FCA invests $40M to switch truck fleet to CNG
Fiat Chrysler Automobiles NV has completed a $40 million investment to convert nearly 200 parts hauling trucks from diesel to compressed natural gas.
The investment is being announced Friday at the company’s FCA Transport facility on Detroit’s east side, across the street from Detroit City Airport. It makes the automaker the largest private fleet of CNG-powered heavy-duty vehicles in Michigan, according to FCA US.
The company expects the switch to cut its fuel costs by about 35 percent per year. Prior to the change, FCA Transport’s fleet in Detroit used nearly 2.6 million gallons of diesel fuel per year, while driving about 16 million miles to deliver parts to assembly plants from suppliers and FCA US component facilities.
The company estimates that the fleet’s transition to CNG will reduce CO2 emissions by more than 16,000 tons per year.
“Our transition to CNG reflects the way FCA US attempts to balance our search for profitability with social responsibility and community development, including environmental stewardship,” said Steve Beahm, FCA US senior vice president of Supply Chain Management, in a statement.
The company spent $1.8 million to enable the 36,000-square-foot facility to handle the CNG-powered fleet and $5 million for an on-site CNG fueling station.