Navistar Hopes To Top Tesla In Electric Semi Segment

Tesla Semi

JAN 22 2018 BY MARK KANE 22

Established manufacturers don’t look favorably on the hype that newcomer Tesla is causing. We’ve witnessed this phenomenon for passenger EVs already in the past, and now its happening in the truck industry too.

Navistar DuraStar Family

The full-size Class 8 Tesla Semi, announced for late 2019, thanks to its unprecedented specs (such as a range of 500 miles), has put established makers on the watch.

One such trucking company is Navistar International Corp. CEO Troy Clarke in a recent Trucks.com’s interview, stated that his company will deliver more electric trucks than Tesla by 2025!

Navistar in partnership with Volkswagen announced first medium-duty trucks for 2019.

Big manufacturers have some advantages like market share, an existing customers portfolio, dealer and service networks. On the other hand, Tesla brings disruption, the highest range, autonomous driving and some media attention, among many other things that could attract customers.

“Customers know us, and they know that when we give them a truck it gives them a guarantee that this truck is going to serve their needs, because we understand how our customers make money,” – Troy Clarke, Navistar CEO

Brad Delco, transport analyst at Stephens Inc. said:

“With established brands such as International, Peterbilt, Kenworth and Freightliner, “if something goes astray, those trucks get pulled into their dealerships to get fixed immediately, particularly when under warranty.”

Source: Trucks.com via Teslarati

Categories: Tesla, Trucks

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22 Comments on "Navistar Hopes To Top Tesla In Electric Semi Segment"

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Get Real

Radical DISRUPTION of a stagnant industry by….once again, Tesla.

Icall it the Tesla effect.

Pushmi-Pullyu

Tesla really has galvanized the heavy truck manufacturers to think seriously about BEV trucks! I say the more the merrier, and competition is good for the market.

Go Tesla!

CDAVIS

“Customers know us, and they know that when we give them a truck it gives them a guarantee that this truck is going to serve their needs, because we understand how our customers make money,” – Troy Clarke, Navistar CEO
——————

Navistar customers also know it will be several years before Navistar (or any other traditional semi maker) will have available a production EV Semi that offers as good or better TCO proposition than a Tesla Semi. These customers also know that the Tesla Semi team includes several industry insiders with a long history in the trucking industry… and that the Tesla Semi was designed from the ground-up with core customer needs in mind.

That’s why Tesla Semi is successfully booking a deep paid reservation backlog of business… which will over the course of next 24 months convert over to purchase orders & deliveries.

The traditional semi makers have a challenging three years ahead of them in terms of addressing the disruptive Tesla Semi competitive threat… responding by saying they have been in business longer than Tesla exposes their weakness.

Lamata

He must thinks he’s the only one born with a Brain… lmao

EVer

As a legacy truck maker, Navistar must continue to sell diesel gassers to meet their Wall Street numbers; so they will sell as many diesels as possible before they take a chance on electric drive…just like the legacy car makers, their transition to ETs(electric trucks) will be slow…painfully slow.

Bunny

I’m not bashing Tesla, but a couple things reality check.
If you had a 500 mile Tesla semi TODAY, where would you plug it in to charge it ? Gonna take some time yes?

In heavy duty trucking do not discount the fact of dealer service to keep you running down the road. Lost a power steering hose just east of Cheyenne WY, pulled into Volvo dealer, they ran to Denver for the hose, 468.00 later and less than 10 hours was running down the road again making money.

Where are you taking your Tesla in Cheyenne in 2019 or 2020 for a hose for the power steering? Probably TA truckstop, for a Parker hose that “almost” is right, or a day later because you had one airfreighted to you, in trucking you are much farther ahead if you get the right part the first time AND in a timely fashion!

Don’t bash what you don’t know.

EV trucks worldwide are making great progress in all shapes and sizes , competition is a good thing!

I’m sure Tesla will do well, as others will also, a few years from now.

J P DeCaen

I’ll bet the power steering in the Tesla truck is electric, therefore no hoses.

Bunny

Good point , man if that craps out, nobody gonna have anything to fix it at all, lol

Pushmi-Pullyu

Exactly; the power steering in a BEV is assisted by an electric motor, not by hydraulics. No hose needed.

