Navistar may not be known by a lot of hybrid vehicle enthusiasts but its latest round of financial incentives should garner positive attention. The truck manufacturer used the recent Great American Truck Show in Dallas, Texas to promote an inventive battery-lease program. This program allows Navistar’s truck dealers to cut off $10,000 from the sticker price by leasing out batteries for 60-month periods. Trucking companies and operators are given easier access to fuel-efficient diesel trucks under this program while Navistar benefits from an influx of first-time customers.
The Warrenville, Illinois-based manufacturer also announced temporary policies relating to truck lease-to-buy agreements and tax incentive matching. Navistar dealers will offer 60-month leases on medium and heavy trucks that can be turned into purchasing agreements for happy customers. The company is also promising to match up to $6,000 in federal tax incentives on its Durastar hybrid truck on 2008 tax returns. Both programs will run through December 31, 2008 with the potential for extensions into 2009 based on successful results.
The primary reason why Navistar is offering tax incentives at the end of this year is the recent qualification of its Durastar hybrid truck for vehicle tax incentives. This diesel-electric hybrid runs with a 340V, 2kWH lithium-ion battery within a parallel hybrid drive train. The tax incentives for the Durastar range from $3,000 to $12,000 depending on the intended use of the vehicle. Navistar states that the fuel saved when switching from conventional diesels to Durastar would amount to $4,000 based on current prices.
Navistar’s trio of financial incentives shows the company’s leadership in the commercial trucking industry. The company was the initial producer of diesel-electric hybrids in the American trucking industry with the first line of Durastar hybrids in 2007. Navistar is also involved in producing hybrid school buses and designing a hybrid urban delivery vehicle that will hit streets in the next few years.
These developments offer a bright light of hope for government officials, consumers and business owners concerned about the rising price of diesel. Navistar’s initial efforts at making diesel hybrids affordable to owners and operators will reduce overhead costs for shipping companies. Each company can reinvest its savings into additional hybrid trucks and other tools for operating in a sustainable manner.
The greater consequence of Navistar’s financing programs is that they will promote the importance of green driving outside of the small-vehicle market. Many drivers fail to think about the tons of carbon dioxide produced and gallons of diesel fuel wasted by semis and dump trucks. Navistar is trying to remedy these problems without imparting an undue burden on its target market.
I think that with all the space that those trucks have on their cargo, the trailers should be equipped already with some kind of solar generating power to provide energy for the trucks.
I don’t know if I see the trucking industry as eco-minded, but I’m sure the fuel savings would pull them into this.