FMC ROUNDTABLE

FUEL CARD REVIEW

ANNIVERSARY

35 th

www.fleetbusiness.com December 2019/January 2020

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FMC ROUNDTABLE 2020There’s a lot going on in the world that’s keeping fleet management interesting. With changes in technology, consumer preferences, regulations and more, keeping fleet managers on their toes, we drafted our annual list of pressing questions for the FMCs. Here’s the sage advice they offer for 2019-2020!

CaF: Please elaborate your thinking on connected fleets. What are some of the advances being made in on-board telematics technology or analytics that are advancing capabilities?

ari (geoff seeley): There are a number of recent advances in connected vehicle technologies that have the potential to significantly benefit fleet operators. Of particular note, OEM-enabled telematics technology will provide richer data and virtually eliminate the need to interpret or re-engineer the data received from traditional third-party OBD devices. Additionally, emerging camera technology enables more video streaming to provide further context to the telematics data. Both the telematics data and camera feeds will be helpful to fleets that are looking to lower their total cost of risk and insurance premiums. From a safety standpoint, advanced driver assist systems (ADAS) capabilities such as collision avoidance and blind spot monitoring are bringing entry-level autonomous driving benefits to vehicles, improving safety and reducing accidents for all drivers.

doNleN (elizabeth rossiter): Telematics, as well as in-cab camera technolo-gies, is constantly evolving and ensuring fleets are safer and more aware of their drivers’ behavior. For example, crash detection alerting, as measured by changes in vehicle g-force, is now collected consistently. Also, in-cab alerting is now available via telematics hard-ware, allowing drivers to be notified when they speed or harshly accelerate/decelerate. This lets customers immediately correct risky driver behavior in order to actually prevent accidents as opposed to simply reacting to data. Similarly, in-cab cameras can now sense distracted driving behaviors and alert

accordingly, curbing distractions in real time and reducing the #1 cause of the increased accident rate.

emKay: In an industry that collects millions of data points, analytics can be the key to your fleet program’s success. It’s easy to look at the surface and see smooth waters, but the currents below may be churning and tumultuous. While you may feel as though your fleet is operating efficiently, looks can be deceiving. You must dive into the data to be certain. Through telematics and predictive analytics, it is possible for fleets to make more educated decisions with less expense. These can be powerful decision-making tools within various parts of fleet operations. Considered the biggest step in the “Big Data” era, predictive analytics has become one of the most advanced forms of customized risk management.

Foss (Jennifer Chapman): The connected vehicle landscape is always quickly evolving, and in the past year we have experienced some improvements that have enabled more cost-effective operation of safe and efficient fleets. The most practical advancement is the hardware itself; better quality onboard sensors, memory, and con-nectivity through 4G have all contributed to higher accuracy in data collected from telematics devices. High accuracy data en-ables fleet managers to hold drivers to a higher standard while maintaining trust by reducing the inaccurate instances of aggressive driving events or speeding – too common a problem with 3G powered devices that will soon need replacement. On the data visualization side, software ad-vancements are allowing faster and more reliable access to key data. Not only are

integrations evolving to power relevant insights across multiple services, but we are starting to see AI-powered predictive analytics with high relevance and accuracy.

Jim PattisoN: Fleet management customers are adopting telematics technology at a rapidly increasing pace. More companies are connecting their vehicles in order to gain real time insights into what is occurring within their fleet. A good fleet management company under-stands that telematics is an important tool that can help improve safety and productivity, increase fleet utilization, and reduce operating costs of any type of fleet. Telematics provides access to significant amounts of vehicle data that can be utilized with business intelligence and artificial intelligence tools.In addition, many fleet clients are taking advantage of FMC capabilities of embedding telematics data directly into a fleet manage-ment system, allowing fleet managers the convenience of a single platform to manage all aspects of their fleet. Some of these integrated features include:

• Geo-fencing;

• Route optimization;

• Safety tracking such as speeding, seat belt usage, and accident detection;

• Maintenance alerts including service notifi-cation and fault code detection;

• Usage audits including idling time and merging fuel purchase details with vehicle location;

• Vehicle cycling strategies to reduce overall cents per kilometre;

• Benchmarking fuel and operating cost data to enhance fleet efficiency.

