JCB and Volvo agree joint venture on skid steers

JCB and Volvo Construction Equipment have signed a deal under which they will co-operate on the design and manufacturing of skid steer loaders and compact tracked loaders for distribution globally under the two brands.

JCB said the first mono boom Volvo branded machines will be produced at JCB's Savannah, Georgia facility by the end of this year with sales starting in 2011.

Volvo currently makes a line of 2.5 - 3.4 t skid steer loaders for sale in North and South America at its Pederneiras facility in Brazil. Under the agreement, JCB said that Volvo will shift production from this facility to Savannah over time. The Volvo skid steers are not sold in Europe.

JCB currently has a range of eight wheeled skid steers, including several wheeled models. A spokesman for Volvo told IRN that it was too early to say exactly what models would be available under the joint venture.

The deal will give Volvo a range of models - including tracked units - that it can sell worldwide, and also free up production capacity at its Brazilian facility where backhoes and other products are currently made. The Volvo spokesman said that workers at the Pederneiras facility would be reallocated to other products and that job losses would not result from the agreement with JCB.

For JCB, the joint venture will provide additional volume for its Savannah facility at a time when production has been scaled back significantly as a result of the slowdown. For example, the company no longer makes telehandlers at the site and concentrates on the production of skid steers as well as backhoe loaders for the US military.

John Patterson, deputy chairman of JCB, said: "This agreement will allow us to combine forces in this key product area enabling both brands to compete more effectively."

Olof Persson, Volvo Construction Equipment president, said: "Volvo customers will benefit from a wider range of models that maintain the high level of product safety and functionality that they expect."