Tag Archive | "Electric Vehicles"

ELECTRIC VEHICLES VS THE AFTERMARKET

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ELECTRIC VEHICLES VS THE AFTERMARKET


What challenges does the lubricant industry face? With impending bans on traditional vehicles and increasing market share of EVs

At the end of last year, the UK media reported a sixth month consecutive decline in sales of diesel cars. UK Government’s uncertainty about how to treat vehicles once classed as ‘the green option’ has led to consumer caution about buying cars that might be subject to higher taxation in future.

In July 2017, the UK Government declared that from 2040, sale of motor vehicles powered with internal combustion engines, petrol or diesel, would be banned. This followed similar announcements made by the French Government earlier that year. Even Original Equipment Manufacturers (OEMs) followed suit with Volvo and more recently Jaguar Land-Rover announcing the end of petrol and diesel car sales from 2019 and 2020 respectively.

The impact on the automotive sector, its fuel and lubricant sales, as electric vehicle sales increase cannot be underestimated.

Barclays’ analysts reported that if electric cars with greater efficiency increased to one third of the current automotive sector, this would cut global oil consumption by 3.5 million barrels a day by 2025. This is roughly the equivalent of Iran’s current supply of oil at 3.8 million barrels a day that is the Organisation of Exporting Petroleum Countries (OPEC)‘s third largest member.

Globally, demand for oil is still growing. In their 2017 outlook OPEC signalled that the medium-term demand for oil for the period 2016–2022 would increase by 6.9 million barrels a day, rising from 95.4 million barrels in 2016 to around 102.3 million barrels a day by 2022. Developing countries are expected to account for the majority of this increase, with demand expected to increase here by 43.2 million barrels a day in 2016 to 49.6 million barrels a day by 2022.

A cut in automotive demand for oil would effectively wipe out half the expected increase in global oil demand by 2022. But globally, the demand for oil would still increase.

Transportation is expected to remain the largest consumer of oil products, both fuel and lubricants, well into 2040. Much of the sector faces weak competition from alternate sources of fuel and lubricants although improved efficiencies, the rise of hybrid or electric vehicles and a tightening of energy policies will help to decelerate increases in the demand for oil from this sector.

WHAT IS ALLOWED?
Details of the French and UK Governments’ decision to ban conventional internal combustion engine vehicles is still vague. Will hybrid vehicles still be allowed? What about heavy goods vehicles or diesel powered public vehicles such as taxis? Some analysts believe that Governments might have kicked an emissions issue aligned to poor air quality into the long grass. The UK faced with the prospect of fines by the European Union over the quality of its air in cities, needed to be seen to be doing something positive about the issue.

Today’s vehicles are cleaner and leaner than those of ten or twenty years ago. Exhaust after treatment devices, both catalytic converters and diesel particulate filters, have removed many post-combustion harmful gases. Car scrappage schemes promoted by both Government and car manufacturers have incentivised owners to replace ageing vehicles with more modern cars. Changes to car taxation duties reward cars with lower emissions.

Electric cars might not be the panacea for everyone. Limited battery range and the high cost of lithium power cells means that extended ranges between charges of 300 miles or more are not yet a reality. As local town run-arounds or shopper cars, electric vehicles provide a viable alternative to conventional vehicles for journeys typified by short local stops. For longer commuter journeys then electric vehicles alone do not currently provide a realistic solution in the absence of a national and comprehensive electric charging network.

Much needed investment in electric charging stations along major motorway routes and trunk roads still remains in short supply. The Petrol Retailers Association (PRA) gave evidence to UK Government’s Automated and Electric Vehicles Bill Committee in November arguing against proposals to mandate electric vehicle charge points in petrol stations and motorway service areas. Although subsidies exist for domestic installation, the Bill proposes that a larger commercial network of charging points would be paid for by fuel retailers who would, by implication, pass the charges back to motorists. Government would not fund such a scheme.

