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Electric Vehicle Outlook with Derek Kaufman [RR 776]


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Derek Kaufman is constantly scanning future trends in vehicle design and aftermarket challenges, including how recent events in electric vehicles are affecting our near-term and longer-term futures. This is your podcast resource, committed to bringing the future and forward-looking information you can use to inform and map your road ahead. Derek Kaufman, Managing Partner at Schwartz Advisors, President of C3 Network. Listen to Derek’s previous episodes HERE.

Key Talking Points

  • BEVs are running about 5.6% of new car sales in the second quarter of 2022 – that’s up from 2.7% in the second quarter of 2021.
  • Challenges- recession, price of battery materials/broken supply chain, Inflation Reduction Act
  • China controls 60-80% of the powders associated with battery anodes and cathodes and the lithium transfer medium
  • 80-90% of all BEV vehicles do not qualify for the Inflation Reduction Act- – it only applies to BEV cars that are under $55,000, it only applies to people making less than a certain amount depending on their marital status
  • Autonomous Neighborhood Electric Vehicle (AV NEV)- AV NEVs are package delivery pods and people shuttles traveling in dedicated lanes in urban centers at less than 30 mph.
  • The Federal Government is allocating about $5B of our tax money to install another 500,000 chargers – but if we are going to get anywhere close to their desired sales of BEVs we are going to need over 2 million chargers to keep those cars running.
  • Estimated 5% BEV share of new car sales this year growing to 20% in 2030 and 35% in 2035 – by 2050 we have BEVs at around 50% of 2050

 

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      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
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