EV World Fall 2023 by Annex Business Media

FALL 2023

UNDER DEVELOPMENT EXPERT JAMES CARTER OFFERS HIS INSIGHT INTO THE DEVELOPING EV MARKET

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 HOW TO ELECTRIFY YOUR FLEET  THE CHEMISTRY BEHIND EV FIRES Canada Post Publications Mail Agreement No. 43734062

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CONTENTS FALL 2023 • Volume 1, No. 2

Features

Columns

COVER FEATURE

The developing EV market

The EV market is quickly developing. Industry expert James Carter sat down with us to talk about the future, challenges, opportunities and battling “negative hyperbole”

Service Notes

Technical Training

Seizing an opportunity

Chemical reaction

20 FLEET INSIGHTS

Electrifying your fleet

Whether a jobber wants to electrify their fleet or a shop’s customer is looking for advice, here’s a guide to making the transition

Departments

Letters

News

Numbers

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FALL 2023

Read Your Copy TODAY!

Visit:

www.AutoServiceWorld.com

SERVICE NOTES

Publisher | Peter Bulmer

(585) 653-6768 peter@turnkey.media

SEIZING AN OPPORTUNITY

Managing Editor | Adam Malik

(647) 988-3800 adam@turnkey.media Contributing Writers | Greg Aguilera,

John Burkhauser, John Enemark Creative Director | Samantha Jackson Video / Audio Engineer | David Mayers Sales | Peter Bulmer, (585) 653-6768 peter@turnkey.media

Delon Rashid, (416) 459-0063 delon@turnkey.media Production and Circulation |

Delon Rashid, (416) 459-0063 delon@turnkey.media

EV World magazine is published by Turnkey Media Solutions Inc. All rights reserved. Printed in Canada. The contents of this publication may not be reproduced or transmitted in any form, either in part or full, including photocopying and recording, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior consent. Canada Post Canadian Publications Mail Sales Product Agreement No. 43734062 “Return Postage Guaranteed” Send change of address notices, undeliverable copies and subscription orders to: Circulation Dept., CARS magazine, 48 Lumsden Crescent, Whitby, ON, L1R 1G5 CARS magazine (ISSN# 2368-9129) is published six times per year by Turnkey Media Solutions Inc., 48 Lumsden Crescent, Whitby, ON, L1R 1G5 From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us.

President & Managing Partner | Delon Rashid Head of Sales & Managing Partner | Peter Bulmer Corporate Office

48 Lumsden Crescent, Whitby, ON, L1R 1G5

ISSN 2368-9129 Online 2368-9137

here may be an incredible opportunity for the automotive aftermarket to steal business from right under the dealers’ noses — and turn the tables on them as they try to steal more aftermarket business. Dealers, feeling the pinch over the lack of new car sales and the ripple effect of fewer new-to-five vehicles overall, are shifting their strategy to an “all-makes, all-years” approach, according to Lang Marketing. They’re seeing the aftermarket benefit from so many older vehicles that they want to take a bigger share of the pie. While this is happening, they’re selling more and more zero emission vehicles every quarter — 10.5 per cent of new vehicle registrations in Q2 2023 were either battery or plug-in hybrid electric vehicles. Add in the nearly 11 per cent that were hybrid and the share of internal combustion engines has now dropped below 80 per cent of sales. And dealers are generally the default option for new vehicles, no matter how it’s powered. But they’re not off to a good start with EVs. Owners are frustrated at the service quality of the dealer. According to J.D. Power, EV owners are less satisfied with their service experience than those driving internal combustion engines. They’re not confident in their dealer’s service advisor or technician to work on their vehicle. The owners feel they know more about their vehicles than the folks who sold it to them. Automakers have admitted their sales staff aren’t as knowledgeable as they’d like. The dealer’s position is understandable. They’re facing a talent shortage and a mountain of knowledge to develop. So, customer service levels can be hit or miss — and there have been more misses than customers would like. Sounds familiar, right? So what’s the aftermarket doing? Many are being “busy shopkeepers.” They’re focusing on the daily tasks. A minority of owners are getting out ahead — and turning the tables on the dealers. In other words: With customers lacking confidence in their dealer, few in the aftermarket are proving themselves to be a viable alternative. The dealers and aftermarket are basically at the same starting point. Each has a limited understanding of electrics. Right to repair issues aside, this is an opportunity for the aftermarket to get a leg up on the competition. By investing in EV training and making investments in the shop to be EV-welcoming, the industry can, at the very least, stay in lockstep or even leapfrog dealers. Absolutely, there aren’t enough EVs on roads today to make deep investments. But S&P Global Mobility expects ZEVs to account for almost a quarter of all new cars by 2025. That’s not very far away. So the choice is there to be made: Either let the dealers take the lead and gain those customers as they simultaneously try to infringe on your sweet spot; or beat them to the punch, gain the knowledge and expertise and show consumers you’re indeed the better choice to service their EV and gain even more long term customers.

Adam Malik Managing Editor, CARS

Let me know what you think. You can reach me at adam@turnkey.media

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FALL 2023

LETTERS

on your mind? We want to hear from you about anything you read in EV World magazine. Send your email to adam@turnkey.media ‘WHAT ARE YOU AFRAID OF’ WITH EVS, LEADER ASKS

WHY ELECTRIC AND NOT OTHER TECHNOLOGIES?