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These integration capabilities ensure that only the information of utmost importance is refined for review, resulting in quicker decision making for fleet clients.

wHeels (sara sweeney): Many of the advances in analytics are thanks to the analytics tools themselves. They allow users to easily blend telematics data with other fleet data and provide quick filtering ca-pabilities to pinpoint the exact data elements you’re looking for. This allows all users – from local to corporate – to have a clearer picture of how the fleet is operating. With that, they’re able to more easily identify and act on areas of opportunity. Embedded on-board telematics technologies have several benefits, not the least of which is the convenience factor of not having to purchase additional hardware and install it. It is important to remember that embedded on-board technology is not always a 1:1 replacement for a plug-in solution. When considering a new program or switching from a plug-in device to embedded device, carefully vet the available data in your options and see how it aligns with the data required to meet your stated objectives.One last thought on what could slow progress – keep an eye on changing and emerging privacy regulations and how they impact your fleet policy and usage of the connected vehicle data. Be sure you have permission to access and use the data for the purpose of managing the fleet. Being transparent will only help your cause here with employees.

CaF: What strategies can fleets employ to improve order-to-delivery times?

ari (geoff seeley): First and foremost, fleet professionals should always have a comprehensive, proactive strategy in place for developing vehicle/upfit specifications and subsequently placing the orders with their supply chain partners. Proper planning ensures quality specifications that optimize your vehicle’s lifecycle while also

helping you get your vehicles on the road in a timely fashion. To help mitigate potential backlogs or delays, fleet managers should engage their respective OEM representatives early in the ordering cycle. Some OEMs will “reserve” allocation for production for fleets based on their anticipated order timing. Having production allocation reserved in advance can potentially shave weeks off lead times. If fleet operators have not reserved production allocation, it can still be beneficial to check with your OEM represen-tative when they release orders to the factory. By placing orders ahead of the OEM allocation process (if the OEM has enough allocation), your fleet’s order may be able to be released to the factory sooner. By submitting orders early in the cycle, you can sometimes improve OTD timing by as much as two weeks. For import brands, the OEMs often have vehicles already ordered in the “pipeline” that can satisfy immediate needs or potentially shorten OTD timing significantly. This is possible due to the simplified trim/option packaging structure of many import models. If your fleet vehicles require upfitting, we highly recommend that you consider staggering order timing of the chassis. By having chassis arrive on a staggered schedule, fleet operators help their upfit partners better manage throughput and you can more accurately predict when vehicles will be completed and ready to be put in service. Additionally, you’re able to reduce the carrying cost of the chassis because they’re not sitting idle at the production facility for an extended period of time as they await upfitting. It is also important to keep in mind that by engaging your upfit partners early in the order process, you can often agree upon a production plan that will help smooth the upfitting process and secure your production “slots” ahead of time.

doNleN (Cindy gomez): In order to improve order-to-delivery times, it is recommended for fleets to consider ordering

all vehicle model years at one time and requesting specific build weeks. This will ensure that OEMs know the volume needed for the year. Then, they can work on prioritizing orders as needed which reduces the risk of orders being canceled due to limited fleet allocation.

emKay: Railcar shortages and quality holds were the main factors that impacted OTD times this year. Continued focus is on ensuring the railcars are equipped to haul as many vehicles as possible. The shifting consumer habits require changes to the infrastructure in order to provide ample support. We’ve seen rail companies respond by purchasing more cars equipped to haul SUVs, something that may need to continue in order to keep up with demand. The slow start to the hurricane season has been a welcome sight for manufacturers. With only one hurricane to date, Barry, weather- related delays have not been as prominent for 2019. However, as of writing this, the storm season is expected to pick up and that may result in some substantial delays due to damage to the south and east coasts.

