The Edge Magazine Vol. 7

P art of the race to reshape the industry is influenced by policy. For example, in 2020, California Gov. Gavin Newsom signed an executive order banning the sale of new gas-powered cars in the state by 2035, setting the stage for other government leaders to enact similar legislation for reducing greenhouse gas emissions. At the COP26 climate change summit in Glasgow, 30 countries, including Britain, Canada and India, pledged to phase out gas- and diesel powered cars by 2040—and by 2035 in “leading markets.” The car industry followed suit, with six of the largest manufacturers—including Ford, General Motors and Volvo — joining the pledge. Many of these automakers are betting on the EV revolution by investing billions to phase out their gas- and diesel-powered vehicles and transition their lineups into fully electric, some starting as early as next year. Beyond policy and regulations, however, car and truck makers see a commercial incentive to invest in an EV future. As gasoline and diesel costs soar to their highest levels in history, consumers are increasingly looking at EVs and automakers have been reporting bumps in EV sales. New generations of tech-savvy and eco-conscious customers have created increasing consumer demand for EV options. In fact, several U.S. auto manufacturers, including General Motors, Chevrolet and Ford, have online reservation systems for their most popular EVs, many with waiting lists, giving them insight into customer demand. Reducing the number of combustion vehicles on the road won’t be an easy transition. While some nations are further along than others in EV adoption, none are close to targets. Germany, where EVs represent 12.6% of the automotive market, leads its peers followed by France at 9.5% and China at 5.75%, according to Statista. In the U.S., EVs currently represent less than 1% of cars on the road. By 2030, some experts predict that EVs and hybrids will account for nearly 30% of all U.S. vehicle sales. Getting to net zero means phasing out gas- and diesel-powered vehicles and building the sheer number of EVs to meet demand. Just how many EVs and how quickly? According to the Sierra Club, the U.S. must exchange 10 million conventional gas- and diesel-powered vehicles on the road for EVs by 2025 to make an impact on climate change. It’s a heavy lift for the automotive industry, but champions of the EV revolution are confident there will be many winners beyond the EV manufacturers. The most obvious one is the environment, where the potential payoff is huge. Even accounting for upstream emissions from charging stations, EVs are cleaner, emitting fewer greenhouse gases than traditional internal combustion engines. More EVs and fewer traditional internal combustion engines translates to less fossil fuel use, lowered carbon emissions and ultimately improved air quality. And the return for consumers is expected to be big, too: a recent Consumer Reports study revealed that the total cost of EV ownership is lower than traditional combustion-powered vehicles, saving $4,700 in the first seven years of ownership on fuel alone.

For more than 130 years, the automobile’s internal combustion engine has loudly announced its presence, with vibration and sound that represents a vehicle’s image and function. But that soft and subtle buzz you hear? It’s the sound of electric vehicles (EVs)—no internal combustion engine required—quietly racing to reshape the car and commercial truck manufacturing industries and meet the growing demands of global consumers, businesses and increasing environmental sustainability initiatives. The Electric Vehicle Revolution

Nearly 25% of global emissions are associated with transportation

TIM FOSTER Head of Supply Chain & Logistics Advisory, APAC tim.foster@cushwake.com REBECCA JINKS Head of ESG & Sustainability, APAC rebecca.jinks@cushwake.com

TONY AVENDT Automotive Advisory Group Lead tony.avendt@cushwake.com

TIM CRIGHTON Head of Logistics & Industrial, EMEA tim.crighton@cushwake.com

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