GreenLight Manufacturing

Brief #3

Profile: Meeting the Demand for Next-generation Clean

Kenworth Truck Trucks, Made in King County, WA
Company (division of
PACCAR) There is much
activity lately in
Location the halls of the
480 Houser Way North, U.S. Congress
Renton
around
Founded transitioning our
1912 nation’s heavy-
duty truck fleet to
Employees run on a cleaner,
Variable; appx. 400 as of Q1 domestic source of
2011
fuel, i.e. natural
Industry Role gas. It is
PACCAR is a global estimated that 33% of every barrel of oil imported by the U.S. is
technology leader in the used by our trucking industry.2 One truck manufacturing company
design, manufacture and with major production operations in Washington state, PACCAR, has
customer support of
premium light-, medium- been on the forefront of natural-gas truck technology in recent
and heavy-duty trucks under years. PACCAR markets heavy-duty trucks in North America under
the Kenworth, Peterbilt and the Kenworth and Peterbilt nameplates, two industry-standard
DAF nameplates. The brands. Kenworth, manufactured in Renton, WA and Chillicothe, OH
company also provides was the first manufacturer to offer a liquefied natural-gas (LNG) fuel
customized financial
services, information system as a factory-installed option.3 It is the only truck
technology and truck parts manufacturer to receive the EPA's Clean Air Excellence award in
related to its principal recognition of its environmentally friendly products.4
business.
2009 was a bleak year for most American manufacturing workers,
The Buzz
and circumstances for employees at the Kenworth truck
Kenworth, a division of
PACCAR Inc., began manufacturing facility in Renton, WA were no different. Because of
producing trucks powered the economic calamity that befell the nation, January 16, 2009 was
by liquefied natural gas the last day of work for 430 Kenworth workers. Virtually overnight,

2
Pickens, T. Boone. "About the Plan." PickensPlan. Web.
3
Kenworth. Enviro Express Features New Kenworth T800 LNG Trucks At Major Fuel Station Opening. Web.
4
"News Headlines." CNBC Mobile Home. 30 Mar. 2011. Web.
(LNG) in 2008 to coincide truck production fell from 16 units per day to just two.5 Employment
with new emissions in Renton peaked at about 1,500 in 2007 but plunged to about 100
regulations. Since that
by mid-2009.6 But by late 2010, it became evident that much
time, fleet orders of LNG
trucks produced at the brighter horizons were ahead for the bellwether market of heavy-
Renton facility have steadily duty trucks. New orders and fleet contracts climbed at a rapid pace.
increased. LNG technology More than 300 recalled workers and new hires were added to the
produces comparable power Renton plant in the first quarter of 2011.7 Production rates are
but significantly less
expected to rise to 16 trucks per day by May 2011.
greenhouse-gas emissions
than traditional, diesel-
burning engines. And much of this rise in production is owed to new fleet orders of
Additionally, LNG fuel is LNG trucks. UPS was the first private delivery company to purchase
currently less expensive LNG trucks when 11 were deployed in 2000.8 Now they have
than an equivalent gallon-
ordered 48 more from Kenworth’s Renton plant, and would like to
measure of diesel, with
price differentials expected add hundreds more to their fleet.9 According to Andy Douglas,
to grow. Kenworth national sales manager for specialty markets, "The reality
is that high diesel prices and evolving environmental rules are
Recent Contracts leading truck operators to seek practical solutions when it comes to
The first quarter of 2011
their truck purchases in 2011 and beyond...Drayage fleets with port
saw 65,000 units ordered
(mostly by large private operations were among early purchasers of our T800 LNG truck.
fleets). PACCAR estimates More recently, companies as diverse as UPS, natural gas provider
that it will see orders of Alagasco in Alabama, and solid waste collector and recycler Enviro
200,000 units in 2011.1 Express in Connecticut, to name a few, have purchased Kenworth
natural gas vehicles.”10
Jobs Story
While Kenworth has seen a
dramatic uptick in hiring The key to the LNG technology used in the Kenworth trucks is the
lately (with more company’s strategic partnership with Vancounver, B.C.-based
employment likely this Westport, who manufactures LNG engine technologies. According to
year) its industry is an Kenworth, the Westport HD LNG engine provides a typical over-the-
economic bellwether and is
vulnerable to cyclical road truck over $15,000 in fuel savings per-year compared with
reductions and additions to diesel. The trucks are equipped with special fuel tanks designed to
the workforce. However, keep the LNG fuel at the required -260° F. The 216 gallon tanks
many Kenworth employees hold the equivalent fueling range of 110 gallons of diesel. 450 HP
have made successful and 1,650 labs/ft of torque are maintained while emitting 33% less
transitions to aerospace in
times of truck- NOx and 20% less GHG emissions.11
manufacturing downswings.
For example, an Australia provides a good point of comparison. Due to the high cost
experienced Kenworth cab of petroleum in that country, coupled with natural gas reserves
builder can be retrained to
comparable to the vast reserves in the U.S. and a higher demand for
1
"PACCAR's CEO Discusses Q1 2011 Results - Earnings Call Transcript - Seeking Alpha." Stock Market News & Financial Analysis - Seeking Alpha. Web.
5
Virgin, Bill. "Outlook Worsens as PACCAR Layoffs Proceed; Kenwoth Plant in Renton Lacks Work." Seattle Post-Intelligencer [Seattle] 16 Jan. 2009, sec. C: 6.
Print.
6
"Paccar Considers Entry to China Truck Market | Puget Sound Business Journal." Business News | The Business Journals. Web.
7
ibid.
8
"President Obama and U.S. Secretary of Energy Steven Chu Visit UPS Shipping Facility to View Alternative Fuel Vehicles Including Natural Gas Truck Powered by
Westport HD." PR Newswire: Press Release Distribution, Targeting, Monitoring and Marketing. United Business Media, 1 Apr. 2011. Web.
9
Wald, Matthew L. "U.P.S. Finds a Substitute for Diesel: Natural Gas, at 260 Degrees Below Zero - NYTimes.com." Energy and Environment - Green Blog -
NYTimes.com. 22 Feb. 2011. Web.
10
CNBC.
11
Kenworth Truck Company. T800 LNG. Kenworth Truck. Web.
build jet wings. cleaner fuel in Asian countries, Australia is projected to see
investments by energy companies of over $100 billion over the next
Production workers at
decade.12 Interestingly, Kenworth is the largest truck manufacturer
Kenworth are represented
by the following local in Australia, and has a market share of nearly 26% in that country.13
unions: Much of Kenworth’s dominance in Australia stems from its new
 International models and front-running expertise in natural-gas truck propulsion.
Association of
Machinists &
While there have been some significant public investments in the
Aerospace Workers,
Local 79 development of natural gas and natural gas trucks, there seems to
 International be a “chicken and egg” dynamic that hinders rapid deployment of
Association of clean truck technologies nationwide in the U.S. The current fueling
Machinists & infrastructure for alternative-fuels, including LNG, is limited.
Aerospace Workers, According to Debbie Curtis-Magley, Public Relations Manager at UPS,
Local 289
 Painters and Allied “Fuel for some of these vehicles requires specially-constructed
Trades International stations and right now, the infrastructure is lacking. It takes money,
Union, Local 1094 technical capabilities and time to properly build a network of fueling
 International stations to support a large fleet of alternative-fuel vehicles.”14
Brotherhood of
Teamsters, Local 763
What may be the best approach to the green truck conundrum is the
development of a comprehensive national clean freight plan. It is
estimated that widespread deployment of clean truck technologies
could generate 124,000 jobs by 2030.15 To catalyze a stronger
manufacturing sector for clean transportation technologies, one
strategy is to develop a plan that identifies corridors and hubs of
national significance and strategically invests in infrastructure
projects that improve freight mobility, throughput, and access to
clean technologies (such as LNG-fuels).16 A national clean freight
plan has the potential to generate thousands of jobs in clean truck
manufacturing and other manufacturing sectors, since 40% of all
jobs generated through freight infrastructure investments are in
manufacturing.
17