REQUIREMENTS
In terms of engine oil and lubrication requirements, hybrid vehicles act in a slightly different manner to more conventional vehicles. A distinguishing feature of hybrid electric vehicle is that the conventional engine switches off when the power available from the electrical cell exceeds that needed to propel the vehicle. This results in lower operating temperatures and higher stress during stop/start for the conventional engine, which could lead to increased sludge and varnish than that of conventional engines.

What of service intervals? In the UK, service intervals of 12,000 miles are usually expected by motorists. In America, some dealers are claiming that hybrid vehicles require oil changes every 5,000 miles or 10,000 miles if using a synthetic, more typical of conventional cars sold in that country. The move to lower viscosity oils could also confuse matters if a motorist has been used to using a 5w30 engine oil in their hybrid ten years ago and today the same, but newer, model of their much-loved car requires a lower viscosity lubricant of 0w20 or less.

For the aftermarket, although electric cars might prove a challenge today, a hybrid car is a more popular and obvious choice for motorists. They provide the assurance of extended ranges for longer journeys similar to that of conventional vehicles, with the benefit of lower emissions under town centre driving conditions.

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MAINTAINING A PROFESSIONAL STANDARD

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MAINTAINING A PROFESSIONAL STANDARD


Garage owner Graham Gent invites CAT up to MOT-A-CAR in Sittingbourne, Kent

As the festive season approaches, most workshops will be embracing the spirit of Christmas by means of winter health checks as well as changing batteries, bulbs and wiper blades – all of which are things that boom in the colder months.

Although this is a buoyant time for garages, one business in particular has been busier than normal. Sittingbourne-based MOT-A-CAR was our
destination today, where the team have been working tirelessly to get their new Van Shop up and running.

VAN SHOP
Launched a month earlier, the new unit has allready attracted leasing companies, that have started booking in their van fleets. for servicing. Garage Owner Graham Gent explained: “We have always serviced vans, but we felt a need to separate the units we currently have.”

“We do everything in here from motorcycle testing to mini buses classes one, two, three, four, five and seven”. He adds that wife and business partner Claire, deals with the marketing aspect of the firm, using her expertise to spread awareness of its latest addition through the company’s website and social media platforms.

UNITS AND SERVICES
As Gent already touched on, the business contains several units that all serve a different purpose. Apart from the newcomer, a Tyre Shop with a class four MOT bay occupies the site, alongside the main workshop space – used for servicing a mishmash of vehicles from farmers Land Rovers to high-end, executive cars. The workshop also contains a reception area featuring oils and additives from the likes of Forte and Mobil, that were stacked along counter display stands on our arrival.

Besides general MOT repairs, there are plenty of services in the company’s itinerary, as Gent brings to our attention, “We’ve got a total of four vehicles that go out for car collections and deliveries”. When asked what areas are covered, he said: “We travel anywhere in Swale from the Medway towns to Maidstone and Canterbury. We have been further afield, but the difficulty is time out of the workshop, so we have to monitor this accordingly,” adding that a vehicle recovery process is also provided by the firm, which would explain the large pick-up truck parked outside the premises.

BUSINESS GROWTH
The company’s expansion over the years comes down to several factors. However, Gent says the main one is the team’s work ethic, something that has been difficult to identify when recruiting potential candidates prior. “The biggest challenge has been employing staff”, Gent recalls, “Many people coming into the trade aren’t as driven as they should be. They don’t see it as a profession but rather as a job, and unfortunately, there’s too many kids coming out of college that don’t seem motivated.”

The owner plans workshop expansion

Teething troubles aside, the business employs seven technicians bringing experience from fast-fits, independent garages and dealerships up and down the country. Gent himself is a Master Technician who began his training as a young man at a nearby Ford Dealer. He later moved on to manage a workshop at a local Renault dealership, before opening the business with wife Claire 15 years ago.

