Volvo Trucks North America and Volvo Financial Services joined forces to form Volvo on Demand, a Truck-as-a-Service (TaaS) business model to help fleets adopt battery-electric trucks.

Volvo on Demand was designed to simplify the acquisition and reduce the major upfront investment in battery-electric vehicles. The program launches with 25 Volvo VNR Electrics.

Pay for Miles Driven

Volvo on Demand provides qualified customers with flexible term options as short as 12 months. It includes Volvo Trucks’ Gold Contract maintenance program, plus the option to bundle vehicle insurance for physical damage and collision, as well as route planning and optimization guidance.

Volvo on Demand also offers consultation to find the best charging solution and incentives that might be available.

“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.

For customers who are just beginning their electromobility journey, he said, the program helps manage 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.”

With Volvo on Demand, customers can minimize the upfront investment associated with transitioning to battery-electric trucks and free up credit lines that can be used toward business growth.

A competitive mileage rate throughout the contract term provides flexibility, with a single monthly invoice encompassing all selected services, charging hardware and insurance.

VFS has kickstarted 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.

Comprehensive Dealer Support

Volvo on Demand is being launched in the United States in areas with a nearby Volvo Trucks Certified Electric Vehicle dealership equipped to provide comprehensive support. This includes preventive maintenance, service, and charging facilities.

Volvo Trucks Certified EV Dealers have onsite technicians who have been trained to service the VNR Electric. So far, 57 locations across 30 states and Canadian provinces in North America have completed the certification program.

“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," he continued. "With Volvo on Demand through VFS, they can gain valuable experience before making large upfront capital investments."

With Volvo on Demand, he explained, 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.”

BEV Charging Solutions

Charging infrastructure remains one of the biggest hurdles fleets must overcome as they seek to deploy zero-emission vehicles.

In 2023, Volvo Trucks introduced two programs to streamline the transition for fleet managers. The Turnkey Solutions program manages all aspects of the process to develop charging infrastructure. It covers charging hardware, software, permitting, installation, all the interaction with the utility companies, and maintaining charging equipment.

Through the Vendor Direct Shipping program, customers and dealers can order equipment through the dealership parts portal. Volvo Trucks sales teams can help customers with the process and determine the best type of charger for the application.

Volvo Financial Services continues to finance charging infrastructure as part of the total electromobility transportation solution. Both the Vendor Direct Shipping and the Turnkey Solution programs are options that allow qualified customers to bundle charging solutions with financing or leasing solutions for battery-electric trucks.