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Volvo Trucks launches mileage-based service contract

Oct 23, 2019
Volvo Trucks has recently launched its Volvo Flexi-Gold Contract, a new usage-based service contract where monthly fees are aligned with actual mileage.
Thomas Niemeijer

Thomas Niemeijer, Business Development Manager, Service Contracts, at Volvo Trucks said, “Many transport companies have short-term agreements with their clients or operate in unpredictable and fluctuating markets. They express a need for greater flexibility when it comes to service contracts. We now have the technology to make dynamic and connected solutions like this possible.”

The Volvo Flexi-Gold Contract has been made possible by advances in telematics, which enable vehicles to communicate real-time mileage with Volvo Trucks. The contract provides customers with a 40% flexibility span, where annual mileage can exceed or go under the agreed mileage by 20%. Each monthly invoice is based on the actual driving for that month, with no additional invoicing or paperwork for exceeding mileage at the end of the year. This makes it suitable for customers working with seasonal changes and fluctuating demand. 

Thomas Niemeijer continued, “Quite simply, if you drive less, you pay less and vice versa. The Volvo Flexi-Gold Contract offers the same coverage and uptime as a Volvo Gold Contract, at the same predictable cost, but with much greater flexibility to adapt to changing business needs.”

The Volvo Flexi-Gold Service Contract is available in selected European markets and will be gradually rolled out into new markets in the near future.

Photo: Thomas Niemeijer

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