Despite the high levels of excitement surrounding electric vehicles, there is reason to worry about this nascent market’s capacity to fizzle in a big way. Most of the buzz surrounds electric vehicle introductions from major automakers, such as the Nissan Leaf and the Chevy Volt, for which consumer demand remains to be demonstrated. Today I’ve got a piece running at MIT’s TechReview.com site raising doubts about the likelihood that corporate fleets will soak up EVs if consumers leave these pricey machines languishing on showroom floors.
The TechReview story, a ‘news-you-can-use’ piece aimed at managers, concludes that big price reductions and adjustments to fleet management practices will be needed to make a business case for replacing gasoline and diesel fleet vehicles with EVs. In short, lithium battery costs push the purchase price too high for most corporate buyers to recoup their investment through efficiencies — especially if they continue to replace vehicles every three-to-five years. AT&T predicts a return on electric Ford/Azure Dynamics service trucks they are phasing in, but only because the company bucks standard fleet practice and uses its fleet vehicles for 10-12 years. Continue reading “Corporate Fleets: No Magic Sponge for Electric Vehicles”