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Volvo Penta: Charting the Off Road to Success

GOTHENBORG/SWEDEN, September 5, 2013 - After more than a year at the helm of Volvo Penta, Björn Ingemanson says the Volvo group’s diesel engine company has what it takes to become a bigger player in the off-road business.

Volvo Penta President Björn Ingemanson aiming at the offroad Business

Volvo Penta President Björn Ingemanson. | photo: Volvo Penta

“Volvo diesel power gives a competitive edge to the group’s construction equipment and trucks. Our job is to bring the same competitive edge to OEM customers in the external engine business,” says Björn Ingemanson, president of Volvo Penta. “With a world-class offering, both in terms of products and aftermarket support, we are ready to take the next step.”

Since taking up the reins of the company a little over a year ago, Ingemanson has been coming to grips with the challenges and opportunities facing the Volvo Group’s company for loose engine sales. After concluding that opportunities to develop the brand are plentiful, he has set Volvo Penta on an ambitious growth strategy. Capturing new OEM customers in material handling, construction and raw material exploration has been identified as the best way to grow the off-road business.

“A century of success in the marine business has taught us how to create conditions for long-term relationships with world-leading OEM customers where we prove ourselves as a credible and trustworthy partner — one that offers world-class quality, fuel efficiency and global support,” Ingemanson says.

A Brave New World

Where once marine engines dominated sales, now turnover is split equally between marine and industrial engines. The marine business will continue to be important, but since Volvo Penta’s market share in this segment is already strong, expanding it further will be a challenge. This isn’t the case with industrial off-road segment, where Volvo Penta has a smaller share of the market, but with a new product range and Volvo Group’s global aftermarket offering has a good opportunity to grow its slice of the cake – whatever the prevailing economic conditions.

A little Family Support

One of the areas set to change most radically is Volvo Penta’s distribution network. Volvo Penta will increasingly be able to leverage the considerable distribution muscle of Volvo Construction Equipment’s dealer network. This will, in a single stroke, solve the issue of how to support Volvo Penta products wherever its customers are using them. “Forging a closer relationship with Volvo Constructon Equipment doesn’t just help us with distribution,” Ingemanson states. “We can also take advantage of its customer base, as there is a good deal of crossover for our industrial offerings.”  
bi / Brian O'Sullivan