Accelerating the Transition of Lorries to Green Technology: A Feasibility Study

Accelerating the Transition of Lorries to Green Technology: A Feasibility Study



Is it possible for lorries ⁣to transition to green technology more rapidly?

When you invest $100,000 in a vehicle, you might expect⁢ something flashy like a Porsche. However, for many buyers,⁤ the priority is the vehicle’s carrying capacity rather than the brand. This​ is the price of a large lorry.

Commercial vehicles, such as lorries and vans, play a crucial role in keeping supply chains operational and facilitating deliveries.⁤ They are also highly profitable for their manufacturers. In 2023,⁢ vans accounted for a‌ third of ‍the €190bn ($207bn) in sales at Stellantis. Daimler Truck, the ⁢world’s largest manufacturer‌ of medium-sized and large lorries, ‌generated revenues of €56bn last year. Ford Pro, the commercial arm of the American car giant, recorded ⁤a net profit of‌ $7.2bn on sales of 1.4m units. Lorries produced⁤ by Volvo and Daimler yield profit margins typical ⁤of an upmarket carmaker.

Given the ‌high upfront ‌cost and the focus on operating expenses, it would be logical ‍to expect a rapid transition to electric commercial vehicles, especially‌ since they ⁢are significant‌ contributors to carbon emissions. However, ‌many businesses still find‌ petrol and diesel vehicles ⁢more cost-effective. Can this mindset‌ change?

2024-03-12 ‍14:33:27
Source from www.economist.com

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