Volvo CE has set up a business unit that is dedicated to compact equipment. Volvo CE says that the unit will aim to drive both the growth and profitability of compact equipment.
The business unit will operate as an independent entity within Volvo CE that is dedicated to growing the compact equipment market. Initially be responsible for compact excavators up to nine tons and compact wheel loaders up to the L50 model.
The entire value chain including development, assembly, purchasing, and market strategy will be the responsibility of the business unit. Volvo CE says that this will increase the number of touchpoints with users.
An increase in population and urbanization has led to the expansion of the construction sector throughout the globe – with a particularly strong increase in the demand for compact equipment. The segment now represents 50 percent of the total market, compared to 35 percent a decade ago, with the growth trend likely to continue.
Thomas Bitter, Volvo CE's head of technology, will take on the role as head of the compact business unit, from September 2023.
"Our pioneering work in electrification and digitalization has positioned us as an innovator in compact equipment," says Bitter. "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."
Volvo CE says that the new compact business unit will be comprised of committed people currently within Volvo CE as well as external talent.
Volvo CE has launched five electric compact models: the ECR25 Electric, ECR18 Electric, and EC18 Electric compact excavators and the L20 Electric and L25 Electric compact wheel loaders. The EC55 Electric excavator has also been introduced to China.