I have no problem adapting my shop to work on full EV vehicles in the future. I look forward to maintaining and repairing all the chassis components and accessories of these vehicles. What I am not going to do is invest a lot of time and money to diagnose and repair high-voltage systems out of the gate because the dealerships will have to go through the learning curve first. Once these high voltage problems start entering the aftermarket, chances are it will be vehicle replacement. ICE vehicles are already being prematurely replaced with catastrophic running gear problems. ICE vehicles have improved emissions dramatically and could continue to dramatically improve by reducing engine and vehicle sizes.

At the turn of the last century when the automobile was first invented, multiple forms of power were introduced concurrently. What developed were the technologies that made sense for the applications. It has never worked when change is legislated. There are too many applications where electric simply won’t work without negative economic impacts. Let technology develop the future.

The government knows the technician shortage issue is going to be a huge hurdle to make EV legislation even slightly possible. The government now is trying to get the next generation interested in high-tech automotive jobs. That’s fine, but if an industry is very technical and complicated you have to pay properly to attract people to come aboard. EVs definitely have a place in our society. Just not for 100% of the average consumer that the manufacturers are relying on. Rob Nurse, Bob Nurse Motors

CANADIANS COOL DOWN ON BEVS Another reason is the number of recalls on these vehicles. With some of the recalls the vehicle owners are advised not to charge them or park within a specified distance from buildings. This renders them useless. The consumer confidence level is failing as a result. I feel this is a result of bringing these EVs to market too quickly. Bob Ward, The Auto Guys

WHERE DOES CANADA SIT ON THE GLOBAL EV SPECTRUM? No mention of Ontario and our focus on manufacturing yet we still have astronomical EV sticker prices. So the intent is there, but without incentives (rebates or lower prices) then sales of EVs will remain stagnant. Bob McTague, reader 6 FALL 2023

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Kim Stankiewicz, Performance Initiatives

WHAT WILL HAPPEN TO ICE SUPPLIERS IN AN EV WORLD? The cart has been put light years in front of the horse on this issue. The resources don’t exist to make this switch. The life cycle of manufacturing these vehicles to end of life is a carbon footprint not dissimilar to that of an ICE vehicle, not to mention the amount of forced labour involved with the mining of the materials. The range of electric cars in cold weather is an issue for most of Canada geographically, not just the far north. I personally still believe there is a reckoning coming for these mandates. Politicians are acting like the industry has this all sorted out, when in fact they don’t – but they need to pretend they do to appease the shareholders and to qualify for government subsidies needed keep this unsustainable, dystopian dream alive. Geoff Walton, Grant Street Garage

BC HYDRO WANTS TO RAISE EV CHARGING FEES Folks, we really need to stop expecting handouts and incentives. If we are unable to have a home charger installed because the home charger rebate ended perhaps we should not purchase an EV. Energy costs money; if we use it we should pay for it ourselves. Why should BC Hydro absorb most of the cost for us to charge our car? Don’t be fooled, BC Hydro will not simply write off the loss of revenue by discounting their product. Others will have to pay for it who don’t even use it. ICE vehicle users pay for fuel and the carbon tax on top of the fuel cost. I do agree that charges should be based on the kilowatt hour. We need to be able to calculate what the true cost of EV ownership will be. G. Cranley, reader

NEWS

CANADIANS’ ENTHUSIASM FOR BATTERY ELECTRICS DROPS, HYBRIDS RISE CANADIANS ARE NOT as excited about battery electric vehicles

as they once were, according to a new report from J.D. Power. But, as other reports show, hybrids are still very much an option. Range, cost and infrastructure were cited as top reasons why nearly 4,500 Canadians who responded to the survey are shying away from battery electrics, according to the second annual J.D. Power Canada Electric Vehicle Consideration (EVC) Study. Compared to last year, there was a 13-point decline year-over-year in the likelihood to buy a BEV. So while a year ago nearly half (47 per cent) of Canadians were either likely to consider a fully electric vehicle, that number is now at about a third (34 per cent). “EV consideration has gone down in this country and that is in opposition to the U.S. where EV consideration has ticked up slightly year-over-year,” said J.D. Ney, director of the automotive practice at J.D. Power Canada, during a webinar discussing the results. “So the gap that we reported last year between Canadians and Americans when it comes to the likeliness for them to consider an electric vehicle, that gap is actually widened a little bit in the intervening 12 months.” Other findings have backed this up. First-quarter data from S&P Global Mobility showed that BEV sales dropped from 8.4 per cent in the last quarter of 2022 to 6.9 per cent in Q1 2023. In the second quarter, that number rebounded to 7.8 per cent. However, hybrids continue to pick up steam. These vehicles jumped from 7.1 per cent in Q4 2022 to 8.7 per cent in Q1 2023 and then to 10.9 per cent in the last quarter. Plug-in hybrids are also seeing a continued increase, going from 1.8 per cent to 2.2 per cent and are now at 2.7 per cent. S&P defines zero emission vehicles as electrics or plug-ins — that puts the total number of new ZEV registrations (10.5 per cent) at the highest it’s ever been. “The main reason behind it is weather,” explained Guido Vildozo, senior manager of Americas light vehicles sales forecasting at S&P

