Volvo Penta growing its U.S. inboard market share
GOTEBORG, Sweden – Volvo Penta’s marine leisure sales were up in the third quarter and increased demand for the company’s marine diesel engines in the United States resulted in strengthened market shares in the inboard segment, the company reported in a recent statement.
Volvo Penta’s marine leisure sales were SEK 1,095 million in the third quarter, compared to SEK 1,074 million last year, and increased activity was noted during the third quarter in North America, particularly for stern drive engines, the company stated.
The strong earnings performance in recent years for Volvo Penta continued during the third quarter this year, according to the company. Operating income during the quarter amounted to SEK 153 M, which was an increase of more than 30 percent and the best result in Volvo Penta’s history. The operating margin for the quarter was 8.5 percent.
Despite the sharply weaker U.S. dollar, which adversely affected operating income and sales, Volvo Penta said it continued to increase its overall net sales. Total sales in the third quarter amounted to SEK 1,806 M, compared with SEK 1,735 M in the year-earlier period, corresponding to an increase of 4 percent.
In its largest product introduction to date, Volvo Penta launched a number of global innovations during the third quarter, particularly within Leisure Marine, it reported. The new medium-heavy 210-hp D4 and 310-hp D6 diesel engines, manufactured in the plant in Vara, Sweden, represent a substantial strengthening of Volvo Penta’s customer offering, the company said.
A total of about SEK 600 M was invested in this program, which features a number of entirely new technical solutions. The new engines, for which Volvo Penta also developed entirely new stern drives and propellers, have already been well received by customers and the trade press, Volvo Penta reported.
Volvo Penta is also launching the D3, which is a marine version based on Volvo Cars’ diesel engine platform. The company said this new engine, available in 130- and 160-hp versions, offers such favorable properties in terms of performance and fuel economy that in the long term it could become an alternative to outboard engines.
The D3, D4 and D6 are controlled by Volvo Penta’s new electronic EVC (Electronic Vessel Control) system.
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