Posts Tagged ‘Rivian’

Electric Van, Electric Van/Can You Find One? No One Can/Loses A Fight With Petroleum Van/Electric Van

Tuesday, January 18th, 2022

Everyone in the Democratic Media Complex wants us to know that electric vans are THE FUTURE of delivery. That remains to be seen, but they sure seem to have a lot of trouble being the present of delivery.

In the fall, Jeff Bezos tweeted praise for Rivian, a start-up under contract to make 100,000 electric delivery vans for Amazon, and its founder, R.J. Scaringe, calling him “one of the greatest entrepreneurs I’ve ever met.”

Then, Mr. Bezos worked in a jab: “Now, RJ, where are our vans?!”

The comment may have been in jest, but the problem he raised is a serious one.

Amazon has an insatiable appetite for electric vans, thanks to a ballooning logistics operation and a pledge that half of its deliveries will be carbon-neutral by 2030. But that hunger is running into the reality that the auto industry barely produces any of the vehicles yet.

While consumer electric cars are finally hitting their stride — Tesla delivered almost a million cars last year — the market for commercial electric vehicles is still nascent, with their heavier loads multiplying the technology challenges. Amazon would not say if Rivian delivered the first 10 production vans in December, as was expected, and other automakers are not manufacturing at scale yet, either.

Even though Amazon owns nearly 20 percent of Rivian, it has also put in orders with other automakers, to lay claim to as many vans as it can before they are even under production.

This month Amazon said it would buy “thousands” of electric Ram vans from Stellantis, the company formed last year after the merger of Fiat Chrysler and the French automaker Peugeot.

I too stumbled over “Stellantis” the first time I saw it, a company formed from the merger of three car companies, none of whose quality screamed “reliable.” (Or, indeed, even whispered it.) But I digress.

It has also ordered 1,800 electric vans from Daimler in Europe. And it has formed a partnership with Mahindra, the Indian automaker, as part of its goal to have 10,000 electric three-wheeled vehicles on the road by 2025.

“The scale and speed at which we’re trying to do this requires a lot of invention, testing and learning, and a completely new playbook,” Ross Rachey, who oversees Amazon’s global fleet, said in a statement.

Amazon expected to have roughly 175,000 of its vans on the road by the end of 2021, according to an internal document from late 2020, nearly all of which burned fossil fuels.

That number is growing quickly. Amazon is several years — and tens of billions of dollars — into a huge push to deliver packages, shifting away from relying on large carriers like UPS. To begin the expansion, Amazon ordered 20,000 diesel Sprinter vans from Mercedes-Benz.

You saw very few of those Mercedes vans on the road before Amazon started buying them, but now they’re everywhere. But, again: gas-powered.

Through its network of contractors, Amazon now delivers more than half of its orders globally, and far more in the United States. Amazon has six times as many delivery depots now as it did in 2017, with at least 50 percent more new facilities set to open this year, according to data from MWPVL, a logistics consultancy.

That logistics boom, accelerated by the pandemic’s shift to online shopping, multiplies the challenges the company faces in meeting its pledge to reduce its climate impact. Its vow to make half of its deliveries carbon-neutral by 2030 is part of the company’s broader pledge to be net-carbon-neutral by 2040.

Conveniently far in the future that deadlines can slip long after the people making such promises are retired.

“Electrification of their delivery fleet is a really important part of that strategy,” said Anne Goodchild, who leads the University of Washington’s work on supply chain, logistics and freight transportation.

Delivery vans are well suited to electric propulsion because they usually travel 100 miles or under in a day, which means they don’t need large battery packs that add to the cost of electric cars. Delivery trucks are often used during the day and can be recharged overnight, and usually require less maintenance than gasoline trucks. Electric vehicles don’t have transmissions and certain other mechanical components that wear out quickly in the heavy stop-and-go typical in delivery routes.

This isn’t strictly true. Some electric vehicles have two-speed transmission, and they still need gears to change drive-speed ratio.

In September 2019, when Mr. Bezos announced Amazon’s huge Rivian order — the largest ever order of electric vehicles — he positioned it as central to Amazon’s commitment to reduce its carbon footprint. At the time, he said he expected the 100,000 vans to be on the road “by 2024.”

Amazon invested at least $1.3 billion in Rivian, which Amazon says is supposed to make 10,000 vans as early as this year. Amazon also locked up exclusive rights to Rivian’s commercial vans for four years, with the right of first refusal for two years after that. The companies have been testing the vans for almost a year.

In regulatory disclosures in November, Rivian said it would make the full delivery to Amazon “by 2025.” Last week, Mr. Rachey said Amazon expected to have the vehicles on the road “no later than 2030.”

Rivian declined to comment.

Yeah, I bet.

There’s nothing impossible about making an all-electric fleet. With enough money (and assuming certain Biden-era supply chain disruptions don’t get worse), it could be done by the end of next year. But whether it could be done cost-effectively is another question. Battery capacity is constantly improving, but not by Moore’s Law-esque leaps and bounds. Lots more can go wrong on a gasoline-powered car, but the technology is mature and many individual engine parts are relatively affordable. By contrast, as the man who blew up his Tesla showed, replacing current lithium ion batteries for an entire car is hideously expensive right now. That will probably come down, but no one knows by how much or how quickly. There’s a case to be made that those batteries are so expensive that electric cars are actually worse for the environment than modern gas-powered automobiles. But pointing that out commits heresy against The Holy Global Warming Narrative.

By the way, it’s not just Amazon that’s having trouble. The Postal Service is finding electric vehicles a lot more expensive than they expected.

After the USPS was criticized on Capitol Hill for its $9.3 billion plan to replace 165,000 trucks—specifically because 90 percent of them would be powered by gas combustion engines—the government-operated service went back and crunched the numbers again. In its recently released Final Environmental Impact Statement, the USPS estimates that the cost of an all-electric fleet would be $11.6B. That’s an additional $3.3B.

If that price tag seems a bit steep, the USPS estimates that it could electrify 75,000 of its vehicles—less than half of the proposed total—for an additional $2.3B ($10.3B total). Still too high? That figure is a mere fraction of the financial losses the USPS has experienced in the last 15 years. According to a report published by the Government Accountability Office in September 2021, the USPS has lost more than $87 billion since 2007 as the volume of mail it delivers has dropped.

A billion here, a billion, and pretty soon you’re talking real money…