Volvo Penta invests in Australia

Volvo Penta forms wholly owned operation in Australia by acquiring assets from independent importer.

Volvo Penta has conducted operations in Australia since the 1960s, selling both marine and industrial engines.

Since 1987, Volvo Penta has been represented in Australia (except western Australia) by the independent importer, Eastern Engine Pty, Ltd, which is headquartered in Brisbane, Queensland. With Eastern Engine as its importer, Volvo Penta has gradually strengthened its position in the Australian market, in part through the building of a strong service and dealer network. Eastern Engine has today 29 employees.

Volvo Penta is currently the market leader in several segments and notable customers in the marine segment include well-known Australian boat builders as Mustang Marine, Riviera, Noosa Cat and Sunrunner.

Volvo Penta sales in Australia exceeds SEK 140 million/year.

“For our customers in Australia, the acquisition will not entail any significant changes in the short term. Volvo Penta will continue with the same operational direction as before. Long term, we think that the acquisition will create the conditions to further strengthen relationships with our customers and thus generate continued growth, says Volvo Penta’s President Göran Gummeson.

The agreement for the acquisition was entered into July 5, 2006 and is expected to be completed August 1, 2006, when the assets will be transferred to the Volvo Group Australia subsidiary, Volvo Commercial Vehicles Australia Pty Ltd.