Global Mobility during the AIA Canada National Conference. He was talking in the context of Canadians preference trending towards hybrids and not the first-quarter data results. “We know that there’s an infrastructure challenge up north; 5 per cent of the population is in the northern territories [and] in the Prairies. Battery performance is not the same in this kind of weather.” Indeed, cold weather concerns are one of the top reasons (48 per cent) why Canadians are wary of going with an EV for their next vehicles, J.D. Power reported. In the U.S., the weather is a factor for just 20 per cent. “Obviously that makes geographic sense,” Ney said. “It tends to get a little bit cold in this country, compared to, say, owning an EV in Arizona, but it’s a fairly stark difference and a good reminder that there are some legitimate logistical and temperate concerns in terms of electrifying one’s transportation in this country. Cost is also a significant concern with interest rates significantly increasing compared to a year ago. “And so I think that has fundamentally changed the buying decisions, or at least the buying confidence of a lot of consumers,” Ney said. And the price gap between an electric SUV and its ICE version can be $20,000, he added, which plays a role in decision-making. “So it’s not surprising, to us anyway, when we take a look at overall consideration that given the interest rate realities of today and just everything up to and including affordability of housing, that’s going to have an impact,” Ney said. Relatedly, as household wealth increases, so too does the likelihood that one will consider an EV. Four in five (81 per cent) of households making $200,000 said they own or could install chargers. On the other end, 48 per cent of households under $100,000 said so. Access to home charging eliminates a lot of barriers for people, Ney noted. Furthermore, the likelihood to purchase increased with household wealth — 42 per cent of households making $200,000 said they were while 31 per cent of those under $50,000 were not.

FORD BUILDING NEW BATTERY PLANT IN QUEBEC A NEW ELECTRIC VEHICLE battery plant is coming to Quebec

from Ford and its South Korean partners. The $1.2 billion manufacturing plant will be built with the help of government funding. The Quebec and federal governments are covering about half the cost, each putting up $322 million. The 280,000-square-metre site in Becancour, Quebec is Ford’s first investment in the province, the company said, and that it will help build the regional electric vehicle ecosystem. “We're excited to invest in this new facility to create a vertically integrated, closed-loop battery manufacturing supply chain in North America,'' said Ford of Canada president and CEO Bev Goodman. Once operation in 2026, the facility will create 345 jobs once it's operational in 2026. w w w. a u t o s e r v i c e w o r l d . c o m

FALL 2023

NEWS

HOW CANADA’S EV INTERESTS HAVE CHANGED CANADIANS ARE STILL showing increased interest in

alternative-powered vehicles, be they battery electric, hybrid or plugin hybrid. EY Canada’s Mobility Consumer Index found that drivers here are showing more interest in an electric option compared to last year. More than half (52 per cent) of those planning to buy a car said they’ll choose an EV option of some kind, up six points from 2022. However, Canada sits below the global average of 55 per cent but ahead of U.S. (48 per cent). Regionally, there are differences. Those in Ontario (59 per cent) and Atlantic Canada (58 per cent) showed the most interest in purchasing an EV, while Alberta (40 per cent) and Quebec (43 per cent) expressed the least. That’s different from last year when BC (54 per cent) and Quebec (51 per cent) were most interested in purchasing an and the Prairies were least (25 per cent).

the Detroit-based automaker adopt Tesla chargers on its electric vehicles, making them accessible to Tesla’s network. It’s a move that surprised many industry analysts who have noted Tesla’s preference to operate in its own bubble and ignore attempts to standardize the industry in areas such as chargers. CEOs from both companies announced that future Ford EVs — such as the Mach-E and Lightning — will incorporate the Tesla connector from 2025. Current Ford EV owners in Canada and the U.S. will be able to access 12,000 Superchargers starting in the spring of next year via a CCS-to-Tesla connector. The move gives Ford access to Tesla’s own network of charging infrastructure, giving it a market advantage over other automakers that are only able to rely on public infrastructure. In return, Tesla will keep a large portion of revenue from the charging stations.

MAZDA KILLS OFF EV IN U.S., BUT IT LIVES ON IN CANADA AN INCREASING NUMBER of battery electric vehicles are being serviced at dealerships, leading to a decrease in overall customer service satisfaction, a study recently found. The Mazda MX-30 electric vehicle has been killed off in U.S., but will live on, for now, in Canada. No new models will be available in the U.S. after the 2023 model but Canadian can expect to see 2024 options in showrooms for 2024. The MX-30 is Mazda’s only electric offering at the moment. The company will be redirecting resources to hybrids and plug-in hybrids. The MX-30 didn’t carry much in terms of range, only offering a max of 161 km on a single charge with a price tag of more than $42,000 in Canada. By comparison, the Hyundai Kona EV for the same price gives you a top out of 415 km in range. Oddly, range would be further diminished in this part of the world as opposed to the U.S. where part of the country doesn’t see the type of cold weather northern Canada would. “In Canada, we can confirm the MX-30 will be on sale for the 2024 model year,” said Mazda Canada’s public relations manager Chuck Reimer. “More details on this model will be shared at a later date closer to on sale timing this winter."