Foss (Jennifer Chapman): With fleet OTD time frames only getting longer it is imperative that advance planning is being used to make your vehicles arrive when you need them. When a vehicle is being upfitted on top of the factory/OEM timing, planning is even more essential.• Order as early as possible. This helps buffer

delays and ensures allocation when start up and build out dates are constantly moving;

• Anticipate lead time for not only your vehicle but the upfit components/bodies as well; order the upfit or van body at same time as the vehicle;

• Standardize your selector to increase efficiencies. This can give you better OEM discounts and the upfitter can stock your common pieces in their inventory;

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• Utilize short-term leasing like our Foss Flex short term lease program for new hires and write offs to ensure that your driver is in a cost effective vehicle while their order is with the OEM.

Jim PattisoN: A variety of factors are potentially increasing factory order to delivery times for vehicles including an increase in product demand (especially in the US), railcar shortages, parts delays, and/or labour disruptions. Some of the solutions that fleet managers can implement to ensure they continue to operate efficient fleets in light of order delays include:Planning ahead – Review fleet inventory and utilize tools for mileage forecasting to deter-mine which vehicles will be reaching their fleet policy threshold for replacement. Most fleet management companies offer tools and reports for fleet managers to quickly and effectively determine which vehicles are due for replacement in a given model year. Some manufacturers offer delayed build options so that orders can be placed ahead of time with future build dates avoiding potential price increases.Standardize specifications – Review trim levels and options currently in your vehicle selector for consistency. Some vehicle trim levels and configurations are more popular than others, which can potentially reduce order to delivery times. Standardized specifications can also help if you need to acquire vehicles from a dealer’s inventory or when it comes time to selling vehicles.Source from dealer inventory – While factory- ordering vehicles ensures consistency in specifications and pricing, there are times when securing vehicles from dealer stock will be necessary (ie. new hires, new business opportunities, etc.). Working with a fleet man-agement company can really help when sourc-ing vehicles out of stock as fleet management companies typically have relationships with a variety of dealers all across the country.

wHeels (toni garofalo): Fleets can face some challenges with man-ufacturer plant closures, railway delays, allocation shortages, therefore, it is always best to keep informed on what is occurring in the industry and when possible order very early in the Fall and Spring. Fleets should review their selector and select models with OEMs that are not experiencing any delays.

CaF: How are changing product types (ie the shift away from sedans towards SUVs) affecting FM strategies?

ari (geoff seeley): Current year-to-date data shows that Canadian sedan sales are down nearly 17 percent as compared to last year, further confirming the continued trend away from sedans in favor of SUVs and crossovers that began almost a decade ago. Almost all new models from OEMs are some type of SUV or crossover and many are discontinuing sedan production entirely as consumer demand for these models continues to weaken. One challenge that many fleet operators now face is trying to determine how to differentiate which SUV/crossover directly competes with another. Some new SUVs/crossovers are slightly smaller or larger than traditional models and these new options sometime straddle different market segments. This often presents a chal-lenge when developing selector recommen-dations. What was once a clear choice for a compact SUV is now a bit uncertain, as many models blur the lines between segments. Another important factor to consider is that new models from OEMs typically have limited, if any, discounts, making CAP costs higher for these new SUVs/crossovers. Further amplifying this dynamic is the often high demand for these new models. Conversely, some models that are only one or two years old may have considerable discounts while still maintaining good residual value. By opting for these slightly older options you can sometimes

saves thousands in acquisition costs while still providing all the safety and performance needed for your fleet. Overall, it is clear that the trend towards SUVs and crossovers will continue for the foresee-able future. While there is tremendous value in some of the remaining sedan offerings, fewer and fewer fleet operators are including these models in their fleet mix. Moving forward, we expect SUVs to remain the preferred vehicle type, continuing to replace sedans for most fleet operators.

doNleN (John wuich): The recent news from certain OEMs that long-time sedan product lines will be eliminated has fleet managers searching for answers. Specifically, fleet managers want to know which models are being eliminated and when; what alternative sedans are available; and what impact a shift to a new model will have on operating costs and cost per kilometre. There has certainly been a shift away from sedans and toward SUVs. In fact, fleet managers are finding that a switch to some compact SUVs and crossovers may be made with minimal impact to operating costs. The Subaru Forester and Toyota RAV4 are two examples, and both offer surprising high fuel economy. However, not all fleets are shifting completely from sedans. Instead, fleet managers are looking towards alternatives that have not been traditionally part of fleet, such as the Hyundai Elantra.

