This is maximise the opportunities in the growing compact equipment segment.
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. It will hHave 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. It will operate as an independent entity within Volvo CE, fully focused on maximizing the opportunities in the growing market for compact equipment. It will initially be responsible for compact excavators up to 9 tons and compact wheel loaders up to the L50 model.
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% of the total market, compared to 35% a decade ago, with the growth trend likely to continue.
This new global business unit is the latest step forward in the company’s ambitions 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, from September 2023.
Volvo CE was early in leading the way by making an industry-first move to shift its entire branded compact range over to electric and stop development of new diesel variants, back in 2019. Since this strong signal to the market, 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. Source