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APG expands vehicular sales and marketing plan

LNG Industry,

American Power Group (APG) will be expanding its existing in-house and WheelTime Network sales and marketing resources with new direct sales representatives, additional third party dealers and co-marketing relationships with numerous national and regional CNG and LNG fuelling suppliers.

These additional lead generation channels will continue to be supported by WheelTime's expansion of their certified natural gas installer locations across North America.

Additional sales

Lyle Jensen, American Power Group's CEO, commented: "As we reviewed the early-adopter and follow-on purchasing patterns of fiscal 2014, we have determined that additional sales channels are required to increase lead generation in this evolving alternative fuel market.

“Heavy-duty truck fleets are a ‘show-me’ industry and so the more leads we generate, the more early-adopter orders can be booked leading to expansion into higher follow-on production quantities. We now have fleets that started with a few early-adopter conversions that have grown to 30-40 dual fuel trucks in their fleet which represents a 20% to 40% market penetration of those customers that have tried our dual fuel technology.

Turbocharged solution

"APG's Turbocharged Natural Gas solution is now being presented and supported by many leading national and regional natural gas fuelling suppliers as a viable alternative solution for their heavy-duty Class 8 fleet customers to consume natural gas. With almost 500 vehicles worldwide running APG's dual fuel solution and an estimated 50+ million accumulated on-road miles, we've generated a great deal of operational and economic return creditability in the market over the past several years. We are already experiencing an increase in fuelling supplier generated leads and quotation activity that we expect will favorably impact future revenue opportunities in 2015."

"With the dedicated natural gas engine suppliers either delaying or abandoning development of a natural gas engine above 400 horsepower, there is a large heavy-duty truck market gap that presents a significant opportunity for us. APG's dual fuel solution is being installed on 400+ horsepower engines, which typically consume 15,000 to 20,000 gallons of diesel fuel on an annual basis. By displacing between 8,000 to 12,000 annual gallons of diesel per vehicle with natural gas and having the ability to convert up to 6 existing vehicles to dual fuel for roughly the same price as one new heavy duty dedicated Class 8 truck, we provide the fuel supplier marketing teams with a very compelling economic argument for converting to dual fuel."

Domestic natural gas

Mike Delaney, WheelTime's President and CEO, added: "The interest we are seeing in APG's dual fuel solution has never been higher and remains undiminished by recent drops in diesel pricing. An abundance of domestic natural gas continues to maintain the pricing advantage of natural gas versus diesel and many new station openings make it vastly more accessible than it has been in the last few years.

"Early adopter evaluation feedback and re-orders from existing APG customers are getting a lot of attention these days and we are currently seeing an unprecedented number of new inquiries. We remain convinced that APG is the best and most reliable dual fuel technology out there and we seem to share that opinion with a growing number of customer evangelists."

Adapted from press release by Katie Woodward

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