Eaton Discontinues Diesel-Electric Hybrid Trucks
Eaton has confirmed that it's out of the diesel-electric hybrid business in North America, after government incentives and stabilizing diesel prices contributed to a market largely drying up.

Utilities were a popular application for the Eaton diesel-electric hybrid.

Utilities were a popular application for the Eaton diesel-electric hybrid.
Eaton has confirmed that it's out of the diesel-electric hybrid business in North America, after government incentives and stabilizing diesel prices contributed to a market largely drying up.
Jim Michels, global business communications manager for Eaton's vehicle group, told HDT on the eve of a press event at its facilities in Kalamazoo, Mich.
"We are no longer selling hybrid units in North America," Michels said. "The reason we're not selling in North America any longer is there really isn't a market for those products. If the market comes back we'll re-enter."
The market started drying up when federal credits expired, Michels explained. "We began to see a downturn in orders and it's progressively gotten lower and lower."
Diesel prices that have stabilized as well as an increased interest in natural gas as an alternative fuel have contributed to the decline in demand.
"On the flip side our hybrid business in China is doing fantastic," Michels said. "City bus is a huge opportunity for us in china, and same thing in Europe."
Michels wouldn't speculate on what it might take to see demand increase enough to re-enter the market. "We stay close to our customers and obviously if we see customer demand starting to pick back up we'll get right back into it."
Both Daimler Trucks North America and Kenworth recently told HDT they were no longer building any new diesel-electric hybrids because they could no longer get the systems from their supplier – Eaton.
Other companies are venturing into the medium-duty commercial truck hybrid market, many with bolt-on conversion systems, including Odyne and BAE HybriDrive, and Hino offers a hybrid version of its Class 5 cabover.
A hybrid history
In 2002, Eaton announced it intended to become a primary supplier of hybrid-electric vehicle powertrain technology and products to the commercial vehicle industry. That year, FedEx Express chose three finalists - including Eaton - to participate in its search for a hybrid electric Class 4 step-van to become its delivery truck in 2004.
By 2003, FedEx had chosen Eaton as the supplier and agreed to order 20 of the hybrids.
In 2005, electric utility Commonwealth Edison announced it was testing new diesel-electric hybrid bucket trucks from International using Eaton's technology.
In 2006, Paccar announced an ambitious goal of 30 percent improvement in vehicle fuel efficiency for selected medium-duty applications over the next seven years using hybrid technology as a key contributor, and Eaton was chosen to provide hybrid power systems for 50 step-van delivery vehicles made by International Truck and Engine and Freightliner Custom Chassis Corp., to be purchased by UPS.
By spring of 2010, Eaton announced that it had more than 2,400 hybrid systems in use, with customers collectively accumulating more than 30 million miles of service throughout the world, and UPS expanded its alt-fuel fleet with the deployment of 200 next-generation hybrid electric delivery trucks in eight U.S. cities.
The same year, Frost & Sullivan said that demand for hybrid trucks was expected to grow over the next six years across North America and Europe, especially in medium-duty, predicting the number of hybrid trucks being manufactured in North America and Europe would grow from 4,100 units in 2009 to 222,000 in 2016. In 2010, Frost & Sullivan predicted that by 2015, hybrids would represent 8% of all Class 6 to 8 trucks manufactured.
However, as Frost & Sullivan's Sandeep Kar noted at the time, "Currently, the high upfront cost associated with hybrids is countered with federal grants, incentives, and tax rebates," said Kar. "Although such incentives offer relief in the short term, for hybrids to be commercially viable in the long term, the upfront cost difference should reduce considerably."
That same year, T. Boone Pickens provided the keynote address during the National Natural Gas Vehicle Fleet Summit on the eve of the Mid-America Trucking Show and touted his Pickens Plan and converting the commercial trucking fleet to natural gas to reduce dependence on foreign oil.
By mid 2012, Eaton was addressing the issue of return on investment, announcing enhancements it said would increase the fuel economy, performance and payback of its hybrid drive system for commercial trucks, including a new high-capacity battery.
The same year, a report from Indiana University's School of Public and Environmental Affairs said the fuel savings and environmental benefits from medium-duty diesel-electric hybridsmight not be enough to recover their higher investment costs.
More Operations

Think You Know Trucks? Take Our 19-Question Fleet Trivia Challenge
From chicken lights to diesel engines and trucking history, test your knowledge with 19 questions from the 2026 Work Truck Exchange and Heavy Duty Trucking Exchange.
Read More →
Where’s My Truck: Inside the Fleet Logistics Work Nobody Sees
Shades of Fleet video thumbnail featuring Lauren Fletcher beside the text “The People Behind the Process, Keeping Fleets Moving,” with fleet vehicles and logistics imagery in the background.
Read More →
Work Truck Seeks Fleet and Industry Insights on 2026 Trends and 2027 Forecasts
Work Truck is seeking insights from fleet leaders and industry partners on the trends that shaped 2026 and what commercial fleets should prepare for in 2027. Participate today!
Read More →From Our Partners
Basic Tracking vs Next Generation Fleet Technology
Sponsored by AT&T Business

5 Facts Every Fleet Manager Should Know About Embedded Telematics
Sponsored by Stellantis/Mobilisights

How AI Video Telematics Boosts Driver Safety and Helps to Avoid Unnecessary Costs
Sponsored by Verizon Connect

Charting the 8 Bottom-Line Benefits of Workforce Optimization
Sponsored by Verizon Connect


It's 10 p.m... Do You Know Who Has Access to Your Fleet?
Preventing cargo theft requires investment in technology, operational processes, and employee training. In an industry with tight margins, it can be difficult to justify investments whose value is measured by incidents that might never occur.
Read More →
GeoFencing Adds to Your Truck Security Arsenal
Geofencing is a familiar fleet tool today, but its early adoption marked a major shift in vehicle tracking, route monitoring, and the debate over employee privacy.
Read More →
Truckers’ Strike Rumors, New GM Engines, and Hidden Idling Costs Lead This Week’s News
Truckers’ strike rumors, GM’s new 2027 engines, hidden idling costs, racing lessons, IRP rules, and more headline this week’s Truck Chat Weekly Cheat Sheet.
Read More →
Shades of Fleet Wants to Hear From You About Building a Culture of Care
Fleet leaders, we want to hear from you. Share how empathy, trust, and creating space for people can strengthen your team, improve performance, and support retention.
Read More →
What Racing Can Teach Work Truck Fleets About the Work Nobody Sees
Race car driver and mechanical engineer Isaac Johnson shares practical lessons on preparation, relationships, setbacks, and building teams that perform when it counts.
Read More →
New Fleet Guides, Hidden Truck Wear, and Driver Fit Lead This Month
Our latest Truck Chat recap covers new Fleet Guides, hidden idling costs, driver fit, lighter-truck registration rules, and year-round technician appreciation.
Read More →
Work Truck Takes Fleet Rivalry Downhill to Support Skilled Trades
Team Fletcher claimed a head-to-head win and second overall as Work Truck and Automotive Fleet helped raise $22,000 for the Hourglass Foundation.
Read More →
