Trucks Clips: June 3, 2022

 

Federal Agencies

 

Amid Backlash, USPS Will Consider Buying More EVs. According to Politico, “The U.S. Postal Service yesterday announced it will reconsider the number of electric vehicles it plans to purchase as part of its multibillion-dollar effort to replace its aging delivery fleet. The quasi-independent agency stopped short of making a firm commitment, but said its plan to consolidate facilities and make other operational changes merits a second look. The USPS said it will conduct a supplemental environmental impact analysis, a step environmental groups and Biden administration officials have long called for. Postmaster General Louis DeJoy said he expects the updated analysis may lead the agency to purchase more zero-emission vehicles for its ‘next generation delivery vehicles’ (NGDV). He did not say when the analysis would be concluded. The agency did not say when the supplemental review will be completed, but the first batch of new vehicles is expected to hit the road in late 2023. ‘As I noted when we placed our initial NGDV delivery order, the Postal Service would continue to look for opportunities to further increase the electrification of our fleet in a responsible manner, as we continue to refine our operating strategy and implement the Delivering for America plan,’ DeJoy said in a statement. ‘A modernized network of delivery facilities provides us with such an opportunity.’” [Politico, 6/2/22 (=)]

 

Overhauled Delivery Route Plan Could Lead USPS To Boost EV Purchases. According to InsideEPA, “The U.S. Postal Service (USPS) is pledging to supplement its controversial environmental review of its plan to update its mail truck fleet with mostly conventional vehicles, asserting a separate overhaul of the agency’s delivery operations could allow it to increase the number of electric vehicles (EVs) it will purchase. Democratic-led states, environmental groups and a labor union have filed suit over USPS’s National Environmental Policy Act (NEPA) review of the vehicle procurement plan, arguing it contained several flawed assumptions regarding EV and battery costs, among other issues. Now, USPS in a June 1 press release says it will ‘soon’ publish a notice of intent to supplement its environmental impact statement (EIS), in light of changes to delivery routes. The agency said Postmaster General Louis DeJoy recently outlined a plan to ‘modernize and aggregate delivery operations [that] will make delivery routes more efficient, [and] which may affect the appropriate mix of vehicles to be procured for the Postal Service’s delivery fleet.’ Aggregating delivery operations into a smaller number of facilities would add miles to most delivery routes, a move that may make it easier to justify deployment of EVs. In addition, the USPS said the operations overhaul would allow for installation of upgraded electrical systems and charging equipment, curbing risks of shifting to EVs.” [InsideEPA, 6/2/22 (=)]

 

The USPS Is Already Testing Mail Delivery By Electric Bike With These Neat Little US-Built Mail Bikes. According to Electrek, “I recently wrote an opinion piece about how the United States Postal Service (USPS) could look to solve its gas-guzzler truck problem by following Europe’s example of delivering mail with smaller electric cargo bikes. As it turns out, the postal service has already been testing this out, and the little electric mail bikes look pretty snazzy too. Not only are they designed to carry heavy cargo loads, but they’re also built in the US by Montana-based Coaster Cycles. The electric mail bikes are built on the Freighter AW platform, which can be modified for various types of commercial e-cargo bike applications. Technically it’s an electric cargo tricycle, but it almost looks more like a cargo van than a bike. The giant rear cargo box provides 72 cubic feet (over 2,000 liters) of space for mail, and the bike can hold up to 400 lb. (181 kg) of cargo. Hydraulic disc brakes help bring all of that weight to a stop quickly and safely. Powering the bike is Bosch’s Cargo Line e-bike drive system, which supplies the rear wheels with 85 Nm of torque. The drive system is paired with a 500 Wh battery to power the mid-drive motor, though multiple batteries can likely be swapped in to extend the range. It’s not like the bike lacks space to carry a spare battery or two.” [Electrek, 6/2/22 (=)]

 

Emissions Standards

 

