Volvo´s common diesel engine factory in Skövde, Sweden produces engines for most business areas within the Volvo Group. This includes engines for trucks, buses, construction equipment and for Volvo Penta´s sales of marine and industrial engines.

Volvo Penta account for about 20-25 percent of the total engine production in this factory which is one of the most automated engine factories in the world. From here Volvo Penta take their well-reputed 7 to 16 litre diesel engines, for instance the D12 engine.