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FedEx Newsroom

FedEx Expands Low Emission Vehicle Program to New York

October 20, 2004

NEW YORK—Oct. 20, 2004—Collaboration with Environmental Defense, Eaton Corporation and New York State Energy Research and Development Authority Unveils 10 Hybrid Electric Vehicles

In addition to packages, FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX), is also delivering cleaner air. The company today announced it had placed into service ten low-emission, hybrid electric delivery vehicles in New York City just in time for its holiday peak season. The New York launch is a joint initiative with Environmental Defense, Eaton Corporation (NYSE: ETN) and the New York State Energy Research and Development Authority. 

The FedEx OptiFleet E700 hybrid electric vehicles began delivering packages on routes in the New York metropolitan area following an agreement with NYSERDA to demonstrate the viability of lower-emission hybrid powertrains in heavy-duty vehicles. The roll out took place today at a FedEx facility on 48th Street and 12th Avenue in Manhattan.

"New York City is a dynamic economy with many trucks on its streets essential to keep commerce moving, so it is important that we continue to develop innovative solutions to reduce vehicle emissions," said John Formisano, Vice President of Global Vehicles, FedEx Express. "Today’s roll-out not only represents one-half of FedEx’s total commitment for these vehicles this year, but is also a positive step in our commitment to effective environmental management as a global corporate priority and in the local communities we serve." 

NYSERDA awarded federal NYCDOT Congestion Mitigation and Air Quality funds to FedEx Express to support the placement of the FedEx OptiFleet E700 hybrid electric vehicle in New York.

"Governor Pataki has made a commitment to New Yorkers to improve air quality throughout our State, especially here in the New York City area," said Peter R. Smith, President of NYSERDA. "The promotion and use of low-emission, energy-efficient hybrid vehicles is a critical step in achieving cleaner air and a healthier environment."

Smith commended FedEx Express and its project partners for their efforts on behalf of New York City and said the hybrid project "exemplifies the achievements business, non-profits and government can make when they partner to improve our environment." 

The New York City Department of Transportation, which works closely with NYSERDA, also played a pivotal role in making hybrid vehicles possible in New York. 

"The clean movement of goods in and around New York City is a long standing commitment of the Bloomberg Administration," said NYCDOT Commissioner Iris Weinshall. "I applaud FedEx for taking advantage of our incentive program and putting hybrid technology on the streets of New York. They are taking action all New Yorkers can be thankful for." 

The project began four years ago when Environmental Defense, an organization recognized for its work with industry leaders to create environmental and business innovations, approached FedEx Express about working together to create the next generation delivery vehicle.

"A revolution in the trucking industry is underway," said Fred Krupp, President, Environmental Defense. "With these trucks FedEx is leading the pack. Environmental Defense now challenges all fleet owners to adopt clean trucks to reduce air pollution, oil dependency and climate change impacts."

Cleveland, Ohio-based Eaton Corporation, one of the world’s most recognized industrial manufacturers, produced the hybrid electric powertrain for the vehicle. 

"Eaton continues to be pleased with the performance – and the potential – of our advanced technology hybrid powertrain system," said Jim Sweetnam, senior vice president and group executive of Eaton’s Truck Group. "The system is working well in the FedEx Express trucks in Sacramento, and we look forward to continued success with the New York City roll-out."

The New York City announcement follows the March roll-out of two FedEx hybrid trucks. These trucks continue to operate and achieve a 99 percent up-time in the field. 

The FedEx hybrid electric vehicle decreases particulate emissions by 96 percent and travels 57 percent farther on a gallon of fuel, reducing fuel costs by over a third. FedEx is currently taking steps to introduce more of these vehicles into its fleet over time.

FedEx is committed to utilizing the enormous potential represented by hybrids. For example, if 10,000 hybrid electric vehicles were on the road rather than current standard vehicles, substantial reductions in emissions and fuel use would occur annually:

  • Smog-causing emissions (nitrogen oxides) would be reduced by 1,700 tons, the equivalent of taking passenger cars off New York City roads for 25 days.
  • Carbon dioxide emissions would be reduced by 83,000 tons, which is equivalent to planting 2 million trees.
  • Diesel fuel usage would be reduced by 7.2 million gallons, which requires 1 million barrels of crude oil to produce. 

The project partners, Environmental Defense, FedEx and Eaton, have worked closely with a number of suppliers to find innovative, cost-effective solutions to bring the production of this vehicle closer to commercialization. Freightliner Custom Chassis was instrumental in supplying the chassis and assembling the 16 vehicles that will be placed into operation in the next few months. Utilimaster, Hitachi and Detroit Diesel each provided key components and worked with project partners to customize their components for the hybrid trucks.