EPA Proposes Updating Gasoline Regs, Slashing Emissions. According to Politico, “A series of overdue regulatory updates to a key part of the nation’s fuel distribution network would slash overall emissions of benzene and other pollutants from those sources by more than one-third, according to a newly released EPA proposal. The draft package, signed yesterday by agency chief Michael Regan and encompassing several Clean Air Act provisions, in part targets emissions from bulk gasoline storage terminals and the equipment used to load gas into tanker trucks for delivery to service stations. If the package is made final, EPA predicts that stricter standards and other control requirements would cut releases of hazardous pollutants, a category that includes cancer-causing benzene, from about 6,100 tons to 3,900 tons, a drop of 36 percent. Similarly, annual emissions of smog-forming volatile organic compounds would fall from 121,000 tons to 76,000 tons. The expected upfront compliance costs to industry add up to almost $67 million. At a time when pump prices are at record highs, EPA says that the added expenses ‘are not expected to result in a significant market impact, regardless of whether they are passed on to the purchaser or absorbed by the firms.’ For reasons not spelled out in the proposal, EPA also predicts that there will be modest increases in emissions of sulfur dioxide, carbon dioxide and other pollutants. … EPA is undertaking the package as part of a settlement to a federal lawsuit brought by Our Children's Earth Foundation, a California-based nonprofit; the final version is due a year from now (Greenwire, May 3). In the suit, the group alleged that the agency was long past Clean Air Act deadlines for conducting mandatory reviews of regulations that date back as far as 1983.” [Politico, 6/2/22 (=)]

 

The Simple, Impactful Way To Make Cars Cleaner. According to Vox, “The electric vehicle revolution is charging ahead: Global passenger EV sales grew by 103 percent in 2021. In the last quarter of 2021, they accounted for 13 percent of all new vehicle sales. And many more EVs are continuing to roll out. Just last week, Ford delivered the first electric version of its F-150 truck, the best-selling vehicle in the United States, to a customer in rural Michigan. Ford plans to invest $25 billion in EVs through 2025. General Motors has two versions of the Bolt for sale, and is planning to begin delivering its Hummer EV this fall. By 2025, GM will invest $27 billion in EVs and by 2035, the company says it will be all-electric. As gasoline prices reach record highs and the summer road trip season kicks off, getting around without gas is a more appealing prospect than ever. And this year may be an inflection point, where the number of internal combustion engines on the road reach their peak. Countries like Finland, Germany, and New Zealand have plans to phase out gasoline vehicles entirely. But while many car companies are driving toward a future filled with electrons, it’s their conventional cars that will be most consequential for the global climate in the meantime. Transportation is the largest source of carbon dioxide emissions in the US — and cars and light trucks account for 60 percent of this share. In 2021, President Joe Biden committed to cutting US emissions 50 to 52 percent below 2005 levels by 2030, which would demand huge cuts in emissions from cars, vans, pickup trucks, and crossover SUVs.” [Vox, 6/2/22 (+)]

 

Manufacturers & Fleets

 

Ford Motor Co.

 

Ford Polishes Rust Belt Base With Both EVs And Gas Cars. According to Politico, “Ford Motor Co. yesterday said it would spend $3.7 billion and add more than 6,000 jobs in a bid to ease the fears of Midwestern states and labor unions that they’re losing out in a transition to electric vehicles. The investment in Michigan, Ohio and Missouri will go to produce both electric and internal-combustion vehicles, underscoring that America’s automakers still see a strong market for cars and trucks with gas tanks this decade. Ford also carved out $1 billion to spruce up its workplaces — a nod to the difficulty of attracting workers amid an industrywide transformation. ‘I am proud that we are investing in the Midwest and taking real action to provide better benefits and working conditions for our workers on the plant floor,’ said Bill Ford, the company’s executive chair, in a statement. The changes come in a time of tumult for one of America’s Big Two automakers. It has consumer hits with the F-150 Lightning and the Mustang Mach-E, but the switch to EVs is also prompting a wholesale reorganization. In March, CEO Jim Farley cleaved the century-old automaker into three divisions: electric, commercial and internal-combustion (Energywire, March 3). The move to EVs is prompting a new relationship with Ford’s dealerships and causing Farley to bet that some legacy automakers will fail. ‘There’s a shakeout coming,’ Farley said at the Bernstein Strategic Decisions Conference yesterday, according to Automotive News.” [Politico, 6/3/22 (=)]

 

Ford Investing $3.7B To Create 6,200 Jobs In Michigan, Ohio, Missouri. According to Detroit Free Press, “Ford Motor Co. is creating 6,200 new hourly union jobs in Michigan, Ohio and Missouri that offer full health coverage on day one as part of a new $3.7 billion investment that includes financial support from Michigan and Ohio policymakers, the company announced Thursday. ‘We’ve been working very closely with the UAW leadership on this,’ Kumar Galhotra, president of Ford Blue, told the Free Press. In addition, nearly 3,000 United Auto Workers will go from temporary worker status to full-time with full benefits and pay raises, ahead of the schedule set by the union’s collective bargaining contract that expires next year, Ford said. ‘Contractually, we don’t have to do this, but we think it’s the right thing to do,’ Galhotra said. ‘We believe and the UAW leadership believes that this is the right thing to do for those employees.’ It’s a long-term investment that keeps the workforce strong, he said. Ford is also planning to immediately begin spending $1 billion over five years to improve the ‘work experience’ of its U.S. employees based on feedback from the UAW — offering better access to healthy food, better security and lighting in parking lots, better break facilities and new on-site charging stations for electric vehicles driven by employees, Galhotra said.” [Detroit Free Press, 6/2/22 (=)]