FORD TO USE TESLA’S EV CHARGING NETWORK FORD AND TESLA HAVE agreed on a partnership that will see 8 FALL 2023

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WHERE FORD WANTS TO PUT A BACK UP BATTERY COMMON CONSUMER complaints about electric vehicles seem to go by the wayside after purchase, a study has found. A backup battery pack on an electric vehicle’s roof? That could be the case soon after Ford applied for a patent for such a contraption. According to the patent, the pack looks like something you would see being carried on a roof rack of a vehicle. The move comes as range anxiety and concerns around charging infrastructure scare off consumers, particularly those in Canada. The proposed backup battery pack would sit on the car’s roof. It would give drivers extra battery power if or when needed. Ideally, this would reduce concerns about range and provide drivers with extra power so they can make it to the nearest charging station. The pack doesn’t need to be permanent. The patent suggests that the roof-resting addition could be “rented or leased prior to an offroading trip.” Apart from being removable, the battery packs would also be compatible with multiple EV models. Of course, this raises questions around weight. Battery packs

already add about 1,000 pounds, if not more, to vehicles. So how much would this backup weigh and how would the driver install the pack on their roof? Car and Driver speculated that Ford may go opt for a smaller capacity battery pack. It noted that “the original Prius plug-in hybrid’s 4.4-kWh battery hit the scales at a manufacturer-claimed 176 pounds.”

GROUP TESTS LOSS OF RANGE OF ELECTRICS WITH HEAVY PAYLOAD ELECTRIC VEHICLES CARRYING close to their maximum

HOW ELECTRICS ARE BECOMING MORE AFFORDABLE A NEW REPORT IS highlighting the continuing affordability of

electric vehicles in addition to the fact that running costs remain stable when compared to internal combustion engine vehicles. The Zero Emission Transportation Association (ZETA) released a report showing that EVs continue to be more affordable for drivers. It also highlighted that EVs are more price stable when looking at cost to operate as gasoline prices have fluctuated greatly for more than a year while the cost per kilowatt-hour of electricity has remained stable. In other words, electricity is more insulated from price fluctuations compared to gas-powered vehicles, noted Albert Gore, executive director of ZETA. “Ensuring that [families] can travel affordably requires better protection from fluctuating oil prices. Electric vehicles provide that protection.” EVs, the group highlighted, operate independently of global oil and gas markets, making their operating costs not subject to fossil fuel price shocks, disruptions and supply shortages. It also noted that driving an EV can be 4.5 times cheaper than a gas-powered vehicle. “EVs are markedly cheaper to drive per mile — and experience far greater price stability — than gas-powered vehicles,” ZETA’s report synopsis said.

payload could lose a quarter of their range, according to tests done by the American Automobile Association. Researchers from the group tested the Ford F-150 Lightning to determine the impact of payload on range. It loaded 1,400 lbs of sandbags into the truck, 110 lbs short of its maximum capacity. The results showed the Lightning’s range dropped from 278 miles (447 km) to 210 miles (338 km) — a loss of 24.5% of its range. “Our testing revealed a significant range reduction, but it’s important to note that the Lightning was loaded to near its maximum capacity,” said Greg Brannon, director of AAA Automotive Engineering. “Most buyers will likely use their Lightning with a lighter load, resulting in a much smaller range reduction.” The group acknowledged that range — be it electric or gas — will be reduced when so much weight is added to the vehicle. It also noted that the Lightning does have less expected range than its ICE version, which can get more than 500 miles (800 km) per tank with no load. It didn’t provide how its range was affected with a nearly maxed-out payload. However, the U.S. Environmental Protection Agency estimates that adding 100 pounds to a vehicle reduces its average fuel economy by around 1 per cent — so a 14 per cent loss in fuel economy when hauling a 1,400-lb load. “Buyers concerned about EV range should consider the driving they will be doing and choose the right vehicle for their needs,” AAA’s statement said. “The difference, for now, is that it is easier to gas and go than stop and charge.” Another key to remember is highway versus city driving — ICE vehicles have better range on the former while EVs are better in the latter due to regenerative braking from more frequent stops. This process captures the energy from braking and converts it into electrical power that charges the vehicle’s high-voltage battery. This electricity can then be stored in the car’s battery or power other electrical components.” w w w. a u t o s e r v i c e w o r l d . c o m

FALL 2023

COVER FEATURE

James Carter, principal consultant of Vision Mobility, speaks at this summer's EV & Charging Expo in Toronto

Want more insights? Scan the QR code to listen to the EV World Magazine Enhanced Media segment.

