EVs Do the Job

As more American auto manufacturers add electric vehicles (EVs) to their lineup each year, the business's commercial side hasn’t seen as much growth. But that is changing.

“Despite the impacts of COVID-19 on vehicle sales and production, zero-emission truck and bus models are on the verge of a major surge in the United States and Canada,” writes Cristiano Façanha, global director of green commercial vehicle accelerator Calstart’s Global Commercial Vehicle Drive to Zero program, on Trucks.com. “By the end of 2020, the U.S. and Canada are on track to have 169 different ZE commercial vehicle models available or soon-to-be-available for purchase—a 78 percent increase [from 2019].”

He adds that medium-duty trucks are among the fastest-growing vehicle segments in North America.

One concern is how far can EVs go on one charge. Home service contractors doing business in urban areas don’t drive long distances, but it is something to consider for those working in rural areas.

“The majority of electric vans have a quoted range in the region of 90-120 miles, and while some vans will do that distance, cold weather can see range drop to as little as 50 miles on some vans,” notes Dean Gibson at AutoExpress.co.uk. “Manufacturers have conducted studies into van use as part of their electric van development, with some reporting that the average van driver covers about 70 miles per day, so in theory, these electric vans should have range to spare.”

However, some manufacturers provide ample vehicle-charging sites, such as at dealer locations, so distance may be a lower priority.

Another significant consideration is vehicle price, especially in light of our pandemic-stricken economy. But in electric vehicles as in energy-efficiency equipment, those high first costs are offset by the money saved on fuel costs.

“Businesses are always looking for ways to reduce overheads, and while the initial cost of an electric van is high when compared to an equivalent diesel van, there are major savings to be made in everyday running costs,” Gibson explains. “As a result, most electric van makers are keen to focus on the total cost of ownership to help focus on the benefits of electrification.”

Ted Walker of consultant Guidehouse agrees, telling NPR that a company managing a service fleet could look past the sticker shock and focus on the lifecycle costs. "Electric vehicles are going to have a higher purchase price, but there's a lower maintenance, lower fuel cost," he explains.

Home service contractors do have options to alleviate the sticker shock. The U.S. Department of Energy’s Alternative Fuels Data Center administers the Qualified Plug-In Electric Vehicle (PEV) Tax Credit.

The tax credit is available for new, qualified PEVs bought after Dec. 31, 2009. They must draw propulsion using a traction battery with at least 5 kWh of capacity, use an external source of energy to recharge the battery, have a gross vehicle weight rating of up to 14,000 lb., and meet specified emission standards. The minimum credit amount is $2,500, and the credit may be up to $7,500, based on each vehicle's traction battery capacity and the gross vehicle weight rating.

The credit will begin to be phased out for each manufacturer in the second quarter following the calendar quarter in which the manufacturer has sold a minimum of 200,000 qualified PEVs for use in the United States (https://bit.ly/2TSvzhK), the agency notes.

Also, home service contractors working in California and New York can take advantage of additional incentive programs. The California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project’s mission is to “accelerate the adoption” of more efficient trucks and buses using cleaner energy options.

“HVIP works directly with dealers to apply the voucher incentive at the time of purchase,” the organization notes on its website (www.californiahvip.org).

The New York Truck Voucher Incentive Program (https://on.ny.gov/3mNjh6C) provides vouchers, or discounts, for the purchase or lease of all-electric, hydrogen fuel cell electric, plug-in hybrid electric, conventional hybrid electric, compressed natural gas or propane medium- and heavy-duty vehicles. Voucher amounts are based on a percentage of the vehicle's incremental cost up to a per-vehicle cap. 

The Drive Clean Chicago’s truck initiative (www.drivecleanchicago.com) operated between 2014 and 2017 with federal highway funds; it incentivized the purchase of nearly 300 hybrid and electric Class 2-8 vehicles during that time. “Additional funding support from the Federal Highway Administration was awarded to the Chicago Department of Transportation to continue the Drive Clean Truck program; however, this funding is currently not available,” the website notes.

Those interested in the program are encouraged to check the website or subscribe to the Chicago Area Clean Cities enewsletter for funding updates.

Coming to a Dealership Near You

While some service van EVs are already on the market, many are set roll off production lines over the next year or two. Here are some of the new EVs coming from auto manufacturers:

• Ford Motors. The vehicle manufacturer expects electric vehicles to grow to 8 percent of the U.S. industry in 2025. In mid-November, it launched the all-electric version of its Transit van for the 2022 model year. Smart technology built into the commercial vehicle helps to optimize fleet efficiency and reduce waste, as well as improve driver behavior by providing insights into operator performance. Ford offers various chassis options, including cargo van, cutaway and chassis cab, plus three roof heights and three body lengths.

Customers will have the full backing of the company’s massive electric vehicle-certified dealer network, more than 730 commercial vehicle centers across the United States and Canada, and access to Ford’s charging network.

The auto manufacturer also intends to unveil an electric version of the F-150 pickup truck in about two years.

“While all other electric pickups are competing for lifestyle customers, the all-electric F-150 is designed and engineered for hard-working customers that need a truck to do a job,” notes Kumar Galhotra, president of the Americas and international markets at Ford, in a CNBC report.

He adds that the electric pickup is expected to cost about half as much to maintain and operate as traditional fuel pickups.

• Mercedes-Benz. The company’s eSprinter panel van provides a generous 118.4 ft.2 load compartment volume. Available exclusively in the standard length (A2) version with a high roof, the space capacity is not limited by the electric drive system. Battery capacity can be changed according to need: the standard usable battery capacity of 35 kWh allows a higher payload. For longer trips, choose the optional functional battery capacity of 47 kWh.

It charges with a maximum of 7.4 kW and alternating current just as readily as 20 kW and direct current. With the optionally available 80 kW max DC charging power, the standard high-voltage battery (35 kWh) can be charged from 10 to 80 percent in only 20 minutes at a DC rapid charging station. If no wall box or charging station is available, the battery also can be charged via the domestic grid.

• The Shyft Group (formerly Spartan Motors). This company manufactures the Utilimaster brand, which introduced a walk-in van developed in collaboration with Motiv Power Systems in 2019. The electrified chassis is powered by lithium-ion batteries and includes collision mitigation systems, 360-degree cameras displayed on a 9-in. HD in-dash monitor and DOT sensors.

Utilimaster says the van offers the same performance as a traditional fuel-equivalent vehicle, at an 85 percent reduction in operating costs and a 66 percent reduction in maintenance costs over the vehicle's life.

• General Motors. This summer, the automaker introduced plans to build a Motive full-size electric Chevrolet pickup truck with 400 miles of range. Its modular electric vehicle platform with an improved battery pack called Ultium was unveiled earlier this year. The batteries with “pouch-style cells” will offer power ranging from 50 to 200 kWh.

• Lordstown Motors. This startup company unveiled a prototype of its Endurance pickup truck in June and is on track for production in the second half of 2021. Focused on the commercial fleet market, the company recently merged with acquisition firm DiamondPeak Holdings Corp.