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The Future of ICE, EVs, and eFuels [RR 881]

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Derek Kaufman, Managing Partner at Schwarz Advisors, discusses the transition to electric vehicles (EVs) and the potential for alternative fuels to coexist with EVs. He explores the recent European Union's mandate to eliminate internal combustion engines by 2035 and the possibility of allowing fuels to keep ICE cars alive. The conversation then shifts to e-fuels, their production process, and the challenges of scaling up renewable electricity for their production. Both Derek and Carm emphasize the importance of finding a balanced approach that considers different solutions to address climate change.

Derek Kaufman, Managing Partner, Schwartz Advisors, President of C3 Network. Listen to Derek’s previous episodes HERE.

Show Notes

  • The European Union's Mandate and E-Fuels (00:01:19) Discussion about the European Union's mandate to eliminate the sale of internal combustion engines by 2035 and the potential of e-fuels to coexist with electric vehicles.
  • Introduction to E-Fuels (00:02:39) Explanation of what e-fuels are, how they are derived, and their potential to act as a carbon-neutral replacement for gasoline.
  • Challenges and Potential of E-Fuels (00:03:55) Discussion about the complications and costs associated with e-fuels, the need for renewable electricity to produce them, and the efforts to ramp up production through the E-Fuel Alliance.
  • The transition to battery electric vehicles (00:08:50) Discussion on the increasing power demand for battery electric cars by 2050 and the need to transition the power grid to support electric vehicle usage.
  • The potential for alternative fuels (00:10:05) Exploration of the role of low emission or carbon neutral fuels in coexisting with battery electric vehicles, particularly in heavy trucks and industrial equipment.
  • The complementing technologies of batteries and internal combustion engines (00:12:00) Explanation of how batteries and internal combustion engines can work together in different applications, highlighting the importance of both technologies in the future of transportation.
  • The transition to AI in automotive service (00:18:13) Discussion on the potential of AI and machine learning to assist in vehicle service procedures and the importance of having the right talent and training.
  • The importance of human interface in automation (00:20:00) Comparison of two companies' customer service experiences during a power outage, highlighting the value of a personal connection and efficient communication.
  • The future of AI in automotive service (00:22:21) Exploration of the possibility of combining AI solutions with human expertise to enhance customer service and improve efficiency in auto repair shops.


Thanks to our Partner, NAPA Auto Care


Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care

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2 hours ago, Transmission Repair said:

You're welcome, Carm.  But the airline industry, military, and planes in general will continue using fossil fuel.  There's no substitute on the horizon.

Yes. Yet think about eFuels. In the future, that may keep all those ICE engines working hard.

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  • Have you checked out Joe's Latest Blog?

      Auto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
      As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
      But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
      Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
      Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
      Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
      The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.
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