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THE DEVELOPING EV MARKET James Carter is one of the foremost experts on electric vehicles and automotive in general. We sat down with him to get his thoughts on where EVs stand in Canada, attitudes towards the technology, combating “negative hyperbole,” what’s needed for EVs to grow and what it all means for the aftermarket. // By Adam Malik

ames Carter is a big believer in electric vehicles. From the great technology it offers to the reduced emissions and environmental benefits, Carter looks forward to the day when the Canadian car parc — and the global one — are fully electrified. If the Toronto-based principal consultant at Vision Mobility isn’t speaking in front of an audience, he’s sharing the message on LinkedIn. He’s regularly combating myths and pointing out facts that some choose to ignore or are unaware of. For example, he recently mentioned how there was a time when many people couldn’t find a mine they didn’t like. That is, until it came to electric vehicles. Now some people find mining evil and damaging to the environment. “The truth is, we mine vast amounts of minerals every day, and in effect, it drives today’s society,” he said in the post. He sees EVs as the future of mobility. “Buying a combustion vehicle today is like building a horse barn in 1910,” he observed in another post. That doesn’t mean everything is perfect in the world of EVs. Carter also wrote about his experience using a public charger — after some waiting around and trying to figure out what was going on, he learned the charger was out of service. And he was stuck with a bill for attempting to plug in but not receiving any charge. There are real challenges to getting widespread EV adoption. But there are opportunities. EV World sat down with Carter recently to talk about all the issues around vehicle electrification. From charging to

consumer habits to aftermarket implications to “negative hyperbole” from the naysayers, the conversation was wide-ranging. What follows is a condensed version of the conversation, edited for length and clarity. EVW: Is charging still the top consumer issue for EVs? JC: In some ways, yes, infrastructure is the challenge.

But people need to think about their use case scenario. What are they using their car for? How do they use their car? One thing that we do know is that more than 85 per cent of charging is done at home. So making sure that you’ve got good home charging is important. So if you’ve got a single residential home you can park in the driveway, park in your garage, get a charger out there — no problem. I think where it becomes a little bit more stressful is when people have townhouses, they only have street parking or they’re in a condo that doesn’t have charging. And they are issues — they’re real issues that are real barriers to EV ownership.

EVW: Is public charging a viable option for those who can’t do it at home? JC: Basically, there are two worlds out there: If you

own a Tesla, then, frankly, you’re pretty well covered. Don’t worry about it. If you don’t, then it’s a little bit more tricky because we’ve seen things like charger w w w. a u t o s e r v i c e w o r l d . c o m

FALL 2023

I really think it’s important, at least for [the] automotive aftermarket to really jump on this because I think there’s a big opportunity. unreliability, we’ve seen things like lack of speed of charges and lack of amount of charges that are actually out there. (Editor’s note: Since our interview, Ford and GM have signed up with Tesla to use their charging network. Until vehicles are produced with the proper connectors, vehicle owners can use an adapter to charge their Ford and GM vehicles at a Tesla station. Meanwhile, seven automakers announced a partnership to create a unified charging network to challenge Tesla.) EVW: Range is a concern. People say they want to drive long distances without fear of not being able to find a charger. For example, they want to drive to their cottage but don’t feel the range will be enough to get them there or that they can’t charge it at the cottage for the return trip. How does this get alleviated? JC: People need to apply the available range to their actual life

needs. Are they thinking about their commute that’s 40 km per day? Or do they want to make a day trip someplace — and can see there are charging options wherever they want to go? So I think there’s more of an awareness that, actually, electric vehicles really can fit in with people’s lives today. So there’s that change of realization happening. However, some use cases are going to be more tricky, even on light-duty vehicles. If someone’s regularly towing a 30-foot trailer caravan behind their pickup truck, that’s going to be a harder use case. But I think people cite those examples too often, rather than the amount of the actual usage. People will say things like, ‘What if I want to drive to Kapuskasing [a Northern Ontario town more than 800 km away from Toronto]?’ When was the last time you drove to Kapuskasing? ‘Well, you know, you never know, I might’ [is their typical response]. You can still make the drive. It just may take longer when accounting for stops to charge up.

EVW: There have been complaints about EV knowledge on the repair side — both at the dealer and independent aftermarket. Most EVs on the road are still under warranty. But what happens as they move out of that window? JC: I think this part of the industry is still really developing, and 12 F A L L 2 0 2 3

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it’s still early. Shops are just not seeing those people that are coming in simply because there are not many of them out of warranty. But I think you’ll start to see specialist centres develop. I think these things will start to happen. EVW: How much does right to repair fit in all of this? JC: I think that’s one of the questions we have to ask ourselves:

What happens with things like right to repair? Ford, GM and Tesla are notorious for pushing back on things like that. And I think that’s a real question that hasn’t been answered yet and needs to be answered. And, I think, going on from this is the part about over-the-air updates and what’s going to happen with those sorts of things. I think that provides a real challenge for the right to repair cycle. Right to repair is going to be just as important with EVs as it was with ICE. Sure, there’s less maintenance, there’s less repair, there’s less stuff and things that break — we know that — but there are still things that will break. We still know that the batteries will eventually degrade; we still know that they will eventually need some sort of refurbishment or replacement or something. And the aftermarket should be in a position to be able to handle that. This is a really important thing. And really, it’s only been a very narrow thing today. I really think it’s important, at least for [the] automotive aftermarket to really jump on this because I think there’s a big opportunity.

EVW: It’s been said the used EV market will dictate success for the aftermarket. How can the aftermarket prepare? JC: We know that the battery has some sort of degradation

problem. And that happens both on a usage and time basis. So there are two factors: How many kilometres and how old the vehicle is, just like you would look at a used car. So they age by that standard. Once they’re out of warranty, you’re kind of on your own. But you don’t want to replace that $20,000 battery — there’s got to be some way to fix it up or refurbish it or buy a refurbished one to replace it. Just like we see with transmissions or engines — you pull them out, stick a new refurbished one in and that one gets refurbished that goes on to the next car. And I think we’ll see things like this happen.

