Long known for its legacy of exacting German automotive engineering expertise and innovation, Volkswagen’s Electrify America subsidiary is partnering with Texas-based EVgo to establish a network of electric vehicle charging stations across the United States.
Q: What other automakers do you have agreements with? Are you seeking contracts with additional OEMs?
A: EVgo also has agreements with BMW, Nissan and Ford that provide their customers with free EV charging sessions with the purchase/lease of their car. We have an agreement to provide EV charging for General Motors to drivers in its Maven brand. We are constantly talking with every OEM to increase EV adoption and consumer satisfaction with EVs.
Q: Are your individual chargers compatible with all the different automakers? Or are there separate units for the various nameplates?
A: EVgo stations cover all EVs available today, and utilize both CHAdeMO and CCS standards. EVgo’s DC fast-chargers provide approximately 150 miles of range per hour at a charging rate of 50kW, the fastest available public charging rate.
Q: What is your assessment of opportunities for aftermarket businesses interested in supplying parts and services for the EV segment?
A: There are now more than 600,000 EVs on the road, and that figure is expected to double every couple of years. There is already substantial business in repair parts, and particularly for tires. Many of the early adopters of EVs are very proud of their cars and like to customize.
Q: What are the respective roles of BTC Power and ABB regarding your charging network?
A: ABB and BTC provide the physical charging hardware for EVgo’s charging network. Both manage a portion of the networking requirements for the stations. Both offer maintenance and repair services. EVgo blends these offerings by market to achieve the highest service levels and contain costs.
Q: What types of locations are you seeking for charger installations?
A: EVgo has built the largest public fast charging network in the U.S. This is predominantly in metropolitan areas, where stations are distributed across the major thoroughfares to create a web of reliable charging that encourages EV sales. The stations have convenient on/off access to the roadway, excellent retail, dedicated EV spaces, and adequate lighting.
Q: Are there opportunities for “gas stations” and auto service centers to host charging units? Are there opportunities for fleet operations to host chargers?
A: We currently have gas station partners where we operate EV charging. Those stations are typically full-service retail models with a large convenience store and other food options.
Generally speaking, however, most gas stations a not a great fit because the consumer experience is poor, the parking area is insufficient, or there are other physical/electrical conflicts. Instead, we tend to focus on places where people already plan to visit and spend time. Many EV drivers consider it a benefit to never stop for gas again.
Fleets can certainly host public chargers. Most probably don’t want to invite the public onto their property for this purpose.
Q: What are the basic technical requirements to host charging units?
A: We prefer that sites have high-quality retail. Stations require 100A of 480V power per 50kW charger. We can connect from the utility or the building, but the connection needs to be reasonably close to the point of service. Parking needs to be sufficient to also provide an ADA-designed space for EV charging.
Q: How complex is it to install your chargers?
A: Fast-chargers require a general contractor, electrical and planning permits. The average installation cost is about $40,000 per charger.
Q: What are some of the challenges involved in maintaining and repairing the chargers?
A: Operating costs quickly eclipse capital costs for fast-chargers. Each charger requires a maintenance agreement, and consumers have high expectations for service levels – how often has your gas pump been broken when you arrive at a gas station?
Q: What qualifications do you seek for technicians wishing to enter the EV charging field?
A: No college degrees required; typically an electrical license for electricians. Maintenance technicians do not require an electrical license.
Q: What are the key aspects of the installation and maintenance network that you have in place?
A: We utilize third parties for national maintenance services and combine with our own personnel. For installation, our construction managers oversee regionally selected general contractors.
Q: What are the requirements for a business wishing to install and/or service your chargers?
A: Businesses must win an RFP (request for proposal) that selects for experience, cost, quality, diversity spending and progressive hiring policies.
Q: Is this something you see as a practical service that existing aftermarket businesses can provide?
A: We welcome any new entrants that are qualified or seek to become qualified.
Q: What are the financial arrangements? Does EVgo retain ownership of the units? Or does the hosting site and/or installer buy the chargers? Or do they lease them? Are they franchised?
A: EVgo generally provides all the capital and operating costs for its stations. EVgo owns and operates more than 900 fast chargers in over 600 locations nationwide. By owning and operating its stations, EVgo is able to meet the high standards of our partners because it is responsible for the full operation and repair of the stations.
Subscribe to Aftermarket Business World and receive articles like this every month….absolutely free. Click here.
