MAN Trucks CEO: an electric semi will pay for itself in three years (*)

Alexander Vlaskamp, the outspoken CEO of MAN Trucks, claims that an electric semi truck can pay for itself in less than three years – but there are a few asterisks in that statement. We’ll try to unpack them all for you here.

MAN began series production of its eTruck electric semi in July on a flexible line capable of building up to 100 trucks per day with either diesel or battery-electric power. With production underway, the challenge now is selling the things. That means proving that the higher upfront cost pays off with a lower total cost of ownership (TCO), and the first stop on that train is incentives.

The good news is that, in the EU, incentives are plentiful. MAN says those programs, together with Europe’s much higher diesel prices compared to the US (about $6.80/gal compared to $3.70, as I type this), can help the eTruck pay for itself in as little as two and a half years.

And, if you’re not familiar with European incentives for electric semi trucks, hold on to your hats because they are wild:

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• up to 80% of vehicle purchase price subsidy in Austria (ENIN)
• in Belgium, there’s a subsidy for up to 32% of the price of the truck (up to 2 trucks per company)
• in Ireland, government incentives cover 30–60% of the up-front cost difference versus a comparable diesel truck
• Norway offers a similar 60% diesel cost difference incentive
• etc., etc., ad nauseam

MAN’s customers can do that math easily enough – the company says it already has 700 orders on the books already, and expects to hit 1,000 by year’s end. But that math only maths if those customers can actually access the electrons to replace all that diesel … and the charging infrastructure they’re going to need for all those trucks? That’s still a ways off.

“It’s all about the charging infrastructure, that’s the problem,” Vlaskamp told Börsen-Zeitung. “When it comes to investment in charging stations, Europe is lagging far behind … what’s needed now is the political will to reverse this trend,” adding, “We need to act quickly.”

Charging is key

Spanish-language site Motorpasión notes that red tape isn’t the only reason charging lags. Driving investment into new charging infrastructure is lagging, too – but MAN’s CEO thinks there’s a simple fix: take half of annual toll revenues generated by commercial trucks (around €7 billion in Germany, alone) and funnel it directly into DC fast charging.

In addition to the still deficient charging network, another obstacle is the cost of electricity for charging. Vlaskamp proposes a reduced price for commercial truckers, as has traditionally been the case with diesel. Currently, the average price is 45 to 50 cents per kWh, but says the ideal would be, “between €0.20 and €0.30/kWh.”

TL;DR: if charging was cheaper and easier to access and the government was willing to subsidize EVs as much as they’ve subsidized oil with the creating and ongoing support of a globalized military industrial complex, MAN Trucks’ CEO thinks plug-in semis would be a no-brainer.

Head on down to the comments and let us know if you agree.

SOURCE | IMAGES: MAN, via Börsen-Zeitung, Motorpasión.

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