E ttf industry meeting v1-7-14-11_bva

E-Truck Task ForceIndustry Meeting #1

Bill Van AmburgSenior Vice President

Whitney PitkanenProject Manager

July 14, 2011

Advanced Transportation Technologies and Solutions

Copyright CALSTART 2011

Goal of Task Force

• The overall goal of this effort is to speed and support effective E-Truck production and use. In the short term, it will specifically: – Identify key issues/barriers that need targeting; – Develop an action plan for addressing those issues; and

then – Work to implement those recommendations with industry

and public partners.


UPDATE

• Clearly cost is biggest barrier to e-truck purchase• On that point, as we have noted, Calif HVIP program now has

essentially doubled the e-Truck voucher (in some cases >$40k)• NY will hopefully launch a voucher like Calif’s in the fall• But what is there for other regions? Senators Kohl and Blunt

have just re-introduced a Hybrid and Electric Truck tax credit bill in the US Senate (CALSTART supports this measure)

• Up to $24k tax credit for vehicle purchase. Need strong industry and fleet support to have a chance of passage– Info:

http://www.calstart.org/projects/hybrid-truck-users-forum/htuf-blog.aspx

http://www.calstart.org/projects/hybrid-truck-users-forum/htuf-blog.aspx


Today’s Agenda

1.Support and quality responses to fleets• Fleets have begun articulating their issues re

vehicle support in a prior, fleet-track meeting on June 30th.

• Discussion re industry’s response to those issues.

2.Pull together business case data• Vet business case inputs


Survey Data Review


Importance of E-Trucks by Respondent

Critical

Unimportant

Slightly Important

Important

Very Important

Manufacturers

Suppliers


Benefits of E-Trucks by Respondent

Critical

Unimportant

Slightly Important

Important

Very Important


What Would Increase Production?C

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1. Incremental Cost – 39%

2. Battery cost and technology -16%

3. Product reliability – 13%– Range anxiety , Payload capacity , Maintenance anxiety , Weather

concerns , Limited duty cycles, Unclear environmental benefits

4. Lack of charging Infrastructure – 8%

5. Lack of product volumes and availability (economies of scale) – 8%

6. Lack of user education, public awareness and acceptance – 7%

7. Business case, ROI – 3%

8. Lack of demand – 3%

9. Financial issues – 2%– Down economy, Need for incentives

10.Other - 1% – Lack of differential rate for electricity – Industry unwillingness to separate operating duty cycles among vehicles

to allow for lower range EV’s

Barriers to Production


What is Most Needed to Spur E-Truck Manufacturing, Sales, and Purchase?

1. Demonstration of reliability (equal or better than baseline trucks) – 24%

2. More rebates, incentive programs, grant funding, private investment – 21%

3. Reduced purchase cost, competitive pricing – 10%

4. Improved battery technology and reduced cost – 8%

5. Improved operation – 7%– increased range, fast recharge ,Increased load carry capacity

6. Increased demand, motivated buyers – 7%

7. Proof of e-truck business case and 2-3 year payback - 7%

8. Infrastructure development – 6%

9. Public/fleet education and awareness – 5%

10.Policy issues – 5%– eliminate oil subsidies, clear US policy on carbon, more govt regs and

restrictions


Support and Quality Needs

Infrastructure Issues

(as identified by Fleets)


Discussion

Service, Support and Quality NeedsWhat are the priorities for fleets in terms of support? 1. Local dealer, local support staff, local parts storage

• there is little local support for e-trucks and there are some high failure rates. • If a fleet does not have local support, and the problem can’t be fixed in-house,

they are stuck until the manufacturer flies someone in. • While manufacturers have been generally very responsive to problems, local

and regional support is still needed, as is training for fleet technicians. 2. Factory testing before sending vehicle out

• While manufacturers have been quick to respond to problems, the number of units that are failing seems to indicate that they are not doing due diligence on vehicles.


3. Extended warranties – especially battery warranties (5-8 or up to 10 years)• Longer warranties would add comfort. • One fleet suggested a warranty period of 8 years for Light Duty and 10

years for Heavy Duty. • It would also be nice to have a secondary market for the battery so the fleet

doesn’t pay for the full cost of the battery upfront. But since the cost of the warranty is built into the price of the vehicle, will extended warranties increase price?

• OR: battery leasing (not swapping) options to reduce capital cost, liability 4. Wiring harnesses/wiring integrity, Need better battery management systems with better than pack level management

• The repair and module replacement for one utility’s fleet of light duty EV’s is less than 1% over 13 years of operation.

• But the heavy duty vehicles have experienced many issues, including problems with wiring integrity/ wiring harnesses, lack of secure weatherproof wiring, the BMS is not where it should be, and the pack level battery control is not sufficient.

Service, Support and Quality Needs


Infrastructure Issues

1. Installation costs • Many fleets have discovered that there are limits to where they can park

their trucks due to infrastructure costs and location. It takes planning and becomes especially expensive when it is necessary to run out conduits to new parking places that are not near existing buildings.

• It can cost $6-8 thousand dollars to install EVSE without even breaking concrete.

2. Transparency in Purchasing Decisions• Vendors need to be more “up front” when selling trucks about what the

options and costs are for recharging. • The cost of installation and associated infrastructure needs to be

explained better with cost estimates and power requirements. • This is a big issue that determines the total cost of ownership. Fleets

need to know all costs at the time of purchase so they can include this in the capital cost. Otherwise, it hits fleet expenses.


• What are the barriers or issues where you need more info, help?• Like to have a “clearinghouse” of information around e-

trucks and be able to learn from best practices of peers; learn problems to avoid, issues with vendors/systems

• Would a description of a “standard hook-up” for e-trucks, with checklist of options, be helpful?• Yes – Whitney will call fleets to get there experiences

and start to frame the cost, process, and options

Other Fleet Discussion Topics


• Renault of France will launch several electric vehicles Fall 2011 – all will feature battery leasing separate from vehicle cost as a strategy to reduce purchase price• Example: Renault Kangoo commercial delivery van

• 15,000 € ($21,000) for vehicle• 72 € ($102)/month for battery pack – 22 kwh

• 864 € ($1222)/year

Battery Leasing Entering Use: Example


Business Case Data:Elements for General Case


Best Use for Business CasePrelim OEM Conversations

To get sufficient payback, need to drive maximum miles possible (or maximum use of energy)• Dedicated, return-to-base routes with known daily mileage highly

valuable

High Utilization/Daily miles (5-7 days a week) seems important

70-100 miles/day seems like an initial “sweet spot” for fuel savings payback

Agree?


What Drives the Business Case Fleet vs. Manufacturer

Critical

Unimportant

Slightly Important

Important

Very Important


What Would Cause Increased Purchases?

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Quantifying Business Case

• Fuel Savings: – Mileage/energy use minimums?– How balance battery size to need?– Assumed energy costs

• Maintenance Savings:– Brakes (avoided replacements) – how many/yr?– Oil changes/filters (avoided service) – how many

• Emissions Reduction: what value?• Other elements:


Additional Costs

• Infrastructure:– EVSE (what rate of charge needed?)– Installation– Extra meter

• Demand charges for electricity• Battery replacement

– What costs to assume– What timeline to assume?

• Back up vehicles (for time out of service)?• Others?


Proposed Agenda Topics for Industry Meeting #2

• Any updates/new info from July 14th issues• Battery/component common approaches• Infrastructure needs• Feedback from Fleet Meeting #2 (to be held on

July 21st)

Suggested date:

– Thursday, August 4th

www.calstart.org

Clean Transportation Technologies and Solutions SM

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