With rising fuel and project costs, plus industry-wide supply chain issues, the fuel guarantee and warranty are helping customers control expenses.
With fuel prices significantly higher than usual and the global economy facing supply chain issues and rising inflation, Volvo Construction Equipment is proud to give customers peace of mind with the company’s Fuel Efficiency Guarantee and Lifetime Frame and Structure Warranty, both of which are celebrating 10-year anniversaries. The programs have grown and evolved significantly since their inception, expanding to additional machines and complemented by ActiveCare® Direct and Smart Commercial Accounts.
“Customers never want to spend excessive amounts on fuel or parts, but that is especially true in today’s conditions,” said Stephen Roy, president, Region North America at Volvo CE. “In times of rising and unpredictable costs, we are doubling down on these programs, as they reduce the risk of contractors going over budget due to fuel consumption or machine repairs. This certainty makes bidding jobs easier and more predictable.”
Contractors know that fuel is one of their biggest operating expenses, and that is truer now than in recent years. According to the U.S. Energy Information Administration, the average retail price for a gallon of ULSD in April 2021 was $3.13. In April 2022, it was $5.12 — a 63% increase in just one year.
While Volvo machines are specifically designed to maximize fuel efficiency, the company further backs most mid-size and large excavators, almost all articulated haulers and its largest wheel loaders with a Fuel Efficiency Guarantee. If an enrolled machine's fuel efficiency and productivity do not meet the model-rated levels, Volvo CE will reimburse a portion of the additional fuel cost. Owners can enroll in the Fuel Efficiency Guarantee through their local dealer when they purchase a new machine covered by the program.
Volvo CE will automatically track the fuel efficiency of enrolled machines and reimburse the customer every six months for any fuel burned beyond the guaranteed levels. This improvement to the program is made possible through Volvo ActiveCare Direct, which is an advanced telematics service that helps customers understand and manage data. Through ActiveCare Direct reports, machine owners and fleet managers may also spot ways to reduce their fuel consumption, such as decreasing unnecessary idle times.
Another enhancement is that fuel efficiency credits are applied directly into a customer’s Smart Commercial Account (SCA). They can be put toward the cost of parts, dealer services and more. Additional benefits of an SCA include a $1,000 credit when financing a new machine with Volvo Financial Services and 24-month equal payments on major repairs.
A major repair or replacement on a boom, arm or frame can quickly blow a budget out of the water. The Lifetime Frame and Structure Warranty takes that risk out of the equation on Volvo compactors, articulated haulers, wheel loaders and excavators.
The warranty covers the frame, boom, arm and articulation joints on machines with those components for the entire initial ownership period. The program is extremely popular, with an average of 95% of customers who buy an eligible machine choosing to get the warranty.
While the warranty protects customers from potential issues, the inherent durability of Volvo machines reduces the odds that those problems ever arise. For example, Volvo excavator boom and arm plates are up to a quarter-inch thicker than competitive models, and the X-style chassis of the undercarriage is protected by heavy-duty guard plates.
“Volvo is known as a low-cost-of-ownership brand, as evident by winning highest retained value and lowest cost of ownership awards from EquipmentWatchTM year after year,” said Roy. “Outside of the machine design advantages that help keep total cost of ownership low on Volvo machines, these programs and our wide range of OEM and dealer services help keep costs predictable for our customers.”