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PHH Arval Alternative Fuel Vehicle (AFV) Study

October 11, 2012

Hybrid electric vehicles and plug-in hybrids

By Sarah Mallonga, Project Manager, Strategic Consulting for PHH Arval

PHH Arval's Strategic Consulting group conducted a detailed study of a variety of alternative fuel vehicles to help our clients decide which are right for their fleets. This blog post is the first in a series that will provide information on alternatives, considerations for fleets, and the pros and cons of each.

Hybrid electric vehicles (HEVs) combine the internal combustion engine of a conventional vehicle with the battery and electric motor of an electric vehicle. Similar to HEVs, plug-in hybrid electric vehicles (PHEVs) are powered by a conventional combustion engine in addition to a battery-run electric motor. PHEVs have a larger battery pack than HEVs, which makes it possible to drive short distances using only electricity.

HEVs and PHEVs are best suited for fleets that include passenger vehicles and light duty applications, with primarily stop-and-go city driving.

The following are pros and cons of these vehicles.

Hybrid and Plug-in Hybrid Vehicles
Pros	Cons	Additional considerations
Proven technology Available for more types of vehicles Better fuel economy, decreased fuel costs, and reduced GHG emissions compared to conventional counterpart PHEVs have no tailpipe emissions when in all-electric mode Well-established refueling infrastructure for HEVs PHEVs can refuel with gasoline when necessary Improving maintenance infrastructure Some PHEVs qualify for HOV lane access in certain areas	Battery replacement expected to be required every 8 to 10 years, still costly Less cost-effective for highway applications Much higher initial acquisition cost than a conventional vehicle Production availability limited for some models	Resale expectations tend to rise and fall with the price of gasoline HEV emissions benefits vary by vehicle model and type of hybrid power system Life cycle emissions of PHEV depend on sources of electricity used to charge it

Some HEVs are considered "full hybrids" while others are considered "mild hybrids." While a full hybrid can run on just the engine, just the battery or a combination of both, a mild hybrid does not have an electric-only mode of vehicle propulsion. While mild hybrids provide a fuel economy improvement over conventional gasoline engine vehicles, they do not achieve the same fuel economy improvement as full hybrids.

For a more detailed analysis of the AFVs that would be best suited for your specific fleet, please contact your PHH Account Team.

Look for our next blog post on electric vehicles.

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