Hybrid and Electric Vehicles - Purdue School of Engineering and ...
Hybrid and Electric Vehicles - Purdue School of Engineering and ...
Hybrid and Electric Vehicles - Purdue School of Engineering and ...
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<strong>Hybrid</strong> <strong>and</strong> <strong>Electric</strong><br />
<strong>Vehicles</strong><br />
Lugar Center Renewable Energy Forum<br />
Tom Dollmeyer<br />
Chief Engineer<br />
May 23, 2011<br />
© 2011 Cummins Inc. All Rights Reserved<br />
TM
2<br />
INTRODUCTION<br />
� Tom Dollmeyer – Chief Engineer, Cummins Power<br />
Systems<br />
29 years experience in development <strong>and</strong> integration <strong>of</strong><br />
5/26/2011<br />
Diesel Engines<br />
Aftertreament Systems<br />
Transmissions<br />
<strong>Hybrid</strong>s<br />
<strong>and</strong> related systems<br />
For Heavy Duty Commercial <strong>Vehicles</strong><br />
© 2011 Cummins Inc. All Rights Reserved<br />
TM
3<br />
CUSTOMER ROI IS STILL THE MAJOR<br />
OBSTACLE FOR MASS ADOPTION<br />
$ 000's<br />
10<br />
0<br />
-10<br />
-20<br />
-30<br />
-40<br />
5/26/2011<br />
Cummulative Cash Flow<br />
Purchase Year 1 Year 2 Year 3 Year 4 Year 5 Year 6<br />
© 2011 Cummins Inc. All Rights Reserved<br />
TM
4<br />
CUSTOMER ROI IS STILL THE MAJOR<br />
OBSTACLE FOR MASS ADOPTION<br />
$ 000's<br />
10<br />
0<br />
-10<br />
-20<br />
-30<br />
-40<br />
5/26/2011<br />
Cummulative Cash Flow<br />
Purchase Year 1 Year 2 Year 3 Year 4 Year 5 Year 6<br />
Incremental technology<br />
cost at purchase<br />
© 2011 Cummins Inc. All Rights Reserved<br />
Over time, benefit<br />
is derived from<br />
fuel savings<br />
TM
5<br />
CUSTOMER ROI IS STILL THE MAJOR<br />
OBSTACLE FOR MASS ADOPTION<br />
$ 000's<br />
10<br />
0<br />
-10<br />
-20<br />
-30<br />
-40<br />
5/26/2011<br />
Cummulative Cash Flow<br />
Purchase Year 1 Year 2 Year 3 Year 4 Year 5 Year 6<br />
© 2011 Cummins Inc. All Rights Reserved<br />
There are two parts to this equation:<br />
1. Savings derived from fuel<br />
consumption improvement<br />
2. Cost<br />
TM
6<br />
CUSTOMER ROI IS STILL THE MAJOR<br />
OBSTACLE FOR MASS ADOPTION<br />
$ 000's<br />
10<br />
0<br />
-10<br />
-20<br />
-30<br />
-40<br />
5/26/2011<br />
Cummulative Cash Flow<br />
Purchase Year 1 Year 2 Year 3 Year 4 Year 5 Year 6<br />
© 2011 Cummins Inc. All Rights Reserved<br />
There are two parts to this equation:<br />
1. Savings derived from fuel<br />
consumption improvement<br />
2. Cost<br />
TM
7<br />
FUEL SAVINGS BASED ON APPLICATION<br />
ALONE IS NOT SUFFICIENT<br />
� <strong>Hybrid</strong> technology is proven technology<br />
� Not all fleets have seen results<br />
� Analysis must drive down to the fleet level<br />
5/26/2011<br />
© 2011 Cummins Inc. All Rights Reserved<br />
TM
8<br />
Vehicle Speed (mph)<br />
EXAMPLE 1:<br />
REFUSE VEHICLE – JANUARY 12, 2011<br />
25% FUEL CONSUMPTION REDUCTION<br />
30<br />
20<br />
10<br />
0<br />
5/26/2011<br />
0 10000 20000 30000 40000<br />
Garbage Collection<br />
Tare Weight = 12500 kg<br />
Full Weight = 20500 kg<br />
© 2011 Cummins Inc. All Rights Reserved<br />
Time (sec)<br />
TM
9<br />
Vehicle Speed (mph)<br />
EXAMPLE 2:<br />
REFUSE VEHICLE – JANUARY 18, 2011<br />
16% FUEL CONSUMPTION REDUCTION<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
5/26/2011<br />
0 5000 10000 15000 20000 25000 30000 35000<br />
Garbage Collection<br />
Tare Weight = 12500 kg<br />
Full Weight = 18500 kg<br />
© 2011 Cummins Inc. All Rights Reserved<br />
Time (sec)<br />
TM
10<br />
BUSINESSES MUST STRATEGICALLY<br />
INCORPORATE HYBRID TECHNOLOGY<br />
ACROSS THE FLEET<br />
� Vehicle application is not enough<br />
� Business practices may need to adapt<br />
– Underst<strong>and</strong> key metrics<br />
– Route optimization<br />
– Driver awareness<br />
� System integration is key<br />
5/26/2011<br />
© 2011 Cummins Inc. All Rights Reserved<br />
TM
11<br />
CUSTOMER ROI IS STILL THE MAJOR<br />
OBSTACLE FOR MASS ADOPTION<br />
$ 000's<br />
10<br />
0<br />
-10<br />
-20<br />
-30<br />
-40<br />
5/26/2011<br />
Cummulative Cash Flow<br />
Purchase Year 1 Year 2 Year 3 Year 4 Year 5 Year 6<br />
© 2011 Cummins Inc. All Rights Reserved<br />
There are two parts to this equation:<br />
1. Savings derived from fuel<br />
consumption improvement<br />
2. Cost<br />
TM
12<br />
THE COST ELEMENT IN THE EQUATION<br />
HAS TWO DISTINCT CATEGORIES<br />
� Component costs<br />
– Volume<br />
– Expertise<br />
– Technology improvements<br />
� Supplier approach<br />
– Flexibility<br />
– Development Costs vs. Volume<br />
– Optimality<br />
5/26/2011<br />
© 2011 Cummins Inc. All Rights Reserved<br />
TM
13<br />
SUCCESS WILL REQUIRE A UNIQUE<br />
BUSINESS MODEL<br />
� Solutions must be broadly applicable<br />
� Modular <strong>and</strong> flexible components<br />
� Customized controls<br />
� System, vehicle, <strong>and</strong> fleet integration<br />
5/26/2011<br />
© 2011 Cummins Inc. All Rights Reserved<br />
TM
14<br />
CONCLUSION<br />
� Cost is still the major obstacle to a positive<br />
customer ROI<br />
� Simulation <strong>and</strong> current product have proven that<br />
fuel consumption reduction is real – when<br />
application is well understood<br />
� Success will require a new business model<br />
– Integration across the fleet<br />
– Broadly applicable<br />
– Easily customizable<br />
– Modular <strong>and</strong> flexible<br />
5/26/2011<br />
© 2011 Cummins Inc. All Rights Reserved<br />
TM
5/26/2011<br />
Thank You<br />
© 2011 Cummins Inc. All Rights Reserved<br />
TM
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