Why aren’t there more plug-in electric vehicles (PEVs) on U.S. and California roadways?

Transportation Technology and Policy doctoral candidate Eric Cahill asserts that new car dealers hold the key, with a supporting cast that includes auto manufacturers and policymakers also playing important roles. Eric describes his findings in a recently published UC Davis Institute of Transportation Studies (ITS-Davis) working paper entitled, “New Car Dealers and Retail Innovation in California’s Plug-in Electric Vehicle Market.”

Cahill’s research examines the market challenges facing plug-in electric vehicles (PEVs)—cars that demand far more from retailers than anything that came before.

His research explores why some new car dealerships are reluctant to sell and market PEVs, even though many PEVs are more profitable for dealers than conventional cars in the same size category. Cahill visited car dealers and spoke with owners, salespeople, customers, automakers, electric utilities and others, to understand the barriers and drivers behind PEV sales and to consider whether dealers have the resources to sell PEVs effectively.

The California New Car Dealer Association provided access to dealers throughout the state. To gauge customer perceptions of the dealer experience, Cahill relied on data from J.D. Power, a partner in the study. He also collaborated with the Center for Sustainable Energy to gather feedback from PEV buyers on how well dealers meet needs unique to PEV buyers.

Cahill’s analysis showed that for PEV buyers, the dealer experience falls far short of customer expectations. Cahill believes this arises out of market challenges inherent with substantially new and different products. “Dealers have evolved to sell vehicles that look and act a certain way,” he said. “When you introduce a product that may look roughly the same but involve customers doing things differently – like plugging in, dealers have to come up a steep learning curve. That lag in learning may greatly affect the pace of consumer adoption and success of the product.”

Cahill hopes to get out in front of potential negative sentiment towards Zero Emission Vehicles (ZEVs) generally, including PEVs. “You can poison the well by disappointing early customers who don’t get the support they need to unlock the unique value that PEVs bring,” said Cahill.

Bringing these issues to the forefront will also help highlight successful ZEV dealers, ultimately bringing best practices and retail innovations to light. These practices include new approaches for training sales staff on clean vehicle technologies and new tools for equipping dealers to better serve PEV customers. For example, some of the more pioneering dealers designated seasoned, tech-savvy sales people as PEV product specialists to sell the car. Many of these “PEV geniuses” drive PEVs themselves and know the technology inside and out from their own first-hand driving experience.

Before pursuing his Ph.D. at ITS-Davis, Cahill earned a B.S. in Aerospace Engineering from the University of Southern California, and master’s degrees in Engineering & Management, and Technology & Policy from the Massachusetts Institute of Technology. He served as an officer in the U.S. Navy, and worked for General Motors, Boeing, and Quantum Fuels Systems. He is also founder and president of Adaptiv LLC, a consultancy specializing in new product introduction, regulatory policy, and strategic marketing for advanced clean vehicles.

The majority of funding for Cahill’s research came from a California Energy Commission grant. He received additional backing from the University of California Transportation Center, via a federal University Transportation Center grant from the U.S. Department of Transportation in partnership with Caltrans.

Cahill’s research on retail innovation could help accelerate change in the way automakers and dealers market and sell PEVs – changes, Cahill hopes, that will bolster the market for zero emission transportation alternatives.

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Cahill’s ITS-Davis study, “New Car Dealers and Retail Innovation in California’s Plug-in Electric Vehicle Market,” links:

• Working Paper
• Policy Brief

Links to the two-part GreenLight blog on Eric’s research:

• Part 1
• Part 2

 

The UC Davis Transportation and Energy programs were in the spotlight at the Nov. 1  Aggies home football game. At the end of the first quarter, stadium goers viewed a brief video (below) on the stadium’s scoreboard depicting the strength of the Transportation Technology and Policy graduate program, and how our institutes and centers are working to create a sustainable future for all.

When a team of UC Davis students packs up its house and travels to Irvine next year for the U.S. Department of Energy’s 2015 Solar Decathlon competition, its members will bring not only a desire to win, but also to make zero-net-energy homes more affordable.

After submitting an entry for the first time, UC Davis was one of 20 universities selected in February to compete in the Solar Decathlon. The competition draws students and scientists from universities across the nation — from Yale and Vanderbilt to CalPoly and Sacramento State — to design and build solar-powered homes that are energy efficient and attractive.

Meeting a competition milestone, UC Davis’ team, Aggie Sol, submitted 80 percent-complete design documents to the department on Oct. 9. The UC Davis project is designed to be a marketable, sustainable house for farmworkers and other low-income communities. Complete plans for the home are due in January, when construction will begin at UC Davis. In October 2015, the home will be disassembled, packed in pieces and transported to the competition site in Irvine.

