Kenworth, other electric truck makers, confront changing policy environment

ANAHEIM, Calif. — Eyeing regulations and purchase incentives intended to slash the freight industry's reliance on fossil fuels, engineers at Kenworth Truck Co. spent five years developing an electric big rig that went on sale during the giant ACT Expo clean transportation conference here on April 28.
The result was an agile and quiet semi-tractor far more comfortable, and in most attributes, technologically superior to its diesel counterpart.
But now the Kenworth Class 8 T880E and the T680E work truck face hurdles that have nothing to do with the weight they can haul, how far they can travel per charge or the time it takes to energize their batteries.
They face a changing regulatory environment and a White House where administrators look at EVs with skepticism to hostility, depending on the individual and agency.
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In his March 6 address to Congress, President Donald Trump said he would end Biden administration policies that favored electric cars and trucks, characterizing them as an 'electric vehicle mandate.'
Even before Trump's speech, regulators were making adjustments. In January, the California Air Resources Board abandoned its effort to obtain a federal waiver from the EPA for its Advanced Clean Fleets regulation. The waiver would have allowed it to prohibit the sale of new gasoline and diesel trucks in 2036 and force freight fleets to use zero-emission trucks by 2042.
Kenworth had looked at California's regulatory push — and its influence on the environmental policies of other states — to create the initial market for heavy-duty electric trucks.
The state's $4.1 trillion economy and massive port infrastructures require tens of thousands of heavy-duty diesel-engine truck trips daily, which would all be replaced with zero-emissions counterparts.
Electric truck makers knew the standards before Trump took office. Now 'we have to watch how they evolve now and adapt,' Joe Adams, Kenworth's chief engineer, told Automotive News.
Kenworth is not alone. Sibling Peterbilt is using the same technology to launch electric trucks. Rivals Freightliner, Volvo, Mack and International already have or will soon have competitive offerings.
Meanwhile, distribution centers, fleet operators and private companies have poured tens of millions of dollars into charging infrastructure to power the thousands of electric trucks previously expected to be deployed on the busy shipping corridors emanating from the sprawling Southern California port complex and across the state.
They are now watching how the market will develop.
'The industry is expecting a deceleration of sales based on the policy shifts,' said Henrik Holland, global head of mobility at Prologis. The San Francisco company owns or manages 1.3 billion square feet of warehouse and distribution space.
Nonetheless, Prologis is moving forward with charging infrastructure investments that will reach hundreds of millions of dollars. Holland said he believes the freight industry will adopt electric trucks but, in the near term, at a slower pace than it would have without the policy shifts.
Just before ACT Expo, Prologis Mobility, the company's charging provider, and NFI, a motor carrier, said they would build a charging depot in Ontario, Calif., that could handle up to 20 rigs daily. NFI is already running 90 electric Volvo and Freightliner electric trucks between the port and inland distribution centers.
Kenworth executives said there would be a market for their truck, both because of their approach to its development and customer interest, even after a reduction of state mandates and regulations that would have forced their purchase.
'We believe there are some segments that are out there now or in the near future where you're going to see battery electrics maybe have a [total cost of operation] that's positive,' Adams said.
Municipalities and regional governments still have an interest and will be early customers, said Sarah Abernethy, Kenworth powertrain marketing manager.
'That is where we believe there to be a little bit more funding,' she said, adding that for companies keeping their environmental, social and governance goals 'we still believe that these trucks will do an excellent job in a lot of applications.'
That makes the trucks a choice for fleets looking to lower carbon emissions, she said.
Kenworth and the other electric truck manufacturers saw a partial reprieve on April 25 when CARB and the California Trucking Association reached an agreement on how the state would proceed with its requirements.
The framework calls for the trade group to dismiss a lawsuit against the state over the regulation. Following action expected this summer, the board will limit its electric truck purchase and operating mandates to state and local governments and public agencies and colleges. California regulators don't need federal approval for that regulation.
Kenworth is moving forward and has started to accept orders for its electric truck range at ACT Expo. It has taken a modular approach to its Class 8 electric trucks. Both Kenworth and the Peterbilt versions offer two to five battery packs depending on the customer's needs.
A company needing a work truck or an urban hauler — both operating in a small, defined radius — might choose two battery packs that provide a range of 100 miles. Additional packs add about 50 miles. The largest configuration has a 250-mile range, a peak of 605 hp and 1,850 pound-feet of torque.
'A lot of consideration has gone into how we've designed the product line so that we can span this very broad application coverage,' Adams said.
There's also opportunity in other markets. Kenworth is a division of Paccar Inc., a global truck manufacturer. Last year, it delivered 45,400 trucks — about a quarter of its global sales — in Europe, a region that continues to transition to electric commercial vehicles.
Some motor carriers here are still expressing interest in electric trucks, even if Congress ends the federal Commercial Clean Vehicle Credit of up to $40,000.
Jennie Abarca owns King Fio Trucking, a regional carrier with 32 trucks that works the nearby port complex. Her fleet includes two Nikola electric tractors and six Volvo VNR Electric semis. A seventh is on order.
Her drivers like the considerable reduction in noise and vibration they experience in the electric models. 'It's like driving a big BMW,' she said.
Abarca has used large California incentives and grants to make the down payment on the electric trucks, and those incentives are expected to continue. In February, the most recent month for the data, the state provided $31 million in purchase incentives for 200 zero-emission trucks and buses, or an average of $155,000 per vehicle, according to CARB.
'That's what helps you get over the hurdle of having a bigger upfront payment. Also, there's literally no maintenance. I am not doing oil changes. I'm not doing fuel filters. I am not doing transmission fluid. All these things you have to constantly change in a diesel, I don't have to do those in the EV,' Abarca told Automotive News.
Powering the truck is another significant savings. Once she's able to charge at her depot later this year, Abarca figures she will spend about $100 per week per truck on electricity. That compares with the $800 to $1,000 weekly for her diesel trucks.
'When you're able to self-charge, then it really starts to make sense,' she said.
As manufacturers use volume to bring assembly costs in line with diesel trucks and as battery prices fall, the market will grow even with reductions in government support, said John Boesel, CEO of Calstart, a clean transportation advocacy non-profit.
More models like the ones introduced at ACT Expo also will foster growth.
'That competition will be good for business and fleets,' Boesel said, pushing the manufacturers to produce trucks at lower cost and with better performance than the electric models out now.
'I believe that the market is going to go nowhere but up from here,' he said.
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