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| Ambitious product renewal program puts Volvo in strong position A bright future is on offer thanks to strong recoveries in traditional and 'BRIC' markets, coupled with substantial investments in new global facilities and products tailored to local needs, believes Volvo Construction Equipment's new chief executive, Pat Olney. In a presentation entitled 'Product renewal key to success in strengthening market' the new president and chief executive of Volvo Construction Equipment, Pat Olney, has used his first speech to the global press to state that the company is well positioned to benefit from buoyant markets, thanks to a massive product renewal program and significant investments in its industrial structure. Mr. Olney, speaking in Sweden on May 24th to an audience of 100 leading international trade press journalists, said: "With recoveries now gaining speed in our traditional markets of Europe & North America and continued strong growth in BRIC markets, the prospects for the industry are brightening for those equipment companies with a global industrial and distribution footprint. But although necessary, " he continued, "good distribution is insufficient to succeed in the new-look construction industry. To prosper you have to offer customers products that are much closer suited to their local needs, resources and applications – and this requires a significant rethink of the traditional product offering." To emphasize the point, along with outlining an investment program that runs into hundreds of millions of dollars, Mr. Olney also highlighted more than 50 innovative new products that are being introduced in 2011. Volvo Construction Equipment, the third largest manufacturer in the industry, has enjoyed strong growth in recent quarters. In the three months January to March 2011 the company's sales increased by 53% (SEK 15,759 M) and profitability by 70% (SEK 1,708 M). In addition, the first quarter also saw Volvo become the market leader in wheel loaders and excavators in China – by far the world's largest construction equipment market. The company has also introduced in recent months a widespread product renewal program, with the introduction of Tier 4i/Stage IIIB emission compliant machines that not only emit lower emissions but offer higher productivity and improved fuel economy. write your comments about the article :: © 2011 Construction News :: home page |