Volvo On Demand program paves the way for new battery-electric truck usage

Volvo Trucks North America and Volvo Financial Services It introduced Volvo On Demand, a joint project focused on the Truck-as-a-Service (TaaS) business model.

The program will use a fleet of 25 Class 8 Volvo VNR Electric trucks to offer a new solution that simplifies battery electric vehicle acquisition and reduces upfront investment. Volvo On Demand offers eligible customers flexible term options of as little as 12 months and includes Volvo Trucks’ Gold Contract and bundled vehicle insurance options for physical damage and collision, route planning and optimization guidance, and consultation to find the best charging solutions and incentives available.

“Volvo On Demand is the easiest way for customers to add battery-electric trucks to their fleet by providing the ability to test the technology and understand the operational requirements of an electric fleet without making a large upfront investment,” said Charles Carter, vice president of services and solutions at Volvo Financial Services. “Volvo On Demand gives peace of mind to customers just starting their electric mobility journey and manages the unknowns and uncertainty about how to best operate and scale electric trucks in their operations. We see this solution as extremely beneficial to many segments, including drayage, regional haulage, last mile and small fleets, who are tasked with providing more sustainable transportation solutions to their customers.”

Volvo On Demand allows customers to minimize the upfront investment required to transition to battery-electric trucks and secure a line of credit that can be used to grow their business. Competitive mileage pricing provides flexibility throughout the term of the agreement, and one monthly invoice includes all selected service, charging hardware and insurance.

The Class 8 Volvo VNR Electric is a zero-emission solution with a driving range of up to 275 miles (six-battery configuration) and features a battery thermal management system that keeps battery temperature optimal. The truck can be 80% charged in just 90 minutes for the six-battery version and 60 minutes for the four-battery package. The VNR Electric offers instant torque, smooth acceleration and deceleration, and zero emissions. It also reduces vibration and in-cabin noise.

Volvo On Demand will be launched in areas across the U.S. where there is a nearby Volvo Trucks authorized electric vehicle dealer that can provide support, maintenance, service and charging equipment.

“We now have customers who have successfully deployed the VNR Electric and are looking to expand their operations with more of these trucks,” said Jared Lewis, regional vice president, Volvo Trucks North America. “Many customers have expressed interest in implementing the VNR Electric in their operations, but want to know how it fits into their specific applications. With Volvo on Demand from VFS, they can gain valuable experience before making a large upfront investment. With Volvo on Demand, customers can install 50 kWh portable chargers on one or a few trucks to gain real-world experience, and plan their expansion with flexible payment terms that factor in the potential lead time for installing charging infrastructure. We see this program as the next evolution in the expansion of electric vehicle solutions by providing our customers with unmatched financial flexibility.”