Volvo highlight importance of North American market
Pat Olney, president and CEO of Volvo CE confirms commitment to North American market
PAT Olney, president and chief executive officer of Volvo Construction Equipment, used his first North American press conference to highlight the strategic importance of the North American market.
‘North America is far from being at full strength, but from a low level we are cautiously optimistic and believe our previous forecast for growth of between 25–35% in 2011 to be accurate,’ he said.
Mr Olney added that the recovery in South America had been more robust, with strong growth occurring across the whole of the continent – increasing by up to 20% this year.
‘To meet this heightened demand across the two continents, we are investing in our production and supplier capability in North and South America, allowing us to make more machines locally, design them to better meet local needs and supply them more quickly to customers. We are confident that the visible investment commitments we are making will afford us a more significant share of these markets,’ he said.
As previously announced, Volvo CE are investing US$100 million in a product and manufacturing expansion programme at their North American facilities, which will see the company’s facility in Shippensburg expanded to accommodate the production of Volvo wheel loaders, excavators and articulated dumptrucks – adding 16 new machines to the 50 road machinery products already produced at the plant. A world-class customer and demonstration center will also be built in Shippensburg, creating a major global hub for the company.
Underlining Volvo CE’s confidence in the long-term strength of the US, Mr Olney also used his presentation to highlight the efforts being made to expand and strengthen the company’s distribution network in North America, which currently consists of 252 branches operated by 49 dealerships.
‘Volvo CE are in a good position to capitalize on improving market conditions in both North and South America. We are outperforming the market conditions by offering a young fleet of innovative products tailored to meet the needs of specific customer groups, combined with a strong and loyal distribution network and a substantial investment programme. We have made a strong commitment to North America and regard it as a core market for the company,’ he said.
