Volvo Trucks North America (VTNA) and Volvo Financial Services (VFS) have partnered to create Volvo on Demand, an initiative aimed at revolutionizing the Truck-as-a-Service (TaaS) business model in the industry.
This initiative utilizes 25 Class 8 Volvo VNR Electric trucks and is designed to simplify the acquisition process and reduce the significant upfront investment required for battery-electric vehicles. Volvo on Demand offers flexible term options, including short 12-month terms, along with Volvo Trucks’ renowned Gold Contract.
Additionally, customers have the option to bundle vehicle insurance for physical damage and collision, access route planning and optimization guidance, and receive consultation to find the best charging solution and available incentives.
What is Volvo On Demand?
Volvo on Demand is tailored to leverage the established electromobility ecosystem for Volvo VNR Electric trucks in North America.
“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 reduce the initial costs associated with transitioning to battery-electric trucks and free up credit lines for business growth. The program offers a competitive mileage rate throughout the contract term, with a single monthly invoice covering all selected services, charging hardware, and insurance. VFS has launched the Volvo on Demand program with 25 Volvo VNR Electric trucks, including 20 6x4 tractors with the six-battery configuration and five 4x2 tractors with the four-battery configuration.
The Class 8 Volvo VNR Electric is a zero-tailpipe emission solution ideal for local and regional distribution, pickup and delivery, and food and beverage distribution. The battery-electric truck has a range of up to 275 miles (with a six-battery configuration) and features a dedicated battery thermal management system to maintain ideal battery temperatures.
With a 250 kWh charge rate, the truck can achieve an 80% charge in as little as 90 minutes for the six-battery package and 60 minutes for the four-battery package. The Volvo VNR Electric truck provides instant torque and smooth acceleration and deceleration, delivering optimal performance and drivability with zero-tailpipe emissions. The electric driveline also reduces vibration and in-cab noise compared to traditional trucks, resulting in a more comfortable and relaxing driving experience.
Volvo on Demand is being launched in the United States in areas with nearby Volvo Trucks Certified Electric Vehicle (EV) dealerships equipped to provide comprehensive support, including preventative maintenance, service, and charging facilities to maximize customer uptime.
Volvo Trucks Certified EV Dealers have onsite technicians who have been comprehensively trained to service the VNR Electric safely and efficiently. With 59 locations across 31 states and Canadian provinces in North America completing the rigorous certification program, Volvo Trucks provides a robust ecosystem to facilitate the adoption of heavy-duty battery-electric vehicles.
“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 [fleets] 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.”
Overcoming EV Charging Infrastructure Challenges
Charging infrastructure is a major challenge for commercial and work truck fleets adopting zero-emission vehicles. In 2023, Volvo Trucks launched two programs to simplify the transition to electrified transportation for fleet managers. These programs allow managers to focus on daily business operations, while a dedicated team handles the installation and energization of their infrastructure.
The Turnkey Solutions program manages the entire process of developing charging infrastructure. This includes handling charging hardware, software, permitting, installation, interactions with utility companies, and maintaining charging equipment. The Vendor Direct Shipping program enables customers and dealers to order equipment through the dealership parts portal. Volvo Trucks sales teams are available to assist customers in choosing the appropriate charger for their needs.
Volvo Financial Services (VFS) continues to provide financing for charging infrastructure as part of the complete electromobility transportation solution. Qualified customers can bundle charging solutions with financing or leasing solutions for battery-electric trucks through the Vendor Direct Shipping and Turnkey Solution programs.
Volvo Financial Services is the global finance arm of the Volvo Group, a leading manufacturer of trucks, buses, construction equipment, and marine and industrial engines. Volvo Financial Services offers a full range of financing, leasing, and insurance solutions to customers and dealers across the Volvo Group's brands.