“I really want to see solar homes everywhere,” said Aggie Sol team member Payman Alemi, a civil and environmental engineering major. “I want every house to be solar powered, and I want every car to be electric. I want everything to be sustainable, and I think that developing a mass marketable house is a big stepping stone.”

Connecting a campus

In addition to addressing a social and environmental problem, the project also provides unique educational opportunities for undergraduate and graduate students.

It connects students in the fields of engineering, architecture, design, communication and development. They’ve drawn on the expertise and support of faculty in the colleges of Letters and Sciences, Engineering, and Agricultural and Environmental Sciences. They’ve also tapped the experience of several energy centers on campus—most located at West Village—including the Institute of Transportation Studies, Energy Efficiency Center, Plug-In Hybrid and Electric Vehicle Research Center, and Center for Water Energy Efficiency.

“I heard about what we were going to do about ZNE housing for low-income families, and that really struck a chord with me, being from a low-income neighborhood,” said team member Alejandro Perez, a civil and environmental engineering major. “I really want to make my own house energy efficient, but it’s really costly, and it’s not really practical where I’m from. Just being part of that effort to make it more affordable really inspired me to be part of the team.”

And while team Aggie Sol is made of about 20 students, an estimated 200 to 500 students from various disciplines will study the project in the coming months, including students from UC Davis Extension, the continuing education division of UC Davis.

The project students are also working with the UC Davis Graduate School of Management and the Division of Social Sciences to create a business plan for the home.

“We want to use this as a way to showcase the ability for zero net energy to be affordable and to do it with a business model in place to implement change in California,” said faculty adviser Frank Loge, a professor of civil and environmental engineering. “If we don’t win the competition and still market it, some of us will feel like this has been a very successful effort.”

Nothing but net

UC Davis has proven itself a national leader in zero-net-energy design. In 2011, it opened West Village, a public-private partnership with West Village Community Partnership LLC and the nation’s largest planned zero-net-energy community. This past spring, it debuted the Honda Smart Home, which produces enough renewable energy to power both the home and a Honda Fit electric vehicle in its garage.

Private builders and homeowners worldwide have also taken on the challenge of creating homes that produce as much energy as they consume, and the California Public Utilities Commission has a goal for all new residential homes to be zero net energy by 2020. Yet such residences still tend to fall on the upper financial spectrum of the real estate market.

“As part of our effort at UC Davis, we want to make zero-net-energy housing affordable for everyone,” Loge said. “We’re trying to drive down the price point of zero-net-energy housing to help the housing market understand that you can have affordable, nice homes that are zero net energy.”

Big cut in price

Price estimates for most homes that compete in the Decathlon range from $300 to $350 per square foot. Team Aggie Sol intends to cut that price by more than half, to $70 to $150 per square foot.

One way they’re doing that is by creating a relatively simple, modular design using prefabricated materials. The Aggie Sol design also addresses the health and living concerns associated with farmworkers’ current housing conditions, such as poor air quality, crowding and lack of shade.

The home combines public and private spaces in three linear zones: Two climate-controlled living spaces are separated by an enclosed deck. The zones act as climate buffers that maximize passive cooling in summer and passive heating in winter. It will also feature “smart home” technology that aligns the home’s needs with the electrical grid, communicating with the resident and power provider to manage energy systems more effectively.

The team plans to begin building the house in January on the UC Davis campus but has not yet chosen a location. Loge said they intend for the home to be built in a public place.

The Department of Energy provided a $50,000 grant to Aggie Sol, while the team is attempting to raise at least another $700,000 for training, travel, equipment, uniforms and team-building costs.

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UC Davis is growing California

At UC Davis, we and our partners are nourishing our state with food, economic activity and better health,playing a key part in the state’s role as the top national agricultural producer for more than 50 years. UC Davis is participating in UC’s Global Food Initiative launched by UC President Janet Napolitano, harnessing the collective power of UC to help feed the world and steer it on the path to sustainability.

Kat Kerlin covers the environmental sciences for Strategic Communications.

Photo: UC Davis students, from left, Ariel Chavez, Jean Kim (both civil and environmental engineering majors) and Sydney Patterson (a design major) discuss their solar home design. Photo Credit: Aggie Sol Team

UC Davis Today story

In a landmark international collaboration on clean vehicle adoption, the University of California, Davis, and the China Automotive Technology and Research Center will work together to help speed the commercialization of plug-in and fuel cell electric cars in China and the U.S. under an agreement signed Sept. 6 in Tianjin, China.

