PLUG-IN CAR RUNNING COSTS WORKPLACE CHARGING
ELECTRICFLEETE L E C T R I C , H Y B R I D A N D O T H E R A LT E R N AT I V E SA FleetNews publicationSummer 2017PLUG-IN CARRUNNING COSTSWORKPLACE CHARGINGPUBLIC CHARGINGCHARGEMASTERFLEET CASE STUDYRESIDUAL VALUESIT’S TIME TOGO ELECTRICEvery fleet could run electric cars, it just requires careful evaluation
Enjoy talking numbersVOLVO S90 T8 TWIN ENGINEFROM 46 G/KM CO2VOLVO V90 T8 TWIN ENGINEUP TO 141.2 MPGFROM 9% BIK(COMBINED)Discussions about economy are rarely thrilling. However, our pioneering new S90 and V90 T8 Twin Engine plug-in hybridmodels transform these everyday conversations into something more. With effortless performance and efficiency in auniquely luxurious package, you can finally enjoy the numbers: both the ones on paper and the ones under the bonnet.CALL THE VOLVO CAR BUSINESS CENTRE ON 0345 600 4027OR VISIT VOLVOCARS.CO.UK/BUSINESSFuel consumption and CO2 figures for the Volvo V90 and S90 T8 in MPG (I/100 km): Urban n/a, Extra Urban n/a, Combined141.2 (2.0). CO2 emissions 46g/km. MPG figures are obtained from laboratory testing intended for comparisons betweenvehicles and may not reflect real driving results.
WELCOMEWe’ve spoken to numerous fleetmanagers that have electric vehicles(EVs) or hybrids on their fleets overthe years and in the main their viewsand experiences are positive. Doesthe business case stake up? Yes,provided the Government’s plug-in caror van grant is included. Do thedrivers like them? Yes, they lovethem – once the initial scepticism isovercome. Are they reliable? Yes,there are very few issues. Is the range sufficient?Generally, yes.Things can come unstuck when the vehicle doesn’t suitthe application – when a high mileage driver has chosena plug-in hybrid electric vehicle (PHEV) purely for the taxbenefit and spends most of their time using petrol ordiesel, for instance, or when there isn’t a convenient(and working) rapid charging point or when a largervehicle with a bigger payload is needed (although fleetmanagers acknowledge this is may be solved withforthcoming launches).So spend time finding the right fuel type for eachdriver, whether EV, hybrid, diesel or petrol. It will betime well spent because whichever party assumespower (we went to press ahead of the General Election),you can be certain air quality will be on their agenda.Sarah Tooze,deputy editor, Fleet NewsCONTENTS4 I Pros and cons of adopting EVs12 I Where is the point?Plug-ins have many plusses but there are manyconsiderations for fleets, including depreciation,battery life and SMR network availabilityThe inability to find a public EV charge point(particularly one that works) has long been a blockto progress, but the networks are developing7 I Is in-house SMR the way forward?16 I Practising what you preachIf you can cope with the specialised training andequipment needed, in-house SMR looks a goodbet for high-volume EV fleetsA major player in recharging has put EVs on itsfleet to prove that plug-ins make business sense8 I Choice of electric LCVs is growing20 I Views polarise on EV residualsCars dominate the uptake of electric but extendedrange will start to appeal to LCV operatorsLeading leasing companies are more positive aboutresidual values for a competitive lease rate but thepricing guides’ forecasts are far more pessimistic10 I Charging while you work25 I Plug-in cars coming soonAs more and more companies add EVs to fleetscharge points at work are struggling to keep paceAt-a-glance guide to the new models in the offingand a comprehensive list of what’s already availableCON TAC T USEditorialEditor-in-chiefStephen Briers 01733 468024Deputy editorSarah Tooze 01733 468901sarah.tooze@bauermedia.co.ukFeatures editorAndrew Ryan 01733 n Harris/Christopher Smith/John Maslen/Tom SeymourProductionHead of publishingLuke Neal 01733 468262Fleet News, Media House,Lynch Wood, Peterborough PE2 6EA.Production editorDavid Buckley 01733 468310DesignerErika Small 01733 468312AdvertisingCommercial directorSarah Crown 01733 366466B2B commercial managerSheryl Graham 01733 366467Account directorsSean Hamill 01733 366472Lisa Turner 01733 366471Stuart Wakeling 01733 366470Account managerKarl Houghton 01733 366309Email: fleetnews@bauermedia.co.ukWebsite: fleetnews.co.ukHead of project managementLeanne Patterson 01733 468332Project managersLucy Peacock 01733 468327Kerry Unwin 01733 468578Katie Lightfoot 01733 468338PublishingManaging directorTim Lucas 01733 468340Office managerJane Hill 01733 468319Group managing directorRob Munro-HallChief executive officerPaul KeenanCirculation enquiries: 01858 438847Printing: PCP 2017 Bauer Media.No part of this magazine may be reproducedwithout the permission of the publisher. Youcan purchase words or pictures for your ownpublications. Phone 01733 465982 or emailsyndication@bauermedia.co.uk.Fleet News will not accept responsibility forunsolicited material. Published by Fleet News.Member of the Audit Bureau of CirculationComplaints: Bauer Consumer Media Limited isa member of the Independent Press StandardsOrganisation (www.ipso.co.uk) and endeavoursto respond to and resolve your concernsquickly. Our Editorial Complaints Policy(including full details of how to contact usabout editorial complaints and IPSO’s contactdetails) can be found at www.bauermediacomplaints.co.uk. Our e mail address for editorialcomplaints covered by the Editorial ComplaintsPolicy is complaints@bauermedia.co.uk.fleetnews.co.uk Summer 2017 3
