Volvo Trucks unveils TCO tool for EVs, adds new VNR Electric fleet customer
SAN DIEGO—Whether it’s via battery-electric trucks, procuring more sustainable diesel powertrain options, or looking into the benefits that fuel cell electric trucks might bring down the road, more and more fleets are being pushed by shippers to execute sustainability strategies. And the fleets interested in procuring more carbon-neutral equipment, particularly when it comes to battery-electric trucks, understand they need support from their dealers and truck OEMs.
With that in mind, Volvo Trucks North America just released a new electromobility total cost of ownership (TCO) tool during the American Trucking Associations' Management Conference & Exhibition. The tool has been designed to help fleets make fact-based decisions about the business impact of purchasing and operating zero-tailpipe emission battery-electric trucks. The tool is now available for Volvo Trucks certified electric vehicle (EV) dealerships throughout North America and is part of what Volvo Trucks calls its “concierge approach to electromobility.”
“You cannot electrify everything for the moment,” explained Peter Voorhoeve, VTNA’s president, during a press conference at MCE. “You need to do it where it matters and where it is economically viable. It is about the consultative approach.”
The TCO tool evaluates multiple fixed and variable costs throughout the vehicle’s lifecycle, such as purchase price, charging infrastructure, maintenance, current price of diesel fuel and electricity, tax credits and incentives, and domicile since the model will work differently in California compared to, say, Texas or Canada.
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“When evaluating the investment of deploying a truck into your fleet, the purchase price is only one factor. While battery-electric trucks currently require a higher upfront 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,” Voorhoeve said.
“Depending on where you are, the total cost of ownership will become competitive somewhere in year four or five,” he added.
The announcement comes on the heels of VTNA’s recent electromobility summit in Dublin, Virginia, where Volvo touted its electric ecosystem to help fleets and dealers with EV financing, infrastructure, maintenance, and where it makes sense to electrify versus where it doesn’t.
Volvo has begun an electric public charging pilot corridor in California and currently has We 18 certified EV dealers, with 57 more in process of completing their certification.
Fleet adoption
Fleets are not only interested in more sustainable transport, but those domiciled close to disadvantaged communities have become some of the early adopters of zero-emission tailpipe truck technologies. Shippers’ and consumers’ environmental, social, and governance goals are also driving fleet adoption.
“Ultimately, it's the customer, the end user, that pushes this,” Voorhoeve told FleetOwner. “And then, at the other end of the spectrum, investors find it important as well. There are investors that do not invest in companies that are not green.”
To date, VTNA currently has around 25 fleets operating VNR Electrics. One of the latest fleets to adopt a series of Volvo VNR Electric trucks is Tradelink Transport, which is based in the Compton area of Los Angeles. Tradelink Transport operates a fleet of 40 trucks for its land-bridge operations, transporting a variety of products for shipping companies between the ports of Los Angeles and Long Beach and nearby rail yards. The independent, family-owned company recently purchased 15 Volvo VNR Electric trucks to add to its existing fleet to provide air quality and noise-reduction benefits to the disadvantaged communities located adjacent to the ports and the heavily trafficked I-110 and I-710 Southern California freeway corridors.
“Since we started our business in 1998, Tradelink Transport has demonstrated its commitment to sustainable transportation, having always utilized a mix of new compressed natural gas trucks and the cleanest diesel models available. With this order of 15 Volvo VNR Electric trucks, we are excited to become one of the first fleets in the nation to deploy battery-electric trucks and supporting infrastructure into our operations at scale,” said Rigoberto Cea, Tradelink Transport president. “Our drivers are excited to drive the new VNR Electric trucks. Most live within a 15-mile radius of our facility and see how vital it is for the trucking industry to reduce its emissions and community impact.”
See also: For those skeptical of EVs, Volvo offers ‘electromobility ecosystem’
To determine which of its routes were the most ideal for battery-electric trucks, Tradelink Transport worked with TEC Equipment – La Mirada, a Volvo Trucks Certified Electric Vehicle Dealer, and VTNA to simulate real-world Volvo VNR Electric truck routes via Volvo Trucks’ Electric Performance Generator (EPG) route planning tool. The EPG application takes into consideration the vehicle configuration and battery capacity, environmental factors such as terrain and ambient temperature, and specific route details, including traffic patterns.
“The EPG route planning tool helped us identify a driver training opportunity by highlighting that the heavy traffic around the ports will allow significant regenerative braking. This, in turn, can increase range by returning up to 15% of the power back to the battery,” said Tracey Craik, regional sales director, TEC Equipment. “In addition to route planning and driver training, TEC Equipment has supported Tradelink Transport in growing its Volvo VNR Electric fleet by identifying zero-tailpipe emission vehicle funding opportunities available to fleets that operate in disadvantaged communities.”
Ten of Tradelink Transport’s 15 Volvo VNR Electric trucks were purchased with vouchers from California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). Launched by the California Air Resources Board in 2009, HVIP provides point-of-sale vouchers to make advanced technology vehicles more affordable with first-come, first-served incentives that reduce the incremental cost of commercial vehicles.
To support its growing battery-electric truck fleet, Tradelink Transport is utilizing Southern California Edison’s Charge Ready Transport program to install a mix of 10 180 kW and 360 kW dual chargers. The chargers will be installed at Tradelink Transport’s new, five-acre facility, paired with onsite solar panels to generate renewable electricity and help offset peak charging costs.
