PacLease Makes Adding Hybrid Trucks to Fleet Easier for Canadian Springs

VANCOUVER, British Columbia, June 13, 2009 - When Canadian Springs wanted to adopt hybrid diesel-electric technology into its fleet of trucks, it turned to PACCAR Leasing (PacLease) to get the order filled.

“Leasing hybrid trucks from PacLease took all of the worry out of adding hybrids to our fleet operation,” said Mengo McCall, director of business development for Canadian Springs Water Co. “The local PacLease franchises handle all the maintenance and when it comes time for us to return the trucks to PacLease at the end of the lease, we don’t have to worry about selling the truck.”

Canadian Springs is Canada’s leading provider of fresh natural spring water across the country. Canadian Springs, a privately-held company and division of the Aquaterra Corporation, is also Canada’s number one tap water filtration system provider.

Canadian Springs recently acquired two Kenworth T370 diesel-electric hybrid trucks through a full-service leasing contract from PacLease and another six trucks are planned for national use. The hybrid trucks are equipped with van bodies, eight side-loading beverage bays, a PACCAR PX-6 engine, rated up to 280 hp and up to 660 lb-ft of torque, and the Eaton(R) diesel-electric hybrid power system. The hybrids also have an integral transmission-mounted motor/generator and frame-mounted 340-volt, lithium-ion battery pack.

The two trucks are based in Vancouver, British Columbia, and are maintained by Inland PacLease. One truck delivers refillable water bottles to offices, stores, businesses and residences in downtown Vancouver and Richmond. The other delivers in and around the University of British Columbia on the west side of Vancouver. Both hybrids in Vancouver will be used in February to deliver water to various locations in Whistler during the 2010 Olympic Winter Games. The other six trucks deliver products in Toronto, Montreal and Halifax, Nova Scotia.

Depending on fuel prices, McCall anticipates the hybrid trucks will allow the company to reduce the carbon footprint of its fleet operations without adversely affecting the company’s bottom line.

“Our main goal is to reduce emissions. In addition, we expect the fuel savings we get from the hybrids will offset their additional leasing costs over the life of the lease,” he said. “In fact, industry forecasts suggest that fuel prices may hit $2.25 per liter by 2012. While we’re not relying on high fuel prices to improve our ROI, if they do, all the better.”

Alex Hazenack, distribution manager for Canadian Springs, said in the brief few weeks since the company took delivery of the hybrid trucks in May, the fuel savings have been greater than expected.

“We’ve been keeping track of the fuel savings since the two trucks joined our Vancouver fleet and so far we’re seeing about a 37 percent improvement in fuel economy,” Hazenack said. “That’s more than we were hoping to get.”

Canadian Springs, with the assistance of Inland Kenworth, introduced the brightly illustrated hybrid trucks to the Vancouver community at the opening of PlayOn!, the Official Canadian Street Hockey Tournament in Vancouver, June 13-14. The street hockey tournament, partly sponsored by the CBC’s Hockey Night in Canada and Canadian Springs, is a recreational and competitive 4-on-4 tournament held in downtown locations in various cities across Canada.

“We’re proud to show our new hybrid at an event that celebrates Canadian’s favorite sport: hockey,” McCall said. “The folks at PacLease helped us with getting the truck bodies outfitted with colorful graphics that show our logo and support our branding efforts.” The trucks are equipped with a chrome package - wheels, exhaust pipes, mirrors. “The trucks look fantastic!” he added.

Hazenack said company drivers appreciate how the new Kenworth hybrids look and perform. They also like the fact that by driving the trucks, they’re helping reduce the greenhouse gases that contribute to global warming.

“The hybrids have good power and provide our drivers a comfortable ride,” he added. “Plus, the drivers really like the looks they get from people while they out in the community. It makes them feel good about driving for our company.”

“Because the Kenworth hybrid trucks reduce exhaust emissions of greenhouse gases, we strongly believe that the hybrid trucks will help us fulfill our mission to act in an environmentally responsible manner,” McCall added. “In this era of increasing environmental awareness, many consumers prefer sensibly packaged products, like the refillable water bottles we deliver. And by having Kenworth hybrid trucks we can also deliver them in a more environmentally sustainable way.”

How the Kenworth hybrid system works

Advanced power train controls monitor driving conditions and automatically select the ideal power mode, smoothly switching among electric-only, combined diesel and electric, and diesel-only power modes. Electricity generated through regenerative braking is stored and used for acceleration, assisting the diesel engine. The hybrid system is monitored through a dash display. As the power requirements for different driving conditions change, the screen constantly updates the driver on system status.

About PacLease and PACCAR

PACCAR Leasing Company (PacLease) is one of the fastest-growing, most innovative commercial truck leasing companies in the transportation industry. PacLease has independent and company-owned full-service leasing locations throughout the United States, Canada, Mexico and Germany. PacLease provides customized full-service lease, rental and contract maintenance programs designed to meet the specific needs of customers. A combination of reliable, custom-built trucks and complete service offerings allows customers to maximize the value of their transportation resources.

PACCAR Leasing is a part of the financial services group of PACCAR Inc, a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR shares are traded on the Nasdaq Stock Market, symbol PCAR, and its homepage can be found at www.paccar.com.

About Inland Group, Inland PacLease, and Inland Kenworth

The Inland Group was founded by Lloyd Parker as Parker Pacific Industrial Group in 1949 to sell agricultural equipment in the interior of British Columbia. The Inland Group eventually grew to 22 locations throughout the western United States and Canada. It operates Inland Kenworth, the sole Kenworth dealership for British Columbia. Inland PacLease is the local PacLease franchise and the leasing division of the Inland Group.