AfMA Fleetdrive Issue 13 | Page 2

Executive Summary Mace Hartley Executive Director Welcome to the October edition of FleetDrive. In this issue we focus our attention on safety to coincide with Safe Work Australia’s National Work Safety Month and changes to the Chain of Responsibility laws that have come into effect on October 1. It’s also an exciting time for electric vehicles (EVs). Whilst Tesla’s Model S and X have been available for some time they’re hardly what you and I would call a fleet vehicle. They have however excited many by what’s possible and there’s no question, they’re the electric vehicle many aspire to if they had the money. First deliveries of Tesla’s Model 3 will commence in 2019 and there is little doubt this electric vehicle will be sought after by many including the novated leasing segment although the delivery waiting times may dampen the enthusiasm. The real excitement for fleet managers comes from the fact there is about to be 5 EVs available across 3 different segments broadening fit- for-purpose options. Earlier this year Renault released the Kangoo Z.E. van and the Zoe Z.E. compact car whilst Hyundai is about to release the Ioniq (the first car in the world to offer separate hybrid, full electric and plug in hybrid powertrains in a single body type), which will be followed by the Kona EV early next year along with Nissan’s generation 2 Leaf EV. Each of these vehicles come with different size batteries and therefore achieve different real-world distances per charge ranging from 200km to over 400km. It is believed each of 2 ISSUE 13 2018 / WWW.AFMA.NET.AU these vehicles will be under or around $50,000. The Renault’s come with a 5-year battery warranty and whilst Hyundai hasn’t released battery warranty information yet, they provide a lifetime battery warranty in the USA for the Ioniq EV. There are no indications as to the battery warranty the 2nd generation Leaf at this stage. Longer battery warranties have a substantial effect on a vehicles residual value at the end of 3, 4, 5 years. Historically EV’s have had very little resale value and therefore had to be written down to zero and therefore held for 6 or more years to reduce the annual cost of ownership. Longer battery warranties provide protection to potential buyers of 2nd hand Ev’s and thereby lift resale/residual values. Further, given increased demand in 2018/2019 and beyond; there will be general demand in 3, 4 or 5 years. Despite longer battery warranties a second- hand market for EV’s needs to be created. This means getting people to drive EVs so they can feel the great torque an EV has over a traditional internal combustion engine. How can this be achieved? One option; many city- based councils have a small number of EVs that remain in their car park over the weekend. It’s possible councils could partner with car share companies such as GoGet to make these vehicles available to residents to hire over the weekend. Obviously, there are a number of issues to resolve including public charging stations and vehicle insurance however each of these can be overcome.