Volvo Penta

Improved profitability despite weak leisure boat market

Volvo Penta conducts its operations in two overall business segments: Marine and Industrial. For a broader general public, Volvo Penta is mostly known for its marine engines and world-leading innovations, such as the Aquamatic drive and the counter-rotating propellers, Duoprop. Boat owners worldwide associate Volvo Penta’s products with fuel-efficiency, environmental consideration, comfort, performance and operating safety.

Market-leading boat builders French Beneteau/Jeanneau, German Bavaria, British Sunseeker, Italian Sessa Marine, US Tiara, Brazilian Intermarine, Swedish Hallberg-Rassy and Australian Riviera choose Volvo Penta because of one of the marine industry’s broadest product programs and to have access to the world’s most global service and retail network.

However, the most rapidly growing operation for Volvo Penta in the past decade has been sales of industrial engines, which currently represent about 40% of Volvo Penta’s total sales value.

The basis for the industrial engine business is the strength in the Volvo Group’s total product and service offering. Assisted by these, Volvo Penta is able to offer high-technological products, as well as global support for such industrial applications as diesel-operated gensets, cranes and container handlers.

Customers include such world-leading industrial companies as Finnish Cargotec, French-American SDMO, Turkish Genpower and Swedish Sandvik.

The ambition is to expand industrial engine sales through increased market shares in an increasing number of segments, for example, mining and construction equipment, and in emerging markets in, for example, Asia and Africa.

Through sales of marine and industrial engines, Volvo Penta will contribute significant synergies and economies of scale to the Volvo Group’s manufacture of engines and transmissions. Approximately 10% of the Group’s total diesel volume represents engines sold by Volvo Penta.

With respect to the Volvo Group’s most efficient engine, the D16, Volvo Penta accounts for approximately two thirds of the Group’s total sales and consequently, delivers a crucial volume contribution to this engine series.