Volvo 1999 Annual Report Download - page 18

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16
As is the case in the truck and bus
industries, the pursuit of benefits
of large-scale operations has begun to
change conditions in the marine and
industrial engine field. This is creating
larger and stronger customers, which in
turn is resulting in increased demand for
new and innovative products at com-
petitive prices. The industry is also
characterized by growing demand for
engines that are more environmentally
compatible. The primary driving force
behind this trend is stricter environ-
mental legislation in Sweden and other
countries, but also increased customer
emphasis on environmentally compatible
products in general.
Volvo Penta’s products – marine and
industrial engines and drivelines – consti-
tute important parts of a customer’s
business and ability to compete; as a
result, close cooperation with the
customer is highly important. This
cooperation increases the company’s know-
ledge of the world in which the customer
is operating and contributes to the devel-
opment and enhancement of products as
well as services. The customer base is
broad, ranging from large manufacturers
of boats for recreational and commercial
use to users and producers of industrial
applications, including railway operators,
truck manufacturers and operators of irri-
gation plants.
The products in Marine and industrial
engines’ Marine Leisure business segment
are gasoline- and diesel-powered
engines with power outputs in the range
of 10 hp to 770 hp, as well as complete
drive systems for small recreational
craft. Engines in the Marine Commercial
business segment have power outputs
ranging from 100 hp to 700 hp and
complete drive systems for use in fishing
vessels, ferries, tugboats and integrated
water-jet systems. Volvo Penta’s engines
are used on large ships as sources of power
for the generation of electricity and the
operation of cranes and pumps, etc.
The Industrial Engines business segment
supplies engines for many different uses.
Engines used in irrigation systems,
generators, propulsion systems for trains
and heavy forklift trucks, terminal-
handling equipment and farm machines
are a few examples.
Soft products include substantial
after-sales service to end-customers in
Europe and the United States in the form
of the Volvo Penta Action Service and
Rapid Response program. This program
involves a commitment to provide service
to owners of Volvo Penta diesel engines in
the U.S. within 24 hours, and a guarantee
that spare parts will be delivered within
72 hours.
Sales are conducted in 130 countries.
Diesel engines are developed in Göteborg
and manufactured in Vara and Skövde
(Sweden). Gasoline-powered engines and
drives for recreational craft are developed
and manufactured in Lexington,
Tennessee, in the U.S. Effective in January
2000, engines for generator plants will be
assembled in Wuxi, China.
Diesel engines for irrigation plant
Volvo Penta Action Service
Marine and Industrial Engines
TAM D 74C EDC m arine diesel engine
Products and services