Jade Brasher | FleetOwner
President of Volvo Trucks North America, Peter Voorhoeve introduces Volvo On Demand, a lease program designed to help fleets transition to EVs.

Volvo Trucks launches On Demand EV adoption service

May 22, 2024
The goal of the OEM’s new Truck-as-a-Service program is to help accelerate fleets’ transition to zero emissions by eliminating a portion of upfront costs through leasing.

LAS VEGAS—If decarbonizing the transportation industry will happen, simplifying how fleets transition to ZEVs must also happen. Volvo announced that transition simplicity in the form of a leasing program designed specifically for Volvo’s ZEVs and their operational management. The solution is Volvo On Demand.

Volvo On Demand is “the most affordable and the most flexible way to get into decarbonizing your transportation and to get into using electric trucks,” Peter Voorhoeve, president of Volvo Trucks North America, said during a press conference at ACT Expo. “I think, personally, this will further accelerate the journey towards zero. We will have more people together to hit zero.”

Volvo On Demand allows fleets to test EV technology in their operations without the “substantial upfront investment,” Charles Carter, Volvo Financial Services VP of services and solutions, said in a statement.

See also: Volvo sees fleet profitability paved upon its path to zero

Volvo helps its customers accomplish this by offering a Truck-as-a-Service model to customers interested in operating electric trucks. Customers who qualify for the program can lease a Volvo electric truck per mile driven over one to three years. Customers who partake in the program will receive a monthly invoice for their vehicle, including all services, charging hardware, and insurance. Further, a competitive mileage rate throughout the contract term provides flexibility.

Voorhoeve said there are two reasons a fleet owner might hesitate to purchase an EV: its higher price compared to an ICE vehicle and the industry doesn’t yet know what kind of residual value an EV has. Now, with the ability to lease a Volvo EV, “we take that worry away,” Voorhoeve said.

Pairing Volvo On Demand with Volvo’s Turnkey Solutions program, customers won’t have to worry about their EV charging development. Volvo will take the lead, managing all aspects of charging, from hardware to permitting and installation.

The program also includes Volvo’s Gold Contract, which includes scheduled and preventive maintenance, towing, and vehicle repair to ensure uptime, performance, and productivity. The On Demand program also presents the option for customers to bundle their vehicle insurance, receive guidance with route planning, optimization, and consultation for the best charging solutions as well as finding incentives to make the transition even smoother.

Volvo On Demand is a joint effort between Volvo Trucks North America and Volvo Financial Services, and VFS kickstarted the Volvo On Demand program with 25 Volvo VNR Electric trucks. This group of 25 trucks includes 20 6x4 tractors with a six-battery configuration and five 4x2 tractors with a four-battery configuration.

Volvo On Demand will launch in areas with a nearby Volvo-certified EV dealership equipped with preventive maintenance, service, and charging facilities.

See also: Food Forward deploys Volvo VNR Electric

In addition to its On Demand service, Volvo also provides electric vehicle support through other programs, such as the Volvo Turnkey Solutions Program. The Turnkey Solutions Program manages all aspects of the charging infrastructure development process. This includes charging hardware, software, permitting, installation, all the interactions with the utility companies. The program also covers charger maintenance.

“Volvo on Demand offers peace of mind to customers who are just beginning their electromobility journey, managing the unknowns and uncertainties of how to best run and scale electric trucks in their operations,” Carter said. “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.”

About the Author

Jade Brasher

Senior Editor Jade Brasher has covered vocational trucking and fleets since 2018. A graduate of The University of Alabama with a degree in journalism, Jade enjoys telling stories about the people behind the wheel and the intricate processes of the ever-evolving trucking industry.    

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