Categories: Industry

Volvo edges ahead of Freightliner with EV big rigs

DUBLIN, Va. —Freightliner has led its U.S. diesel huge rig rivals for years, commanding a market share no competitor may catch. However the nascent transformation to electrical trucking offers different gamers a gap, and Volvo has jumped forward.

Gross sales of electrical vehicles are nonetheless virtually immeasurable in comparison with the roughly 150,000 heavy-duty diesel vehicles producers are on monitor to promote within the U.S. this 12 months.

But Volvo holds an early lead within the U.S., based on registration information collected by S&P World Mobility. Fleets have bought 51 Volvo VNR Electrical regional haul vehicles via July. Peterbilt is at 10. Volvo’s sibling firm, Mack, is at seven, and Navistar’s Worldwide Truck is at six. The info does not embrace 40 prototype battery electrical Freightliner eCascadias and eM2s from Daimler Vans North America in varied check packages.

Volvo’s lead is slight — now as much as about 60 registrations, the corporate stated — however illustrates its technique to make use of electrical trucking to shut on Freightliner, stated Peter Voorhoeve, president of Volvo Vans North America.

Freightliner has about 40 p.c of the diesel heavy-duty truck market in comparison with Volvo’s 11 p.c.

Volvo’s early benefit comes from getting prototypes into real-world operations sooner than others, getting a soar on enhancements and launching manufacturing at its New River Valley Manufacturing facility right here, Voorhoeve stated.

That is allowed the corporate to generate what are comparatively huge orders for electrical vehicles, together with many from companies that participated in early pilot packages, Voorhoeve stated. “It’s actually accelerating,” he stated.

Efficiency Group, a division of Danish transport big Maersk, purchased 16 Volvo VNR Electrics a 12 months in the past for its Southern California fleet operations serving port drayage and warehouse distribution routes. It got here again with an order for an additional 110 earlier this 12 months. Efficiency expects all of the vehicles to be in operation early subsequent 12 months.

Though Volvo does not present contract particulars, the mixed Efficiency Group orders are price upward of $50 million. Electrical Class 8 vehicles promote for $400,000 and extra, relying on model and configuration.

One other transport and logistics firm, NFI Industries, helped Volvo launch its U.S. electrical truck enterprise by piloting two VNR Electrics in 2020. In Might, it ordered 60 new-generation vehicles with a spread as much as 275 miles, sufficient for NFI to make two each day journeys between the Southern California ports and its inland warehouses. NFI can have 90 electrical vehicles together with Volvo VNR Electrics and Freightliner eCascadias working in Southern California. NFI plans to transform its total California fleet to electrical vehicles.

Whereas most of Volvo’s gross sales are in California, the place state and regional incentives present a couple of third of the standard worth, Volvo is also making inroads elsewhere. Manhattan Beer Distributors ordered 5 to serve prospects within the New York area. Pitt Ohio ordered two Class 7 Volvo VNR Electrical field vehicles for the motor provider’s fleet in Cleveland.

Though Volvo and others are beginning to produce the vehicles, firms are discovering it will possibly take so long as a 12 months to work with electrical utilities and suppliers to put in infrastructure. Public charging infrastructure for giant vehicles lags far behind that of the passenger automotive market. Volvo’s prospects should cost at their depots. That limits gross sales, he stated.

Volvo is addressing that by partnering with a number of sellers and others to construct 5 strategically positioned charging stations to finish a zero-tailpipe hall between Southern, Central and Northern California. That may give firms working electrical vehicles wider attain, liberating them from restricted short-mileage, return-to-base operations. It additionally permits small fleets to check electrical trucking with out spending closely on charging infrastructure. Volvo plans to finish the charging hall by the tip of subsequent 12 months.

Volvo additionally has an early lead globally. Volvo manufacturers have logged 1,457 electrical truck orders via the primary half of this 12 months, based on Guidehouse Insights. Daimler’s manufacturers have 1,280. Traton, Navistar’s proprietor, trails with about 800. The worldwide information contains electrical buses. Paccar, which owns the Kenworth and Peterbilt manufacturers, hasn’t damaged out its electrical truck orders.

And though it lags, Daimler is poised to make inroads.

Daimler launched Freightliner’s eCascadia manufacturing model in Might, saying deliveries would begin this quarter.

Though Daimler has not offered order data, some firms have introduced plans to make use of eCascadias of their fleets. Meals service distributor Sysco Corp. has signed a letter of intent to deploy as much as 800 eCascadias by 2026. Delight Group, a Canadian motor provider, ordered 200 eCascadias and 50 smaller eM2 for supply beginning mid-2023.

How a lot an early lead means is a query, stated Ann Rundle, vp of electrification and autonomy at ACT Analysis.

“Is there an opportunity for share to modify as a result of Volvo was first and has a dependable product out available in the market? There’s a profit,” Rundle stated.

However it’s doubtless muted by the tendency of fleets to “keep on with the manufacturers they’ve as a result of they know tips on how to service them and perceive the components,” Rundle stated.

It is unclear whether or not an electrical truck is sufficient of a departure to create large-scale model swapping, she stated.

“Volvo is definitely extra vociferous about electrification. I believe it is a stretch to see that as significant opposition to Daimler Truck Group within the U.S. at the least within the medium time period,” stated Oliver Dixon, an analyst at Guidehouse Insights.

For truck producers, the important thing technique is reshaping the worth chain to revenue from companies quite than strictly from gross sales.

Volvo, for instance, is promoting its truck as a service, bundling financing, upkeep and different options right into a single month-to-month cost.

“There’s treasured little aftermarket income with both a battery-electric or gas cell electrical automobile, so the battleground goes to shift considerably,” Dixon stated.

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