Client goal
Our client is Talbot Trucks. Talbot Trucks has approached McKinsey for help in assessing the feasibility of manufacturing electric trucks to reduce its fleet’s carbon footprint.
Situation description
Talbot Trucks is a Europe-based private truck OEM. It produces and sells trucks all over the world. Talbot Trucks is considered a leader in quality manufacturing. Its primary customer base includes large trucking companies that own thousands of trucks and owner-operators, which are smaller customers that own fewer trucks.
Trucks today are mainly powered by diesel engines and require carbon-based petroleum fuel. Talbot Trucks is interested in exploring ways to reduce the carbon footprint of its vehicles and has specifically asked about electric trucks, or “eTrucks.”
ETrucks and diesel trucks differ in the design—e-motor and batteries versus combustion engines—and also in the way they are fueled, meaning comparably slow charging versus quick refilling with diesel fuel at gas stations. The introduction of this new technology is disruptive for the manufacturers as well as customers both large and small.
McKinsey study
The CEO of Talbot Trucks has approached McKinsey to help determine the attractiveness of an investment in eTruck manufacturing for its European market.
Helpful hints
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