Spirit 38 - Volvo Construction Equipment

saw it return to profit after several quarters of heavy losses. By the
third quarter not only was the company making money but it also
found itself at the top of the industry league tables. Something
significant had obviously happened inside Volvo Construction
Equipment...
“You can’t discuss the industry today without talking
about the Chinese market,” says Olof. “It’s now as big as all other
world markets put together. Our investments there enabled us to
have the capacity to maximize the upturn in that market and we
are investing still further in China and the other BRIC markets.”
Product renewal
“We are also now embarking on the company’s most
ambitious product introduction program, that will see over 50
new or updated products launched in the next couple of years.
These premium segment machines will be of higher quality, more
customer focused, cleaner and in most cases more fuel efficient
than the ones they replace, which were already class leading.
Quality in everything we do is our guiding principle. We will also
introduce new products that fill gaps in our range where we see it
makes sense for customers and for us. In the future our product
development will have a more local focus, making sure we have
the right products in the right markets to satisfy local customer
needs. This is not limited to machines, but also financing,
telematics, customer support agreements and a host of other ‘soft’
product offerings.”
With a risk of a double dip recession receding, what
does Olof predict for the rest of 2011? “Business is never ‘normal’
and there are always ups and downs. Markets are rarely in sync
but we see good growth continuing in the BRIC markets and
slower but still positive growth in Europe and North America,
to which we remain committed. But whatever happens, the
new-look Volvo Construction Equipment is better prepared for
both upturns and downturns. We are more efficient and flexible
to cope with whatever the markets throw at us.”
So now that the dark days of 2008 and 2009 are
behind him, is Olof finally starting to relax and enjoy his job?
“Now that we are welcoming people back into the company,
launching exciting new products and winning profitable market
share, it’s a lot more fun,” he smiles. “We have all worked hard
for that fun too; the trouble is that we have to keep on earning
that fun by continuing to gain the trust and confidence of our
customers.”
The rigors of the last two years don’t seem to have had
any lasting impact on Olof, who seems as fit and healthy as when
he started. He still runs regularly and unwinds by reading and
watching films. “When I am at home my focus is on home,” he
“You can’t discuss the industry today
without talking about the Chinese market.”
says. “This isn’t a nine-to-five job, but I can switch off by watching
my son play football on a Saturday and trying to help my children
with their homework – not always successfully!”
So, now he can put a big tick against guiding the
company through the recession and reorganizing it into a leaner
and more efficient organization, what’s next?
“We must continue to work hard with our customers
to translate the needs of the industry into a total concept that
includes not just machines but all the products and services that
surround them throughout their lifecycles. We can do it too, as
today we are a much stronger, more closely aligned and customer
focused company.”
Text: Brian O’Sullivan
Photography: Julian Cornish Trestrail
SPIRIT8