Volvo Construction Equipment (Volvo CE) has launched a compact equipment business unit to focus on growing this segment of its business. The dedicated business unit is tasked with driving growth and profitability in this product segment.
The independent entity will be responsible for development, assembly, purchasing, and marketing the products. It will work with Volvo’s existing distribution network.
The Compact Business Unit will emphasize the electrification of machines and bring a fully electric lineup across the entire range of compact equipment. It will initially be responsible for compact excavators up to 9 tons and compact wheel loaders up to the Volvo L50 wheel loader.
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According to Volvo, compact equipment accounts for 50 percent of the total global market for equipment, compared to 35 percent a decade ago. The company expects that growth trend to continue.
Thomas Bitter, currently head of technology for Volvo CE, will head the compact business unit beginning in September 2023.
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“Our pioneering work in electrification and digitalization has positioned us as an innovator in compact equipment,” Bitter said in a statement. “And now because of compact equipment’s ever-growing influence on the market, we are focusing our attention on our compact machine portfolio to provide customers with productive and sustainable products and services. The people who join us in this journey will not only develop specialized skills in this important area but be playing an integral role in our wider purpose of building the world we want to live in.”
The business unit will be comprised of current employees within Volvo CE as well as external talent, according to the company.
Source: Volvo CE
