Azure responds to CAPs Connect EV residuals

Azure responds to CAP’s Connect EV residuals

On behalf of Azure Dynamics, Gary Whittam has issued a response to CAP Monitor’s recent adverse residual value forecast for the Transit Connect Electric (see previous News Story).

Whittam said: “While I am clearly disappointed with the CAP comments and positioning I am not at all surprised. They are taking a view of the future and I respect that view.

“I was around when the Transit Connect was launched in 2002 and those who set residual values had trouble accepting that the product was extremely robust, even though they were shown in detail the development, testing and durability criteria the product was put through. History shows that they under-called residuals; it is now regarded as one of the most durable products in its sector. But hindsight is a wonderful thing.

“The Transit Connect Electric has gone through the same exacting development and testing and we are confident it will provide a long-lasting and environmentally sound solution to the problem we all face; oil is running out. Equally, electric vehicle makers cannot simply quote a battery life without showing evidence that it will perform as expected, so to add the cost of a new battery to the whole life costs is much the same as adding the cost of a brand new common rail diesel engine to the whole life costs of the diesel equivalent; I don't believe they do that.

“I am glad that the majority of the wide range of customers we are talking to understand the need to have alternatives to oil-powered vehicles; and sooner rather than later. They also clearly understand they will need to have a number of technologies on their fleets where they used to have one — diesel. They also want to buy a long-term electric solution developed and manufactured to the same exacting standards as their existing fleet of hard-working Transit Connects. Interestingly they have no intentions of selling the product on after three years. Indeed a large number of our customers plan to operate their Connect Electrics for up to eight years.”

Whittam concludes: “While we do not have the complete picture of this emerging sector we can now see what it will look like. It’s up to us all in the van industry to embrace new ways of doing business and provide the decision makers with a balanced and neutral view. I am not entirely sure the CAP statement does this.”