Volvo Penta Slashes Total Cost of Ownership for Operators05/03/2014
(LAS VEGAS, Nev.) – March 5, 2014 – Reducing total cost of engine ownership is a concern for OEMs and operators alike — which is why Volvo Penta does everything it can to drive down operating costs.
When OEMs choose new engines for their products, it’s not enough to look just at the initial cost of the engine: they also have to think of the total cost of ownership (TCO) their customers will face over the engine’s lifecycle.
Volvo Penta calculates total cost of ownership (TCO) as:
engine price + integration cost + cost of operation and service – resale value
From the development phase to operation and everywhere in between, there are many methods of minimizing ownership expenses. Volvo Penta works to lower TCO in a variety of ways.
Reducing fuel consumption: Fuel can account for as much as 95% of lifetime ownership costs. Volvo Penta boosts fuel efficiency through a highly optimized Volvo Group engine platform and efficient Tier 4 Final technology that includes SCR and light EGR. This combination allows engines to perform at optimum levels, burn less fuel and drive down costs.
Reducing ventilation costs: Volvo Penta’s Tier 4 Final after-treatment system greatly reduces ventilation costs for mining equipment. A Tier 4 Final engine can reduce ventilation needs by up to 30 m3 (1,059 ft3) of air flow per hour — a significant savings especially for mine operators.
Working closely with OEMs on engine integration: Volvo Penta works closely with OEMs to integrate its engines in such a way that they work in harmony together with cooling systems, power take-offs and drivelines — because doing so can dramatically lower TCO. Volvo Penta takes a unique approach by using a team of dedicated application engineers in each region to help OEMs come up with the most efficient integration solutions possible. Anything that OEMs can save on installation costs can then be translated into a lower purchase price for customers.
Raising engine resale value: Volvo Penta ensures that its engines are attractive at the point of resale, even after years of use. One way of ensuring residual value is engine ‘de-tiering’: the process of removing the after-treatment system and making modifications to allow for higher sulfur fuel use so that the engine can be resold in a non-regulated market. This capability is a feature of Volvo Penta’s Tier 4 Final products.
Providing comprehensive service around the world: Reducing downtime also contributes to improving TCO. With multiple service points and trained technicians who can be on site within 24 hours, Volvo Penta ensures that when engines need service, support is available quickly.
Promoting operator efficiency: Volvo Penta’s latest technological solutions help operators use their machine more efficiently. These include a new start/stop function on 5- and 7-liter Tier 4 Interim units, which shuts an engine down during extended idle periods and reduces fuel consumption and noise. Volvo Penta is also incorporating a telematics system to help owners monitor productivity and fuel consumption.
For further information, please contact:
Volvo Penta of the Americas
Phone: +1 (757) 436 2800
E-mail: lindsy [dot] shrewsberry [at] volvo [dot] com