This is still very much in an early stage. What we have seen though, is some companies start what I would call battery triage. If a vehicle is at the end of its life, there are three basic options: If that battery’s still pretty good, or at least usable, you can use it for a second life that might include on-site energy storage for a large building. The second one would be refurbishment, and the third one would be to chuck it. But you don’t chuck it, you can send it to be recycled because there are a lot of expensive minerals within those batteries. So they’re still worth money. EVW: Responses to electrification stories on EV World’s online portal AutoServiceWorld.com span the spectrum from some positive to a bit of negative. On the negative side, readers have railed against a lack of education, infrastructure costs, lack of interest, they’re being rushed and more. Why is there such a negative response from some?

I think there are a few things to understand. First, remember that it’s still a car. So car stuff still breaks; it still needs maintenance. So I think that’s the first thing.

JC: I think there’s a bit of negative hyperbole there. But I’m not sure

that, typically, new car buyers really think about all of those things. They concern themselves with how much it’s going to cost to buy, to run, do they like the car, is it cool, does it fit their needs and things like that. They’ll ask questions about the battery and battery replacement, and that’s a fairly normal type of conversation. If they’re leasing, then they’re not asking. But from a new car buyer’s side, you see an eight-year, 160,000km warranty attached with that battery. I think the issue for you is what happens once they sell that car, or [it’s the] second or third or the fourth owner and it’s out of warranty, then what happens?

EVW: What advice do you have for the automotive aftermarket in preparation for electric vehicles? JC: I think there are a few things to understand. First, remember

that it’s still a car. So car stuff still breaks; it still needs maintenance. So I think that’s the first thing. The second thing is, understand what your opportunity is within electric vehicles. The big one really is batteries. So think about how you can be part of that triage system as it were — what are the things that can be done with that? I think that’s an important thing. I would say another thing is, start exploring opportunities a little bit beyond what you would traditionally do within your service [offerings]. Customers typically would come in quarterly, or half-yearly for an oil change, and you get to touch base with that customer. So you see how that vehicle’s going, what they need to do — this ain’t going to happen anymore. You’ve got to think about how you keep in touch with that customer. And make sure that you’re somewhat proactive about its maintenance needs as well. And identifying what those maintenance needs are. Identify what really is important with the needs of these vehicles and talk to customers about that. w w w. a u t o s e r v i c e w o r l d . c o m

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FLEETS

FLEET ELECTRIFIC If you’re a jobber looking to electrify your delivery vehicles or are a shop that wants to help fleet customers make the jump to electrification, here’s a guide to making it happen //By Adam Mailk

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CATION

nyone managing a fleet of vehicles has probably had the thought of electrification cross their mind. And it’s a viable idea. Whether it’s a handful of vehicles or dozens, the cost savings on fuel from driving all day long — and if you’re in a major city, fuel wasted sitting in traffic — can be attractive. Bringing this into the perspective of the automotive aftermarket, many jobbers in Canada may find themselves in a good position to move to electrified delivery vehicles. Whether you’re in a large centre or in rural areas where driving distances can be great, financial savings can be found by dropping the internal combustion engine vehicle for an electric one. Furthermore, shops that service fleet customers may be having conversations about going electric. If the shop has EV servicing capabilities, these are probably intriguing discussions. Shop owners can play a key role in helping those customers make the move. But making the switch doesn’t happen by pressing a button. It requires the organization to take on a strategic mindset, like change management, planning and implementation. But there are key questions to ask. Elizabeth Baker a partner with business advisory firm Deloitte spoke about electrifying fleets at this summer’s EV & Charging Expo in Toronto. She advised anyone looking to electrify to ask where their fleet will see the highest emissions reduction. How should you analyze your fleet and optimize it for a new energy source? There are incentives available — how do you make the most of those? This is a “process that demands forethought, planning, and careful investment to succeed,” she advised. Here's a guide based on what Baker recommended.

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FALL 2023

VEHICLE CONSIDERATIONS

Each company has their own unique needs. By analyzing that and usage patterns, leaders can figure out the right EVs and charging infrastructure.

Operational

Current limitations with EVs will require a rethink and redesign of fleet operations, routing and networks. But when thinking about the right vehicle, you will want to think of things beyond just range. For example, extreme temperatures. Are there areas in your network that would be affected by extreme cold? Then there’s charging time — identify the roads that are currently electrified and will eventually see the current technology. If you’re in a more rural area or service a wider geographical area or take routes that require higher power, faster charging can be a prioritization. And there’s payload — what are you carrying, how much of it and how will that impact your range?

Replacement

There are costs and benefits to consider when thinking about replacing versus retrofitting. “Exchanging ICE vehicles for EVs is the most common approach to fleet electrification today, especially when replacing older vehicles and those with the above average repair maintenance compared to their peers,” Baker said.

Retrofit

Fleets can be retrofitted by replacing the existing powertrain, exhaust system and fuel tank with an electric powertrain and battery pack. This option can enable fleet operators to upcycle existing vehicles rather than prematurely dispose of them. But there could be additional safety checks required to retrofit vehicles.