12
Ross, Kelly. "Strong Australian Dollar to Help Build Cheap LNG Export Terminals, Says Origin Energy CEO | The Australian." The Australian | The Australian
Homepage | TheAustralian. 28 Apr. 2011. Web.
13
PACCAR 2010 Annual Report.
14
Curtis-Magley, Debbie. "Re: Hey UPS – Why Not Convert 100% of Your Fleet to Alternative-Fuel Vehicles?" Web log comment. Upside: The UPS Blog. UPS, 27
Apr. 2011. Web.
15
Anair, D. and Hall, J. Delivering Jobs: The Economic Costs and
Benefits of Improving the Fuel Economy of Heavy-Duty Vehicles (Union
of Concerned Scientists, July 2010)
16
Matt, Mayrl, and Et.al. Make It in America: The Apollo Clean Transportation Manufactruing Action Plan. San Francisco: Apollo Alliance, 2010.
17
Full Speed Ahead: Creating Green Jobs through Freight Rail
Expansion (Blue Green Alliance and EPI, April 2010).
 LA Clean-Truck Case Goes to 9th Circuit June 10
Top
Related Job Strong Australian dollar to help build cheap LNG export
Headlines
Titles terminals, says Origin
Clean fuel offers brighter future
 Material handler Clean Energy signs $40 million contract

 Painter Kenworth Truck Models Brochure Features The World's

Best Trucks
 Parts delivery
 Production Kenworth Truck Company Select
www.kenworth.com
assembler Organizations
Westport to Watch
 Forklift driver www.westport.com

 Maintenance Apollo Alliance

www.apolloalliance.org
mechanic
Clean Energy Fuels
 Electrician www.cleanenergyfuels.com

US Environmental Protection Agency

www.epa.gov

“The Worker Center, AFL-CIO is an equal opportunity

employer and provider of employment and training
services. Auxiliary aids and services are available upon
request to individuals with disabilities.” 8