emKay: As SUVs, crossovers and trucks continue to overtake the market, manufacturers are responding by announcing some pretty sub-stantial changes to their model lineups. With the fuel economy of these larger vehicles constantly improving, this is becoming less of a consideration for consumers. And while manufacturers announcing changes to their offerings is nothing new, the extent to which models are currently being cut – sedans in particular – is very interesting. It’s a shift that’s been occurring for years, so it comes as no surprise that the sedan segment is shrinking.

Foss (Jennifer Chapman): SUVs or trucks are still the vehicle of choice for the majority of fleet drivers in Canada, but that niche still exists of drivers who prefer a sedan, either AWD or FWD. With the traditional North American OEMs moving away from sedans to SUVs, those fleet drivers are now looking at OEMs they may not have considered in the past like Mazda, Honda, Hyundai and KIA. The AWD Nissan Altima and the AWD Subaru Legacy are common choices

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as well. The most common question asked in the last 18 months by our fleet customers are for sedan options to replace the Ford Fusion and Chevrolet Cruze.

Jim PattisoN: With compact SUVs (CUVs) increasing in popularity due to a variety of factors includ-ing more affordable price, increased visibility (higher vantage point), all-wheel drive options, and strong resale values; many fleet operators are favouring them for their vehicle selectors over traditional four-door sedans. That said, when making changes to vehicle selectors, we recommend consulting with internal stakeholders to ensure that the vehicle type matches intended use and also con-sulting with fleet management companies as most will have remarketing departments that can assist in determining total cost of owner-ship (acquisition, management and resale of vehicles).

wHeels (toni garofalo): SUVs or CUVs are quite popular in the Canadian market and most clients’ drivers will typically order these models. The shift away from sedans will not drastically affect these clients. The popularity of SUVs and CUVs in the Canadian market is primarily due to the fact that the vehicle is considered a perq and most drivers prefer this type of model due to the harsh weather conditions.

CaF: What effect are changing demographics and generational shifts having on how fleets are managed? Do factors like corporate responsibility take on more weight, for example, applying pressure for more environmentally favourable products (call it the Greta Thunberg effect)?

ari (geoff seeley): Overall, changing demographics are having a domino effect on governments, regulations, and in turn, company behaviours. A growing number of organizations are taking sustain-ability and corporate responsibility extremely seriously. They are taking steps to make an impact, not just on fleet, but throughout their entire supply chain to develop and deploy more environmentally friendly products such as alternative fuel vehicles. Companies are still looking to reduce or control costs but some are putting greater emphasis on the value of lowering emissions and are willing to spend a little more in some cases to be better environmental stewards.As the focus on sustainability becomes more common, it’s a natural evolution to look at

fleets. Employees are making a change on a personal level, utilizing ride sharing and car-pooling. From a business standpoint, fleets still need to serve an operational purpose. Businesses are mindful of the need for fleet vehicles as revenue-generating tools, but now try to balance business requirements and corporate responsibility.

doNleN (Heather Phibbs): Fleets are definitely being managed differently due to demographic changes and genera-tional shifts. Fleet managers are looking at change but are typically mandated to do so with either a zero or minimal financial impact. Consequently, incentives play a part as they review the overall total cost of ownership.

We have seen a slow uptick in hybrid options added to selectors. Traditional items such as increased fuel efficiencies and safety related items still sit at the top of the list. However, fleets are thinking beyond these and talking about fleet alternatives like mobility and its benefits. As technology advances and corpo-rate responsibility tied with driver demands evolves, change truly is on the horizon.

emKay: Sustainability comes at a cost, especially when pertaining to fleets. EVs, hybrids, propane conversions, etc. come at a cost. It can be financial, infrastructure, availability, etc. View-points vary by fleet and industry.

