Company taking advantage of shift to electrification to secure a fully electric compact line-up
AS part of their ambition to lead the transformation journey through electrification and sustainable power, Volvo Construction Equipment have set up a dedicated global business unit for their range of compact equipment and solutions.
The unit has the aim of driving growth and profitability in this important and growing product segment, which now represents 50% of the total market, compared with 35% a decade ago, with the growth trend likely to continue.
The new Compact Business Unit will:
Take advantage of the shift to electrification in the compact equipment segment to secure a fully electric line-up of productive and sustainable products across the whole compact range.
Have responsibility for the whole value chain, including development, assembly, purchasing and the go-to-market strategy (together with the existing distribution network) for the compact offering, increasing touch points with customers.
Operate as an independent entity within Volvo CE, fully focused on maximizing the opportunities in the growing market for compact equipment.
Initially be responsible for compact excavators up to 9 tonnes and compact wheel loaders up to the L50 model.
Thomas Bitter, Volvo CE’s current head of technology who will take on the role of head of the Compact Business Unit from September 2023, commented: ‘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.’
In 2019, Volvo CE were the first in the industry to shift their entire branded compact range to electric and to stop development of new diesel variants. Since this strong signal to the market, the company has launched five electric compact models: the ECR25 Electric, ECR18 Electric and EC18 Electric excavators, and the L20 Electric and L25 Electric wheel loaders.