Commentary – Electric Trucks May Have Some Pull

Nov 30 20:11 2017 Print This Article

Not long ago, the idea of 18-wheelers pulling cargo with a battery seemed somewhat ludicrous to me. But I’ve changed my mind.

In fact, I would argue that electrically-powered wheels may come to the trucking market faster than the world of passenger cars.

The reason is simple. Trucking companies—like any capitalist, profit-maximizing institution—make rational purchase decisions based on careful assessments of economic viability. Any capable Chief Financial Officer is algorithmically brain-wired to ask, “Is this thing going to make our company any more money?” If the answer is “yes,” the switch is often fast.

Individuals on the other hand are often motivated by soft sell factors like vanity, size and flexibility, not to mention instant convenience. A good set of cup holders often trumps fuel economy. The option to haul a sheet of plywood on a moment’s notice, if only twice a year, is perceived as worth the cost of supersizing a vehicle purchase.

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About Article Author

ARC Energy Ideas

ARC Financial Corp. is a Calgary-based, employee-owned, private equity management firm founded in 1989, with an exclusive focus on the Canadian energy industry. Through in-depth investment research capability leveraged to build a highly successful corporate advisory practice, ARC Financial Corp created ARC Resources Ltd in 1996. ARC Resources Ltd. is a TSX-listed company (ARX) that has become one of the leading players in the Canadian oil and gas sector. The mandate for the ARC Energy Funds is to provide growth equity capital for energy companies with a core focus on the Canadian oil and gas industry.

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