P LUG -IN RUNNING C O S T SWEIGHING UP THEPROS AND CONSOF ADOPTING EVsPlug-ins have many plusses but there are many considerationsfor fleets, such as depreciation, battery life and SMR optionsBy Simon Harrisinimising vehicle running costs iscrucial for fleet efficiency. But, whilethe lure of electric propulsion couldmean savings over petrol and dieselfuel costs, fleets must take intoconsideration depreciation, battery life and limitationsover afersales options for service, maintenance andrepair (SMR) work during the lifecycle of the car.Depreciation is usually the highest lifecycle cost –especially for plug-ins (although leasing companies aretaking a more pragmatic view than the pricing guides– see page 20). But this consideration could becomeless significant as electric vehicles (EVs) are adoptedin increasing numbers.Familiarity with the technology among secondhandcar customers helps protect residual values. Historyshows hybrid cars have long since recovered fromthe poor residuals of their earliest used car days.But the extra expense of electric cars can makepence per mile (ppm) costs less competitive, eventaking into account the impact of the Government’s 4,500 grant for zero-emission cars.In the Fleet News running cost tool, the depreciationfor a Nissan Leaf 30kWh Tekna is shown as 68.15ppmover four years/40,000 miles, compared with34.41ppm for a Nissan Pulsar 1.2 Tekna. The Leaf’sdepreciation cost reduces to 56.9ppm after the grantis taken into account, still substantially higher thanfor the conventionally-fuelled car.Recent changes to vehicle excise duty (VED), whereonly zero-emission cars are now free from annualroad tax, could prompt a change of buying habits byused car customers and a greater level of interestin cars with no annual VED payments.However, customers should also pay attention tothe depletion of battery capacity over prolonged use,especially with repeated use of rapid charging.The lithium-ion batteries on electric vehicles shouldbe able to withstand occasional rapid charges withoutany worsening of typical battery capacity. It’s estimatedthat in day-to-day use, EV battery capacity should beno worse than 80% of its original level after fouryears/40,000 miles. Therefore, a car that couldtravel 125 miles on a full charge when new shouldstill be capable of 100 miles at four years old.Typically, for EVs the SMR figures are among thesmallest components of the running cost equation –lower than depreciation and fuel sums, and significantlylower than petrol and diesel.For example, according to the Fleet News runningcost database, a Nissan Leaf has an SMR cost overM4 Summer 2017 fleetnews.co.ukfour years/40,000 miles of 2.84ppm, compared with4.32ppm for a similarly specified petrol engine NissanPulsar. Choosing the Pulsar diesel results in a SMRcost of 4.67ppm.With fewer moving parts than internal combustionengines, it makes sense that electric motors oughtto have lower costs.Even looking at significantly more expensive vehicles,such as the high-performance Tesla Model S, theSMR still favours the electric car. The 328PS ModelS 75D has SMR costs of 8.7ppm, compared with9.34ppm for a Mercedes-Benz AMG E43 saloon.Hybrids are put at more of a disadvantage when itcomes to SMR costs because there is most of themaintenance associated with a petrol or diesel engine,along with the less arduous routine maintenance ofan electric-powered vehicle.However, given the extra complexity built into dieselengines in recent years to ensure they comply withthe latest emissions regulations, the gap whencomparing plug-in petrol hybrids with conventionaldiesels might be closer than you imagine.For example, the most popular plug-in in the UK inrecent years has been the Mitsubishi Outlander PHEV.According to the Fleet News running costs database,it has SMR costs of 5.28ppm over four years/40,000miles, while the diesel equivalent is at 4.93ppm.Comparing the Mercedes-Benz E-Class saloon, theE 350e plug-in hybrid is 7.9ppm for the AMG Linevariant, compared with 7.24ppm for the diesel E350d AMG Line.In similar cars where there is a choice of a hybridor plug-in hybrid, the SMR costs could be identical.The Toyota Prius Business Edition Plus hybrid hasSMR costs of 3ppm for SMR, the same as the PriusPlug-in for the same equipment grade.Fleets concerned about SMR costs could betempted to seek lower prices outside the main dealernetwork. But with plug-in vehicles having only been onthe market for six years, expertise in the independentgarage sector could be limited.56.9pence per miledepreciation on a Leafafter grant is included80%the level batteriesshould remain atafter four years“All repairs of EVs require highlyknowledgeable, specialised and trainedprofessionals who are able to carryout repairs safely and correctly”Sue Robinson, National Franchised Dealers Association
