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CALSTART Initiates NGV Purchasing Cooperative

June 20, 2008

USA

CALSTART is partnering with other NGV stakeholders to create a Natural Gas Vehicle Cooperative Purchase Program to coordinate the high volume purchase of light- and medium-duty vehicles by public and private fleets. It is proposed to conduct this program mostly within California, but will include Arizona and Nevada to increase potential demand, with the possibility of expanding it beyond these states if this effort is successful and if there is funding available. The Cooperative will assist fleets in “greening” their fleets with cleaner alternative fuel vehicles at affordable prices. It addition, the Cooperative wants to aggregate large enough numbers to incentivize dealers and manufacturers to not only participate in the Cooperative, but help them expand the market for these vehicles.


Although all major OEMs except Honda have left the natural gas vehicle market, the void has been filled with lower volume manufacturers who supply EPA or CARB certified engines and vehicle upfits. However, availability and type of product is not always well-known by fleets, nor are the low volume manufacturers’ and upfitters’ products as readily accepted by fleets. There also is the challenge of higher cost from lower volumes and single orders. The value of driving higher volumes, seeking commonalities to simplify production and reduce cost, and trigger competition can serve to re-energize the natural gas vehicle market, speed the number of cleaner vehicles on the road and decrease air pollution problems in these states.

Some of the vehicles available through the cooperative will include the: Honda Civic GX; Ford F-150 pickup; Ford E-350 van; Ford E-450 cutaway; Ford Crown Victoria; GM C4500 and C5500 Shuttle Bus; GMC S10; GMC Sonoma; Chevrolet Silverado Pickup; and Isuzu NPR. The NGV Cooperative is currently developing bid specifications for dealers and will publish purchasing guidelines for fleets later in 2008.

Membership is simple, free, and open to all fleets. To join in the NGV Cooperative, contact any of these CALSTART representatives: Steve Sokolsky (ssokolsky@calstart.org); David Kantor (dkantor@calstart.org); or Susan Romeo (sromeo@calstart.org).

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