Volvo Group Australia has announced it is rolling out a new parts offering specifically targeting older examples of Volvo, Mack and UD trucks, with an altered supply chain providing new parts for these trucks at a lower price.
To be offered under the banners of Volvo Classic Parts, Mack Vintage Parts and UD Heritage Parts, the scheme acknowledges the different work modes of older trucks and will essentially marginally reduce availability in exchange for reduced prices.
Speaking at a media conference the day before the opening of the 2015 Brisbane Truck Show, the President of Volvo Group Australia, Peter Voorhoeve, said the program represents a more intelligent approach to replacement parts for older trucks that will pay dividends for a customer's bottom line.
"Volvo Group is known for its very good parts availability, which is essential because parts availability drives uptime for the trucks," he said.
"However, that availability in new parts comes at a certain price because we carry an extremely large assortment. What we've been looking at is whether we need to carry that extreme large assortment for all the trucks, because our customers have new trucks and they have older trucks, and often these older trucks are used in a different way to the newer trucks.
"The trucks that are doing the 250,000km to 400,000km a year are most often the new ones, where uptime is super, super crucial. But the older trucks, 10 years and older, they do not do that amount of kilometres, so then do you have the same expectations in terms of availability?
"Well, no, so we have come up with a different supply chain where we can offer these parts, new parts, for older models at a lower price, thus helping our customers and using the principle of what we call, 'The right part, for the right truck, at the right price'.
Mr Voorhoeve said the program would give Volvo Group Australia access to an expanded range of truck owners.
"We're talking about another segment of customers here," he said.
"There are customers who have new trucks, but there are also a lot of customers who don't have new trucks at all – they run in a different business with older trucks. We don't see those customers, and those we would like to service them as well."
While the scheme will initially only be available in Australia, Volvo Group says there's no reason why it shouldn't be rolled out to New Zealand in the not-too-distant future.
Volvo Group Australia also announced a new east coast line-haul service agreement at the media conference.
Targeting line-haul customer operating between Adelaide and Cairns, the new offering sees Mack, UD and Volvo Optimised Service Plans applied to 40 authorised service outlets and is available for up to four years or 1.2 million kilometres.
The program includes truck repairs, fleet management telematics, roadside assistance, towing, and genuine Mack and Volvo spares.
Mr Voorhoeve said the service agreement makes life simple for operators.
"This service agreement is designed for companies who want to know their operating costs in advance," he said.
"If a service discovers anything that needs action over and above what we've already agreed, we give you a cost estimate in advance. No surprises!"
Photo (from left, and before three new VGA trucks): Vice President UD Trucks, Jon McLean; President Volvo Group Australia, Peter Voorhoeve; Vice President Volvo Trucks, Mitch Peden; Vice President Mack Trucks, Dean Bestwick.