Fleets Become the Gateway for Electric Vehicle Adoption in North America
WATERLOO (Ontario), CANADA, October 31, 2011 – The most important decision a fleet manager makes, is what vehicle to buy. It’s a decision that sets them on one of two paths, one that eventually leads to lower costs, lower fuel consumption, and higher utilization rates or, one that leads to budget overruns, downtime, and frustration. Between rising fuel prices and shrinking budgets, the decisions are harder and the stakes are higher. Add new vehicle technologies such as plug-in hybrids and battery electric vehicles – and in some cases emissions reduction targets – and these decisions become even more complex.
A recent survey conducted by Frost and Sullivan indicated that 81% of fleet managers expect to purchase more efficient vehicles in the future, however the majority of fleet managers participating in the survey stated that costs, range capabilities and charging times were their main concerns surrounding electric vehicles (EVs).
Fleets hold the promise of becoming a vital gateway to broad EV adoption in the North American marketplace. Fleets have different buying behaviours and circumstances than individual consumers. They more rigorously evaluate the total cost of ownership (TCO) of vehicles than consumer buyers. Fleets also have higher utilization rates, which translate to quicker payback from the fuel savings offered by EVs.
Yet despite the economic and greening advantages EVs offer fleet operators, fleet managers remain justifiably concerned about integrating these vehicles into their portfolio. EVs need to do the job and they need to be a smart investment. And, since real world fuel economy for EVs is much more sensitive to driving patterns and duty cycles than conventional vehicles, the historical ‘window sticker’ fuel economy ratings do not provide fleet managers with reliable TCO calculations. Real world mileage may vary greatly. A new solution from FleetCarma takes the guess work out of calculating TCO.
“The official launch of FleetCarma comes just in time for the role out of plug-in electric vehicles from the major automotive manufacturers” says Matt Stevens, CEO of FleetCarma’s parent company CrossChasm Technologies. “We have really worked hard to listen to fleet managers throughout the development process of the FleetCarma system and to make sure we launched a product that would be user-friendly and enable them to act.” Stevens holds a Ph.D. in chemical engineering and is the co-founder of FleetCarma’s parent company, CrossChasm Technologies which provides hybrid and electric vehicle consulting services to top-tier clients such as General Motors and Magna.
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The FleetCarma service provides reliable TCO intelligence because it uses data obtained from the current fleet vehicle to determine the best replacement vehicle. The reports produced for fleet managers provide accurate total cost breakdowns, fuel consumption charts, and emissions calculations for each year of the vehicle’s service life. FleetCarma is the first and only data-driven method for helping fleets go green, pragmatically and cost effectively.
“FleetCarma provides fleet managers the information they need to reduce risk and support the business case for EVs,” says Allan King, fleet partner manager for FleetWise EV300. “It not only helps select the right vehicles to replace with EVs but also predicts how well an EV will perform before delivery, what the energy costs will be and provides a realistic forecast of operating cost over the vehicle life cycle.”
Stevens explains, “The FleetCarma process involves clipping a small data logger, the size of your thumb, into the diagnostics port on the fleet vehicle soon to be replaced. Over three weeks the logger learns that particular vehicle’s usage pattern and the data are uploaded to FleetCarma servers. Over 4 million data points are analyzed per day for each vehicle decision, sorting them all to clearly answer two key questions: (1) can the plug-in hybrid or electric vehicle do the job? And, (2) will it save the fleet money?”
Fleet managers wanting to trial this new tool for vehicle selection, can sign up for a free trial with FleetCarma using the following promo code ‘GOINGEV’ at www.fleetcarma.com/offer.