The company expects to spend $40 million on the project, covering the costs of retrofitting 179 trucks that help transport components from suppliers to assembly plants in the Detroit area. The investment includes $1.8 million for upgrades to the FCA Transport maintenance facility, along with $5 million for an on-site CNG refueling station.
The fleet is said to typically burn through nearly 2.6 million gallons of diesel fuel per year, keeping the trucks running for a collective driving distance of 16 million miles.
Switching to CNG is expected to reduce carbon-dioxide emissions by more than 16,000 tons each year. FCA claims the number is equivalent to the CO2 output from burning 17 million pounds of coal, or energy production for 1,500 homes.
The company’s interest is not solely focused on environmental impact, however, as the changeover will bring a net fuel-cost savings of 35 percent. The company is poised to save approximately $1.8 million each year, based on the current average price of $2/gallon for diesel in Michigan.
“This project was a win-win-win – it offered a solid business case, clear environmental benefits and an opportunity to invest in our Detroit facility and workforce,” said FCA supply chain senior vice president Steve Beahm.
The company currently offers the Ram 2500 Heavy Duty in CNG form. The pickup’s 5.7-liter Hemi V8 has been tweaked with new valves and a unique cylinder head to optimize combustion for the alternative fuel, which is stored in two tanks on the bed. If a driver runs out of CNG, the system automatically switches over to gasoline.
The technology is uncommon outside of fleet vehicles, likely due to the higher up-front costs and limited refueling infrastructure. The CNG-powered Ram 2500 commands a premium of over $10,000 compared to its traditional gasoline counterpart.
FCA Transport’s refueling site is said to be the largest private CNG station in North America, while the parts trucks will represent the biggest private fleet of heavy-duty CNG-powered vehicles in Michigan.
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