It’s a new day for Mears, as the automaker has revealed that it will be getting rid of its fleet of trucks in favor of electric vehicles.
The company said in a statement that the transition will occur by the end of the year, though it’s not clear exactly how the transition is going to work.
The announcement came as a surprise, as Mears was planning to sell its electric trucks in 2017, though the company has said it’s still planning to bring back some older vehicles in 2021.
The Mears Electric Trucks will be replaced with the new Mears Xterra Hybrid.
As the company’s chief executive said, the new Xterras will be better for the environment and for its customers.
“With this new generation of Xterran, we are bringing an entirely new level of efficiency to our fleet, which will bring us closer to delivering the best in all aspects of our business,” said Mears CEO Brian McNeil in a press release.
“With the introduction of this new electric truck, Mear will achieve a more sustainable and sustainable future for our customers.”
In the same press release, Mikes global head of electrification, Andrew Jones, said the company would also be transitioning to electric vehicles in its fleet.
“It is our commitment to provide our customers with the safest, most environmentally friendly vehicle possible, with the best fuel economy and the best safety,” Jones said.
Mears also said that it plans to spend $50 million to get electric trucks on the road by 2025, a figure that will be more than double the amount spent by the Ford Motor Company.
The automaker said that Mears would have $5 billion in cash by 2020, including $5 million from its dividend and $5.5 million in cash from its share repurchase program.
Ford, however, has not committed to putting electric vehicles on its fleet in 2021, despite its plan to invest $40 billion in electrification by 2030.
It’s unclear how the move will impact Ford’s plans to invest billions of dollars in electrified vehicles in the next two decades, although the company is planning to invest at least $150 billion over the next 20 years.
While Mears has said that the new trucks will be cheaper to buy than its older models, some experts question the move.
Carnegie Mellon University professor David Zilberman said the new models may not be worth the money the company spent on the vehicles.
“The electric trucks may not have been the best thing for the public’s transportation needs, and they might not be the best things for consumers to buy,” Zilbaum told Business Insider.
“They may be the only way for Mear to survive.”
Ford has said the electric vehicles it plans on building in 2021 are still going to be priced at $10,000 a tonne.
Mears also confirmed that its Xterrans are not going to see a price drop, but the automaking giant will be replacing them with a hybrid version.