Volvo intends to invest capital into the Volvo Rents franchise program, president and CEO Olof Persson told a news conference at ConExpo in Las Vegas. Although Persson wasn’t specific on the quantity or direction of the investment, he stated Volvo would invest in helping the program grow and would consider acquiring troubled franchises that lacked the capital to move their businesses forward.
Persson added that the Volvo Rents program was an important channel to market for Volvo equipment, particularly compact machines.
Persson emphasized the importance of the U.S. market to Volvo Construction Equipment and the overall commitment the company was making to develop the market, including the $100 million expansion program at its North American headquarters in Shippensburg, Pa. The company plans to expand its production facilities there and centralize U.S. Volvo operations including moving its Volvo Rents staff there.
Persson highlighted the company’s improved trading conditions in North America and globally. He emphasized the dramatic 51-percent sales increase in 2010, along with significantly improved profitability. Volvo CE introduced 55 new product upgrades at ConExpo.