The five-year memorandum of understanding establishes the China–U.S. ZEV Policy Lab, a partnership between UC Davis, the world’s leading university on sustainable transportation, and CATARC, the administrative body that oversees and regulates many activities of the auto industry in China, the world’s largest new-car market. Primary UC Davis partners are the Institute of Transportation Studies and the UC Davis Policy Institute for Energy, Environment and the Economy.

The California Air Resources Board, the world’s leader on clean vehicle policies, and the National Development and Reform Commission, a major Chinese government agency, have supported the agreement and will co-chair the new entity’s advisory board. Major international and Chinese automotive and energy companies will also be invited to participate.

The memorandum of understanding was signed during the 2014 International Forum on Chinese Automotive Industry Development.

“Given the great importance the Chinese government now attaches to the development and commercialization of new energy vehicles, the establishment of the Policy Lab is extremely timely,” Gang Li, the department chief in charge of vehicles at NDRC said at the ceremony. “As a platform for Sino-U.S. exchanges and cooperation in the field of new energy vehicle policies, I believe that the Policy Lab will play an important role in promoting EV-related policy design and EV development in both countries.”

The collaboration will help expand the global market for zero-emission vehicles, or ZEVs, by providing intellectual support for design of ZEV policies and analysis of consumer markets, including demand for charging stations, different types of ZEV technologies, and effectiveness of incentives. The China–U.S. ZEV Policy Lab will strengthen cooperation between California, the current leader in ZEV sales and the United States’ largest new-car market, and China, the global leader in new-car sales.

“This agreement is an important milestone in coordinating global efforts to accelerate clean vehicle commercialization,” said Daniel Sperling, director of ITS-Davis. “We are honored to join forces with CATARC, whose important leadership in this area will allow California, the United States and China to promote best practices and policy initiatives that will bring new energy vehicles to market not only in China and the United States, but also around the world.”

In addition to policy research and studies of consumer behavior, the China–U.S. ZEV Policy Lab will train advanced vehicle researchers and leaders in California and China, inform Chinese regional and central government officials on California’s ZEV and related vehicle policies, and exchange information between California and China regarding lessons learned.

Read more:

• Read Dan Sperling’s GreenLight blog
• Read the full press release
• Read the MOU

Top press coverage:

• ClimateWire
• Sacramento Bee
• KGO Bay Area AM 810 News Radio
• CleanTechnica
• Comstock’s
• Automotive News

Where does the Plug-in electric vehicle (PEV) market go next?

The Plug-in 2014 conference in San Jose brought together automotive industry experts and researchers to answer this question by discussing the state of the industry, and what it will take to get more PEVs on roadways.

ITS-Davis Founding Director Daniel Sperling, and Plug-in Hybrid and Electric Vehicle Research Center Director Tom Turrentine took the stage to share their thoughts on next steps for the industry.

Sperling presented 3 new policy ideas to support the transition to low emission vehicles. The first strategy is called “eMiles,” which would convert vehicle volume requirements into an eMile-based performance standard. Since auto manufacturers would receive credit, they will be encouraged to help consumers drive and charge their vehicles more often.

Another important strategy he proposed is a revenue neutral policy called “feebates,” where buyers of traditional gas powered cars pay a fee, and buyers of energy efficient vehicles receive cash rebates.

Sperling’s third strategy turned the spotlight to trucks, which are inherently less suited to batteries and other zero emission strategies. He proposed charging fees for trucks where pollution levels are high relative to the local population. This will push truck fleets to avoid high pollution zones and instead deploy energy efficient electric trucks in those areas.

Tom Turrentine emphasized how early adopters of PEVs will be the source of market growth. He noted that these enthusiastic and informed buyers will grow the market by spreading the word and encouraging others to buy the vehicles.

In the final panel of the conference, Turrentine reflected on ways the industry could improve itself going forward. Educating the next generation through school curriculum, researching and exploring untapped parts of the market, and further integrating dealers into the PEV conversation, were just a few of these important future strategies.

During the conference BMW announced the launch of their new 24 kW DC fast charger to launch with their i3 electric cars. Nissan also announced that the Leaf is the top selling car in Atlanta, Portland, and San Francisco.

ITS-Davis also launched the EV Explorer, a new website for comparing annual vehicle energy costs. For more information, click here.

Buying a plug-in electric vehicle (PEV) can be challenging, with so many factors and vehicles to consider. The UC Davis Institute of Transportation Studies (ITS-Davis) and the team at the Plug-in Hybrid and Electric Vehicle Research Center are helping consumers sift through the options with a new website, EV Explorer, which allows prospective buyers to see how a PEV might fit into their lives, and how vehicles stack up against each other.

