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NEWSLETTER: February / March 2017
Welcome to the EDI newsletter, where we’re committed to delivering valuable information and insight on the hybrid, plug-in hybrid, and electric vehicle drivetrain industry. We'll also share some of our company news and technology breakthroughs. If this newsletter was forwarded to you and you would like to receive it monthly please feel free to subscribe. Thanks from the team at EDI.
CEO Corner: The Evolving ROI Story
Contributed by Joerg Ferchau, CEO
Today, electrified vehicles can cost significantly more than their conventional counterparts. That challenges the managers who are advocating for the acquisition of electrified vehicles to present a return on investment (ROI) scenario that justifies the extra expense of those vehicles. Fortunately, there’s a lot of new thinking in how to justify those more expensive vehicles and the challenge is becoming less daunting.
With the low fossil fuel prices we have been experiencing in the past couple of years, it’s difficult to justify the extra costs purely on fuel savings and so more sophisticated ROI models are being developed. In discussions with various fleet managers, it’s clear that they are actively searching for better ways to demonstrate a positive story to justify spending more funding on fewer vehicles. As a result, they’ve become more creative in making their business cases and new ROI considerations are now part of the equation.
I’ve enjoyed hearing about all the new ideas and concepts for how to justify the electrified vehicles in terms of ROI and almost every fleet manager can add to the list of things to include. It’s not just about fuel savings and maintenance and we should all be sharing our ROI stories and discoveries so that our industry as a whole can continue to accelerate.
Some of the ROI factors fleet managers mention include things like: extending the asset life of the vehicle, reduced maintenance costs, elimination of ancillary items such as generators, extending vehicle operation business hours by being able to operate a vehicle on electricity instead of diesel after hours and in locations like hospitals and schools, evolving government rebate programs and credits, carbon tax credits, goodwill with customers and the public, increased safety and fewer worksite accidents by eliminating engine idle and noise, decreased inhalation of exhaust fumes and particulates, better vehicle acceleration and performance reducing accidents, and many other ROI related factors that go well beyond - just calculating the value of fuel savings.
Often, fuel cost savings usually ends up being one of the smallest factors in the ROI justification and it’s the other aspects of the electrified vehicles that end up providing the best business case story. The ROI story will improve rapidly as the most expensive components in the electrified vehicles continue to come down in cost, but ultimately, it’s the creativity and experience of the fleet managers who make the effort to understand and find the best ways to map the benefits of vehicle electrification to their applications that forms a winning ROI story.
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EDI Extends our Solution Offering with an EV and PHEV Vehicle Development Division
EDI expands its California operations with the creation of a new hybrid and electric vehicle center of excellence. The new Vehicle Engineering and Integration division will operate out of the company’s recently leased facility in Dixon, CA and will specialize in advanced development of EV and PHEV commercial vehicles for its customers in North America. With over 10,000 square feet of space, the new facility enables EDI to accommodate for rapid growth and future market development plans in response to increased demand for its EDI PowerDrive™ PHEV and EV drivetrain solutions.
Operations will specialize in vehicle engineering, system integration programs, and delivering quantities of PHEV and EV vehicles to end customers and OEMs. Additionally, the Vehicle Engineering and Integration division will continue working with vehicle OEMs, upfitters, and end users, to design electrified vehicles tailored to their specific requirements while also meeting government regulations that are advancing towards a zero-vehicle emissions future.
The company’s Silicon Valley Global Headquarters and Innovation Center will continue to house EDI’s drivetrain and electrification products engineering, research and development, sales, marketing, and administration divisions. The recent expansion will bring EDI’s California footprint up to over 40,000 square feet between its two locations.
To learn more about our Vehicle Center of Excellence, please read the full release.
EDI is proud to announce the expansion of its utility work truck portfolio to include Freightliner platforms
Efficient Drivetrains has successfully completed the integration of its EDI PowerDrive™ technology into the Freightliner M2 platform. The newly available Freightliner M2 truck, completes EDI’s portfolio of Class 3 to 6 zero-emissions utility vehicles with the exportable power option. The utility truck operates as a powerful, all electric zero emissions vehicle for both city and highway driving situations and reduces emissions up to 80%. Combined with its 10+ hours of idle-free worksite operation and power export technology, the Freightliner work truck integrated with EDI's PowerDrive 6000, is a leading example of how EDI’s advanced technologies and solutions are positively impacting the utility truck industry and significantly improving air quality. Serving as an industry-first, the Class-6 PHEV utility work truck was featured at the NTEA Work Truck Show in Indianapolis, Indiana, March 14-17, 2017.
- EDI PowerDrive™ 6000 plug-in electric drivetrain with full OEM power all-electric city and highway driving
- Over 25+ miles of all-electric, zero-emissions driving range and 300+ miles of range in hybrid modes
- Can reduce emissions by 80%+ and is a significantly cleaner truck when compared to conventional utility vehicles.
- Top speeds of over 65 mph
- Four operating modes: EV, EV+, Series and Parallel
- Up to 120kW of exportable power and is able to power 100+ homes at a time
- 10 hours of idle-free jobsite tool operations
- Features Vehicle 2 Grid (V2G) technology to tap into previously unutilized power and enable bi-directional charging
- Provides emergency backup power during natural disasters and minimizes planned and unplanned power outages
To learn more about our latest vehicle project, read the full release.
The City of Sheyang, China Selects EDI as Drivetrain Provider
Efficient Drivetrains, Inc., is proud to be supporting the continual electrification of vehicles in China. In January, the city of Sheyang in China placed an order for EDI PowerDrive 6000 systems. EDI will be supplying drivetrain technology to Yangzhou Yaxing Motor Coach, a leading automotive company. Yaxing will integrate our systems into a fleet of city buses later this month.
The EDI PowerDrive 6000 series improves fuel economy by over 40% and significantly reduces emissions. After completing vigorous durability testing in 2015, the PowerDrive 6000 received government certification. In 2016, the PowerDrive 6000 PHEV drivetrain system achieved one million miles in a commercial fleet setting of commercial buses. The buses consistently navigated urban roads, highways, and mountainous regions with the same power and control as fuel and diesel powered vehicles all while drastically improving air quality.
To learn more about the EDI bus initiative read the full release.
Demand for Better Air Quality in China Grows
Due to heavy smog levels in over 60 cities across China and growing demand for air quality improvement, Beijing acting Mayor Cai Qi recently announced that they will spend 18.2 billion yuan ($2.6 billion) in 2017 to remove deadly smog and improve air quality. This includes significantly reducing Beijing's main pollutant, PM2.5, to a density of 60 micrograms per cubic meter this year.
To achieve this, the government aims to cut coal use by 30 percent in 2017. Over 2500 high pollution emitting factories will either be upgraded or closed. Additionally, the government will phase out approximately 300,000 inefficient vehicles and ban other high pollution vehicles from entering Beijing. The 18.2 billion yuan will also fund the transition from coal burning to clean energy in over 700 villages across China.
Cities in China issue different health alerts depending on pollution levels. When the highest red alert is issued, cities can shutdown factories, cancel flights, and close schools and businesses. Despite these mandatory government shutdowns, the government often has a difficult time enforcing compliance. This is because China’s economy relies largely on the production of goods, so most factories ignore the required closures due to pressure to stay on schedule and meet production demand. In order to combat noncompliance of government regulations and bans, officials in Beijing have announced the formation of a new environmental police squad. This police squad will implement the anti-pollution regulations necessary to cut deadly smog and improve air quality in China.