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Pick up and delivery vehicle applications such as parcel handling trucks represent an ideal duty cycle for Hybrid Electric Powertrains. The low speed, frequent stopping and starting operation provides good opportunities for enhancing engine behavior and recovering braking energy by adding an electric drive system to the vehicle. FedEx Express collaborated with the environmental advocacy group Environmental Defense to announce the Future Vehicle Program, with the goal of developing significant improvements in emissions and fuel economy for the familiar FedEx Express W700 parcel delivery vehicle. This paper describes the objectives, development activities, and test results for one of the vehicles submitted to this program. A team led by Eaton Corporation prepared the Direct Hybrid Electric Powertrain system, which received the highest ranking in the Future Vehicle Program evaluation.