Bauma Report: Volvo Construction Equipment Driving Forward

Guten Tag faithful CE Reade…
(Connection Interrupted)
…Stavros! If I’ve told you once, I’ve told you a thousand times, I need a static IP to connect to CE servers!…

Gribbins here again. After battling volcanic ash, a sea of attendees in the registration line and my rusty German, the Volvo press conference was a breath of fresh air. It was held at Volvo’s lavish outdoor booth — which is more like a mini Volvo headquarters on site. The CE media crew (and the rest of the foreign press) was ushered into a private second floor room.

There, Volvo’s president and chief executive highlighted the tough trading conditions in the industry, which in 2009 saw the total world market for construction equipment within Volvo CE’s product segments decrease by 39 percent compared to the same period in 2008. Despite the economic situation, the company continued to defend its market share in most markets and product segments, thanks to a strong dealer network and product range. Persson also noted that the company’s efficiency measures are proving effective. Efforts to shrink dealer inventories were successful, reducing by 47 percent during 2009 to a point where stock is now in balance with demand. The order book has also stabilized.

“Despite the sharp decline in sales, the impact was lessened due to effective cost reducing measures and improved productivity,” said Persson, as the panel of translators processed the info in countless of languages. “Although sales remain at a low level in several regions, it is becoming clear that the state of the global economy is improving. China in particular has strengthened considerably.”

A main thrust of Volvo CE’s efforts will now focus on improving the overall efficiency of its product range. This initiative embraces increasing fuel efficiency, through new engine technology, hybrid technology, tailored engine/hydraulic/driveline design and improved operator training.

“These measures will see considerable improvements in customer productivity and profitability,” said Persson. “We are also now ready to launch – after over 100,000 hours of testing – our response to the Tier 4 Interim/Stage IIIB engine legislation. We are confident that we can offer market-leading performance and economy of operation in terms of power capacity, engine response and fuel efficiency.”