President of Volvo Penta Says Company Poised for Growth

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 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 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.

“This is a strong foundation for establishing the same relationship with OEM customers in the industrial engine business.”

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.

“We should not be deterred by market conditions,” Ingemanson says. “Even in tough times we can deliver good results – and in recent years our profit margins have been among the best in the Volvo Group. This strong ‘bottom line’ will provide tremendous leverage as we grow.”

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.” 

Volvo Penta is in a strong position in certain industrial segments, such as power generation and material handling. “We have some big-name customers and excellent products that are fuel-efficient, reliable and that utilize advanced technology,” Ingemanson says. “It is satisfying that our new Tier 4 Final SCR product program has been so well received in the market. The engines’ market-leading fuel efficiency and superior cost of ownership are being appreciated by more and more customers. 

“If we can continue to build upon our reputation for innovative, high-quality products and support these products in the aftermarket with spare parts and service expertise, then we will be able to compete against anyone.”