To maximize its opportunities in the growing compact equipment segment, Volvo CE has launched a new Compact Business Unit.
According to Volvo CE, an increase in population and urbanization has expanded the construction sector worldwide, with particularly strong demand for compact equipment. The compact equipment segment now represents 50 per cent of the total market, compared to 35 per cent a decade ago, with the growth trend likely to continue.
The new global business unit is the latest step forward in Volvo CE’s ambition to lead the transformation of the industry and provide dedicated productivity-boosting solutions built to fit customers’ evolving needs.
Thomas Bitter, Volvo CE’s Head of Technology, will take on the role as Head of the Compact Business Unit, starting in September.
“Our pioneering work in electrification and digitalization has positioned us as an innovator in compact equipment. 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,” Bitter said.
“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.”
An independent entity within Volvo CE
The Compact Business Unit will operate as an independent entity within Volvo CE, focused on maximizing the opportunities in the growing market for compact equipment. Initially, it will be responsible for compact excavators up to 9 tons and compact wheel loaders up to the L50 model.
The business unit will have responsibility for the entire value chain, including development, assembly, purchasing and the go-to-market strategy (together with the existing distribution network) for the compact equipment offering.
As well, the new business unit will take advantage of the shift to electrification in the compact equipment segment to secure a fully electric line up of machines across the whole compact range.
In 2019, Volvo CE made an industry-first move and shifted its entire branded compact range to electric and stopped development of new diesel variants. Since then, it has launched five electric compact models: the ECR25 Electric, ECR18 Electric and EC18 Electric excavators and the L20 Electric and L25 Electric wheel loaders. The EC55 Electric excavator has also been introduced to China.