MIDLAND, MI – Dow Chemical is developing a fleet conversion program to cut its energy costs. The plan calls for a more rigorous process of tracking fuel consumption from the company's 3,000-vehicle North American fleet and the gradual conversion of that fleet to smaller, more fuel-efficient cars, according to www.freep.com. The conversion will include downsizing SUVs to smaller vehicles and eventually using hybrids.
The fleet conversion comes as energy costs have affected the Midland-based manufacturer. Dow expects to spend at least $32 billion on energy and oil derivates for raw materials — a four-fold increase from 2002.
In the last two months, Dow has announced major price increases across the board to offset skyrocketing energy costs.