 

Ford To Invest $3.7 Bln For Production Of Evs, Gas-Powered Vehicles. According to Reuters, “Ford Motor Co (F.N) on Thursday said it will invest $3.7 billion in assembly plants in Michigan, Ohio and Missouri for production of both electric and gasoline-powered vehicles. Ford, whose shares were up 2.4% in afternoon trading, said $2.3 billion of the total investment will be spent on EVs, part of the $50 billion in EV spending through 2026 it had previously outlined. Ford officials said the company will receive incentive packages of about $150 million and about $200 million from Michigan and Ohio, respectively. As part of the investments, the Michigan-based automaker said it will add more than 6,200 hourly jobs and convert 3,000 temporary workers into full-time employees who will receive healthcare benefits and higher pay. It also will add a new electric commercial vehicle to its lineup mid-decade. Ford in March said it was boosting its spending on EVs to $50 billion through 2026, up from $30 billion previously. It also said it would run its EV and internal combustion engine (ICE) businesses as separate units in a move aimed at catching EV industry leader Tesla (TSLA.O).” [Reuters, 6/3/22 (=)]

 

Ford Is Investing $3.7 Billion To Expand Midwestern Auto Plants. According to Bloomberg, “Ford Motor Co. is investing $3.7 billion in factories across three Midwestern US states to pump out more electric vehicles and traditional gasoline-fueled autos in a sweeping expansion that will create 6,200 union jobs. Five Ford plants will be expanded to produce more hot sellers, such as the electric F-150 Lightning pickup, and roll out new models, including a battery-powered commercial vehicle to be built at the automaker’s factory in Avon Lake, Ohio, the company said Thursday in a statement. The timing of the investments are unusual, coming more than a year before Ford is set to negotiate a new four-year contract with the United Auto Workers. Normally, the automaker would wait and use potential factory enhancements and new jobs as leverage in talks with the union. But in a tight labor market, Ford is moving quickly to secure the workers it needs. It could also get on the UAW’s good side a year after the union accused the automaker of ‘corporate greed’ for moving some EV production to Mexico from Ohio. With the economy roiled by inflation, Ford is scoring political points by expanding in the industrial Midwest. President Joe Biden hailed Ford’s announcement as ‘great news for American workers’ and was quick to claim credit for the new jobs.” [Bloomberg, 6/2/22 (=)]

 

Ford To Invest $3.7 Billion In US Production. According to Inside EVs, “Ford has announced an investment of 3.7 billion dollars in its production in the US states of Michigan, Ohio and Missouri. With the equivalent of 3.4 billion euros, the production of electric cars is to be strengthened and 6,200 new jobs created. According to Ford, 1.5 billion dollars (1.4 billion euros) alone are to flow into the assembly plant in Ohio in order to assemble a new electric commercial vehicle there from the middle of the decade. The plant expansion is scheduled to begin this year. Ford has not yet disclosed further details on the new e-utility vehicle. Ford is also investing in the announced production increase for the all-electric F-150 Lightning to 150,000 units per year at the Rouge Electric Vehicle Center in Dearborn (Michigan) – 2,000 new jobs are planned. A total of two billion dollars is to be invested in Michigan, but not all of it is eMobility-related. It also involves the production of a new generation Mustang Coupé in Flat Rock and a new logistics centre. A third shift is also being introduced at the assembly plant in Kansas City (Missouri) to increase production of the Transit and its electric version, the E-Transit – at a cost of $95 million. The E-Transit has been out in the USA since the beginning of February. Ford had already invested 100 million dollars in the plant for the commercial vehicle and also created 150 full-time jobs there. In addition to the vehicle itself, the battery pack is also assembled in Kansas City.” [Inside EVs, 6/3/22 (=)]

 

