FCA US LLC (former Chrysler Group LLC) announced on Friday that it invested $40-million in Detroit to convert 179 parts-hauling trucks to compressed natural gas (CNG). The investment includes facility and infrastructure upgrades and the installation of the largest private CNG fueling station in North America. The move gives FCA the largest private fleet of CNG-powered heavy-duty vehicles in the state of Michigan.
FCA US LLCFCA US LLC is a North American automaker with a new name and a long history. Headquartered in Auburn Hills, Michigan, FCA US is a member of the Fiat Chrysler Automobiles N.V. (FCA) family of companies. FCA US designs, engineers, manufactures, and sells vehicles under the Chrysler, Jeep, Dodge, Ram and FIAT brands as well as the SRT performance vehicle designation. The company also distributes the Alfa Romeo 4C model and Mopar products. FCA US is building upon the historic foundations of Chrysler, the innovative American automaker first established by Walter P. Chrysler in 1925; and Fiat, founded in Italy in 1899 by pioneering entrepreneurs, including Giovanni Agnelli.
Senior Vice President of Supply Chain Management FCA North America, Steve Beahm, said, “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. This project was a win-win-win – it offered a solid business case, clear environmental benefits and an opportunity to invest in our Detroit facility and workforce. This decrease is equivalent to the annual carbon dioxide emissions that come from burning more than 17 million pounds of coal, or the reduction of CO2 emissions from the annual energy use of nearly 1,500 homes.” The company expects to experience net fuel cost savings of about 35 percent per year with the CNG-powered fleet.
FCA Transport, built in 1965, is located on Lynch Road in Detroit, just across from the Detroit City Airport. The Company spent $1.8 million to enable the 36,000-square-foot maintenance facility to handle the new CNG-powered fleet. Prior to the changeover, the FCA Transport Detroit fleet 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. FCA Transport drivers and mechanics participated in extensive hands-on training to prepare them to drive, fuel and maintain the new trucks.