In order to broaden the product range and to enter the area of compact equipment VME in 1991 acquired a majority holding in the German construction equipment manufacturer Zettelmeyer Baumaschinen GmbH. The Zettelmeyer range of high quality compact wheel loaders had a market-leading position in Germany and in other European markets and the products have been successfully integrated into the range of Volvo construction equipment.
The bigger wheel loaders were phased out in favour of the compact wheel loaders.
In 1994 a new "Series B" range of compact wheel loaders was presented and followed in 1997 of the new "Series C".
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