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Fleet Industry’s $75B Conversion to Electric Vehicles Could Be Wasted, AlixPartners Analysis

November 11, 2022, 07:20 AM
Filed Under: Vehicles

AlixPartners, a global consulting firm, released an analysis of the fleet industry (commercial and governmental) in the United States finding that operators could be wasting a lot of the whopping $75 billion that AlixPartners forecasts needs to be spent on the conversion to electric vehicles unless actions are taken to fully analyze both company operations, such as use-cases by vehicle and driver, and fast-changing external factors, such as EV-battery costs and charging-infrastructure status around the nation.  

That analysis was delivered at the Fleet Forward Conference, sponsored by Bobit Business Media group, in Santa Clara, CA. Speaking to industry executives at the conference, Arun Kumar, Managing Director in the Automotive and Industrial Practice at AlixPartners, said, “Fleets can enjoy big total-cost-of-operating savings in the long term by going electric, but over-spending to get there, or spending at the wrong time, can be disastrous. Our analysis shows that the price tag for fleets in the U.S. will be no less than $75 billion, and if that money isn’t spent wisely, companies will suffer.

“Fleets need to take a fact-based approach to transitioning their vehicles from internal-combustion to electric, not one driven by guesses or emotions,” continued Kumar. “And it shouldn’t be a one-size-fits-all approach. For instance, for some fleets a transition in the near term—which can cost and incremental $8,000 to $13,000 in component cost alone—doesn’t make sense. In addition, a very broad lens needs to be applied to this highly-complex, once-in-a-lifetime transition—one that includes understanding and anticipating changes in charging infrastructures, charging times, possible lower uptimes, the possible need to change routes and so forth, in addition to the cost of the transition itself.”

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