Volvo Trucks North America launches Truck-as-a-Service business model

Volvo Trucks North America (VTNA) and Volvo Financial Services have started a Truck-as-a-Service (TaaS) business model called Volvo on Demand. The goal is to help customers opt for electric trucks without the upfront investment.

Image: Volvo Trucks North America

Through the new initiative, “qualified customers” in the US can basically rent one of 25 Class 8 Volvo VNR Electric trucks. They can sign up for the service for as little as 12 months and pay only depending on the mileage driven. VTNA explains that “customers can minimize the upfront investment associated with transitioning to battery-electric trucks and free up credit lines that can be used towards business growth.”

The 25 electric trucks offered through Volvo on Demand include 20 6×4 tractors with the six-battery configuration and five 4×2 tractors with the four-battery configuration. Moreover, the TaaS business model gives customers “the option to bundle vehicle insurance for physical damage and collision, route planning and optimization guidance, as well as consultation to find the best charging solution and incentives that might be available,” VTNA explains.

“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,” says Jared Ruiz, regional vice president of Volvo Trucks North America. “With Volvo on Demand through VFS, they can gain valuable experience before making large upfront capital investments.”

He adds: “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.”

The service is only available in the US and only in areas “with a nearby Volvo Trucks Certified Electric Vehicle (EV) dealership equipped to provide comprehensive support.”

The Volvo VNR Electric is one of six all-electric heavy-duty truck models from Volvo Trucks developed specifically for the North American market. Customers were able to place their first orders for the predecessor model in December 2020, and production started in the second quarter of 2021 at the company’s New River Valley production plant in Dublin, Virginia.


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