Counting the cost of electric

With electric trucks reputedly likely to require 40% less servicing than their diesel counterparts, the long-term future looks bleak for franchised dealer workshops and parts departments.

However, prospects are not as grim as they might appear to be at first sight, insists Matt Lawrenson, MD of leading DAF dealer group Motus Commercials. “There’s no room for complacency, but I don’t think we’re facing Armageddon just yet,” he says.

Changes in propulsion technology are prompting a growing number of hauliers to review whether they want to continue maintaining vehicles in-house given the investment required in new kit and technician training, says Lawrenson. So as in-house workshops close, more business will be funnelled in the direction of dealers; a trend that is apparent already, he contends.

Steve Bridge, MD of Mercedes-Benz van and truck dealership eStar, believes that a swing towards operators subcontracting more and more service, maintenance and repair work to dealers is “more than likely”.

If electric vehicles don’t require servicing or replacement as often as their diesel counterparts, what has the future got in store for dealerships? Steve Banner investigates

“Swapping an electric truck’s batteries is not for the faint-hearted,” he comments. “Do something wrong with one of those orange cables and you could set fire to the entire county!”

That is as well as giving yourself an electric shock which could prove fatal.

TRAIN GANG: Motus Commercials MD Matt Lawrence (above) believes dealers will benefit going forward thanks to their investment into technician training

Remarks Lawrenson: “I think customers are becoming more reliant on us.”

If in-house workshops shut, then dealers will increasingly be asked to look after operators’ trailers as well as their trucks. Motus is more than willing to do so now, says Lawrenson – “we have the necessary skill sets” – and can call on DAF’s TRP all-makes parts programme, which covers trailers, for any spares that are required.

“We can also maintain ancillary equipment such as tail lifts,” he says.

While electric trucks may require less maintenance than diesels, that is not to say they will require no maintenance at all, he points out. While the demise of the diesel engine may spell the death-knell for oil and air filter sales, sales of brake parts could increase along with brake servicing work.

“Battery vehicles are heavier than diesels, and they’re heavier when they’re empty as well as when they are fully laden,” he points out. The braking system has to work harder as a consequence, although regenerative braking systems are likely to lift much of the burden.

Higher weight will increase wear in the suspension and tyres too.

Checks and balances

Diesels themselves do not generate as much service and repair revenue as they did in the past. Greater reliability and durability mean that their engines need far less regular attention than their counterparts of 40 years ago, and over-the-air software updates (likely to increase with electric trucks, suggests industry disruptor Volta) means that they do not always need to visit a workshop to have glitches fixed.

“The biggest driver of our workshop activities is compliance,” says Lawrenson. That looks set to continue, he believes, with electric trucks subject to regular statutory safety inspections in the same way that diesels are.

The internal combustion engine might turn out to have a longer shelf life than supposed. Bridge points to the possibility of hydrogen being used as a combustion fuel.

Jim Nebergall, general manager of the hydrogen engine business at Cummins, observes however that while burning hydrogen in an engine produces near-zero amounts of CO2, NOx is more of an issue. “They require exhaust after-treatments to reduce NOx emissions,” he comments, so they cannot be classed as zero-emission.

On the other hand, hydrogen fuel cells produce nothing more than water vapour, he points out. Sales of new non-zero-emission trucks grossing up to 26 tonnes will be banned in the UK from 2035 onwards, with a complete ban of heavier trucks scheduled for 2040.

High front-end costs mean that electric trucks are likely to remain in the hands of operators for longer than diesels. That means greater exposure to day-to-day damage says Lawrenson, and that spells more repair work for dealers.

LOOKING AHEAD: Volta has fitted out its new Truck as a Service hub in Duisburg with eight workshop bays –and has an emphasis on the quick throughput of work

The need for electric trucks to receive periodic attention now and in the foreseeable future is clearly not lost on Volta. Its new 32,000sq ft Truck as a Service hub in Duisburg, Germany, has been designed with eight workshop bays.

Only 12 external truck park spaces are included in the layout, however. That is far less than most existing dealerships boast and might suggest that Volta is anticipating a swift workshop throughput, with vehicles not expected to hang around for too long.

Despite all the publicity surrounding electric and hydrogen fuel cell trucks, with 400,000 or so conventionally powered trucks on UK roads the pattern of service and repair work seen by workshops will not change quickly. It will be some while before they see electric trucks in significant numbers, Lawrenson suggests.

“Time is on our side,” he remarks.

SAFETY FIRST: The dangers associated with electric truck maintenence will see operators outsource more to dealerships, believes eStar MD Steve Bridge (centre)

With the arrival of electric trucks the role of truck salespeople will be as important as it has ever been, he contends, especially when it comes to specifying the right vehicle for the job. “They are sales consultants, not order-takers, and it takes years to train them,” he observes.

Nor are they solely selling trucks. They are promoting everything else the dealership has to offer, including finance and support services such as breakdown cover.

“They’re building long-term relationships,” he states. On the face of it this does not sit well with an approach to sales now being trialled by Scania in Poland.

