increases or decreases in the price of gasoline vs. the price of electricity. To some extent, the regulatory issues are out of your control, but one would expect the impacted parties: utilities, car dealers, and the public would offer opinions to their elected officials.
In the Southeast, a number of utilities are employing various modeling techniques based on anticipated adoption of EVs (refer to Table 2.8). Some of the questions to consider include:
Current EV use is 2% of the total car market. What strain, if any, does this produce on the electric system if that use rapidly accelerates to 10%? 20%? 30%?
How much additional power would be needed in the next 10 to 20 years?
If new electric generating stations are needed, what kind of fuel should be considered? Nuclear? Alternative (wind, solar), natural gas?
It takes anywhere from two years (wind, solar), to five years (natural gas) to 14 years (nuclear) to build specific types of generation. When should we start planning for new construction?
Where should these plants be located (usually near a water source)?
In which direction is the regulatory wind blowing regarding fuel choice?
What is the impact if rural areas do not adopt EVs, but large cities do?
Table 2.8 Utility Model EV costs.
| Fleet Type | Number of Vehicles | Daily Miles Driven | Miles Driven per Month | Daily kWh Used | Monthly kWh Used | Electric Range (miles) | Charger Type | Battery Size (kWh) | Acceptance Rate of (kW) | Charging Time Frame | Number of Charging Hours (Empty to Full Charge) | Energy Consumption Rates (kWh/mile) | Average Power Demand (kW/hour) | Fleet’s Cost-$/kWh | Fleet’s Electric Cost per Month | Gas Cost $/Gallon | Miles/Gallon | Fuel Cost per Month |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Light (Up to 8,500 lbs. GVW) | 1 | 50 | 1500 | 20 | 600 | 338 | Level 2 | 135 | 15 | Overnight | 9.0 | 0.4 | 2.22 | $0.08 | $48 | $3.50 | 17.00 | $309 |
| Medium (8,501-26,000 lbs. GVW) | 1 | 100 | 3000 | 100 | 3000 | 200 | DC Fast Charger | 200 | 120 | Overnight | 4.0 | 1 | 25.00 | $0.08 | $240 | $3.50 | 10.00 | $1,050 |
| Heavy (Over 26,000 lbs. GVW) | 1 | 125 | 3750 | 250 | 7500 | 300 | DC fast Charger | 600 | 100 | Overnight, Mid-route | 4.0 | 2 | 62.5 | $0.08 | $600 | $3.50 | 8.00 | $1,641 |
Spreadsheet courtesy of Cobb EMC
Electric Vehicle Discussion Questions
1 As a manufacturer of new Semi trucks, where should your development efforts be focused? Electric? Natural gas? Hydrogen?
2 For electric trucks, this means that the national electric grid must be able to support millions of vehicles charging simultaneously overnight. Some areas of the country have plenty of power to support EVs; other areas are short and are struggling to provide power during normal and peak periods. How does this factor into your company’s products?
3 Public policy can change. With each election cycle, changes mean that public policies regarding the environment can change. Is it possible have a voice or influence so that alternative vehicles are more fully supported through legislation?
Chapter Key Points
Strategic planning is important as it charts a company’s path to future profitability.
Marketing and Sales are different disciplines. Marketing is concerned with the four Ps; sales is concerned with obtaining new customers and contracts.
The four Ps include Product, Promotion, Pricing, and Profits.
Product development includes four stages: Introduction, Growth, Maturity, Decline.
It is common for companies to use spreadsheet models to determine costs, pricing, profitability, using sensitivity analysis.
Breakeven point is where all development costs have been recovered and profitability of the new product starts.
A business case analyses a new product’s feasibility, potential in the marketplace, SWOT review, and other factors. This can also be called a business plan or feasibility study. Its results are used by senior management to make a decision (go or no-go).
Marketing and Engineering sometimes have different goals and accountabilities. This can lead to organizational conflict.
The role of Product Manager is a leadership position.
Discussion Questions
1 The project leader has an important role. While all of the below are important, which is the most important and why:CommunicationsIntegrity and trustConflict resolution
2 Some companies believe that a Product Development Manager must have strong technical skills. Is this true? Why or why not?
3 What value does the Marketing Group bring to the product development effort?
4 If the cost of each new product is $40, and our company expects