Volvo CE R&D to drive down product cost
Volvo CE president Martin Weissburg said the manufacturer will focus R&D dollars on innovation that drives down product cost
New Volvo Construction Equipment president Martin Weissburg has revealed a new emphasis for the company’s future R&D strategy – and stressed ongoing work to boost profitability.
Speaking during the Swedish manufacturer’s Conexpo 2014 press conference, Weissburg, who assumed his role in January 2014, said, “There will be greater allocation of our R&D dollars towards innovations that reduce product cost. This will not be at the expense of quality or durability.”
Of Volvo CE’s current trading priorities, Weissburg added, “Volvo Construction Equipment has a focus on profit improvement. We are not pleased with recent results, and our focus, resources and energies are very much on gaining [market] share, improving profitability at the same time, and the continuous improvement programme that is already in place on operating efficiency, expense reduction and getting greener.
“We are in the process of improving our profitability as a global organisation. We are not and will not wait for market growth to solve this for us. We do not as of today see significant levels of growth. On a global basis, we see things as relatively flat.”
Volvo CE has used Conexpo 2014 to unveil its new range of Tier 4 machines including the E-Series excavators, G-Series articulated haulers and H-Series wheeled loaders.