For as many times as it has tested electric, hybrid, and other alternative powertrains for its trucks, UPS has run into the same 
issues of complexity and cost. Now it’s trying a simpler route to fuel savings. Although competitor FedEx and other fleet deliverers such as Staples, At&T, and Frito-Lay have turned to electric (see our blog on electric trucks on Dec.10, 2010), UPS is looking lighter. Using light-weight composite materials, the delivery company is able make trucks 1,000 pounds (about 10%) lighter than today’s familiar brown “package cars”.
USA Today (June 9,2011) reports that with less weight, the new trucks can have smaller diesel engines that save 40% on fuel use–without the complexity of high-tech batteries, hybrid systems, or other advance technologies that can run up total costs. “This technology is available to us today. We don’t have to worry about plugging it in or getting propane”, says UPS’ engineering director.
The first batch of trucks is being built by Utilimaster, in Indiana, using an Isuzu chassis, powered by a simple Isuzu 150-horsepower clean-diesel engine. Isuzu, which no longer sells cars in the US, maintains a vigorous truck operation here. It sees the new diesel as a chance to trump hybrids because “we didn’t think people were going to be able to afford a hybrid or electric vehicle”. The fuel savings don’t just come from lower weight and a smaller engine. With a sleek new look, the trucks are 13% more aerodynamic than competitors.
Comparing this approach with electric/hybrid alternatives shows once again that there is more than one way to skin the cat of increased operations efficiency.
Discussion questions:
1. What are the advantages and disadvantages of the alternatives discussed?
2. Why doesn’t every company switch to one of these new technologies?