“It helps answer the question: ‘Which car makes sense for me?” said lead researcher Michael Nicholas of the UC Davis Plug-in Hybrid and Electric Vehicle Research Center.

EV Explorer utilizes  fueleconomy.gov‘s database of more than 34,000 vehicles in conjunction with Google Maps to allow users to compare commuting costs of a PEV with those of any other vehicle. Through a step-by-step process, users select a start location and a destination, and specify how often they travel between those points. A chart is then produced that shows the annual gasoline and electricity fuel costs of the commute.

“For consumers, deciding which car makes sense can be challenging — everyone’s driving needs vary and vehicles perform in different ways,” Nicholas explains. “With plug-in hybrids, for example, two fuels – electricity and gasoline — power the car, and different plug-in hybrid vehicle designs require different charging and gasoline-fueling solutions.”

The EV Explorer is designed with flexibility in mind. Users can change the vehicles to compare frequency of travel, estimated miles per gallon, price of gasoline and electricity, and many other variables in order to create side-by-side comparisons of up to four vehicles.

Future versions of the website aim to calculate not only the personal costs of commuting in a PEV, but the lifetime costs of ownership by factoring in retail prices and insurance rates, and by accumulating trips and different routes.

The EV Explorer project was conceived as a UC Davis project to provide charger planning tools for Metropolitan Planning Organizations (MPOs), which are responsible for transportation planning in the nation’s metropolitan areas. After conducting interviews, it became clear that they desired not only tools to plan EV infrastructure, but also ones that their constituents could utilize directly. The EV Explorer project is funded by the California Energy Commission in association with the California Center for Sustainable Communities.

EV Explorer represents a foray by ITS-Davis into consumer-oriented tools.

“For years we’ve been known for our independent academic research,” said Nicholas. “Now, EV Explorer lets people do their own investigation. We’re excited to see where it goes and hope it will further acquaint everyone with the innovative work we’re doing.”

Links

• EV Explorer
• fueleconomy.gov

In a workshop convened by UC Davis Institute of Transportation Studies, 60 experts from car dealers and the automotive industry shared opportunities, challenges, and best practices for expanding the plug-in electric vehicle (PEV) retail market.

One of the major challenges facing mainstream adoption of plug-in electric vehicles is forging a stronger partnership and dialogue between manufacturers and retail car dealers. For dealers, Boardwalk Auto Mall Marketing Director Brendan Dolan has found success by recognizing that longstanding dealer practices for selling traditional automobiles don’t always apply to PEVs. Understanding what a modern PEV consumer wants is crucial to driving sales.

Dolan noted that because most early EV buyers are even better informed than conventional car buyers, they generally distrust car dealers. It’s important for dealers to match or exceed that level of competence, and sell on logic and value rather than stock sales pitches and dubious promises. “Customers want a different experience,” said Dolan. “People will know if you try to put on a show.”

Dolan argued that dealers should focus on finding staff that is open and motivated to learn the technology. Sales staff that cannot or will not adjust to the changes in the retail space may ultimately be too difficult to win over.

ITS-Davis Ph.D. candidate Eric Cahill argued that dealers could improve satisfaction scores by providing an ecosystem of ancillary services that enhance the PEV buying experience.

Borrowing a page from Apple’s playbook, some dealers have designated PEV “product geniuses” to better inform and support potential buyers on all of the available features offered by PEVs.

Cahill also noted that sales people at leading dealers drive PEVs on a day-to-day basis to experience what it is like to live with the vehicle. This “drive what you sell” approach allows dealers to better connect to and relate with customers by drawing from personal experiences.

Some dealers even offer a “try before you buy” program where prospective customers can spend a day or two with a plug-in before making a final decision. Cahill and many others, including ITS-Davis engineer Professor Andrew Burke, reiterated that it takes more than just a short test drive to understand what owning a PEV is like.

As for government incentives, dealers universally welcome them. But concern over the continued availability of rebates and HOV lane access keeps some dealers from evangelizing their benefits to consumers.

Overall, the panelists emphasized the need for a cultural shift from simply selling vehicles in the short term to a more pleasant experience in which sharing information about new technologies (like PEVs) is a natural part of the car buying experience.

For now, PEVs are not for everyone. Dealers play an essential role in helping customers realize whether a plug-in could meet their needs and fit their lifestyle. Automobile technology continues to advance in the industry. Meanwhile, customers expect more from dealers, and leading PEV dealers have demonstrated that they can meet these challenges by delivering a superior customer experience.

