Launching its eStar in Portland, Ore., on Tuesday, Navistar Inc. has entered a part of the country that is getting crowded with all-electric vehicles.
Mitsubishi's electric passenger car i-MEV has been given a test drive, Tesla was in town recently, trying to sell a few of its sports cars, and the Nissan Leaf is part of a pilot project that will put 900 of the EVs on Oregon roads along with a network of charging stations. Even the two-seater all-electric car to be built in Elkhart, Ind., the Think City, has cruised down a street or two.
Into this mix, Navistar introduced the eStar, the all-electric commercial vehicle built in Wakarusa, Ind., and signed Cascadia International Trucks in Tacoma, Wash., as the dealer to serve the Pacific Northwest market. Company officials are confident the walk-through trucks will attract plenty of attention in their own right.
"We are anxious to compete in that market," said Steve Schrier, spokesman for Navistar Truck Group. "I think we see it as an opportunity to build on the momentum the other car makers have started."
Although of the six demo models at the Portland event, only one was assembled in Indiana and the rest were built in the United Kingdom, Navistar will meet the U.S. demand with products from the facility on Nelson's Parkway in Wakarusa, Schrier said. The plant is now making the trucks, putting most in inventory, and preparing to increase production as customers place orders.
"We're anxious to get Wakarusa really buzzing," Schrier said. "Let's get some trucks built there."
Navistar did not release the number of units being built daily or the number of employees at the Wakarusa operation.
Jonathan Wyman, president of Cascadia International, believes the eStar will find buyers despite its $149,900 price tag. Public entities like cities, counties and states are committed to reducing their carbon footprint and lowering the CO2 emissions and will be interested in the clean-fuel, zero-emissions electric truck. Also for private companies in Oregon, the price will become manageable after a state tax credit for 35 percent of the price difference between the Navistar product and a comparable vehicle, along with a federal tax credit worth up to $7,500.
Moreover, the eStar as a Class 2c-3 commercial vehicle with a 4,400-pound capacity has few competitors in the market, Wyman said. Ford's Transit is powered by fossil fuels and has a capacity of only 1,600 pounds while the Smith electric truck is in a higher weight class and can carry up to 26,000 pounds.
Navistar is not ignoring any facet of the truck in its marketing campaign.
"Certainly we try to emphasize the green aspect," said Jack Allen, president of the Navistar North American Truck Group. "On the other hand, this is a solid commercial product."
The message of green finds a welcoming and understanding audience in Portland. With a metro area population of 3.8 million, the northern Oregon city has a reputation for being environmentally conscious. It is the No. 1 market for hybrid vehicles in the U.S., it has the most LEED certified buildings per capita in the country and its bicycle commuting system was the first to earn a platinum rating from the League of American Cyclists.
Portlanders like being early adopters of new technology, said Megan Doern, spokeswoman for the Portland Business Alliance. Having the car companies bring their products to the city not only assures residents they are moving in the right direction but gives them a chance to influence advances in technology.
Businesses in Portland are also tuned to the green movement, Doern said. Companies view environmentally friendly practices as something they can advertise to attract customers as well as a way to lower their energy costs.
James Mast, senior program manager at the Portland Development Commission, said many in the business community are working to provide environmentally sustainable services and products
"I think there is more of an inclination here to spend a bit more to get a green product that they feel may help their bottom line down the (road)," he said.
In the coming months, Navistar is planning to introduce the eStar to Sacramento, Calif., and Chicago, Schrier said. The company continues to expect it will build 400 all-electric trucks by the end of the year.