The Gryphin concept wheel loader - the day after tomorrow...

There is no question that construction equipment is set to undergo radical changes in the coming decade. Hybrid engines are almost a certainty – but what about design? Volvo has let its designers imagine the wheel loader of the future – the Gryphin is the surprise result.

The Volvo stand at Bauma will feature a new technology area where the options being considered for future machines will be demonstrated and discussed. All eyes are now focusing on diesel-electric hybrid engines – and as the world’s largest producer of heavy duty engines Volvo is at the forefront of next generation engine and fuel technology. The technology area will describe the options under consideration and explain why putting diesel and electric power sources allows smaller engines, lower fuel consumption, lower emissions – and yet higher performance. But the star of the show will undoubtedly be Volvo CE’s latest design concept – the Gryphin.

Gryphin is an extreme concept wheel loader – the wheel loaders of the 2020s. Following the success of the SfinX excavator design study in 2004, Volvo’s designers have again turned their creative brains to imagining how wheel loaders will develop in the medium term future. This is nothing new; Volvo’s designers in the 1950s came up with the design for the very first wheel loader!

The Gryphin looks undoubtedly futuristic – but even so it is still recognizably a Volvo. Its signature design embodies the very definition of what it means to be a Volvo. Even at standstill the Gryphin defines Safety, Efficiency and Strength – the core values of every Volvo. Gryphin has the twin themes of ‘the Environment’ and ‘the Operator’ at its heart. Using an electric hybrid power source, Gryphin emits almost no emissions. Instead of heavy transmissions, drivelines and axles, Gryphin uses electrical motors inside each wheel, allowing much higher underbody ground clearance and a super quiet machine.

Views from the driver’s seat are excellent in every direction; made possible by all-round glazing and lattice see-through pillars. The glass in the cab is intelligent: heating up in cold weather to prevent frost or condensation and becoming darker in bright sunlight to act as giant sunglasses!

Volvo wheel loaders have long been admired for their high breakout forces and excellent parallel lift. Gryphin brings these skills to a new level by introducing a solid, yet light, centre boom. Not only does this improve lifting performance and reduce torsional stresses, the absence of traditional front boom linkages allows a much better view of the work area.

The lack of a traditional driveline and axles allows the adoption of intelligent independent suspension. This not only offers a more comfortable ride for the operator, with fewer vibrations entering the cab, but also allows for variable ride height. The frame can be lowered for high speed haul cycles, reducing the centre of gravity and making much higher speeds than is currently possible with no lost of comfort or stability. The frame can also be raised; increasing ground clearance over rough ground and offering greater dump heights while maintaining stability.

Much of the technology found on the Gryphin is already under development or even being tested. This is a very real interpretation from Volvo Construction Equipment of what you can expect to see hard at work on sites two decades from now.

March 2007

View more products from the Volvo Group.

For further information, please contact:

Beatrice Cardon – Volvo Construction Equipment
Hunderenveld 10, 1082 Brussels, Belgium

Phone: +32 2 482 5021
E-mail: beatrice.cardon@volvo.com

Volvo to acquire the road development division from Ingersoll Rand

Volvo has reached an agreement with Ingersoll Rand to acquire the assets of the company’s road development division, a world-leading manufacturer of heavy equipment for road construction and soil compaction with revenues of USD 864 M in 2006. Operations also include material handling equipment. The purchase price amounts to USD 1.3 billion in cash, or SEK 9.2 billion.

”I am pleased that we can continue to expand our successful construction equipment business and the acquisition gives Volvo Construction Equipment a world-leading position within heavy road construction equipment,” says Volvo CEO Leif Johansson. “This acquisition is strategically important since it will improve the overall competitiveness of Volvo CE as a full-range supplier of construction equipment.

” The global market for road construction equipment is about USD 4 billion annually and is projected to grow substantially as a result of increased investments in infrastructure globally. Volvo CE has a distinct ambition to expand in this market and the acquisition complements current operations by sharply strengthening Volvo’s presence in equipment for road construction work. The acquired business includes a full range of heavy compactors, asphalt pavers and milling machines and provides favorable growth possibilities. The acquisition also strengthens Volvo CE’s position in the market for materials handling equipment in North America.

In addition, the acquisition includes 20 dealerships in North America and distribution companies in Europe and Russia which will leverage Volvo CE’s sales of compact equipment, primarily in North America.

”Strategically, the acquisition of Ingersoll Rand Road Development fits exceptionally well with Volvo’s current operations within motor graders and positions Volvo as a full-range manufacturer of heavy road construction equipment”, says Tony Helsham, President of Volvo Construction Equipment. ”Geographically, the purchase also fits Volvo CE very well and provides attractive growth possibilities by capitalizing on the common dealer network in North America, Europe and Asia.

”Synergies at operating income level, mainly attributed to sales and distribution, are estimated at SEK 600 M annually to be achieved within a five-year period.

The acquisition is primarily being carried out as an assets purchase and the transaction is expected to reduce the net financial position for Volvo by SEK 9.2 billion. Closing of the transaction is expected during the second quarter 2007 and is subject to relevant approvals.

Ingersoll Rand’s division for road development, with headquarters in Shippensburg, Pennsylvania in the US, has about 2,100 employees. In 2006 the operations reported sales of USD 864 M and operating income of USD 101 M. The operations have manufacturing units in the US, Germany, India and China.

February 27, 2007

For further information, please contact:
Volvo CE:Klas Magnusson+32 2 4825065 or +32 475 576214AB

To download the presentation from the press conference on February 27, please go to www.volvo.com under “investors”.