Foss (Jennifer Chapman): The move to a younger workforce has seen a shift in the fleet market globally with younger drivers looking for smaller, more environmen-tally friendly vehicles in the large urban centres, or asking for a mobility solution instead of a company vehicle. This has a small impact in Canada however due to our large geography and lack of effective transit systems outside of the GTA, Montreal or Vancouver. During discussions with some customers on this subject the common thread is that the younger demographic is requesting the small, eco-friendly vehicle while living in the city, but as they age, that same driver is asking for an SUV or larger vehicle to accommodate their own changing family.

Jim PattisoN: Corporate responsibility and environmental footprint have long been important factors in overall fleet strategies. That said, over the last few years, we believe there is an increase in awareness to ensure that fleets are operating more efficiently, both from an environmental and a financial responsibility perspective. Vehicle manufacturers have made tremendous developments in terms of offering new product lines that are more environmentally friendly by introducing a variety of fuel-efficient internal combustion, hybrid, and zero-emission vehicle options. Fuel providers and governments are also ramping up efforts in terms of developing charging infrastructure to support alternative fuel vehicles.We also continue to experience an increase in fleet operators utilizing tools such as telematics and vehicle utilization reports that are available through most telematics and fleet management companies to help reduce their environmental footprint.

wHeels (toni garofalo): A key driver of the mobility movement is helping reduce carbon footprint. Canadian clients have experienced some pressure from a global perspective and the trend for hybrid and all-electric vehicles is driven by sustain-ability and regulation, particularly in Europe and China. At present, North American adoption is very low; hybrids in the US, for example, are at less than two percent and for all-electric the numbers are negligible. There are currently approximately 75,000 electric vehicle/hybrid plug-in charging stations across North America. The benefits of these vehicles are first that they reduce CO2 emissions, and second they support eco-friendly goals. Some of the challenges are the higher cost of the TCO, availability and charging infrastructure.

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Most clients have targeted sustainability goals and their mandates are to reduce their CO2 emissions and be the leaders in sustainability. As a result, clients are reviewing their selectors for alternative powertrains: hybrids, plug-in hybrids and electric vehicles. As infrastructure is a concern, most clients are beginning with hybrids only.

CaF: With more sophisticated vehicles that have more systems, but are also smarter and able to warn of pending problems - how are maintenance costs going to change? Will vehicle lifecycles be altered?

ari (geoff seeley): The ability to have vehicles respond to their own diagnostic data in real-time will provide opportunities to not only predict maintenance issues, but also enable fleet operators to be more prescriptive when it comes to their maintenance strategy. These benefits will help reduce both the number of occurrences and severity of maintenance events. It will also help lower total cost of ownership by reducing the number of major component failures, replacing these significant repairs with simple preventive maintenance services. Additionally, adhering to recommended pre-ventive maintenance schedules typically results in fewer breakdowns and less downtime. Vehicle lifecycles can also be better optimized, allowing you to extend the useful life of the unit without increasing operating costs while also maintaining the value of the vehicle.

doNleN (John wuich): Well-built, durable vehicles still experiencing catastrophic failures continues to be a trend within fleets. Based on total cost of operation, cycling parameters are being extended out-ward. A case for early cycling must be made as a result of new technology and safety features, not just on operating cost alone.

In some cases, new designs and technology are resulting in higher repair costs. This is because repairs and diagnosis are becoming more complex. For example, when a windshield is part of a vehicle’s safety system and used to provide warnings, even a small nick can require extended time and dollars to repair. Cameras and driver assistance systems can require more time and dollars to repair or even tune as well. This applies to both maintenance repairs and accident repairs.

emKay: As vehicles come more equipped with tech-nology/safety systems, the repair costs on those systems have rapidly accelerated. In the coming years, we anticipate those costs to decrease along with the associated insurance costs on those vehicles.

Foss (Jennifer Chapman): More sophisticated vehicle systems have resulted in vehicles that last longer and are smarter but are also more expensive to repair and maintain. Synthetic or semi-synthetic oils are now required for many vehicles, which extend the service interval but come at an increased cost and are paired with more expensive cartridge type oil filters. The specialized technicians (that are hard to find and retain) required to repair these vehicles are being paid more, which adds to the increase of labour costs. All of these increased costs in parts, labour and tires, however, have been mitigated by the ongoing quality and longer lasting components resulting in maintenance costs actually remaining flat in a TCO.