INFRASTRUCTURE

Just as consumers are concerned about a lack of infrastructure, fleet managers are as well. “Charging infrastructure is the most complex aspect of the fleet electrification journey,” Baker said. It will be essential to determine the number of charging stations around you — and not just the ones you need today. Think about your future and growth. Will your facilities or those around you be able to accommodate them? “So this requires a detailed analysis of your electrical power supply and a structural requirement to support the infrastructure,” Baker said. “Close collaboration with utilities is important given those conversations need to be ongoing over time, as well as consideration, are your older vehicles charging overnight, are they sequentially charging through the day?”

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PROCUREMENT

You will need charging hardware onsite but that’s only the start of procurement needs. Consideration will need to be given to software that relies on charging speed specs and communication capabilities. There’s also after-sales service and support. Will you own or lease the equipment? “There are goods and services throughout the procurement chain that need to be thought about and there are options as you go through those chains,” Baker said.

FINANCIAL CONSIDERATIONS

The total cost of ownership is what’s going to drive the business case for a jobber or anyone to electrify. “Batteries are the biggest cost for electric vehicles and EVs that require larger batteries to move large payloads or travel longer distances on a single charge cost significantly more than ICE vehicles today,” Baker pointed out. But if you’re carrying around auto parts that, relatively speaking, don’t weigh very much, the decision might be easier. “EVs that carry lower payloads are travelled shorter distances, like cargo vans, require smaller batteries and can cost just 15 per cent more than an ICE equivalent,” she said. And those costs are expected to come down over time with lower energy, maintenance and capital costs.

CONSTRUCTION

Installing charging infrastructure requires a properly thought-out plan so that your facility can accommodate the electrical and other upgrades needed. Service providers are out there depending on how much assistance you need. “So there's project management support, there's full outsource to turnkey installations and then charging as a service,” according to Baker.

OPERATIONAL CONSIDERATIONS

Swapping out an internal combustion engine for an EV is not a simple task, Baker warned. “Change management and workforce training is required for drivers, loaders, maintenance staff — anybody who's going to be in and around the vehicles and the charging infrastructure. And it's something not to be taken too lightly,” she said. “There's often the thought, 'Well, I'm just replacing an ICE vehicle with an EV.' But the way that people are working and operating around these vehicles needs to change — there are safety policies and procedures that also need to be updated.” There are also cybersecurity concerns. Because these vehicles and chargers will be connected to a network, there needs to be controls and standards in place for your organization. It should be embedded into the installation and not treated as an afterthought. “This is a new potential cyber risk,” Baker said. “And we know many [tech leaders], this is what keeps them up at night. And this is another one that needs to be considered.” Leveraging the data generated will provide insights that Baker calls “a game changer” as EVs will have more data readily available than before. “There needs to be a plan around IT and where that data can be stored and how is that data leveraged how are those reports used, needs to be built into that program as well.”

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FALL 2023

TECHNICAL TRAINING

CHEMICAL REACTION By understanding the chemistry, we better understand the fire risks and how to respond when there’s a fire

attery Electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV) and hybrid electric vehicle (HEV) batteries are at the forefront of modern automotive technology, driving the shift towards sustainable transportation — but do you know how they work? Let’s explore the chemistry, including the risks of fire associated with these portable power plants and help demystify electric battery chemistry and safety. All electric vehicle batteries (generally 200–900-volt DC) rely on advanced chemistry to provide efficient and reliable power sources. The two most used battery chemistries available are lithium-ion (Liion) and nickel-metal hydride (NiMH). Li-ion batteries are becoming more prevalent and are the preferred choice for most electric vehicles and other electronic equipment due to their high energy density, relative lightweight and long cycle life. They consist of a positive electrode (cathode), a negative electrode (anode) and an electrolyte. The cathode typically comprises lithium 18 F A L L 2 0 2 3

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metal oxides, such as lithium cobalt oxide (LiCoO2) or lithium iron phosphate (LiFePO4), while the anode is often made of graphite. The electrolyte, usually a lithium salt in an organic solvent, facilitates the movement of lithium ions between the electrodes during charge and discharge cycles. On the other hand, NiMH batteries which are commonly used in hybrid vehicles are still available and for some manufacturers such as Toyota, were the mainstay for many years. They feature a nickelbased positive electrode, a hydrogen-absorbing negative electrode (usually composed of a metal hydride) and an alkaline electrolyte, such as potassium hydroxide (KOH). NiMH batteries offer good power output, cost-effectiveness and safety, although they have a lower energy density compared to Li-ion batteries. The chemistry behind these batteries revolves around electrochemical reactions. During charging, Li-ion batteries undergo a process called intercalation, where lithium ions move from the cathode to the anode, embedding themselves within the graphite

