Dennis Beal
Vice President
Global Vehicles
FedEx Express
FedEx Alternate Fuel Fleet Goal
• Alternative fuel technologies began in 2000
– With the introductions of our hybrids in 2004, we
achieved:
• 42% improvement in fuel economy
• 96% reduction in exhaust emissions
– Additional objectives:
• Maintain/improve payload capacity, performance, reliability
and reparability
• Year 2020 goal
– 20% improvement in fuel economy by 2020, including
California mandates
• Expand alternate drivetrain fleet – electric vehicles
• Reduce CO2 emissions, maintenance and fuel expense
Why FedEx Leads An Alternate Fuel
Fleet Mission
•
Public/Employee safety, efficiency and environmental sustainability
•
Maintain a leading role in the pursuit of vehicle technology and
innovation
– Actively participate in industry leadership groups, providing sponsorship
and speakers
– Promote alternative (hybrids, electric) technology development with
manufacturers
•
Respond to customer requirements in light of CSR goals
– Our customers increasingly request sustainability documents
– FedEx Environmental Engineering group has developed a carbon
footprint tool to be used to provide sustainability information to our
customers
•
Enhance shareholder value by reducing costs
–
–
–
–
No more than 20% hybrid premium cost
50% fuel economy improvement
Pursue options available in all pickup/delivery segments
Battery cost reduction
Alternate Drivetrain History at FedEx
Express
2000
FedEx Express &
Environmental Defense
begin working together to
develop low emission HEV
(E700)
2004
FedEx receives
EPA Clean Air
Excellence Award &
Harvard JFK School of Govt
Roy Family Award
2007
Agreement w/Azure
For 20 gasoline
hybrids
2005
FedEx receives
CALSTART
Blue Sky Award
Agreement w/Iveco
For 10 Daily hybrids
2009
Hybrids deployed:
92 Repowered W700 hybrids
10 MODEC all-electric
Agreement for 51 Azure
gasoline hybrids
1 Isuzu hybrid
2000 - 2003
Development & testing of pre-production units
2004
18 Pre-Production
FCCC/Eaton
hybrids deployed
2006
75 FCCC/Eaton
hybrids deployed
2 Isuzu hybrids
deployed
2008
Hybrids deployed:
- 10 Iveco Daily
hybrids
2010
Hybrids and
EVs deployed:
- 20 Azure Gas
hybrids
- 2 Hino hybrids
- 45 FCCC/Eaton
hybrids
- 3 Isuzu hybrids
- 5 EVs
- 4 EVs
- 10 M2 hybrids
FedEx Express Alternate Drivetrain
Fleet
• Largest fleet of hybrid electric package delivery trucks
– 348 hybrid electric and electric vehicles with over 7 million miles of
service to date
– Converted traditional diesel trucks by retrofitting them with hybrid electric
drive trains
– Exploring conversion of IC engines to electric
• Currently operating a select number of all-electric commercial
delivery trucks in London, Paris and Los Angeles
From Gas
To Electric
FedEx Express Alternate Drivetrain
Family
FCCC/Eaton
W700
Isuzu Hybrid
Modec/eStar
Electric
Hino Hybrid
Ford/Azure
W700
Iveco Hybrid
Location of Alternate Drivetrain
Vehicles at FedEx Express
348 HEV & EV units in service with over 7 million miles of service to date
Ann Arbor 2
Toronto 5
Denver 4
London – 10 Modec
(testing)
Italy, Fr. & Ger. –
10 Iveco (testing)
Chicago 2
Portland 15
Sacramento 9
New York
City 143
Wash. DC 3
Tampa 3
San Francisco 28
Los Angeles
Metro 91
San Diego 7
Memphis 3
Tokyo – 6
Isuzu (testing)
Hong Kong – 2
Hino (testing)
FedEx Express Distribution of Fleet
by Mileage Band
“Metro”
All Electric
Hybrid
Less Than
15K Miles/Yr
15K to 25K
Miles/Yr
Standard Production
Over 25K
Miles/Yr
Asset Management – More Than Just
$$ Saved
• Asset management supports sustainability initiatives
– Sustainability can be measured not only in MPG but in fuel
consumption avoidance
• Fuel consumption reduction contributes to emissions avoidance –
win-win
• Vehicle optimization
– Assigning the right truck to the right route reduces fuel
consumption and emissions through vehicle optimization
• Reduces fuel usage
• Reduces emissions
• Reduces fuel and maintenance costs
Asset Management – Sustainable
Equipment Design
• Support and implement sustainable equipment
design
– Place equipment in optimum locations and on optimum
routes
• Meet/exceed local environmental regulations
• Take advantage of local tax incentives
• Support future sustainable equipment design
projects
 Electric vehicles