Let’s get digital

Last year Scania Polska sold its first truck online in a pilot scheme developed at the manufacturer’s Swedish headquarters, which makes use of a new digital sales site. A 13-litre 4x2 460R tractor unit with a Scania Super driveline, it was delivered to haulier Styku Transport in December, the first Scania to be sold this way anywhere.

Using the strapline ‘Click & Pick’, the idea is to simplify the purchasing process for operators who want tractor units with straightforward specifications.

Scania Polska identifies existing customers with vehicles that are nearing the end of their lease or have reached a certain mileage. It then sends them a link to a tractor unit that it believes will meet their needs.

They can tailor it to their requirements more precisely using 30 or so different parameters including areas such as connected services and repair and maintenance contracts. The online sales portal allows users to choose the cab colour, fuel tank capacity, type of rear

BIGGER AND BETTER?

The acquisition of long-established Kentbased Mercedes-Benz dealer Sparshatt Truck & Van by French dealership Saga underlines a trend highlighted by Lawrenson. Dealer groups are big and getting bigger.

The purchase, for an undisclosed sum, is Saga’s first foray into the UK, but it is no stranger to the three-pointed star. It already operates 14 Mercedes truck dealerships and 15 Mercedes van outlets across France, Belgium and Switzerland.

Furthermore, its parent company RCM boasts a portfolio of 118 sites representing a variety of automotive and marine brands. It includes 36 Toyota dealerships scattered across France; RCM is based in La Roche-surYon in the Vendee region.

Says Saga Mercedes-Benz Trucks director Philippe Canetti (pictured right, with RCM CEO Ronan Chabot): “This move into the UK is an important step for us when it comes to growing our presence in mature markets across Europe.

“We’re excited to be venturing into Britain during this time of transition towards e-mobility and advanced technology.”

Groups are expanding because they want to achieve greater economies of scale and improve the level of aftersales service they can provide, Lawrenson contends. The more locations you have, the better your parts delivery service, and the faster you can respond to customer needs.

Motus operates 29 DAF outlets across the UK, which makes it the biggest DAF dealer group in Britain and Europe. It represents Isuzu Truck in Glasgow while its light commercial portfolio includes VW, Ford, Fiat Professional and Maxus.

Lawrenson can see more dealer locations taking on multiple suspension, the fifth wheel manufacturer and the tyre manufacturer among other options.

“Buying online is coming,” opines Bruce Atkinson, one of a team of developers who have been working on the concept since early 2022. “We need to embrace the benefits and not fear it.”

Adds his colleague, Emil Jungnelius: “Historically our industry and our customers have been quite conservative where digitalisation is concerned. But we all know digitalisation is happening, and it will help all of us in different ways.”

Both stress that the tool is designed to act as a complement to rather than a replacement for existing sales teams. Moving the simple purchases online will give salespeople extra time to work on deals that involve more complex specifications, they contend.

That will especially be the case as more electric vehicles appear, says Jungnelius, because sales consultants will need to address the charging arrangements as well as the trucks themselves. They may of course also wish to discuss the various data-driven fleet management packages hauliers could require.

Says Scania sales specialist, Adrian Lapczynski: “I think this tool saves customers time in simpler situations. If you know exactly what type of vehicle you need, you can specify it in 10 minutes, then click, and you’re done.

“Our portal allows you to contact a Scania adviser by phone or email if you have any doubts.”

Styku Transport owner, Lukasz Styczen, seems to be happy with the purchasing experience.

“I decided to order a Scania online because the whole process is intuitive and the tool itself is very convenient,” he says. “I can recommend it to any transport company.”

It is interesting to note that, for the moment at least, franchises in order to boost the throughput of business at what may be a large site. “You need a lot of land to run a successful truck dealership,” he remarks.

“Land along the M62 corridor costs £1m an acre,” comments Bridge, who runs dealerships in Liverpool, Trafford Park in Manchester, Stoke-on-Trent and on Deeside.

“You need 6 acres for a truck dealership plus £4m for the buildings, so that’s £10m.

“You’ve got to have deep pockets.” the tool is being used solely to sell tractor units. Using the same approach with rigids would be more problematic given the challenges specifying the right body would pose, although marketing, say, standard no-frills 18-tonne box vans and curtainsiders might be a possibility.

Bridge can envisage such a process working in the UK, but stresses that it has its limitations. “You couldn’t use it to sell bin wagons, gully-suckers or cherry-pickers,” he comments.

Charging ahead

As it happens, many UK hauliers are no strangers to buying vehicles online.

If they have purchased several trucks from the same used dealer over a number of years and are happy with them, then spot another one on the dealer’s website that they like, then they may be perfectly happy to buy it without going to see it in the metal.

Should it prove not to be as described when it is delivered to them, then they can always send it straight back with no financial penalty.

When electric trucks are de-fleeted and disposed of secondhand then they are likely to be several years older than their ex-contract diesel counterparts are today, given their high front-end price (which may of course reduce over time) and lower maintenance requirements. Consequently, they may need new or reconditioned batteries as part of an overall package of refurbishment to make them appeal to used buyers.

They may also require a major software upgrade if they haven’t received one already, in the same way that you can have your smartphone’s software upgraded if you are happy to keep the existing hardware, says Bridge. “We’re entering a different world,” he observes. n