Manufacturers and regulators provide detailed safe-down instructions. But remember: The damaged vehicle may no longer look like it does in the manual. structure. Discharging reverses this process, allowing the lithium ions to migrate back to the cathode, producing an electric current in the process. Similarly, NiMH batteries operate based on electrochemical redox reactions. Charging involves the oxidation of the nickel-based positive electrode and the reduction of the hydrogen-absorbing negative electrode, which absorbs and releases hydrogen ions. During discharge, the reverse reactions occur, releasing the stored energy. Both battery chemistries require sophisticated control systems to ensure safe and efficient operation. Factors such as temperature, voltage limits and charging rates must be carefully regulated to maximize battery performance, longevity and safety. All electric vehicle batteries store a significant amount of energy. Li-ion batteries can experience thermal runaway — a rapid, uncontrolled increase in temperature that can cause fires with extreme temperatures. Electric vehicle battery fires can reach over 2,000 degrees Celsius — most common metals, including steel, begin to melt at just over 1,200 degrees Celsius, to give some perspective. While modern battery management systems have improved safety measures, incidents can still occur, especially in high-impact collisions or when the battery is damaged. In addition, the chemicals used in electric vehicle batteries can pose hazards if mishandled or exposed. Li-ion batteries contain flammable electrolytes that can release toxic gases such as fluoride gas. To mitigate these dangers, manufacturers implement safety features, such as thermal management systems, robust battery enclosures and sophisticated battery management systems. These electronic systems play a crucial role in managing power distribution — “controlling the chemistry” if you will — while also monitoring vehicle performance and controlling drivetrain components. But what happens when the vehicle does catch fire? When encountering an electric vehicle fire, the first step is to prioritize safety. Contact local emergency services immediately, isolate the vehicle, if possible, and provide accurate details about the location and the type of vehicle involved. If possible, evacuate the area to ensure the safety of nearby bystanders. Training and knowledge are key here. Manufacturers and regulators provide detailed safe-down instructions. But remember: The damaged vehicle may no longer look like it does in the manual. First and secondary responders or anyone handling, maintaining or transporting electric vehicles should undergo specialized training on handling electric vehicles and the potential for fires. This training should cover the unique properties of electric vehicle batteries and the proper methods for extinguishing such fires.

Several factors are at play. Most electric vehicle fires have thermal runaway potential as well as a flammable liquid electrolyte. Although foam and dry chemical methods are sometimes recommended, the National Fire Protection Agency in the U.S., which guides both American and Canadian approaches, recommends water — and lots of it. Water can be used to cool the battery and suppress thermal runaway, which, again, is the uncontrolled increase in temperature that leads to advancement of the fire or even explosions. It can take over 30,000 litres of water to cool and extinguish an electric vehicle fire. Applying water mist or fine water spray is more effective than a direct stream to avoid spreading hazardous chemicals. However, it’s not recommended to use a high-pressure water stream as it might damage the battery casing and escalate the situation. Li-ion batteries are prone to flare ups especially if moved and can burn for days so how the vehicle is transported or stored afterwards needs to be considered. Chemical and foam fire suppressants are being developed as well as the use of fireboxes, cement or metal enclosures that would be effective in suppressing, isolating and controlling electric vehicle fires. Infrastructure both on our highways and where charging areas are being installed needs to consider these issues at the planning stages. The use of bunker areas or dedicated charging areas that are isolated and open are important. Our recommendation to fleet operators or sites storing these vehicles or their batteries is to isolate them. Addressing electric vehicle fires in North America and Europe requires a comprehensive approach that will include well-trained first responders, awareness campaigns, specialized personal protective equipment and the right fire isolation or suppression techniques. Today, these occurrences are isolated. But as we see more vehicles, especially those in fleet or urban environments where the potential of larger fire catastrophes could occur, more collaborative fire safety protocols for electric vehicle fires should be developed between automotive manufacturers, government regulators and emergency service agencies, including the design of highway and parking areas. By following these guidelines and fostering collaborative efforts, we can effectively mitigate the risks associated with electric vehicle fires and ensure the safety of communities embracing electric mobility. Originally trained as a chemist, David Mayers is chief executive officer at Environmental Motorworks, an innovative services company centred on providing hands-on EV and hybrid training to technicians and fleet operators in the automotive and heavy equipment sectors. w w w. a u t o s e r v i c e w o r l d . c o m

FALL 2023

By The Numbers

Stats that put the North American automotive aftermarket into perspective

34% 54% Canadians’ likelihood to buy a battery electric vehicle dropped 13 percentage points in 2023. Range, cost and infrastructure topped the reasons for the drop J.D. Power Canada

A majority of Canadians plan to buy a hybrid or electric vehicle as their next car. That’s similar to figures shown one year ago. Turo

QUÉBEC CITY

KALAMAZOO WEST VIRGINIA

VIRGINIA MISSOURI

KENTUCKY NORTH CAROLINA

1,400km An EV charging station corridor will see stations every 80 kilometres along highways from Kalamazoo, Michigan to Quebec City

TENNESSEE

Government of Canada

SOUTH CAROLINA

ARKANSAS

GEORGIA

100,000 ALABAMA

LOUISIANA

FLORIDA

GM plans to build that many EVs in the second half of 2023. EV models of the Blazer, Equinox and Silverado are being added to GM’s lineup, plus the return of the Bolt General Motors

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A near-max payload Ford Lightning F-150 EV loses about a quarter of range, going from 447 km to 338 km. American Automobile Association

15% BC Hydro wanted to raise rates at its charging stations starting Sept. 1. to allow it to recover the costs of providing stations over 10 years BC Hydro

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