The new compact business unit will:
- Capitalize on the transition to electrification in the compact equipment segment to ensure a fully electrified line-up of productive and sustainable products across the compact product range.
- Responsible for the entire value chain of Compact products, including development, assembly, purchasing and go-to-market strategy (along with existing distribution network), increasing customer touch points.
- Operating as an independent organization within Volvo CE, we are dedicated to maximizing opportunities in the growing small equipment market.
- Initially, I was in charge of small hydraulic excavators up to 9 tons and small wheel loaders up to L50 type.
As part of its ambition to lead the transformation journey through electrification and sustainable power, Volvo CE is launching a range of small equipment products aimed at driving growth and profitability in this important and growing product segment. We have established a business division specializing in machines and solutions. .
Population growth and urbanization are expanding the construction sector around the world, significantly increasing the demand for particularly compact equipment. This segment currently accounts for 50% of the total market, whereas 10 years ago it was 35%, and the growth trend is likely to continue.
This new global business unit is the latest step in the company's ambition to lead industry transformation and provide purpose-built productivity solutions built around customers' evolving needs. Thomas Bitter, Volvo CE's technical director, will become head of the compact business unit from September 2023.
He commented: “Our pioneering work in electrification and digitalization has established us as an innovator in compact equipment. And now, as small equipment has an ever-increasing influence on the market, we is focused on its portfolio of small equipment in order to provide our customers with highly productive and sustainable products and services. Those who join us on this journey will only develop professional skills in this important field. Instead, they will play an important role in our broader purpose of building the world we want to live in.”
The new compact business unit will be made up of dedicated and passionate people currently within Volvo CE as well as external talent.
Volvo CE was an early lead in the industry, taking industry-first steps in 2019 to transition the brand's entire compact range to electric power and halt development of new diesel models. Since sending this strong signal to the market, the company has launched five of his electric models. Compact models: ECR25 Electric, ECR18 Electric, EC18 Electric excavators, L20 Electric and L25 Electric wheel loaders. The EC55 electric excavator was also introduced in China.