Gent mentions that the team have ‘tapped into the data and report side of its Garage Data System (GDS)’, thus enabling them to exploit further sales and margin opportunities. This internal programme has proved a necessary asset with the garage reporting an annual turnover of £500,000 last year.

CONNECTED FUTURE
While talks in the aftermarket revolve back to connected cars, Gent is aware of this technology and how it may impact business in the foreseeable future. With that said, he is in the midst of putting infrastructure in place to safeguard the company. This will involve investing in another unit on-site for repairing electric and hybrid vehicles, as well as acquiring some charge points and an electric vehicle bay.

Of course, training on these systems is fundamental, but Gent seems to have this under control as he prepares to enrol staff onto relevant courses next year. He concluded: “We have to balance courses with our technicians’ levels and experience. It’s about finding the right place and training provider. We also want to buy a few more workshops to expand our brand, but again, it’s all about finding the correct location.” We look forward to visiting Gent’s new sites in the near future.

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INDUSTRY REACTS TO ‘END OF INTERNAL COMBUSTION ENGINE’ ANNOUNCEMENT

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INDUSTRY REACTS TO ‘END OF INTERNAL COMBUSTION ENGINE’ ANNOUNCEMENT


IMI Chief Exec Steve Nash

The government has announced that it won’t permit the registration of petrol and diesel light vehicles from 2040, effectively ending the age of the internal combustion engine.

Existing vehicles will continue to be re-licenced for an unspecified period, but there is no doubt that the writing is finally on the wall for both cars and the way of business as we know it.

Pressure group Fair Fuel UK were one of the first to react. “So by 2040 no fuel stations, no garage repairs, no car parts suppliers and 15m diesels scrapped. The cost will be trillions” said Quentin Wilson, who is acting as lead spokesman for the group. Group Founder Howard Cox echoed the sentiment by saying: ““We have practical proven ways to reduce emissions available now. Why has Michael Gove ignored these in favour of a draconian policy that will hit small businesses and low-income families the hardest. The energy supply infrastructure and the National Grid will disintegrate in a breakneck move to nascent electric technology which will guarantee to cripple the economy.”

Engineering consultancy firm Ricardo chose the day of the announcement to launch its Global Automotive Group, which it says has a focus only on electric and autonomous powertrains. Mike Garrett, COO at the firm will head up the new division. He said: “We are ready both to help our customers with the most exacting challenges they face today, as well as helping them prepare for the cleaner, more electrified, technology-rich future”.

Perhaps understandably, a lot of talk was generated about scrappage schemes, even though Environment Secretary Michael Gove all but ruled out the idea for any such scheme on Radio Four’s Today programme.

“Whilst we are waiting for the details of the diesel scrappage scheme, we understand that it will have a 10 year limit”, explained Steve Nash, CEO of the IMI. “This means it will basically cover mainly Euro three emission standard and older. However, Euro four for diesel was introduced in January 2006 and remained in force up to January 2011. There will be a huge number of Euro four and five cars on the road as those standards ran though the peak registration years, especially Euro five which covered the period from January 2011 to September 2015. None of these cars have the Adblue (Urea) treatment introduced with Euro six which significantly reduces the NOx emissions which are now the main cause of concern regarding air quality”.

Nash also noted that a study conducted by his organisation found that insurance for alternative fuel vehicles can be 50 percent higher than for petrol or diesel equivalents and warns these won’t become more competitive until more people are qualified to work on them.

Currently only one percent of all technicians have been trained to work safely on the high-voltage technology, of which almost all of them work exclusively for manufacturers franchised dealers.

“The IMI is continuing its campaign for the introduction of a licensing scheme for those working on the high voltage vehicles, and we’ve asked the government to contribute £30m to support the uptake of the necessary training”, added Steve Nash. “In order to facilitate this and help clarify the competencies required for working on these vehicles, the IMI has launched a new Electric & Hybrid Vehicle qualification along with the appropriate support materials” he said.

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