Analysis

Taking the wheel

By MECN Adminstrator

Posted on May 5, 2011

Patrick Olney appointed CEO for Volvo Construction Equipment.

Part of a number of changes to be announced at Volvo this month, Patrick Olney has been appointed CEO for Volvo Construction Equipment

With a career spanning nearly two dec- ades, Patrick Olney has steered Volvo’s global operations through challenging times and ambitious expansions. From this month, Olney will run Volvo’s global operations from the company’s Belgian head quarters, with responsibility for growth across all geographical markets.

Educated at the Ivey School of Business at the University of Western Ontario, Canada, Olney graduated with a degree in business adminis- tration and in 1994, and received the chartered accountant designation from the Canadian Institute of Chartered Accountants.

During his 17 year career in the construction equipment industry, Olney has spent 10 years in senior management roles within Volvo CE. These roles have included his appointment as president of Volvo Motor Graders from 2001 to 2004 and president of Volvo Road Machinery, a position he took in 2007.

In 2009 he was named executive vice president and head of operations at Volvo CE, tasked with spearheading Volvo’s global manufacturing and purchasing operations.

Volvo also announced this month that Volvo Rents will no longer be part of Volvo CE but will become a subsidiary of AB Volvo. Scott Hall, former executive vice president and head of global sales and marketing, will become the new executive vice president and CEO of Volvo Rents, based in Pennsylvania.

Reporting to Hall, will be Barry Natwick newly appointed chief operating officer of Volvo Rents. Eberhard Wedekind will replace Hall in the Belgian office as executive vice president of sales and marketing for Volvo CE.

Local operation, global recognition

While Volvo does not have a manufacturing base in the Middle East dealerships have been established throughout the region, with operations spanning Kuwait, Oman, Qatar, Saudi Arabia and the UAE, all overseen by the regional office based in Dubai.

More than 150 different models of excava- tors, wheel loaders, motor graders and articu- lated haulers are produced in total in plants located in Sweden, Germany, France, the US, Canada, Brazil and Korea.

This year, among other innovations announced by the company, a new range of pipe layers will be introduced in the region. Designed around a 360 ? swing excavator con- cept. Both models of the machines (PL4608 and PL4611) offer enhanced safety features and production capabilities, say the company. The pipe layers were used in the recent construction of the US $81 million, 60km Bunde-Etzel pipe- line in Germany.

Earlier this year, the L220G wheel loader, from the G-series range, won the Red Dot Design Award at a ceremony in Germany, rec- ognising the vehicle’s fuel efficiency, 20% increased lifting force, 10% improved breakout force and stronger hydraulics — 4433 other products were entered in the awards.

Fit for the future

“Pat Olney has a long and extensive experience in the construction Equipment industry and has been instrumental in putting Volvo CE’s new Fit for the Future strategy in place,” Olney’s predecessor, Olof Perrson comments. He will take up a new position as deputy CEO of AB Volvo from this month and from September 1, will become president and CEO of AB Volvo.

Launched in 2008, Fit for the Future reduced the overlaps within Volvo to “promote effi- ciency and focus on key customer segments”. Volvo reports strong growth and increased profitability across all global markets as a result, particularly in the Middle East. Dubai.

“Traditional markets of Europe and North America remain very important to the busi- ness,” comments Olney.

“However, growing markets in Asia and the BRIC countries are an important focus area for the company going forward. Volvo CE has made several key investments in recent years in these markets and is well placed to capitalise on the growth we see there. In particular we have seen strong growth in China driven by the company’s local Chinese partner,” he adds.

“Whilst it is a time of change in the industry with a recovery underway from the financial crisis in 2008 and growing markets in the BRIC countries and elsewhere, Volvo CE has a clear strategy for delivering value to customers and this will be continued,” he concludes.