Jim PattisoN: Most manufacturers have moved to “condition based services” where vehicles will prompt drivers on what component needs servicing and when. Developments in vehicle and fluid technologies have also helped increase service intervals, which benefits fleet operators in the

form of reduced cost and downtime.From a zero-emission vehicle perspective, theoretically, fewer moving parts means less maintenance as it relates to drivetrain. That said, battery longevity continues to be a closely monitored area, especially as it relates to life-cycle of vehicles. Enhancements in battery technology and “over the air” range updates will be a very important factor in determining overall lifecycle of electric vehicles. From a technology perspective, we believe that options such as blind spot monitoring, automatic braking and backup systems have made a positive impact in residual/resale values.

CaF: Now that we’ve had a year of legalized marijuana in Canada, have you seen any effects?

ari (geoff seeley): The legalization of marijuana and how it impacts fleet management, specifically driver safety, is a trend we continue to monitor closely. To this point, there has not been much, if any, increase in activity. The majority of fleet operators have been diligent about ensuring their driver policy and safety training programs have been updated to reflect the legalization of marijuana. For the most part, there hasn’t been a notice-able impact on fleet operations and the vast majority of drivers seem to be respecting impaired driving regulations. However, these results may change as law enforcement establishes improved methods for roadside testing. It’s important that fleet managers consult their Human Resources and Risk Management departments to continue to build clear expec-tations for their employees, especially those with company vehicles.

doNleN (Heather Phibbs): The legalization of marijuana hasn’t had the impact that most thought it would due to one

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reason: preparation. Preparation and com-munication are key in matters such as these, and we worked hand-in-hand with our clients to update and ensure that their fleet policies were fit to account for this change. Most fleet managers already had standardized language covering all substances, be it alcohol, drugs etc. Having the right policies, communication, and organizational support has made all the difference.

emKay: Companies have been focused on updating fleet policies to ensure they properly address and outline company guidelines on operating a company-provided vehicle. Operating the vehicle while under the influence of drugs and alcohol outside of the legal limits is pro-hibited. Clearly defining what unauthorized or inappropriate drug use is, which includes cannabis, has been part of policy revisions.

Foss (Jennifer Chapman): The last year of legalized marijuana has had the positive effect of forcing companies to review their fleet policies to ensure they are up-to-date with the new regulations. While policies should be reviewed annually, this change definitely gave businesses more of a push to ensure that they are addressing all the intricacies of this legalization including not only smoking marijuana but also carrying it in their fleet vehicle. This now includes edibles.

Jim PattisoN: Safety has been and continues to be a very high priority in terms of fleet management. In order to avoid any form of impaired or distracted driving, fleet operators should ensure that their HR and driver policies clearly include handling, possession and consumption of all illegal and controlled substances such as marijuana. In addition policies should also address distracted driving.

wHeels (toni garofalo): Since the legalized marijuana laws came into

effect in Canada, all clients have updated their fleet policies to include rules and regulations regarding this law as it affects their drivers. We have not seen any other effects thus far.

CaF: EVs are finally making strides in range (think Bolt). Are they ready for Canadian fleets yet? Please explain your thinking.

ari (geoff seeley): To answer the question “are EVs ready for Canadian fleets”, the short answer is yes…but it depends on the specific operating parameters of each organization. Generally speaking, the vehicles are ready for most fleet applications, or at least are very close. Now it is a matter of the infrastructure catching-up.Range anxiety certainly plays a significant role in the adoption of EVs by fleet operators. As newer models are introduced with longer range capabilities, we are poised to see EVs become more viable for a growing number of fleet roles, especially sales-focused applica-tions. Based on some recent research we’ve conducted on EVs, shorter-range batteries can sometimes provide the same level of service depending on the specific application of the unit. The primary catalyst for the widespread adoption if EVs will be the expansion of the charging infrastructure. The cold Canadian weather impacts range and charge times, however, there are many use cases where these vehicles can easily be integrated into the fleet mix. This is especially true for fleets with an operating footprint in BC and Quebec where the charging network is growing rapidly and becoming more available. In BC, in par-ticular, we’re seeing a commitment from the province to support new investments in home, workplace and public charging stations.

