Consumers are perhaps unsurprised to walk into an auto dealership and feel sticker shock. But it's a rare case when executives at dealerships are astonished by high costs.
That was the case last summer when John Bergstrom, CEO of Bergstrom Automotive, opened the utility bill for one of his stores.
"I won't tell you how much it was, but it was a jolt," he said. "It was a monster bill."
It would quickly put him at the forefront of issues involving electric vehicles and led to the installation of direct-feed lines at several dealerships and a microgrid — an independent electric system — at the group's Green Bay Road campus in Neenah, Wis., where it operates Chevrolet-Buick, Cadillac and Ford- Lincoln stores.
After some sleuthing with his utility company, Bergstrom discovered the culprit was a Porsche Taycan that employees had charged at approximately 10:30 each morning. That's peak demand time, with the highest rates from We Energies, the utility company.
Overnight charging can be less expensive, a valuable lesson for business owners and motorists alike. But Bergstrom wasn't content to put the bill in his rearview mirror by simply changing charging times. He wanted to better understand how the anticipated influx of EVs would affect his dealerships.
Bergstrom Automotive sold approximately 30,000 new and used vehicles in 2020. Based on its sales in 2019, the group ranked No. 78 on Automotive News' list of the top 150 dealership groups in the U.S.
While there's been broad discussion about how dealerships can prepare consumers and better train sales staffs on EVs, there's been little said about the impact of EVs on everyday store operations. With 27 of Bergstrom Automotive's 35 brands slated to bring an EV to market within the next 12 months, the CEO realized a steep learning curve loomed.
"It's like one of those things you never thought you'd be involved in, and then you see a whole different world," said Bergstrom, 75, who co-owns the group with his brother Richard. "We are right at the front end of this thing."
Working with Faith Technologies Inc., an electrical engineering corporation, Bergstrom Automotive installed direct-feed power lines to EV charging stations at 11 of the group's 30 dealerships in Wisconsin. They are the lone source of electricity at times of peak demand. Easy first step. Yet John Bergstrom wanted more.
In Neenah, Faith Technologies installed a microgrid, an on-site electric grid made up of solar panels, battery-storage and control software and a backup generator that uses natural gas. It's far more sophisticated than a collection of panels, Bergstrom says, and because of its storage capacity, he doesn't need to worry about sunshine in Wisconsin.
"Solar panels alone don't do you much good, unless you're in Phoenix," he said. "You have to figure out a way to save this energy and put it into a program so it's available when you need it. That's what a microgrid does. It works. It's absolutely amazing."
For the past four months, the group has used it to charge its EVs at the Neenah campus. Last week, technicians charged six vehicles in one afternoon, among them a new Ford Mustang Mach-E and a Volkswagen ID4.
Electric vehicles are perceived to be environmentally friendly, but that's contingent upon whether utility companies generate their power via coal- or natural gas-burning plants or with wind or solar panels, and that can vary widely across the country. By charging off his microgrid, Bergstrom can tell customers and employees with certainty that the vehicles are 100 percent powered by clean energy.
On a practical level, the changes allow Bergstrom's technicians to set charging times and schedule test rides for customers without regard to peak-pricing concerns. In the bigger picture, it's led to an exploration — along with We Energies and Faith Technologies — of whether the current state of the region's electric grid is capable of handling widespread adoption of electric vehicles.
Annual EV sales are projected to reach 31.1 million vehicles worldwide by 2030, according to an analysis last year by global consulting firm Deloitte.
Though he concedes he's not selling electric vehicles in large numbers, Bergstrom says customers are enthralled with the microgrid.
"It's absolutely fascinating how much attention we've generated with this, kind of by mistake," Bergstrom said. "Our guests all think this is neat stuff. There's a social responsibility that runs deep. I look at myself as a business guy, and I thought, 'Maybe this is too expensive.' Or 'maybe this doesn't make sense.' But that's not the case. People really do care today."
Chief among them are his nine grandchildren.
"They all think I'm a good guy, because I'm Grandpa," he said. "But especially the ones in that 12-to-16 age range that want to save the Earth. I started building that solar field, and my grandson says, 'I can't believe it.' He says this will really help my carbon footprint."
March 29, 2021 at 05:42AM
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