The TCO tool, now available for Volvo Trucks certified electric vehicle dealerships throughout North America, provides fleets with a transparent projection and comparison of the lifetime cost between battery-electric trucks and their diesel counterparts — including costs for repairs and maintenance, the current price of diesel fuel and electricity, and the estimated cost to purchase and install fueling or charging infrastructure.
Evaluating the TCO of operating a commercial vehicle requires the consideration of multiple fixed and variable costs throughout the vehicle’s lifetime.
VTNA President Peter Voorhoeve said during a press conference at the American Trucking Associations' Management Conference and Exhibition that the tool shows, depending on fleet location, that the total cost of ownership becomes competitive somewhere in year four or five.
“When evaluating the investment of deploying a truck into your fleet, the purchase price is only one factor,” said VTNA President Peter Voorhoeve in a press release.
“While battery-electric trucks currently require a higher up-front purchasing investment than traditional diesel trucks, customers can benefit from available funding and incentive programs. Additionally, electric trucks eliminate many of the standard maintenance requirements compared to diesel trucks and offer managed charging costs, and the ability to make meaningful progress toward sustainability goals.”
Through its many proprietary features, the tool shows customers how local, state, and federal incentives on trucks and charging infrastructure can impact the long-term TCO. In areas such as California, where significant funding and incentives are available for zero-tailpipe emission vehicles, the purchase of a battery-electric truck can be even more beneficial to customers due to reduced upfront purchasing costs.
By leveraging the details about each fleet’s operations, the TCO tool will also show customers the projected potential carbon dioxide emission reductions that can be achieved by adopting Volvo VNR Electric trucks.