Infrastructure the Best Barrier to EV Deployment: DTNA’s O’Leary – Tools
Daimler Truck North America President and CEO John O’Leary supplied his trade outlook in Las Vegas.
Photographs: DTNA
Whereas fleets could be very interested by electrification, their growth plans are thwarted by delays in charging infrastructure improvement.
“Overwhelmingly, infrastructure is slowing us down by way of EV deployment,” stated Daimler Truck North America President and CEO John O’Leary. “Web site prep, allowing, and development delays all contribute to deployment occasions being measured in years, not weeks or months.”
Talking to a bunch of truck journalists in Las Vegas forward of the disclosing of the corporate’s SuperTruck II venture, O’Leary stated prospects are pleased with the EV merchandise they’ve obtained to this point, however any growth plans they could should go from two or three vehicles to maybe 50 or 100 should be shelved due to the shortage of charging infrastructure.
“There’s lots of will within the regulatory and political arenas to make that occur, however once you begin speaking about shifting massive megawatt strains of electrical energy round and constructing new substations, it simply takes time,” he stated.
O’Leary says the present focus is on behind-the-fence charging in truck yards and the like, however Daimler is working to construct out public networks, too. Final yr Daimler introduced a proposal for a three way partnership with NextEra Power Sources LLC and BlackRock Renewable Energy to design, develop, set up and function a nationwide, high-performance charging community.
Right now, O’Leary stated, they’re within the technique of hiring the management staff that can run this system.
“We need to get the very best government staff we are able to discover and set up them and allow them to provide you with a technique,” he stated. “We expect they’re going to be loads smarter about it than we’re, and clearly, there will be much more possession if it is their technique and never ours. You’ll hear extra about this later this yr.”
2023 Appears to be like A lot Like 2022 for Truck Gross sales
Regardless of immense headwinds within the provide chain, DTNA nonetheless delivered 186,717 models in 2022, a rise of 15.2% over the earlier yr.
O’Leary famous the most important provide chain challenges got here from sourcing heavy elements resembling body rails, brakes, tires and wheels, together with the extra well-known issues with semi-conductors. The elements shortages eased considerably over the Christmas interval, and he stated they’re not utilizing brokers to supply delicate electronics from abroad suppliers.
Serving to to drive truck gross sales this yr is fleet age, O’Leary stated. “Clients have gotten out of their candy spot, and working prices are rising.”
Photograph: Jim Park
“Just about throughout all the yr of 2022 we had tiger groups working across the clock across the globe, sourcing CPUs,” he advised reporters. “By the top of the yr, our standard suppliers have been getting caught up so we did not should resort a lot to the brokers and different third events.”
He stated provide is at the moment at concerning the 90-95% degree.
Output for 2023 will look loads like 2022, he stated, citing a really wholesome order backlog for DTNA and the remainder of the trade. That’s pushed partly by the common age of the nation’s fleet, with carriers holding on to their vehicles longer than they usually would due to the supply-chain issues and massive backorders.
“Clients have gotten out of their candy spot, and working prices are rising,” O’Leary famous. “They’ve capital to deploy, and so they need to decrease the common age of their fleet and get right into a extra wholesome state of affairs.”
O’Leary is anticipating elevated gross sales in Class 6 by Class 8 and says vocational purchases can be helped alongside by infrastructure spending.
Regardless of extraordinarily constrained used-truck stock, Daimler Vehicles Remarketing noticed file revenue technology final yr. September noticed the opening of the forty first SelecTrucks retailer.
On the elements entrance, the corporate’s distribution facilities achieved file elements gross sales and profitability, with a 23% year-on-year improve in present income.
DTNA’s supplier community added 237 service bays in 2022. Plans are in place to convey one other 800 bays on line in 40 new or considerably transformed areas earlier than the top of this yr. That might convey the community whole as much as nearly 10,000 service bays, O’Leary stated.
Outlook for 2023
O’Leary’s outlook on the economic system is extra constructive than unfavourable, however don’t search for a banner yr, he prompt. Any danger of a basic recession ought to be gentle, he stated.
“Client spending has slowed, however stays extra resilient than the Fed or anybody else has forecast to this point,” he stated. “Inflation appears to be shedding momentum, however whereas nonetheless very excessive, it appears to have plateaued.”
With the disclosing of the SuperTruck II venture scheduled for later that night, O’Leary defended the corporate’s continued funding in diesels and diesel expertise, saying, “Diesel would stay the predominant propulsion alternative for the foreseeable future as a result of it fits 100% of all purposes, and it stays probably the most price efficient and environment friendly technique to transfer items and folks.”
He additionally reaffirmed his dedication to zero emissions, saying the selection between the 2 just isn’t an both/or proposition.
“We’re dedicated to each, not less than till 2039, when we’ve beforehand introduced that we’ll be out of the diesel enterprise, not less than in Triad International locations.”
Search for continued progress within the EV sector, particularly with medium-duty and final mile. DTNA will launch the eM2 later this yr at ACT Expo. And following a profitable deployment of Freightliner Customized Chassis’ walk-in van platform at Penske, expectations are excessive that the product can be properly accepted by package deal supply operators.
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