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CLASS 6 AND CLASS 7 TRUCKS ARE RIPE FOR ELECTRIFICATION, SAYS ACT RESEARCH

By Mike Manges

Commercial electric vehicles will make up nearly 40% of the Class 4 through Class 8 truck population in the United States and Canada within the next 15 years, according to ACT Research.

The company also predicts that by 2040, nearly 320,000 out of the projected 750,000 total commercial vehicles operating in North America will be electric.

ACT Research Analyst Jim Meil discusses the factors that are driving this expansion, which types of trucks make a good fit for electrification, why electric trucks appeal to certain fleets and more.

MTD: ACT indicates that commercial electric vehicles will reach nearly 40% share of the Class 4 through Class 8 truck market by 2035. What is driving this growth?

Meil: The major factor driving the share gain is the rapidly falling costs of batteries. We project a decline of about one-third in the next 10 years, which will enhance the business case for EVs. In addition, policy moves that will tilt the playing field to the advantage of electrification — emissions requirements nationally and in states and provinces — will push some of that share gain.

MTD: Which class of trucks is seeing the biggest growth in electric models?

Meil: We believe Class 6 through Class 7 will turn out to lead in both share gain and volume, with upwards of 70% share by 2035 to 2040, translating into close to 130,000 Class 6 through Class 7 vehicles at the far reach of our 20-year horizon. Many of the aspects that pave the way for electrification fit well with Class 6 through Class 7 applications — just to name two: pick-up and delivery in urban areas (and) school buses.

MTD: Why are fleets interested in electric trucks? What’s the value proposition?

Meil: First and foremost, fuel savings as efficient electric engines will beat their internal combustion engine counterparts in this dimension, in many cases. Second, the simpler drivetrain of an electric vehicle will result in service, maintenance and uptime benefits compared to the more complicated internal combustion engine counterpart.

MTD: What are the barriers to more widespread electric truck acceptance by fleets and how will those obstacles diminish over the next several years?

Meil: Right now, part of the issue is product

Daimler Trucks North America recently opened what it calls a “first-of-its-kind, heavy-duty electric truck charging site” near its home base in Portland, Ore.

Available for order

MAJOR TRUCK OEM INVESTS IN ELECTRIC FUTURE

Daimler Trucks North America (DTNA), one of North America’s largest truck manufacturers, is making a massive investment in the development of electric trucks.

DTNA’s first all-electric products — the eCascadia and the Freightliner eM2 — are now available for order. Production on both will start next year.

“We currently have 38 (electric) trucks in early customer trials,” says Alex Voets, product sales and marketing manager for DTNA’s Freightliner brand.

“One, the Freightliner Electric Innovation Fleet, includes a 30-vehicle fleet dedicated to our two customers, NFI Industries and Penske.”

He adds that Penske “has 10 mediumduty eM2s and both companies have 10 heavy-duty eCascadias each. In addition, we have the Freightliner Customer Experience (CX) Fleet, which includes six eCascadias and two eM2s.”

The eCascadia has a range of 250 miles per charge. Eighty-percent of the truck’s battery can be recharged within 90 minutes. “Right now, our targeted applications are those that have a return-to-base operation,” he says.

“Drayage, local delivery and pick-up and regional delivery are all great applications that see trucks domiciled at a central location, where they can be recharged overnight.”

availability. Getting early production models out of the factory and into dealerships has lagged personal vehicles. The commercial vehicle marketplace is driven more by P&L and return-on-investment financial factors than the personal (vehicle) market, where consumer choice, taste, status and trendiness come into play. Also, commercial vehicle operators tend not to be on the leading edge. They don’t like to be first movers.

By Jeff Morgan

How to achieve success through servant leadership

IT ALL STARTS AT THE TOP – WITH YOU

A key commonality you will find in the success of any organization is the leadership behind it. Leaders both inspire and guide. And they take both their businesses and employees to higher levels of performance. Here, Alpio Barbara, MTD’s Tire Dealer of the Year Award winner in 2016, rallies the troops at his dealership, Redwood General Tire Service in Redwood, Calif.

Competition is everywhere in our industry. As such, the ability to attract and retain talent is even more of a challenge, particularly with a limited talent pool. For some, this is a daily struggle. Yet there are a few out there who seem to be doing very well.

While there certainly isn’t any magic recipe here, I believe that a key commonality you will find in the success of any organization is the leadership behind it.

In the movie “Remember the Titans,” a player was asked by the team captain why he had such a poor attitude. The player responded, “Attitude reflects leadership.” This is absolutely true in any business!

There is often confusion between being a manager and being a leader. Let me explain. A manager effectively maintains the operations of a business. I have often compared this to being the captain of a ship. That person’s job is to take that ship, its cargo, crew and passengers from Port A to Port B efficiently, effectively and on time, keeping it off the rocks in the process.

Conversely, a leader takes his or her business and people to higher levels of performance. Using the ship captain analogy, this person recognizes that “Port C” is much more beneficial for the sale of goods and the betterment of passengers. He or she then leads, coaches and motivates the crew to take the ship where they thought wasn’t possible before.

It is very possible to be a very good manager and a very poor leader. I have seen this a lot over the years. While occurring less often, it is also possible to be a very good leader and a very poor manager. The secret is that the best do both!

Please understand, I am not suggesting that poor leadership skills are an indictment of those people. Many have worked extremely hard to get where they are and want to be better leaders, but they simply do not know how. While they may have invested a lot of time in learning to run and manage a business, often the same amount of time has not been invested in learning how to effectively lead people.

Now, if you tried to read all the books on different leadership philosophies and techniques, it is safe to say you may not see the light of day for a long, long time! The ideas found in these books may work in certain instances and may be very valid approaches.

But I am a firm believer in the power of servant leadership.

Many books have been written on the topic of servant leadership, but Robert Greenleaf is often considered one of the founding fathers of the concept, with his 1977 book titled — not surprisingly — “Servant Leadership.” In it, he shares that leaders should