I take your point, Bunny, but you picked the wrong example. 🙂

More generally: Breakdowns are something that every trucking fleet has to deal with. And again, that’s something that larger fleets will have the resources to deal with better than small fleets and independent truckers. So again, it makes much more sense for a large trucking fleet to buy Tesla Semi Trucks than it does for a small fleet.

“it makes much more sense for a large trucking fleet to buy Tesla Semi Trucks than it does for a small fleet.”… For Now!

But, even a small fleet of 5-10 would benefit having 1-2 Tesla Semi’s in their fleet, and that would be 10-20% of their fleet, realy giving them a boosted benefit in reducing overall fleet operation costs!

MikeG

Tesla is paying close attention to the various failures that will require service. For example, the windshield is made of special glass that won’t chip or crack as easily and require replacement–this was discussed at the unveiling.

zzzzzzzzzz

Bunny:

Tesla is marketing to short distance fleets now, if it will ever go further than computer renderings and half functional mockups. Something like 300 miles roundtrip max. There is market in short range too, though I don’t know it would tolerate expensive battery costs.

OTR is beyond reach. 500 miles is just ideal range, good weather, not too fast, and preferably downwind :/

Nick

Or not.

And you know this….How?
On what Tesla Semi Consulting Event were you part of?

God/Bacardi

The Model S/X/3 isn’t meant to REPLACE all ICE personal transportation vehicles nor should the Tesla semi be expected to replace ICE semis…

Someone has to pave the way and that appears to be Tesla…

Pushmi-Pullyu
Bunny said: “If you had a 500 mile Tesla semi TODAY, where would you plug it in to charge it ? Gonna take some time yes?” Tesla is advertising its Tesla Semi Truck only to large trucking fleet operators, not to independent truckers like you, Bunny. Why is that? One of my working premises (i.e., assumptions) re the Tesla Semi Truck is that it makes economic sense to install the required Tesla Megachargers to support those trucks only where the BEV semi tractors are going to spend their time between shifts, and possibly on lunch breaks, in the same few places at least a few times every week or two. And that means primarily it’s only going to be large trucking fleets for whom it makes sense to buy Tesla Semi Trucks and pay to install the Tesla Megachargers to support those trucks. The economics would work best where the BEV trucks are used only for local deliveries, and return to the same fleet depot every night, for recharging. The economics might also work for somewhat longer routes, if those routes are regularly scheduled and run frequently enough that trucks often spend the night at a specific place at the… Read more »
earl colby pottinger

And like the car companies, where are the batteries going to come from?

One thing we know for sure, trucks will need 5-10 times the batteries per unit than cars need. And that is assuming 100 KWh cars.

Yes, I am sure the battery companies can produce the batteries but ***ONLY*** if those battery companies have contracts from the car companies that ensure that expanding production lines/factories have ensure the extra batteries will be bought.

And that is one thing we are not seeing, without those contracts the batteries are sold on the spot market and at a higher price than they would cost if there was already contracts.

Timmy

Also to mention, Tesla is the only car/truck manufacturer that will be supplying its own batteries. So there will be 1 or 2 middlemen, along with their mark-ups, adding a lot of cost to non-Tesla manufacturers for their battery packs.

Pushmi-Pullyu

Good point, thanks. Tesla’s Gigafactory One is going to give it an enormous advantage in production BEV semi tractors, just as it’s giving Tesla an enormous advantage in being a dependable supply for its Model 3. A supply controlled by Tesla, and not by Panasonic or any other battery maker.

John

I absolutely love all these companies that do NOTHING in their own segment while all of a sudden Tesla pops up to challenge their market- and then they simply say “We will too!!”

And then do nothing more… Keep it coming bloviators!

Magnus H

Today’s press release. Tesla isn’t the only game in town, Volvo starts with distribution though.

“In 2019 Volvo Trucks will start selling electric trucks in Europe, and the first units will be put into operation together with selected reference customers already this year. Electric trucks drastically reduce noise and exhaust emissions and open up for new ways to manage logistics. More transport assignments can be carried out at night and fewer trucks need to compete for road space during rush-hour. “Electromobility is fully in line with Volvo Trucks long term commitment for sustainable urban development and zero emissions”, says Claes Nilsson, President Volvo Trucks.”
http://www.volvotrucks.com/en-en/news/press-release.html?pubid=22690

Gunter

Nice, Better trucks!