Incentive programs for new vehicle technologies are often put in place to support faster adoption by commercial fleets. These incentive programs can both help justify deployments of earlier stage technologies, and enhance return-on-investment calculations.
While a broad range of incentive options have been rolled out over the years, the specific type that is proving to be very versatile and effective, especially among fleets, is voucher programs.
Voucher programs, which have launched in certain cities and states over the past several years aimed at commercial fleets, essentially offer point-of-sale rebates on the purchase (or sometimes, the lease) of a range of eligible alternative technology vehicles. The fleet customer gets an immediate discount off the regular price of new vehicle technology, while the vehicle or technology provider (not the fleet) performs the back-end diligence to get reimbursed by the voucher program administrator.
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Every month it seems like automotive manufacturers around the globe are committing to offering more and more electrified vehicles. New announcements are coming fast and furious. General Motors is among the leaders on this front, recently announcing plans for 20 new all-electric models by 2023. In a move that goes one step beyond many of its peers, GM is also positioning itself as a leader in electrified commercial vehicles too, thanks in part to a new strategic partnership with XL.
GM recognizes that in today’s commercial fleet market, there’s a growing demand for hybrid electrics, plug-in hybrids and other electrified vehicles. This trend is being driven by large companies’ and municipalities’ strong desire for fuel efficiency improvements, cost savings and corporate sustainability goals within their fleets. GM and XL recently announced a collaboration to make it easier for companies to scale fleet electrification through two tactical steps.
First, GM has added XL Hybrid upfits as an option in its commercial dealer ordering system for Chevrolet and GMC dealers. Fleet customers are now just a few clicks away from adding XL upfits to their Chevy Express and GMC Savana full-sized vans and cutaways powered by GM’s 6.0-liter engine, as well as GM’s new 4.3-liter engine later this year. Second, GM has created dedicated ship-thru codes for XL Hybrid upfits to make installation and vehicle logistics seamless. Ship-thru installation locations for XL systems include both Knapheide Manufacturing and Adrian Steel just down the street from GM’s factory in Wentzville, MO.
Continue reading “XL and General Motors Streamlining Vehicle Electrification for Fleets”
The XL Hybrids team aims to make our vehicle electrification technology available to as many fleets as possible. To that end, California fleets now have more product options from XL.
We just received approval for plug-in hybrid electric (PHEV) Ford F-150 pickup trucks in the Golden State – an industry first.
In fact, XL has the most approvals to sell into California – in the form of executive orders, or EOs, issued by the California Air Resources Board (CARB) for aftermarket vehicle electrification in the fleet industry. In addition to PHEV F-150s, we also offer hybrid-electric (HEV) systems for certain model year Ford Transit vans, GM vans and cutaways, and Ford E-Series cutaways. Making our products available to the California market, which is a bellwether for electrified vehicle technology, is a focus of XL Hybrids.
Continue reading “XL Hybrids Gets Latest CARB Approval, Continues Push into California with First-Ever PHEV Ford F-150s”
Keeping a telecom network up and running is an important and challenging job. Millions of customers depend on telephone, cable TV and Internet service in cities every minute of the day. So, when Verizon, which operates a telecom network spanning 15 states along the Eastern seaboard, specs out its fleet of telecom service vans, the company only selects vehicle equipment that is rugged and effective enough to operate for years of driving in dense metropolitan areas where traffic, weather and road conditions can be tough and unpredictable. And when Verizon was looking for a vehicle electrification technology to improve its fleet’s fuel economy, Verizon decided to team up with XL Hybrids and deploy our hybrid-electric upfit system for Chevy Express cargo vans.
What started as a small successful pilot of 16 vans in 2015, and then another 36 vans in 2016, has now expanded to nearly 300 vans, highlighted by Verizon’s recent deployment of 234 new hybrid-electric vans to service New York City customers.
