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TCO Ownership & Profitability

Wednesday, Dec 14, 2022

quantify your upfront costs...

Total Cost of Ownership (TCO) is a financial estimate intended to help determine the direct and indirect costs of a product or service. Not unlike an iceberg however, there is often a tendency to focus solely on visible upfront costs and overlook the hidden smaller details.

Total cost of ownership (TCO) and profitability is a vital consideration when comparing industrial diesel engine models and manufacturers. If you can quantify your upfront investment costs you will be in a much better place to evaluate your industrial power options.

“Often the purchase price might only be 4-5% of its TCO, and the other 95% is fuel consumption. With that in mind it does not make sense to buy an engine that is 20% cheaper if it consumes 7% more in fuel. Nor does it make sense to buy a cheap engine if its poor reliability and durability costs you more in repairs and lost uptime” says Arturo Garcia Aliaga, application engineer, Volvo Penta.

For gen-sets customers Volvo Penta provides a TCO Calculation Tool so an end user can customise and retrieve information unique to individual operating conditions. Information includes estimated diesel engine service life, operational hours of service per year and load distributions.

Learn more about TCO for industrial diesel engines and learn about calculating-total-cost-of-ownership-and-profitability. To learn more please navigate to and search News or follow the Volvo Penta website link below.

TCO - Ownership & Profitability> 

Information contained within the article and rights of use remain the property of Volvo Penta and the Volvo Group. Image copyright Volvo Penta and Sweden Rock Festival. No matter where in the world your journey takes you, no matter where your operation is – Volvo Penta is never far away.

About Us:

Transparency. Respect. Trust. Not afraid to push the limits and explore new possibilities. For general and civil construction, for mine site dewatering, flood control and power generation. For gold field line haulers, specialised fire fighting vehicles and railway and logistical equipment. We are the official Volvo Penta Oceania Sales and Service Centre for South Australia. We are your local industrial special application diesel engine provider. We are Don Morton Power & Propulsion.

Quick Links:

Volvo Penta Oceania Dealers in South Australia:  

Don Morton Power & Propulsion
Authorised Volvo Penta Centre

70 Humphries Terrace, Kilkenny SA 5009
Phone: (08) 8347 0011

Anthony Squire Diesel Services
35 Woodlands Terrace, Edwardstown SA 5039
Phone: (08) 8277 1825

Ashbrook Diesel Pty Ltd 
14 Elizabeth St, Port Macdonnell SA 5291
Phone: (08) 8738 2028

Can Do Marine 
38 Chatfield Terrace, Wallaroo SA 5556
Phone: (08) 8823 3025

West Coast Diesel Service 
32 St Andrews Terrace, Port Lincoln SA 5606
Phone: (08) 8682 1753

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