Episode 155 | Volvo Autonomous Solutions Commercialization Strategy

Nils Jaeger, President, Volvo Autonomous Solutions, Volvo Group joined Grayson Brulte on The Road to Autonomy podcast to discuss Volvo Autonomous Solutions commercialization strategy. 

The conversation begins with Nils discussing how the Volvo Group is approaching autonomy. 

It’s about leveraging autonomous tech for productivity gains, for efficiency gains. – Nils Jaeger

Volvo Autonomous Solutions is operating in the quarry and mining, ports and logistics and hub-to-hub sectors. These sectors were chosen as they compliment each other and are viewed as long-term growth markets. As a stand-alone business area inside of Volvo Group, Volvo Autonomous Solutions has full development responsibility and are responsible for the commercialization of Volvo Group’s autonomous solutions. 

Being structured this way, means Volvo Autonomous Solutions has full P&L responsibility. With P&L responsibility, Nils and the team at Volvo Autonomous Solutions are focused on building a business.

For us it’s not just the technology, it’s building a business. Building a business is really the core reason why Volvo Autonomous Solutions was created. Having a clear focus on commercialization and having an attractive business model. – Nils Jaeger

The commercial business model for Volvo Autonomous Solutions is not a one-size fits all model. It’s a model that is tailored to each one of the sectors where they operate. In the Dallas Fort-Worth region, Volvo Autonomous Solutions will be operating a hub-to-hub autonomous transport solution as a service. 

Commercializing the hub-to-hub autonomous transport business will require partnerships. As part of the initial roll-out, Volvo Autonomous Solutions has partnered with DHL and Uber Freight. To prepare for autonomous operations, Volvo has begun hauling freight manually in the Texas Triangle. 

We have actually started this year to pull loads manually for both DHL and Uber Freight. We are putting in place all of the procedures, the processes which are needed to develop this new transportation value chain and to do this of-course in a safe and reliable form. – Nils Jaeger

From a truck asset perspective, Volvo Group is going to own the autonomous trucks on their balance sheet as the service begins commercialization. In these early days there will not be a minimum amount of volume needed to tap into the service, however the volume will have to make economic sense. 

Wrapping up the conversation, Nils discusses the driver-out fully autonomous operations at the Brönnöy Kalk mine in Velfjord, Norway.

Chapters:

0:00 The Road to Autonomy Index

0:56 The Road to Autonomy Introduction

1:23 Volvo Group's Approach to Autonomy

7:14 Volvo Autonomous Solutions Commercial Business Model

17:33 Volvo Autonomous Solutions Terminal (Hub) Strategy

21:16 Autonomous Truck Assets & Virtual Driver Strategy

24:22 Economics of Volvo Autonomous Solutions Transport as a Service Model

27:57 Volvo Autonomous Solutions Quarry & Mining Business

35:20 The Future of Autonomy

Recorded on Thursday, August 22, 2023

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