“Given the size of our company and the number of people we connect across the globe, Verizon has a unique opportunity and responsibility to have a positive impact on the environment,” said James Gowen, chief sustainability officer for Verizon. “With the addition of these hybrid vehicles, our fleet is as efficient as ever as we continue to use less fuel year after year. We thank NYSERDA for their partnership in helping to make this happen.”
Continue reading “Live, from New York: Verizon reorders fleet vehicles from XL Hybrids!”
Recently I attended the Fleet Technology Expo (FTX) in Chicago. One especially well-attended session at the conference was titled “The Future Fleet Vehicle.” The panel included representatives from two truck original equipment manufacturers and another from a national fleet. The panelists discussed how the design of a work truck can actually improve fleet driver efficiency in the field. They agreed that increasing fleet driver efficiency in the field yields enhanced overall value for companies in terms of improved customer service levels, strengthened branding, and more revenue.
This premise rang true for me. At XL Hybrids, we develop and deploy fleet electrification and connected vehicle technologies that improve a vehicle’s miles-per-gallon (MPG). Part of our value proposition to fleets is that a more fuel-efficient vehicle with a higher MPG yields a more productive driver in the field.
Continue reading “Companies, Stop Losing Revenue to Low MPG Vehicles!”
This article first appeared in The Fuse on September 21, 2016.
If you have read Vincentric’s recent lifecycle cost analysis,, which shows only seven of 29 hybrid vehicles offered in the 2016 model year had a lower total cost of ownership than their gasoline counterparts, you are now armed with some valuable information when you purchase your next vehicle. However, you may not have the whole story on hybrids.
While the Vincentric research accurately finds that in most cases today, purchasing a hybrid car or hybrid SUV simply doesn’t pencil out, this picture of hybrids changes dramatically when you look at hybrid-electric commercial vehicles like trucks and vans, which have much lower base MPG ratings than cars and SUVs, are driven more miles per year than typical consumer usage, and have longer life cycles on the road where all financial benefits to operators can be accrued over a longer period of time.
Let’s look at a sample case that is very typical of commercial vehicle duty and life cycles. Say a fleet shuttle bus or work truck drives 100 miles per day for 250 work days per year in urban and suburban stop-and-go driving, and gets 8 MPG over a 10-year lifespan. This vehicle will use $70,000 worth of fuel over its 10-year life, assuming the current $2.25-per-gallon price holds over that time.
Continue reading “Vincentric’s Hybrid Vehicle Analysis Omits the Best Economic Opportunity: Commercial Trucks”
This article first appeared in The Fuse on August 24, 2016.
Bravo to Elon Musk and President Obama. They continue to think big by setting ambitious goals for U.S. vehicle electrification, backed by multi-billion dollar commitments to various all-electric vehicles and charging stations.
Last month, the Obama administration announced loan guarantees of up to $4.5 billion to build electric-car charging stations, and support broader electrification. Back in June, Mr. Musk unveiled Tesla’s Master Plan Part Deux. Besides calling for an audacious solution of vertically-integrated solar panel-charged Tesla sports cars, Part Deux also includes plans to build an all-electric pickup truck, an electric heavy-duty semi-truck, and an electric bus concept that would turn a bus driver into a fleet manager. Musk said his overall goal is for Tesla to offer an array of products and services to accelerate the transition away from oil.
Continue reading “XL Hybrids Continues To Fill The Gap In Elon Musk & President Obama’s All-Electric Vehicle Plans”
Dear Mr. Gates,
From your recent MIT Tech Review interview, it sounds like your Breakthrough Energy Coalition, which is rallying investors to fund more clean energy technologies to stop global warming, is progressing.
As lifelong entrepreneurs and founders of a scaling clean technology company, we find it inspiring that you are personalizing this effort to enable transformative energy solutions, and that you’ve set an ambitious goal to stop global warming at less than a 2 degrees Celsius rise. Let’s go for it! Continue reading “XL Hybrids Founders Offer Suggestions for Bill Gates Energy Coalition”