Photo (left to right): Heath Carney, Rob Louisell, Taz Harvey, Andrew McCargar, Brendan Dolan. Photo credit: Dorian Toy

Further Reading:

• PHEV Dealer Study
• Workshop resources

UC Davis Institute of Transportation Studies (ITS-Davis) Ph.D. candidate Gabriel Lade conducts economic research on the costs of the Low Carbon Fuel Standard (LCFS) – an initiative to reduce the carbon intensity of fuel sold in California by 10 percent over the next decade– and other emissions-related policies.  Recently, his efforts gained the attention of one of the worldwide leaders in energy, Chevron, which is recognizing his accomplishments by honoring him with the 2013-2014 Chevron Fellowship.

The Fellowship award recognizes a student’s academic and research accomplishments in transportation and energy by providing greater flexibility for their research.

“I am very grateful to receive the Chevron Fellowship this year.  Chevron has been a longtime supporter of independent graduate student research at the Institute of Transportation Studies at UC Davis, and I am glad I can be a part of that history,” said Lade. “The fellowship will certainly be put to good use in furthering my dissertation research studying economic issues with federal and state renewable fuel policy initiatives.”

In 2011, Lade joined ITS-Davis to pursue his Ph.D. in Agricultural and Resource Economics. He previously received his B.A. from The George Washington University in Economics and International Affairs and worked as a legislative correspondent for an Oklahoma congressman.

He later earned his M.A. in Economics at Rutgers University while simultaneously working as a lecturer in International Economics.  In 2013, Lade was a member of the UC Davis student team that won second place in the U.S. Association for Energy Economics Case Competition for working on financial strategies to accommodate the increase in energy demand from plug-in electric vehicles.

At UC Davis, Lade has worked closely with Associate Professor C.-Y. Cynthia Lin, who nominated him for the fellowship. Together they have co-authored two papers focused on maintaining LCFS compliance costs at reasonable levels.

The Chevron Fellowship is part of the company’s University Partnership Program, which supports universities around the country by providing the necessary funding to better develop the future of the energy business.

One of the world’s leading energy companies, Chevron selected Lade because of his focus on the relationship between California’s LCFS and cap-and-trade Programs, as well as his work designing renewable fuel and complementary carbon policies.

Photo: (From left to right) Jack Morris, Phil Heirigs, and Harry Sigworth, Jr. of Chevron with Fellowship recipient Gabriel Lade  and UC Davis Associate Professor C.-Y. Cynthia Lin.  Photo Credit: Adam Gottlieb

Congratulations to our recent Ph.D. and M.S. graduates!

These graduates have explored a variety of issues relating to sustainable transportation and energy efficiency. Some of their studies include energy use and efficiency for government buildings in Beijing, greenhouse gas emissions optimization modeling, environmental analysis of biofuel, and the use of alternative fuels for heavy duty trucks.

Our graduates hold key positions addressing transportation, fuels and energy, and the environment in government agencies, energy companies, automotive companies, non-profit organizations, academic, and more.

UC Davis Institute of Transportation Studies (ITS-Davis) is looking for talented individuals interested in leading the future of sustainable transportation, energy efficiency.  ITS-Davis offers programs in Transportation Technology and Policy, Civil and Environmental Engineering, and Mechanical and Aerospace Engineering. For more information, click here.

Photo (Left to Right): Zhijun Liu, Micah Fuller, Matthew King, Zhengmao (Jack) Liu, Lin Zhu, Yu (Eileen) Liu,  Professors Joan Ogden,  John Harvey, and Alissa Kendall; Saleh Zakerinia, Ting Wang, Yu Pei, Xiaoxiao Zhang, Colin Murphy. Photo credit: Adam Gottlieb.

 

 

 Institute of Transportation Studies at UC Davis faculty, researchers and students will be active participants at the upcoming 37th Annual International Association for Energy Economics (IAEE) Conference in New York City.

The conference attendees will be led by Amy Myers Jaffe, UC Davis Executive Director of Energy and Sustainability and research scientist Sonia Yeh.  Jaffe will preside over a plenary session on “Transportation Developments,” and Yeh will serve as one of the session’s panelists. The session will examine government policies and market forces affecting efficient vehicles and alternative fuels—and the ultimate impact of both on the future of transportation.  A team of three UC Davis students, including Transportation Technology and Policy Ph.D. student Jeff Kessler, has been chosen to compete as one of three teams in the USAEE Case Competition. Kessler and his team will make a presentation on global improvements in energy intensity.

The focus of this year’s international IAEE conference is the relationship between economic growth and energy, an important issue as economies around the world struggle to reinvigorate and develop energy resources in sensible, sustainable ways. The conference is attracting top energy executives, academics, practitioners, and policy-makers from around the world.  The conference runs from June 15-18.

For more information, click here.