Volvo CE’s Jernberg calls early electric move an ‘insurance premium’

A Volvo CE L120 Electric Wheeled Loader. Image: Volvo CE

In an interview with International Construction, Jernberg was asked how he would respond to the argument that Volvo CE introduced electric machines too soon.

“I would say that they are right,” he said, referring to the timing of the company’s first electric models, the L25 Electric compact wheeled loader and ECR25 Electric compact excavator, shown at Bauma 2019 in Munich, Germany.

At the time, he said, Volvo CE even debated how prominently to display the machines.

Jernberg said Volvo CE is now on the third generation of its compact electric machines, and remains convinced that demand will eventually follow an “S curve” of slow initial growth, rapid acceleration and eventual stabilisation.

“If you invest early in the S curve, then you will invest too early,” he said. “But since you don’t know when this will happen, it’s just the insurance premium.”

Jernberg said he did not regret the early investment, adding that the products Volvo CE is producing now are better because of the work already done.

The feature also covers Volvo CE’s wider strategy, including its focus on construction, mining, and quarry and aggregates.

At ConExpo, Volvo CE unveiled a US$1.2 billion strategic investment across North America, including a US$261 million expansion of crawler excavator production in Shippensburg, Pennsylvania.

Jernberg said North America remains a tough but important market, with opportunities for Volvo CE to grow in excavators and hauling.

The full interview with Jernberg is available now in the latest issue of International Construction.