Volvo Penta invests sek 250 million in new engines

VOLVO PENTA INVESTS SEK 250 MILLION IN NEW ENGINES Volvo Penta is now launching entirely new industrial engines based on the D12 diesel engine manufactured at Volvo´s Skövde plant in Sweden. The new, electronically controlled 12-liter engine creates new prospects for Volvo Penta for further growth in markets for industrial engines. The launch of the new industrial engine means that Volvo Penta now offers the D12 engine in the company´s all three business areas: Marine Leisure, Marine Commercial and Industrial. Volvo Penta has invested a total of more than SEK 250 million in the D12 project, which results in a major strengthening and renewal of the diesel product program. The marine versions, which were launched last year, have already been very well received on the market. Volvo Penta's sales increase and higher market shares in the marine segment in 2000, in North America as well as in Europe, are attributable to the success of the D12 diesel engine. Through the introduction of the industrial versions, Volvo Penta now expects to also advance its positions in the strategically important industrial engine segment. Application areas for the engines are forklift trucks, pumps and agricultural machinery and as generator engines for power supply. The D12 diesel engine is manufactured at Volvo's engine plant in Skövde, Sweden. The basic version of the engines are the same enginges used in many of Volvo´s other products, for instance trucks. Volvo Penta sells more than 15,000 Skövde-manufactured diesel engines annually and provides a significant contribution to economies of scale within the Volvo Group's total industrial system. Volvo Penta´s total deliveries of diesel and gas engines for marine and industrial use amounted to slightly more than 60,000 units in 2000. April 2, 2001 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/04/02/20010330BIT00930/bit0001.doc http://www.bit.se/bitonline/2001/04/02/20010330BIT00930/bit0001.pdf