Introduction
Volvo Trucks North America (VTNA) and Volvo Financial Services (VFS) have teamed up to launch Volvo On Demand, a groundbreaking initiative aimed at transforming the Truck-as-a-Service (TaaS) business model. This innovative program utilizes 25 Class 8 Volvo VNR Electric trucks, making it easier for businesses to adopt battery-electric vehicles without the high upfront costs. With flexible term options, including short 12-month terms, and the inclusion of Volvo Trucks’ renowned Gold Contract, Volvo On Demand is designed to simplify the acquisition process and reduce financial barriers.
What is Volvo On Demand?
Volvo On Demand is specifically designed to leverage the robust electromobility ecosystem for Volvo VNR Electric trucks in North America. According to Charles Carter, vice president of services and solutions at Volvo Financial Services, this program provides an easy entry point for customers to integrate battery-electric trucks into their fleets. It allows businesses to test the technology and understand the requirements for operating an electric fleet without a substantial initial investment. The initiative offers peace of mind by managing the uncertainties and complexities of transitioning to electric trucks.
Benefits and Features of Volvo On Demand
Volvo On Demand helps customers reduce the initial costs associated with transitioning to battery-electric trucks, freeing up credit lines for business growth. The program offers a competitive mileage rate throughout the contract term, with a single monthly invoice that covers all selected services, charging hardware, and insurance. This comprehensive approach ensures that fleet operators can focus on their core business while Volvo takes care of the rest.
The Class 8 Volvo VNR Electric trucks included in the program are ideal for local and regional distribution, pickup and delivery, and food and beverage distribution. With a range of up to 275 miles (with a six-battery configuration) and a 250 kWh charge rate, these trucks can achieve an 80% charge in as little as 90 minutes. They offer instant torque, smooth acceleration and deceleration, and a quieter, more comfortable driving experience compared to traditional trucks.
Overcoming EV Charging Infrastructure Challenges
One of the significant challenges in adopting zero-emission vehicles is the charging infrastructure. To address this, Volvo Trucks launched two programs in 2023 to simplify the transition for fleet managers. The Turnkey Solutions program manages the entire process of developing charging infrastructure, from hardware and software to installation and maintenance. The Vendor Direct Shipping program allows customers and dealers to order equipment directly through the dealership parts portal, with support from Volvo Trucks sales teams.
Volvo Financial Services continues to support the complete electromobility transportation solution by providing financing for charging infrastructure. Qualified customers can bundle charging solutions with financing or leasing options for battery-electric trucks, ensuring a seamless transition to electrified transportation.
Conclusion
Volvo On Demand represents a significant step forward in the Truck-as-a-Service industry, offering an innovative solution to the challenges of adopting battery-electric vehicles. By simplifying the acquisition process and providing comprehensive support, Volvo On Demand makes it easier for businesses to integrate electric trucks into their fleets. With its robust electromobility ecosystem and dedicated programs to overcome infrastructure challenges, Volvo is leading the way in sustainable transportation solutions.