It isn’t surprising that the organisation representingfranchised dealers would recommend the main dealernetwork when plug-in vehicles need maintenance, butit certainly would appear to make valid points.Sue Robinson, director of the National FranchisedDealers Association (NFDA), says: “All repairs of EVsrequire highly knowledgeable, specialised and trainedprofessionals who are able to carry out repairs safelyand correctly.“These repairs also include locking, lighting, anyelectric equipment issue, which is linked to the highvoltage batteries, as well as power connections tothe main power motor drive.“While demand for EVs has been increasingdramatically, they still represent a low proportion ofall vehicles on the road.“At this stage of the market cycle, repairs areprimarily carried out at franchised dealerships,because, while manufacturers require franchiseddealerships to have professionally trained technicians,EV training does not usually represent a viable optionfor the independent sector, especially due to its cost.”Some plug-in cars are even more specialised andwould need to remain in the main dealer network forbody shop repairs.BMW’s i3 and i8 models use carbon fibre extensivelyin the car’s crash structure because of its combinationof lightweight construction and strength. The materialis not widely used in car production and is expensive.Only selected BMW dealers are qualified to carryout crash repairs, and there is the additional factorthat premium-badge cars often benefit from a maindealer stamp in the service book to maximiseresidual values.Greener vehicles canmean money in thebank in terms ofwholelife costsThe availability of fixed-price servicing packages forvehicles and special nationwide rates for fleets notusing servicing packages equally apply to plug-in hybridand electric cars.We have seen all-inclusive maintenance (and fuel)packages offered in the latest hydrogen fuel cellvehicles, such as with the Toyota Mirai, to help makethem more attractive and spread costs evenly overtheir lifecycles.And hydrogen fuel cell cars should require lessintensive maintenance than battery EVs.A Toyota spokesman says: “Unlike any other vehicle(including pure battery electric, where the batterydegrades, particularly with rapid charging) there is nomaterial consumption or wear in the fuel cell, hybridbattery, hydrogen tanks or electric drivetrain.“The Mirai requires occasional cooling fluid top-upsand the only specific part for replacement over its lifeis the ion filter that keeps the water deionised atabout 50,000-mile intervals which comes toapproximately 300.”The spokesman claims the normal view of total costof ownership is fundamentally changed with the Mirai.“The Mirai main drivetrain does not wear out andthe only periodic replacement parts are the standardwear items – tyres, brakes and mechanical suspension,which are easy to replace and not unique to Mirai,so commonly available,” he says.“The only consideration is that the hydrogen tanksand high pressure pipe from the filler to the tanksneed to be replaced at 20 years due to legalrequirements for high pressure vessels, but this isgenerally considered beyond the normal vehicleoperation life.”fleetnews.co.uk Summer 2017 5
Advertisement featureGuidance on fuelreimbursement for ULEVsIn the absense of AFR or AMAP rates, TMC has produced guide for EV fleetsMRC doesn’t currently recognise electriccharging and its associated costs as a ‘fuel’.However it does recognise that employeesshould be reimbursed for costs incurred on businesstravel.When it comes to combustion engine vehicles,employers can either reimburse employees basedon actual cost or the advisory fuel rate (AFR) orbased on approved mileage allowance payment(AMAP). This is also true for any form of electricvehicle – either pure EV or PHEV. Although, unliketheir petrol and diesel counterparts, there are noofficial AFR or AMAP rates for electric vehicles.In the absence of HMRC guidelines, TMC hasproduced a guide which sets out the optionsavailable to businesses when it comes toHreimbursing company car, cash allowance and greyfleet drivers of electric vehicles. To download it, reimbursement-guide/TMC’s award-winning mileage capture and auditsystem automatically calculates how much eachdriver needs to be reimbursed once a company haschosen the reimbursement route it wants to take.TMC produces a payroll-ready file each month.In addition, TMC analyses fuel and mileage dataand produces a suite of reports to enable fleets tomonitor the ongoing performance of their ULEVSalongside the rest of the fleet. This gives fleets thevisibility to identify the effectiveness of their ULEVs,highlight any driver training needs and help steertheir wider fleet strategy.To find out more visit www.themilesconsultancy.co.uk, or speak to themon 01270 525 218 or drop an email to reply@themilesconsultancy.com
