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NEWS
RACV burned by Better Place fall-out
But motoring association remains committed to electrification of private transport – without any nasty shocksOpinion
Unfulfilled promises by Better Place to deliver green energy and battery switching in Australia have damaged the brand – and made it unlikely the corporation will re-enter the local market in the future. Furthermore, it hinders any similar venture.
While Better Place is apparently building a strong revenue base for itself in Denmark and Israel, according to Renault Australia MD, Justin Hocevar, its announcement last week it would cease to operate in Australia makes the local market probably a no-go zone for the foreseeable future.
One of its early supporters in this enterprise was the RACV, the Victorian motoring association tipping in $2 million to help fund Better Place's start-up in Australia. At a time when the Victorian Labor government of the day had announced a far-reaching electric vehicle trial, getting in on the ground floor of an anticipated mass migration from internal combustion to electric power seemed the way to go.
And mass migration was precisely what Better Place's global CEO, Shai Agassi forecast for Australia, claiming that EVs could outsell ICE vehicles in Australia by 2016. Mr Agassi was ably backed in Australia by Evan Thornley, the former Victorian government politician who left Parliament to head up Better Place Australia. Thornley replaced Agassi as global CEO back in October when it became apparent the company had to make the jump from technology-driven start-up to commercially viable corporation.
With Thornley himself lasting just three months in the global CEO's position, his departure was taken as a further sign that the time was past for glib rhetoric and the company now needed to deliver results. The end of business operations left some local investors in the lurch, of course; the RACV being one of them.
Brian Negus, the RACV's General Manager for Public Policy, in an email sent to motoring.com.au yesterday, explained that "the transition to more sustainable forms of motoring is a high priority for RACV and its members."
The motoring association remains committed to that principle, but hasn't invested any further capital in Better Place since the original outlay, which "enabled RACV to demonstrate its commitment to sustainable transport technologies and strengthen its understanding and relationships in this area."
According to Mr Negus, the capital was principally a gesture of the association's support for sustainable motoring. The money was essentially a gift, with no strings attached, but, "at the time of investment, RACV envisaged a forward looking partnership between RACV and Better Place, which could include charge spot installations at RACV properties and potentially the provision of roadside assistance and other services."
As such, the possibility the RACV can recover any of the $2 million capital looks remote, although Mr Negus says the association is awaiting "further advice" on that point.
Since Better Place is no longer in the picture, would the RACV consider offering similar services it had previously anticipated developing as a joint venture with Better Place? In other words, could the RACV get behind and develop battery-swap stations, or at a more achievable level, battery leasing?
Mr Negus didn't comment on that point specifically, but did observe that the association remains committed to assisting its members, including those driving battery-electric vehicles.
"RACV is committed to the provision of roadside assistance and related services to its members," he explained.
"Although the EV fleet on Australian roads is a relatively small proportion of the total fleet, noting that there are at least three “rechargeable” electric vehicles currently on the Australian market, RACV remains committed to ensuring members receive accurate and credible advice about this emerging technology, as well as providing support where required (e.g. roadside assistance, vehicle insurance, recharging services)."
Depending on whether one considers the original capital well spent, as a means of promoting the RACV's faith in the technology, the association itself remains sure that EVs are the way of the future.
"RACV is committed to assisting our members to reduce the environmental impacts of motoring," Mr Negus observed. "We advocate strongly for the adoption of policies that encourage a wide variety of power and fuel systems that enhance consumer choice and reduce the dependence on fossil fuels.
"RACV is actively pursuing a number of activities in this area to ensure that products and services that we provide to our members are aligned with very rapidly changing technologies. Electric vehicles are an important part of the future transport mix and this remains RACV’s view even with the recent announcement by Better Place."
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Written byKen Gratton
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