Battery electric trucks are the future of the trucking industry, but the expense has held many companies back from making moves.
Peter Voorhoeve, president of Volvo Trucks North America, said the purchase price is only one factor, and Volvo has created a new tool to demonstrate the financial and environmental benefits of its VNR Electric truck.
Voorhoeve unveiled Volvo’s new electromobility total cost of ownership (TCO) tool at the American Trucking Associations Management Conference & Exhibition in San Diego on Sunday.
The tool helps customers understand and evaluate the full impact of purchasing and operating a zero-tailpipe emission battery-electric trucks. It is available now for Volvo Trucks Certified Electric Vehicle Dealerships throughout North America.
“We have developed a tool that helps customers to determine affordability, economic viability and total cost of ownership of a decarbonized transport solution,” Voorhoeve said. “Then you will see that, depending on where you are, the total cost of ownership will become competitive somewhere in year four or five when you run the truck. It’s not the case that electric trucks and sustainability is good for marketing but you shouldn’t buy too many because it’s not affordable. No. Already now with the asset price as we know today, with the battery cost as we know today, but also with the diesel cost we know today … it will become profitable.”
Using the tool, customers can consider multiple fixed and variable costs throughout the vehicle’s lifetime, including purchase price, maintenance, fueling, funding, tax credits and other factors. They can compare lifetime costs like repairs and maintenance and fuel versus electricity between BEVs and diesels. The tool also sheds light on the estimated cost to purchase and install fueling or charging infrastructure.
In addition, prospective BEV purchasers can see how local, state and federal incentives on trucks and charging infrastructure can impact the long-term TCO, as well as factor in the Federal Excise Tax (FET) exemption for Class 8 electric vehicles, which can otherwise be a significant additional expense at 12% of the total cost of the truck.
