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28 Board of Directors’ Report
Volvo Penta IPS has been very well
received by boat builders and the trade
press. The new system is expected to ini-
tiate the same extensive change in boat-
ing life as Volvo Penta’s launch of the
Aquamatic drive at the end of the 1950s.
In addition to IPS, a new 9-liter engine
for leisure boats was launched as well as
the D4-260 and D6-350, which are high-
performance versions of Volvo Penta’s
new generation of marine diesel engines.
Volvo Penta is also continuing to main-
tain a high pace of development in other
segments, including the introduction of a
new 16-liter industrial engine and a new
9-liter engine. The 9-liter diesel engine is
now being offered to customers within all
of Volvo Penta’s business segments.
Total market
The total world market for marine and
industrial engines continued to improve,
although the trend varied in different
parts of the world. A strong gain for
industrial engines was noted in the early
part of the year, primarily due to sharply
increased demand in China. This increase
slackened toward year-end when the
Chinese authorities instituted a number
of restrictions in order to cool the econ-
omy.
In North America, the total market rose
for gasoline and diesel engines. Continued
stable demand for marine diesel engines
was noted in Europe.
Volvo Penta offers complete power sys-
tems and service for leisure boats, work-
boats and industrial applications such as
power-generating equipment. Volvo
Penta operates within three areas of
activity: Marine Leisure, Marine Com-
mercial and Industrial.
By supplying technologically superior
products focused on performance and
operational reliability, and being sensitive
to customer demands for effective ser-
vice solutions, Volvo Penta has developed
a global leadership and one of the indus-
try’s strongest brands. With more than
5,000 dealers in some 130 countries,
Volvo Penta has a strong global presence.
In recent years, Volvo Penta has car-
ried out a number of notable product
introductions. These were followed, at the
end of 2004, by the launch of the revolu-
tionizing drive system for boats – Volvo
Penta IPS (Inboard Performance System).
This new system is an alternative to trad-
itional shaft installations for boats in the
35- to 50-foot class. Volvo Penta IPS
replaces propellers and rudders with con-
trollable drive units and forward-facing,
counter-rotating pulling propellers. Com-
pared with traditional shaft installations,
this solution provides improvements in
top speed, acceleration and comfort,
while reducing fuel consumption. Noise
and vibration levels are also reduced sub-
stantially.
PENTA
VOLVO
Net sales, SEK bn
Operating income, SEK M
Operating margin, %
Net sales as percentage of
Volvo Group sales, %
00 01 02 03 04
7.3 8.9 8.4 9.1 10.3
00 01 02 03 04
484 658 647 695 937
00 01 02 03 04
6.6 7.4 7.7 7.6 9.1
4%