Power of Innovation Produces New Vehicle

FedEx Express and Environmental Defense began working together in 2000 to create a delivery truck that would dramatically decrease emissions and fuel use. Through a competitive process, Eaton Corporation was selected from more than 20 manufacturers who expressed interest in creating a cleaner vehicle using a variety of technologies. Since the beginning of the project, progress toward goals has been assessed against the 1999 FedEx Express W700 standard delivery vehicle, which represented the most common model in the FedEx Express fleet. 

Eaton’s Innovative Technology Produces Hybrid Electric Powertrain

Eaton’s hybrid-electric powertrain effectively combines a diesel engine and electric motor to drive the vehicle. A computer determines the most efficient combination, depending on current operating conditions and driver demand. A four-cylinder engine replaces the six-cylinder version currently used in the FedEx Express W700 delivery vehicle. The engine size is reduced because of the added power provided by the electric motor. A particulate trap has been added to the truck to further reduce emissions.

Batteries capture and store energy during the "regenerative braking" phase of the vehicle’s operation, providing a source of stored electric power for the motor during future acceleration. Therefore, all electrical charging of the battery is provided by the hybrid electric powertrain, and no external electrical infrastructure, such as a power cord or electrical outlet, is needed. This balance between conventional and electric technology is an innovative method to improve environmental performance and decrease fuel use while eliminating the need for high electrical-demand infrastructure costs. The hybrid electric truck’s operating characteristics will remain virtually unchanged from that of a conventionally powered FedEx Express vehicle.

Eaton’s hybrid electric powertrain has been placed in the standard white FedEx Express W700 delivery truck, which utilizes a Freightliner chassis and a Utilimaster body. The hybrid electric delivery vehicle will be differentiated from the standard FedEx Express delivery vehicle only by an OptiFleet brand decal on the sides and rear of the vehicle. The hybrid electric E700 has a gross vehicle weight of approximately 16,000 lbs. and a cargo capacity of approximately 670 cubic feet. 

This initiative is the second major FedEx environmental innovation announcement this week. In Oakland, California on Monday, FedEx Express announced that it was building California‘s largest corporate solar electric system atop its hub at Oakland International Airport. The 904 kilowatt solar array will provide approximately 80 percent of the peak load demand for the company’s Oakland facility.

About FedEx

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $26 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 240,000 employees and contractors to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit fedex.com. 

About the New York State Energy Research and Development Authority

The New York State Energy Research and Development Authority (NYSERDA) is a public benefit corporation created in 1975 by the New York State Legislature. NYSERDA administers the New York Energy $mart(SM) program, which is designed to support certain public benefit programs during the transition to a more competitive electricity market. Some 2,700 projects in 40 programs are funded by a charge on the electricity transmitted and distributed by the State’s investor-owned utilities. The New York Energy $mart(SM) program provides energy efficiency services, including those directed at the low-income sector, research and development, and environmental protection activities.

NYSERDA derives its basic research revenues from an assessment on the intrastate sales of New York State‘s investor-owned electric and gas utilities, and voluntary annual contributions by the New York Power Authority and the Long Island Power Authority. Additional research dollars come from limited corporate funds. Some 400 NYSERDA research projects help the State’s businesses and municipalities with their energy and environmental problems. Since 1990, NYSERDA has successfully developed and brought into use more than 150 innovative, energy-efficient, and environmentally beneficial products, processes, and services. These contributions to the State’s economic growth and environmental protection are made at a cost of about $.70 per New York resident per year.

Federally funded, the Energy Efficiency Services program is working with more than 540 businesses, schools, and municipalities to identify existing technologies and equipment to reduce their energy costs.

For more information, contact the Communications unit, NYSERDA, 17 Columbia Circle, Albany, New York 12203-6399; (518) 862-1090, ext. 3412.

About Environmental Defense

Environmental Defense, a leading national nonprofit organization, represents more than 400,000 members. Since 1967, Environmental Defense has linked science, economics, law and innovative private-sector partnerships to create breakthrough solutions to the most serious environmental problems. The work of Environmental Defense in this project was supported by a lead grant over three years from the Richard and Rhoda Goldman Fund. Additional support was received from the Hewlett Foundation, Oak Foundation, The Pew Charitable Trusts, and the David H. Smith Foundation. For more information, visit www.environmentaldefense.org. 

About Eaton Corporation

Eaton Corporation is a global diversified industrial manufacturer with 2003 sales of $8.1 billion that is a leader in fluid power systems; electrical power quality, distribution and control; automotive engine air management and powertrain controls for fuel economy; and intelligent drivetrain systems for fuel economy and safety in trucks. Eaton has 51,000 employees and sells products to customers in more than 100 countries. For more information, visit www.eaton.com.

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