Fleet Financials, January/February 2018

26 FLEET FINANCIALS JANUARY FEBRUARY 2018 by increased EV availability in the light vehicle marketplace Another inherent advantage with EV technology is it fits well with AV electronic and telecommunications trends But theres another advantage with EVs thats not generally well known which is how it can impact the electric utility industry which is also facing similar concerns with fossil fuel use EVs offer a number of synergistic solutions for energy utilities in terms of battery storage charging flexibility and telecommunication based energy management capabilities Clearly there are more benefits to EVs than just as an alternative transportation fuel though it is a large focus Indeed several other countries are recognizing this with some countries ceasing the manufacture of fossil fueled vehicles in coming decades And these are in addition to all of the advantages to fleets and their customers with much lower operating maintenance costs associated requirements and improved customer convenience Thus while widespread use of EVs is uncertain it may be more likely than many realize If EV and AV technologies are combined this integration will likely occur in the light vehicle segment initially With these technologies the administrative operations and maintenance support functions will all be redefined EV Operations Management The immediate change to fleet operations with EVs is the transition to electric power over fossil fuels This change will involve implementing a charging infrastructure adding new management tools and creating appropriate associated processes and procedures These new requirements are usually the focus when considering EV adoption since they need to be accomplished But there also levels of disruption that will occur with this which will simplify or eliminate certain fleet elements For some fleets in house liquid fuel facilities and their associated requirements fuel purchasing permitting and regulatory requirements will be eliminated For these remaining needs both liquid and electric could be filled with contract suppliers Thus the fuel delivery function will be greatly simplified and require fewer resources particularly labor However theres another added benefit to EVs with fuel management Fuel security will be virtually ensured EV fueling should inherently identify the fleet vehicle and authorize its charging To put it simply with the adoption of EVs many fuel management functions will go away and those remaining will be reduced and simplified At the same time fuel cost should substantially be reduced The net result This function will require fewer resources and require less attention This isnt unique though as similar effects are expected with the other fleet functions as well EV Maintenance Management EVs might also significantly reduce maintenance requirements for fleets The first and most obvious reason is that current engine oil filter changes will be eliminated Additionally other scheduled maintenance requirements will likely be significantly extended or essentially eliminated with EVs One of these will be brake maintenance being reduced or again essentially eliminated due to regenerative braking However tasks remaining largely unchanged will be electrical electronic and tire maintenance Theres a benefit of EVs with regards to fuel management Fuel security will be virtually ensured EV fueling should inherently identify the fleet vehicle and authorize its charging With the adoption of EVs many fuel management functions will go away and those remaining will be reduced and simplified Disruption This will redefine technician requirements For light vehicles required labor requirements will be simarly substantially reduced At the same time the technical requirements may become more specialized and may make outsourcing the labor an increasingly attractive option Expanded Management Involvement Combining EV and AV technologies will redefine many fleets operations and maintenance O M support functions As such its likely to also gain executive level attention and involvement due to the potential extent of the impacts and resultant savings This introduces an entirely new level of potential change for fleets First aforementioned O M savings will be identified Second this will lead to further examinations aimed at identifying other related opportunities Asset Management Opportunities Its reasonable to expect disruptive trends to affect asset management For many fleets there are opportunities to substantially simplify and reduce functional requirements Leasing provides the best example of this since its a conPHOTO GETTY IMAGES