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January 2018

Old cars become Electric. The first aftemarket re-generation chain

Dino Collazzo

The University of Bologna’s “Time project”, currently underway with the collaboration of several aftermarket producers, has the target of creating a "conversion" business: from designing and producing a conversion kit to a complete service workshop network
A second life for an old car and a new business opportunity for automotive workshops and aftermarket companies. Following the introduction of the "retrofit decree" (DMT No. 219 of 1st December 2015), which allows the conversion of internal combustion vehicles into electric vehicles, the University of Bologna, together with a group of component manufacturers, laid the foundations for the first "regeneration chain". From designing and industrially producing a “re-generation kit, to a complete service network made of specialized repair shops. The project is called Time (Tecnologia Integrata per la Mobilità Elettrica) and is based on three pillars: innovation, ability to create economies of scale and respect for the environment.

The task of developing the power-train system, which will replace the old combustion engine, is entrusted to the University. "With a team of researchers we are working on improving energy storing and traction systems, human-vehicle interface, as well as air conditioning system and the vehicle-to-internet systems for remote monitoring and control - says Claudio Rossi, professor at the electrical engineering department of the University of Bologna, CIRI Advanced Mechanics and Materials -. Tests on the first on-board kit are currently being finalized and during 2018 we will start with a first production pre-series." The interesting thing of the project, besides being quite innovative, is the close collaboration that was created between the academic and the industrial world: the target is to create a supply chain to favour the conversion and re-approval of old vehicles. In fact, while the university is responsible for the creation and development of the technology, the companies involved in the project are called on to produce the components that will eventually make up the kit. The large-scale production will be entrusted to a newco that will manufacture the kits in series, which will then be sold to garages interested in this conversion business, together with the necessary procedure that will guarantee the approval of the vehicle. Basically, from a vehicle that has ended its useful life – called a donor - the combustion engine is eliminated, whatever is in good condition is reused and the electrical components necessary for the transformation are then installed. All this produces a two-fold benefit: cost reduction, compared to purchasing a new electric vehicle, and a significant technological upgrade on the original vehicle.
 
"What we are doing here - Rossi continues - is designing a system of components, kits and procedures, available to ordinary garages, one that will allow to place electric cars on the market at a lower cost compared to what car manufacturers can do with new vehicles. With the result of creating value both from an economical and environmental point of view: we reduce the production of waste and harmful emissions into the atmosphere and offer car repairers new business opportunities at the same time." After obtaining obsolete vehicles on the second-hand market, workshops will then carry out the electric conversion and provide the necessary specialized assistance. "Service is an important part of the ‘Time project’ - explains the professor -, managing maintenance activities, learning how to use specific diagnostic tools and enriching one's knowledge in electronic and IT fields are fundamental aspects. The goal is to put the repairer in the position of being able to take care of post conversion assistance activities.”
 
The real unknown factor, for the development of the Time project, is represented by the scarce penetration of electric vehicles in the Italian car market. Compared to the rest of Europe, in Italy the number of battery powered cars is the lowest. The high purchasing cost of these vehicle and the lack of adequate infrastructure are partly to blame for these results. According to Anfia, in 2017 - year in which 1 million and 970 thousand new cars were registered – only 10 out of ten thousand cars sold were electric. Yet, the potential’s there. Especially if you think that our country has the oldest circulating fleet on the continent. This is where the "fuel" needed to power the rising conversion and re-approval industry can be found. "According to our forecasts, we think that the most profitable market, at least at this moment, are corporate fleets and Public Administrations – says Rossi -. These latter ones need to renew their car fleet and we, through ad hoc agencies, offer a solution that can actually save them a lot of cash."



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