Mack offers a monthly subscription for its medium-duty electric truck
Mack Trucks is offering a pay-as-you-go subscription on its new MD Electric medium truck.
Sonoma, Calif. – Mack Trucks is offering an all-inclusive monthly subscription and pay-as-you-go program for its new medium-duty electric trucks, addressing concerns about the high upfront costs of acquiring vehicles with zero tailpipe emissions.
The Volvo Group subsidiary introduced the Mack Financial Services ElectriFi subscription Monday during a Mack MD Electric ride-and-drive for reporters at Sonoma Raceway.
All-inclusive subscription offerings start with a three-year plan that requires a monthly commitment of 1,700 miles. Tiered pricing per mile decreases with longer contracts. A customer can renew the subscription for a lower monthly price, buy the truck, or leave at the end of the contract, said George Fotopoulos, Mack’s vice president of electric mobility.
“The capital investment, as we know, is very high for an electric vehicle,” he said. “This removes that hurdle from the equation.”
Total ownership parity with the MD diesel comes in at around three years driving 30,000 miles a year. ElectriFi includes the truck’s frame and body, AC chargers, annual maintenance and physical damage — but not liability — insurance.
About 70% of MD electric trucks will likely be equipped as dry or refrigerated box trucks. Trucks, tankers and dump trucks are other possibilities.
Mack is getting into the trucking-as-a-service business
The program effectively positions Mack in the truck-as-a-service (TaaS) business. Mack hopes the flexibility will attract business for its Class 6 and 7 electric trucks introduced in March. They go on sale this quarter. Mack wouldn’t discuss how many orders he has but build slots are available through 2024.
Mack shares its parent company’s commitment that 35% of the trucks it sells will be electric by 2030. That’s a tall order for a nascent industry that sells small numbers of electric vehicles today. The MD, introduced as a diesel in 2020, is Mack’s second battery-powered truck. The Class 8 Mack LR Electric garbage truck went on sale in December 2021 after two years of testing.
Regulation, especially in California and other states taking an aggressive stance aiming to eliminate internal combustion power trucks in the next two decades, is driving innovative approaches like TaaS. Many startups offer subscription services that include shipping. Mac welcomes them.
“Anyone can become a customer of this business model,” Fotopoulos said.
Addressing fleet concerns about electric trucks
More than the cost, fleets are wondering if an electric vehicle can do the job as well as a diesel. They are concerned about the availability of charging infrastructure.
Including AC charging in the ElectrFi software eliminates this concern because it allows for overnight charging with little infrastructure expense. Faster DC charging is available but costs more.
“Putting copper underground can be very expensive,” Fotopoulos said.
Mack Financial Services provides ElectriFi infrastructure and ElectriFi leasing including advice on incentives. Mack and its third-party partners help customers develop charging station design, installation, construction, hardware and software. Comprehensive financing is available, including a loan of up to 60 months if Mack Financial finances the trucks.
On the service side, the five-year Mack Ultra Comprehensive Service Contract provides comprehensive service for the MD and LR Electric vehicles. The contract includes IT with battery monitoring; Ensure high-voltage battery performance; And all scheduled and preventive maintenance.
“The ElectriFi subscription, other financing options and Mack Ultra Service Contract are designed to help remove any hesitation about financing, service and support customers may experience as they electrify their fleets,” Fotopoulos said in a press release.
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