February 2008, Automotive Fleet - Feature
Forecast of Truck Fleet Management Trends: 2008-2010
By Mike Antich
Replacement Tires Trends
he forecast for truck replacement tire prices remains a mixed picture. "With demand booming in Asia and an increased appetite for rubber, Asian companies continue to manufacture more products, such as tires. This has increased demand despite drops in North America, where demand has fallen as suppliers face growing threats from those same imports," said Vivek Khosla, director, product management for PHH Arval. "Although fundamental supply-and-demand analysis suggests rubber prices should fall, in recent years, speculators have had a bigger impact, making it more difficult to judge the market. In addition, higher prices of oil are only likely to escalate tire prices," added Khosla.
"To control truck tire prices, fleet managers need to eliminate driver behavior that lowers the tread life of the tires, such as speeding, excessive braking, driving over curbs, and even the way the load is distributed on the truck," said Khosla.
Another truck tire trend is the increased use of super single tires. These are wider long-haul truck tires designed to replace dual tires. The advantages are lighter weight and reduced rolling resistance, both of which impact fuel economy.
"Super single tires for highway applications will become more commonplace due to increased tire technology and their lighter weight," said Jeff Robley, national truck sales manager – western region for ARI.
Emergence of Hybrid Trucks
wenty-one of the biggest mixed fleets in North America are working together to help speed the development of a cost-effective, light-duty work truck that reduces exhaust emissions while improving fuel economy. These fleets make up the Light-duty Hybrid Action Group facilitated by the National Truck Equipment Association (NTEA). They represent a cross-section of work truck users, including utilities (such as American Electric Power and Florida Power and Light Company), state and county transportation departments (such as Arlington County, Va., government), and private companies (including Heritage Propane and Titan Propane). Combined, they manage more than 200,000 vehicles across Classes 1–8.
ServiceMaster, a Fortune 500 company with brands such as TruGreen ChemLawn, Terminix, and Merry Maids, requested that NTEA facilitate a hybrid action group in Spring 2006. The NTEA has monitored hybrid initiatives in the work truck and trailer industry since the concept began to determine how the technology might impact its members. As hybrid and alternative-fuel technology have become commercially viable, the association agreed to facilitate the group to further technical knowledge on the subject.
Action Group Focuses on Vans & Pickups
The Light-duty Hybrid Action Group is initially focusing on hybrid light-duty vans and pickup trucks that could be incorporated into participants’ individual procurement schedules. They are interested in cost-competitive new vehicles that offer at least the same utility as current models, while providing significant reductions in fuel consumption and operating emissions.
Florida Power & Light (FPL) was the first company in the U.S. to put a medium-duty industrial hybrid into service in May 2006. That FPL hybrid truck is operating in Palm Beach County and already exceeds the EPA’s 2010 diesel admissions standards. In addition to the Palm Beach County truck, FPL hybrid trucks are on the road in Miami-Dade County and Sarasota, Fla. "These trucks are widely regarded as the cleanest medium-duty trucks in the country," said George Survant, director of fleet services for FPL.
FPL has led a group of 30 utilities from across the country in developing a pilot hybrid truck program. Fourteen companies have put 24 trucks into service in companies across North America. Funding the hybrid packages was provided by the Department of Defense and the utilities themselves.
Survant says FPL plans to convert one-third of its 2,900 company cars to hybrids by 2010. The company has 53 hybrid cars on the road today.
"Fuel is price-volatile and supply is fragile," Survant said. "Anytime we can reduce our exposure to a volatile and fragile commodity, we’ve made a good business decision."
Pacific Gas and Electric Co. (PG&E) is also testing a new diesel-electric utility service truck with the potential to avoid the release of 2 tons of carbon dioxide per year. The hybrid bucket truck, manufactured by International and Eaton Corp., is conducting routine and emergency overhead line work in PG&E’s San Francisco service area that would normally be done by a standard, less-efficient diesel-powered bucket truck.
The nation’s biggest retailer, Wal-Mart, has partnered with auto component supplier ArvinMeritor to develop a diesel-electric hybrid truck. The companies have agreed to develop a dual-mode, diesel-electric drivetrain for a Class 8 tractor truck. This vehicle will be based on an International ProStar tractor and powered by a Cummins engine. The planned dual-mode units will use electric motors powered by batteries to supplement the diesel engine power during acceleration and hill climbing.
Wal-Mart CEO Lee Scott previously announced that the company intended to improve the efficiency of its 7,000-truck fleet 25 percent by 2008.
Hybrids Present Maintenance Concerns
Hybrid trucks using an electric motor coupled with a gas or diesel engine present special maintenance concerns.
"The hybrid system uses voltages that range from about 100 to more than 300 volts. As such, the unique service procedures and safety precautions pose additional challenges when performing some repairs," said Ken Gillies, manager, truck operations for GE Capital Solutions Fleet Services. Independent repair facilities face decisions regarding what training and maintenance services to provide, which will cause further service availability issues depending on the geographic areas of operation.
"Independent shops can easily provide basic hybrid maintenance services including oil changes, air/fuel/cabin filter and brake repairs, but may be slower in adopting the procedures and purchasing special tooling to address any hybrid system repair needs," said Gillies. "Training for OEM dealerships is in place, which will provide support for repairs, especially where warranty coverage applies."
Overall, the hybrid systems will further strain the already capacity-challenged maintenance and repair community. "Fleets with their own service infrastructure will need additional investments in training. The judicious use of OEM dealerships for certain repairs may be a temporary bridge for some, and others may elect to stay that course long-term," said Gillies.
A key factor to increased hybrid acceptance will be pricing.
"Medium- and heavy-duty hybrids are becoming more commonplace in the market when prices for the hybrid system start coming down. The hybrid systems would include parallel system, series system, and hydraulic," said Jeff Robley, national truck sales manager – western zone for ARI.
The challenge, as always with early adoption, is supply and demand, which has a direct impact on overall cost. "Although fleet management companies would like to think they have some control over the successful adoption of ‘green solutions’ we will most likely be at the mercy of government intervention and the free enterprise system. Economics always have and will most likely continue to dictate the adoption of alternative-fuel development. It will, in all likelihood, also drive the evolution of alternative transportation and commerce," said Greg Carson, director of operations for Union Leasing.