Volvo’s Reputation In Construction Machinery Segment Growing With New Products
Most people think of cars and trucks when they hear the name Volvo, but the company is also one of the larger and faster growing construction machinery suppliers in the world. Indeed, it can be compared to giant companies like Caterpillar, Deere, and Komatsu. Volvo’s construction equipment sales
in 1996 are expected to top $2 billion for the first time, versus sales in 1995 of $1.9 billion and $1.2 billion in 1993. About 23 percent of those sales are generated in North America, while the largest portion of sales (about 60 percent of the total) comes from Europe.
Volvo has always had an excellent reputation in the construction machinery industry. The company is managed from its headquarters in Brussels, Belgium, with production facilities in Brazil, Canada, France, Germany, Sweden and the U.S. The North American operations consist of Volvo Construction Equipment North America, Inc., located in Asheville, N.C., and Euclid-Hitachi Heavy Equipment, Inc., in Guelph, Ontario, and Cleveland, Ohio. Volvo Construction Equipment is responsible for the marketing and product support of the company’s business in the U.S., Canada and Mexico. Euclid-Hitachi oversees the development and manufacturing of rigid haulers produced in Canada.
Volvo is the world’s leading supplier of articulated haulers, and it is a major producer of rigid haulers and wheel loaders. The company also produces hydraulic excavators - a product area it is planning to revamp completely during 1997 - and mini-excavators produced by its Pel-Job subsidiary. In 1995, 44 percent of the articulated dump trucks manufactured in the world rolled out of Volvo factories. It’s nearest competitor, Caterpillar, accounted for about 25 percent of the market.