doNleN (John wuich): While more battery electric vehicles (BEVs) are being seen on the roads, and almost every

manufacturer has reported high investments into a BEV future, the fact is that BEVs still only make up a small percentage of auto sales in North America. Vehicle effective depreciation, defined as acquisition cost less return at sale, is still one obstacle. Battery range, charging infrastructure, and battery replacement costs are also challenges that must be overcome before BEV sales take off as most predict will happen over the coming years.

emKay: Tesla, Ford, Rivian, Fisker, and presumably many more are currently on the way. This brand-new segment will be interesting to watch as models begin to debut. How will pricing vary? What will towing capabilities be? What will the different ranges be, and how will they be impacted when towing? There are still countless unanswered questions, but that doesn’t stop the intrigue. The race is on to be first to market, but even the first may have trouble grabbing the market share as con-sumers know there are plenty more options soon to follow. Are they ready for the fleet segment, yet? Probably not. Strategic discussions centered on total cost of ownership are primarily at the forefront of vehicle selector choices. There are too many unknowns in the EV segment at this time. As their performance, resale, main-tenance data is collected over the coming years, fleets will be intrigued to consider the alternative. Until then, cost and the unknown will keep fleets at arms-length.

Foss (Jennifer Chapman): I recently drove a demo of the KIA Niro as my husband has been wanting a plug-in hybrid for the last few years that would work well with his 120km/day commute. This vehicle definitely fit the bill and with its range of 400km on a full charge and with the incentives now in place at the federal level make it more affordable for the consumer and more choices

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are out there – Nissan Leaf, Chevy Bolt, Hyundai Ioniq to name a few. I still believe the EV revolution will remain at the consumer level rather than with fleets at this time. Fleet managers I have spoken to are concerned about how to deal with reimbursement of in home charging stations for their drivers (initial cost, installation, drivers leaving or no longer vehicle eligible) and how to deal with the additional cost of electricity to that driver.

Jim PattisoN: Given the increased global trend to move to a more sustainable world, it comes as no surprise that zero-emission vehicles are front-and-centre on the minds of the auto-motive world. According to the Government of Canada, transportation accounts for about 24 percent of Canada’s emissions, mostly from cars and trucks, which signals a need to investigate and develop alternatives to internal combustion engines. Many fleets are exploring zero-emission vehicle options in order to reduce their carbon footprint and also lower their overall fuel costs. This has

been more apparent with route-based fleets, where they are able to plan ahead in terms of charging needs, or where trucks are parked nightly at customers’ premises. With respect to the fleet industry, we are already seeing an increasing trend in fleet operators requesting more information on how EVs might be able to fit in their fleet selectors. A couple of factors fueling this trend are the growing number of charging stations, as well as the developments in battery technology and vehicle range. That said, we believe we will see an even further interest in electric vehicles when cargo van and pickup truck options come to market as well as developments by governments, both from an incentive and a legislative perspective.

wHeels (tim Cengel): There are several roadblocks to EV adoption in Canadian Fleets. Range is certainly one of the larger concerns. I think we need to see the range grow closer to that of the vehicles they are using now. A standard vehicle with an internal combustion engine would typically see a range of 650-800 kilometres from full

tank of fuel, current EVs only see about half the available range or less.

In addition, you may see some degradation of battery capacity in extreme cold that could reduce range another 10 to 20 percent. When drivers do need to recharge, the vehicle may be down for several hours depending on the type or charging infrastructure available. When you couple insufficient range with still-devel-oping infrastructure and slow recharge cycle time; it’s easy to see how EVs can make a fleet run less efficiently.

However, range and charging are not the only concerns. The number of electric vehicles available in the market is still very small, and many of these models have limited allocation or availability. A fleet looking to turn over a substantially sized fleet and replace with EVs may find they are unavailable or have substantial lead times when ordered. With an onslaught of new electric vehicles hitting the market in the next two years we should see this concern dissipate.

CAF