Workhorse to test electric vans for new customer in California, Ohio

FDG Electric Vehicles

07/11/2017 14:00

By Nick Carey 
    DETROIT, Nov 7 (Reuters) - Electric delivery van maker 
Workhorse Group Inc  WKHS.O  said on Tuesday it will test its 
new lightweight N-Gen electric van in cities in Ohio and 
California as the race to develop mass-market electric delivery 
vehicles heats up. 
    Workhorse's customers already include package delivery 
groups United Parcel Service Inc  UPS.N  and FedEx Corp  FDX.N . 
    Chief Executive Officer Steve Burns told Reuters the company 
has signed up a new customer but said he could not disclose the 
name. Workhorse will test two versions of the van, including one 
carrying a drone in the roof for remote deliveries, he added. 
The company is already testing van-based drone deliveries with 
UPS. 
    Burns did not disclose the exact locations for the tests, 
but said they would take place in several cities in Ohio and 
California. 
    Cincinnati-based Workhorse is also in the running for a 
contract to replace the delivery vans in the United States 
Postal Service's fleet, in partnership with a unit of Singapore 
Technologies Engineering Ltd  STEG.SI . The N-Gen has a similar 
frame to the vehicle the USPS is evaluating. 
    Workhorse said the tests will begin in the first quarter of 
2018. 
    The market for medium- and heavy-duty electric trucks is in 
its infancy and the distance they can travel before recharging 
is still limited.  
    They tend to cost more than conventional internal combustion 
engine vehicles, but as battery costs come down they should 
become more competitive. 
    Vehicle manufacturers such as Daimler AG  DAIGn.DE  and 
Navistar International Corp  NAV.N , as well as Tesla Inc  
 TSLA.O  and a host of other new entrants, are racing to 
overcome the challenges of substituting batteries for diesel 
engines as regulators crack down on carbon dioxide and soot 
pollution.  urn:newsml:reuters.com:*:nL2N1LA0XJ 
    Some manufacturers argue that with their short, largely 
predictable daily routes, delivery vehicles are a natural market 
for electrified versions. 
    Cutting the high cost associated with last-mile delivery as 
ecommerce has grown has become a major priority for the likes of 
Amazon Inc  AMZN.O , which runs its own delivery service in some 
cities and has leased cargo planes to reduce expenses.  
    Daimler said in September that UPS will be the first U.S. 
commercial customer for its new battery-powered eCanter truck. 
 urn:newsml:reuters.com:*:nL2N1LV11Y 
    U.S. truck leasing and rental company Ryder System Inc  R.N  
is a strategic service partner with Workhorse and last week also 
ordered 125 all-electric delivery vans from Chanje, a unit of 
FDG Electric Vehicles Ltd  0729.HK .  urn:newsml:reuters.com:*:nL2N1N520J 
    Workhorse's Burns said the N-Gen van has a lightweight 
carbon frame, weighs 5,500 lbs (2,495 kg) when empty - 5,000 lbs 
lighter than comparable vehicles - and its load space measures 
500 cubic feet (14 cubic meters).   
    He said Workhorse vans cost more than conventional vehicles, 
but gas and fuel savings make up the difference in less than 
three years.  
    "The premium that we charge is made back very quickly," he 
said. "Fleets that look at total cost of ownership understand 
that and that's how we sell our vehicles." 
 
 (Reporting by Nick Carey; Editing by Jeffrey Benkoe) 
 ((nick.carey@thomsonreuters.com; +1 312 636 8837;)) 
 
Keywords: USA WORKHORSE/VANS