Volvo Penta launches SEK 600 M engine program12/08/2003
Volvo Penta currently holds a market-leading position for diesel engines for planing leisure boats. Bolstered by such innovations as the Aquamatic drive and counter-rotating Duoprop propeller, Volvo Penta in many respects has driven development within the marine industry.
With the new electronic diesel engines, the D4 at 210 hp and the D6 at 310 hp, Volvo Penta is taking the next step. This engine range is totally newly developed and features a number of new technical solutions that make the engines faster, more powerful, cleaner and quieter than their predecessors.
The engines are manufactured in Volvo Penta’s wholly owned engine plant in Vara, Sweden, which is the world’s only plant for volume production of diesel engines developed solely for marine applications.
“This is an important explanation for Volvo Penta’s successes in this segment of the market. The engines have been developed and designed from the start for optimum performance in boats, which makes our products extremely competitive,” says Staffan Jufors, President of Volvo Penta.
Based on current plans, production of Volvo Penta’s existing engine range at the Vara plant will be carried out parallel with the new engines. Capacity at the plant, which currently has about 200 employees, has been increased in recent years in response to the higher demand.
Volvo Penta has expended about SEK 500 M in investments and product development at Vara and in the new engine range. Combined with the investments in new drivelines that Volvo Penta made in Volvo’s joint transmission plant in Köping, Sweden, total costs amount to about SEK 600 M.
During the past five years, Volvo Penta has invested about SEK 2 billion in product development, which is nearly double the level earlier in the 1990s.
“Volvo Penta has been able to finance these investments internally as a result of its highly favorable earnings performance. A large portion of profits has been reinvested in new products, which now creates the conditions for Volvo Penta to further strengthen its position in the marine industry,” says Volvo CEO Leif Johansson.
In addition to the diesel engines produced in Vara, Volvo Penta is also launching the new 130- or 160-hp D3 diesel engine and the new D2-75 engine for sailing yachts.
Global Communication Manager
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Email: jennifer [dot] humphrey [at] volvo [dot] com