Proterra closes $155 million investment with Daimler, others

[kscarbel2]

Trailer-Body Builders  /  September 20, 2018

Proterra, which produces heavy-duty electric transportation for the North American mass transit market, recently closed a $155 million investment round co-led by commercial vehicle manufacturer Daimler.

[Chinese venture capital firm] Tao Capital Partners co-led the round, joined by G2VP and other technology investors.  

“We have made several investments in disruptive transportation companies and believe electric vehicle technology is the future of mass transit fleets,” said Nick Pritzker, chairman of Tao Capital. “We at Tao are proud to support Proterra in its mission to bring forth a clean, electric transportation ecosystem.”

In conjunction with the investment, Proterra and Daimler entered into an agreement to explore the electrification of select Daimler heavy-duty vehicles. The first of these efforts will be to explore potential synergies with Daimler’s Thomas Built Buses division by bringing Proterra's proven battery and drivetrain technologies to the North American school bus market, the next frontier for zero-emission, commercial fleets, Proterra said.

Similar to public transit vehicles, school buses provide important community infrastructure and offer an ideal use case for vehicle electrification, as most school buses travel a predictable distance per day that is well within the capability of Proterra’s EV technology, the company said. With this collaboration on an electric vehicle for the school bus market, Daimler and Proterra have the potential to provide reliable, affordable transportation options with environmentally sustainable, zero-emission EV technology.

“We started working on electric trucks and buses at a very early stage, and we aim to set the standards here in each relevant segment,” said Martin Daum, a Daimler AG board member with responsibility for Daimler Trucks & Buses.

“We expect the cooperation with Proterra to deliver additional impetus for the development of heavy-duty commercial vehicles with electric drive.”

Proterra said the partnership “represents a significant milestone in the commercialization of heavy-duty electric vehicles,” with both manufacturers working to expand zero-emission technology into new vehicle segments.

“We are excited to collaborate with Daimler, and we appreciate their investment and support,” said Ryan Popple, Proterra CEO. “Daimler is a global leader in vehicles that serve almost every category and market. Over the past year, we’ve gained a great deal of respect for the engineering prowess, operational expertise and environmental stewardship of the Daimler team.

“We also appreciate the continued support of our existing investors who share our vision of clean, quiet transportation for all.”

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[kscarbel2]

Daimler chief announces Proterra investment, talks trade and warns of potential for a soft CV market

Jeff Crissey, Commercial Carrier Journal (CCJ)  /  September 20, 2018

Automation was the overarching theme at IAA 2014, while connectivity and electric vehicles stole the show two years later. At IAA 2018, the world’s largest commercial vehicle show in Hannover, Germany, the theme was evolutionary rather than revolutionary as OEMs and suppliers announced production models (at least in Europe) that showcase much of what they promised in the last four years.

Mercedes-Benz’ new Actros is a prime example, a ready-for-order cabover that boasts SAE Level 2 autonomous capability with its Active Drive Assist platform. The technology isn’t just for Europe, either. While Daimler’s ADA system will first be rolled out there, “We will be providing it to Freightliner and Fuso as well,” said Martin Daum, head of Daimler Trucks & Buses during a press conference at the trade show.

Daimler also announced another major development for its electric drivetrain development, investing $155 million in Proterra, a California-based manufacturer of zero-emissions local transport buses. The company’s configurable Catalyst platform is capable of serving the full daily mileage needs for most transit routes on a single charge.

“We started working on electric trucks and buses at a very early stage and we aim to set the standards here in each relevant segment,” said Daum. “We expect the cooperation with Proterra to deliver additional impetus for the development of heavy-duty commercial vehicles with electric drive. In this way, we are broadening our scope in particular concerning the key technology of the battery – also with regard to North America.”

Within the last two years, Daimler has launched a number of electric-driven vehicle initiatives across a wide variety of North American vehicle segments, including the Fuso eCanter, Thomas Built Buses Jouley and Freightliner eCascadia and eM2.

Daum said the challenge remains finding the right electric solution for each business use case. “The required range depends on the routes a truck or bus travels on, and the opportunities of when and where to charge vary from customer to customer,” said Daum. “This results in a host of requirements and that takes time to meet those, but I think we are doing well on these counts.”

Tariffs and trade

As a leading global manufacturer, Daimler Trucks & Buses and its Daimler Trucks North America subsidiary historically have been tight-lipped in recent years when asked about to comment on the renegotiation of U.S. trade policy with its North American partners, recent tariff hikes and trade posturing worldwide.

During a roundtable with the North American press prior to the press conference, Daum expanded on the company’s statement that it remains a proponent of open borders and free trade.

“Whoever separates itself from the global markets ultimately suffers the most,” said Daum. “You get a bigger share but fewer patrons. A bigger share of a smaller cake might be less than a smaller share of a much larger cake.”

Corporations like Daimler with operations in all corners of the globe are more susceptible to the threat of higher tariffs.

“Global for us means we are strongly embedded in the local economies that we serve, whether it’s China, Japan, India, Europe, Brazil or North America,” said Daum. “We employ thousands of people and invest hundreds of millions of dollars in each market. But on the other side it benefits when we ship [product] around the globe… If this global exchange of ideas, people and goods gets interrupted, then everyone would suffer. A trade war at the end of the day will have no winner, just losers.”

“Not rejoicing” on North American CV market

With production slots for North American customers sold out through the middle of 2019, Daum said market conditions should remain strong in the near term but warns of the potential for market volatility whenever the current cycle ends.

“The sentiment of our customers is strong, commercial freight is high, freight rates continue to be high,” said Daum, who headed DTNA from 2009 to 2017 prior to his current post. “I think the markets are, from my internal U.S. compass, a bit too high. In years when the market is too high it could foreshadow a valley that could be deeper. I’m not full of rejoicing over that market.”

In addition to current order inflation, Daum added a potential trade war and higher interest rates for equipment financing as threats to curb the current truck market in North America.

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[BillyVelez]

Proterra getting a $155 million investment from Daimler and others is huge. The collaboration to bring Proterra's tech to school buses is really exciting. I think that school buses are perfect for electric vehicles because they travel predictable distances every day. Well, I belive it's a good deal for them. However, there are other investment opportunities, such as trading or selling CS skins, which are also options. Check out https://skin.land/sell-skins/csgo/

Edited August 20 by BillyVelez

[Miami Cossack]

An electric School Bus is 4 times the cost of a Cummins. When the battery is dead you must tow it to a charging station. They operate high voltage systems for the A/C, air compressor, propulsion system, power steering, inversion system. 600-700 volts requires trained technicians which are in short supply. Charging stations are a huge issue. HUGE. The battery pack on a Proterra (Thomas) is 11.5 inches off the road. IC bus is about 12 inches. High center it or hit debris and you have to tow the bus and find someone to remove, inspect and repair/re-certify the battery packs before it hits the road again. Any damage to the battery pack or even the EV bus, and most collision shops won't even touch the thing. There are a handful of things that can disable a ICE vehicle. There are many dozens on an electric. For safety reasons. It has to be that way. If you have a battery pack failure, the bus is a write off unless you are lucky enough to get the manufacturer to pay for it. When they are working properly, they are really nice. Great to drive. I would say the ones I deal with are on the road 30% of the time at best. Also, Don't use them on a lot of hills or deep water/snow if you can help it. Whatever you do, don't high center one. The International is quite a bit better but the A/C systems are right by the rear wheels. Sling a tire and guess what?  .....They will get better some day. I work with these, daily. They aren't telling you the whole story.

Edited September 15 by Miami Cossack
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