Ford Plans 6,000 New Union Jobs In Three Midwestern States. According to The New York Times, “Ford Motor said on Thursday that it was planning to invest $3.7 billion in facilities across the Midwest, much of it for the production of electric vehicles, which the company said would create more than 6,000 union jobs in the region. ‘We’re investing in American jobs and our employees to build a new generation of incredible Ford vehicles,’ Jim Farley, the company’s president and chief executive, said in a statement. ‘Transforming our company for the next era of American manufacturing requires new ways of working.’ The announcement, made jointly with the United Automobile Workers union, detailed investments in three states. Ford said it would invest $2 billion and create about 3,200 union jobs in Michigan, including many tied to production of the new F-150 Lightning pickup truck, the company’s highest-profile and most important bet on electric vehicles. In Ohio, Ford will spend over $1.5 billion and create nearly 2,000 union jobs, primarily to build commercial electric vehicles in the middle of this decade. The company also said it would add over 1,000 union jobs at an assembly plant in Kansas City, Mo., that will produce commercial vans, some gas-powered and some electric. The company had indicated that some of the investments would be coming, like the expansion of production capacity for the F-150 in Michigan, but had not detailed the magnitude.” [The New York Times, 6/2/22 (=)]

 

Ford Announces New Mustang, Ranger, And Commercial EV In Major Midwest Expansion. According to The Verge, “Ford announced it will invest $3.7 billion in manufacturing facilities in Michigan, Ohio, and Missouri, with the promise to create 6,200 new unionized jobs as part of a major Midwestern expansion. The automaker also unveiled plans for an updated Mustang, Ranger, and a new electric commercial vehicle. In a joint announcement with the United Auto Workers, Ford said it will provide immediate healthcare benefits to all hourly employees ‘on day one,’ and convert nearly 3,000 temporary employees to permanent full-time status ahead of schedule. The company also said it would spend $1 billion to improve working conditions at its US plants. Ford didn’t disclose what type of new electric commercial vehicle it has planned, except to say it will be assembled at its factory in Ohio and will make its debut ‘mid-decade.’ The automaker recently launched production of its hotly anticipated F-150 Lightning electric truck and E-Transit commercial van. The company said the all-new Mustang coupe, which will be available globally, and Ranger pickup, which is only for the North American market, will be built in Michigan. Both vehicles will be gas-powered and built under the direction of Ford Blue, the company’s legacy powertrain division. Ford said it will also add jobs to boost production of F-150 Lightning in Michigan, as well as the Transit and E-Transit vehicles in Missouri. Those vehicles will be supervised by Ford Model E, the electric vehicle and software division. Earlier this year, the company split itself into two distinct divisions to enable its EV production to move at ‘startup speed.’” [The Verge, 6/2/22 (=)]

 

No More Dealer Markups: Ford Wants To Move To Online-Only Sales For EVs. According to ArsTechnica, “Few Americans enjoyed the car-buying process even before supply chain chaos, and the chip shortage led dealerships to mark up inventory by thousands of dollars. But buying a Ford electric vehicle might be a lot less painful in the future, if Ford CEO Jim Farley gets his way. On Wednesday, Farley said that he wants the company’s EVs to be sold online-only, with no dealer markups or other price negotiations, according to the Detroit Free Press. ‘We’ve got to go to non-negotiated price. We’ve got to go to 100 percent online. There’s no inventory (at dealerships), it goes directly to the customer. And 100 percent remote pickup and delivery,’ Farley said while speaking at a conference in New York. One of Tesla’s most popular innovations was to eschew traditional dealerships and sell its products directly to customers. But traditional manufacturers like Ford are usually prohibited from selling their products directly to customers, a legacy of fears over vertical integration written into state laws during the early 20th century. As such, Ford’s franchised dealers will almost certainly still have a role to play. Advertisement ‘Then we have this opportunity to use our physical presence to outperform [competitors]. I think our dealers can do it. But the standards are going to be brutal. They’re going to be very different than they are today,’ he said.” [ArsTechnica, 6/2/22 (=)]

 

US: Ford EV Sales Surged In May 2022 - Mach-E, E-Transit And F-150 Lightning. According to Inside EVs, “In May, the total sales of Ford and Lincoln vehicles in the US decreased by 4.5% year-over-year to 154,461, including 146,868 Fords (down 4.4%). Year-to-date, the company noted a 13.3% decrease to 763,558, including 727,559 Fords (down 13.1%). The company explains that the results are still affected by the global semiconductor chip shortage. Demand remains high and inventory continues to turn at record rates. In this background, Ford’s all-electric vehicles shine with 6,254 units in May (a new record and an increase of 222% year-over-year). That’s about 4.3% of the total Ford volume (a new record). The company appears to be pretty happy with the results, noting that the growth rate of BEV sales is ‘almost 4 times faster than the overall U.S. electric vehicle segment in May.’ Additionally, Ford notes that for the month, it has moved into second place in US BEV sales behind Tesla. The very positive news is that Ford is increasing sales of the Mach-E, achieving a new monthly record, as well as ramping up the E-Transit vans and F-150 Lightning (first 201 units). Ford BEV sales in the US: Ford Mustang Mach-E: 5,179 (up 166%) [record] Ford E-Transit: 874 [record] Ford F-150 Lightning: 201 (first month) [record] Total: 6,254 (up 222%) [record] and 4.3% share Those are the results that we like to see.” [Inside EVs, 6/3/22 (=)]

