Volvo Trucks North America and Volvo Financial Services have introduced Volvo On Demand, a collaborative effort focused on the Truck-as-a-Service (TaaS) business model.
The program uses 25 Class 8 Volvo VNR Electric trucks to provide a new solution to simplify acquisition and reduce upfront investment in battery-electric vehicles. Volvo On Demand provides qualified customers with flexible term options as short as 12 months, and includes Volvo Trucks' Gold Contract and the option to bundle vehicle insurance for physical damage and collision, route planning and optimization guidance, and consultation to find the best charging solutions and incentives that may be available.
"Volvo on Demand is the easiest way for customers to add a battery-electric truck to their fleet by providing the ability to test the technology and understand the requirements to operate an electric fleet without a substantial upfront investment," said Charles Carter, vice president, services and solutions, Volvo Financial Services. "Volvo on Demand offers peace of mind to customers who are just beginning their electromobility journey, managing the unknowns and uncertainties of how to best run and scale electric trucks in their operations. We see this solution being exceptionally beneficial to many segments including drayage, regional haul, last mile, and smaller fleets, who are tasked with delivering more sustainable transportation solutions for their customers."
Volvo On Demand allows customers to minimize the upfront investment associated with the transition to battery-electric trucks and free up credit lines that can be used towards business growth. A competitive mileage rate throughout the contract term provides flexibility and a single monthly invoice encompasses all selected services, charging hardware, and insurance.
The Class 8 Volvo VNR Electric is a zero-tailpipe emission solution with a range of up to 275 miles (in the six-battery configuration) and has a battery thermal management system to maintain ideal battery temperatures. The truck can reach 80 percent charge in as little as 90 minutes for the six-battery version and 60 minutes for the four-battery package. The VNR Electric provides instant torque plus smooth acceleration and deceleration, all with zero tailpipe emissions. Vibration and in-cab noise are also reduced.
Volvo On Demand will be launched I the United States in areas with nearby Volvo Trucks Certified Electric Vehicle dealerships that can provide support, maintenance, service, and charging facilities.
"Today we have customers who've successfully deployed the VNR Electric and are continuing to seek ways to scale their operations to include more of these trucks," said Jared Ruiz, regional vice president, Volvo Trucks North America. "We have a number of customers who have expressed interest in adding the VNR Electric to their operation but want to understand how it will fit within their specific applications. With Volvo on Demand through VFS, they can gain valuable experience before making large upfront capital investments. With Volvo on Demand customers can get a single truck or a few trucks with portable 50 kWh chargers to gain real-world experience while making plans to scale, including accounting for potential lead times on charging infrastructure installation, with flexible payment terms. We see this program as the next evolution in scaling electromobility solutions by offering unmatched financial flexibility to our customers."
