A Volvo VNR Electric at an industry show. Volvo on Demand is expected to initially offer 25 VNR Electric trucks to allow fleets to defer upfront investment in battery-electric trucks. (John Sommers II for Transport Topics)
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Volvo Trucks North America is launching a term-based program that offers fleets a way to sample how a Volvo VNR Electric model would work in their fleets.
Called Volvo on Demand — which the company describes as a Truck-as-a-Service (TaaS) program — is being rolled out in partnership with Volvo Financial Services and was unveiled at ACT Expo 2024 in Las Vegas.
Volvo on Demand is expected to initially offer 25 VNR Electric trucks to allow fleets to defer upfront investment in battery-electric trucks. An initial 20 6×4 tractors with a six-battery configuration and five 4×2 tractors with a four-battery configuration will be on offer, it said.
Qualified customers will receive term options as short as 12 months plus a service package and an option to bundle vehicle insurance for physical damage and collision as well as route planning and optimization guidance, it said.
“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, Volvo Financial Services vice president of services and solutions.
Volvo on Demand offers a mileage rate throughout the contract, with a single monthly invoice encompassing all selected services, charging hardware and insurance, VTNA said.
VTNA expects drayage, regional haul, last mile and smaller carriers to be the program’s biggest customers. The VNR Electric offers a range of up to 275 miles with a six-battery configuration.
Volvo on Demand echoes the ElectriFi TaaS program VTNA sister company Mack Trucks launched in October to accelerate demand for its Class 6 and Class 7 MD Electric model. ElectriFi allows customers to “pay as they go” based on miles driven on a monthly basis.
Mack Trucks President Jonathan Randall acknowledged during a May 21 ACT Expo panel that also included VTNA President Peter Voorhoeve that Electrifi’s has yet to sign an initial customer. Speaking later that day at a news conference, Randall in response to a Transport Topics question told reporters that he ultimately expects a “good level of adoption” for Electrifi and noted demonstrations with fleets were underway.
In 2023, VTNA introduced the Turnkey Solutions and Vendor Direct Shipping programs to aid carriers’ transition to battery-electric trucks. Turnkey Solutions manages the process of developing charging infrastructure, including all interactions with utility companies and maintaining charging equipment. Vendor Direct Shipping allows customers and dealers to obtain help in determining the type of charger they need.
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