 

States & Local

 

Colorado Commits $65 Million To Electric School Buses. According to Electrek, “Colorado Governor Jared Polis has signed into law SB 193, an air-quality bill which among other things creates a $65 million grant program for electric school buses in the state. A number of states and cities have committed to buying electric school buses, with thousands planned nationwide. Some places have targeted a move to 100% electric school buses in coming years, with Boston targeting 2030, New York State committing to 2035, and Nevada making a 2050 pledge. Colorado hasn’t pledged a timeline for full electrification of school buses yet, but this grant should kickstart many districts to start making progress. Pollution from fossil fuel vehicles causes myriad health problems throughout the population, and children are particularly susceptible as their bodies and minds develop. Traffic-related pollution causes 2 million new cases of childhood asthma per year. Children are exposed to this pollution from school buses as they ride in, board, and exit them and as the buses drive through their communities. The vast majority of school buses run on diesel fuel, but school districts can save children’s lungs and also save money on fuel and maintenance by switching to electric school buses. The Electrification Coalition, which lauded Colorado’s move today, has created the ‘Dashboard for Rapid Vehicle Electrification’ or ‘DRVE’ tool that districts can use to analyze the savings available from electrification. That said, replacing diesel buses can also have high upfront costs for school districts, particularly if their diesel fleet hasn’t yet reached end of life. This grant fund doesn’t just target purchases of new electric school buses, but also conversion of old diesel buses to electric if possible, and retiring of diesel buses early when feasible.” [Electrek, 6/2/22 (=)]

 

Report: Diesel Engines Major Air Polluters In Illinois. According to Public News Service, “Pollution from diesel engines can cause a variety of health issues, and a new report reveals some Illinois communities face higher risks from diesel pollution. Illinois is projected to have the fifth-highest diesel pollution-related death count per capita in the U.S. in 2023, in the analysis by the Chicago-based Respiratory Health Association. Brian Urbaszewski, director of environmental health programs for the group, said the pollution concentrates in communities with diesel-heavy infrastructure, such as highways, freight yards and fleet garages. ‘There’s a lot of communities that are in close proximity to large sources of diesel emissions,’ Urbaszewski explained. ‘They’re getting a larger dose of diesel exhaust.’ The report urges Gov. JB Pritzker to sign onto a multistate agreement adopting new policies, pushing the trucking industry toward cleaner, electric fleets. The Illinois Legislature passed a resolution endorsing the move last year, although Pritzker has yet to act on it. The compact, which includes 17 states and Washington, D.C., is not a legally binding agreement. Rather, it sets a target of phasing out the sale of new medium- and heavy-duty diesel trucks by 2050, and replacing them with zero-emission electric alternatives. Urbazewksi argued the transition would protect some of Illinois’ most pollution-vulnerable communities. ‘There’s technology out there that eliminates this diesel exhaust, which is putting these vulnerable people at increased risk of severe health damage,’ Urbazewksi stressed.” [Public News Service, 6/3/22 (=)]

 

State Officials, Bus Company Working On Informing School Systems About Electric Buses. According to MetroNews, “State officials will work with an electric vehicle company to develop a pilot project aimed at putting more zero-emission school buses on West Virginia roads. Gov. Jim Justice announced the initiative during Thursday’s coronavirus briefing. State Secretary of Economic Development Mitch Carmichael will be responsible for working with GreenPower Motor Company on informing school districts about the potential to purchase electric school buses. The announcement follows GreenPower’s announcement in January about opening a manufacturing facility in South Charleston. The company signed an agreement regarding a 9.5-acre manufacturing facility and an 80,000-square-foot-building. ‘This is designed to help school districts take advantage of federal dollars that are currently available for nearly 100% of the purchase of electric buses,’ Justice said. GreenPower spokesperson Mark Nestlen noted as part of last year’s infrastructure law, Congress dedicated $5 billion toward replacing diesel school buses with zero-emission vehicles. ‘That’s now open to our school districts in West Virginia to where they can, in essence, almost get those buses for free,’ he said. ‘The large school buses will have a $375,000 rebate from the federal government. The small school buses, $285,000.’ School systems will also get an additional $20,000 rebate for each bus in order to install the necessary charging infrastructure.” [MetroNews, 6/2/22 (=)]

 


 

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