OP INIONIS IN-HOUSE SMRWAY FORWARD ONELECTRIC VEHICLES?By Luke Redfern, project manager, CenexElectric vehicles (EVs) can have significantlylower service, maintenance and repair(SMR) costs, with estimated savings of25%-to-40% compared to petrol ordiesel cars.An electric vehicle has a simple drivetrain andtends not to require the usual changes andreplacements that increase the cost of servicingpetrol and diesel vehicles.So, should fleet operators manage the SMR ofelectric vehicles in-house?Cenex, the UK’s centre of excellence for lowcarbon and fuel cell technologies, has spoken tomanufacturers and training providers tounderstand the key considerations. 9,000for initial training andequipment investmentsay manufacturers 99a year is typicalservicing figureon a Nissan LeafTraining in-house teamsWhile in-house SMR is relatively simple for fleetsoperating conventional petrol and diesel vehicles,low-emission technologies require investment inadditional training to deliver safe and effectivein-maintenance for low carbon vehicles.Industry standards such as BS 10125, requirebodyshops working on high voltage vehicles totrain technicians in EV hazard management andawareness. Manufacturers also require externaltechnicians to have training on their vehicles, tothe same level as their dealer network.Colleges like Emtec Central offer four (IMIL)levels of training relevant to EVs:n L1 Awareness an online course for employeesworking around, but not on, high voltagesystems (e.g. workshop office staff).n L2 Hazard Management for valeters, fleetdrivers, breakdown personnel, or any other staffinteracting with a high voltage vehicle.n L3 Electrically Propelled Vehicle andReplacements Training a course for qualifiedmotor technicians, with modules in safety aroundhigh voltage systems, awareness, hazardmanagement, service repair and replacement.n L4 Live Working specifically training qualifiedtechnicians to undertake live working onbatteries and high voltage systems.Equipment requirementsThere is additional workshop guidance for EVservicing that typically includes a dedicated baywith appropriate markings for EV maintenance,two trained technicians to be on-site during EVmaintenance work and hazard signage.Vehicle warranties are generally protected ifgenuine manufacturer parts are used.Quantity is keyEvidence suggests in-house SMR for EVs worksbest for high-volume fleets.For example, a basic estimate is 12,000 totrain two workshop technicians and buyequipment required to service and maintain theNissan Leaf and e-NV200.Other manufacturers estimate costs from 9,000 for initial training and equipmentinvestment.Today, most manufacturers manage SMR oftheir EVs in-house, as the training and equipmentcosts make it uneconomic to self-service a fleetof less than 50 EVs, considering that the routineservice for a Nissan Leaf is typically 99 perannum.Manufacturers will develop bespoke selfservicing training agreements, but only to meetthe demands of high-volume customers(typically those buying 20 or more vehicles ata time).Pool resources to realise savingsUpfront investment in technical training andequipment means smaller fleets might not beable to realise the savings from bringing EVSMR in-house.However, there is potential for larger operatorsto partner with smaller fleets, allowing nearbyfleets to pool their SMR services.As operators prepare for UK clean air zonesin 2020, those with a large or growing fleet oflow carbon vehicles should start planning nowto realise the benefits of effectively managingthe SMR of their EV fleet.fleetnews.co.uk Summer 2017 7
OP INION“PRACTICALITY ANDCHOICE OF ELECTRICLCVs IS GROWING”Matthew Trevaskis, head of electric vehicles, Renewable Energy AssociationL70miles in a morning isthe distance covered byPeugeot Partner van 4,000saving in diesel by vanused to deliver parts8 Summer 2017 fleetnews.co.ukight commercial vehicles with anelectric drivetrain make up just a smallfraction of around 100,000 ultra-lowemission vehicles (ULEVs) that havebeen registered since the introductionof grants from the Office for Low EmissionVehicles (OLEV) in 2012.The market has remained largely dominatedby cars but LCVs could provide an easy win,given that many have very predictable, regulardaily duty cycles on a return-to-base model.With longer-range vehicles the practicalityand choice of electric LCVs is growing as seenby the revision to Renault’s Kangoo ZE whichextended its range by 50% (from 106 miles to168 miles) and the announcement of the MasterZE for urban and municipal roles.Ford’s trial with a fleet of Transits with rangeextenders (confusingly labelled PHEVs contra tothe terminology used with cars) will also beclosely watched in London later this year.An electric LCV now co
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