FedEx To Upgrade Fleet With 1,000 Chanje Electric Vehicles

FedEx Corporation (NYSE:FDX) announced plans to expand its fleet by adding 1,000 Chanje V8100 electric delivery vehicles of which, 900 will be leased from Ryder System (NYSE:R) and the remaining will be bought from Chanje Energy.

The additional fleet will be utilized by FedEx Express for commercial and residential pick-up and delivery services across California. Ryder is expected to provide vehicle-related support services to FedEx.

These vehicles, manufactured by FDG in Hangzhou, China, will help the company save on fuel costs and reduce global emissions. Notably, the acquisition supports FedEx’s “Reduce, Replace, Revolutionize” approach to sustainability while maximizing its operational efficiency at the same time. The vehicles are anticipated to aid FedEx to save approximately thousand gallons of fuel and remove 20 tons of emissions per vehicle each year. The maximum cargo capacity of these vehicles is around 6,000 pounds and when charged completely, these can travel more than 150 miles.

Notably, the company has taken the all-electric vehicles route to delivery services since 2009 in order to cut down global emissions and improve fuel efficiency. To this end, it targets a 50% improvement in FedEx Express vehicle fuel efficiency from the 2005 baseline by 2025.

Zacks Rank & Key Picks

FedEx carries a Zacks Rank 4 (Sell).

Some better-ranked stocks in the broader Transportation sector are Air France-KLM (OTC:AFLYY) and Spirit Airlines (NYSE:SAVE) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Air France-KLM and Spirit Airlines have rallied more than 24% and 35%, respectively, in a year.

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