expertise, which allows them to work within the organization to implement new programs.

FLEET LEADERSHIP A truck fleet manager validates his or her importance day-in and day-out by costeffectively managing hundreds of thousands to millions of dollars of corporate assets and controlling the expenses associated with operating these assets. Each year, fleet managers save their companies hundreds of millions of dollars. To all successful truck fleet managers, I salute you for a job well done. Let me know what you think. WT mike.antich@bobit.com

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THE ZERO COMPROMISE

ALTERNATIVE FUEL SOLUTION PROPANE AUTOGAS VS. GASOLINE

PERFORMANCE: IDENTICAL VEHICLE WARRANTY: IDENTICAL FUEL COSTS: 30% LESS EMISSIONS: 60% LESS

The Choice Is Clear — And Clean. Your fleet can get the same horsepower and torque performance as gasoline for 30% less in fuel costs – and with 60% fewer emissions — thanks to ROUSH CleanTech Liquid Propane Injection fuel systems. Propane autogas fuel systems by ROUSH CleanTech let you operate on a price-stable, North Americansourced fuel with no engine modifications required. That means you’ll get all the benefits of propane autogas, with no compromises in your vehicle’s factory warranty protection.

UPFITS AVAILABLE

2007.5 – 2008 Ford F-150 (5.4L V8)

2009 – 2010 Ford F-250 / F-350 (5.4L V8)

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2009 – Newer Ford E-150 / E-250 / E-350 (5.4L V8)

2009 – Newer Ford E-350 DRW Cutaway (5.4L V8)

2009 – Newer Ford E-450 DRW Cutaway (6.8L V10)

ROUSHcleantech.com 4/11/11 9:04:30 AM 12/13/10 12:58:16 PM

You don’t have to for the future… it’s available now!

Isuzu & Utilimaster Team up and Deliver Proven Power, Fuel Economy & Long Life In a Game-Changing Commercial Van There’s never been a true commercial van quite like the Reach™. It delivers more than the competition, offers a choice of efﬁcient vocational packages speciﬁcally designed for functionality, all while using less fuel.

Reach… improves economy & durability: •

Fuel-efﬁcient Isuzu powertrain delivers up to 35% better fuel efﬁciency1 without complex alternative propulsion systems or costly batteries

•

Isuzu 4JJ1-TC 3.0L diesel engine provides class-leading2 B10 durability of 310,000 miles

Reach… enhances versatility: •

Wider and taller modular cargo area features 450, 540 or 630 cubic feet of storage – plus 13-inches more aisle width than a cargo van2

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Vehicles ranging from 10 to 14 feet in length and a payload capacity of up to 4,250 pounds

•

Offers a wide choice of vocational packages speciﬁcally designed for functionality

Reach… delivers a new level of performance: •

Unique shape is 13% more aerodynamic1

•

Reach is up to 6-times quieter than competitive vehicles in this class2

•

Outstanding visibility – an asset for low-speed maneuverability

Whether you’re a fleet manager or a small business owner, you’ll benefit from the impressive fuel economy and performance this game-changing vehicle provides. Discover more about the Reach™ – the new definition of safety, performance and cost effectiveness in commercial vans. All photographs, illustrations, equipment and technical data shown are based on the latest information available at time of publication. Isuzu Commercial Truck of America, Inc.,reserves the right to make changes at any time, without notice, including prices, colors, materials, equipment, specifications and models, and to discontinue models or equipment. These vehicles are assembled from component parts manufactured by Isuzu Motors Limited and its affiliated companies and by independent suppliers who manufacture such components to Isuzu’s exacting standards for quality, performance and safety. See your authorized Isuzu truck dealer for warranty and other details.

1 Compared to class 3-5 commercial walk-in vans; testing conducted by an independent, certiﬁed party 2 Class 3–5 commercial walk-in vans

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