Press releases 1998

Volvo has established a new Group company in Turkey. Named Volvo Otomotiv Türk, the company will have overall coordination responsibility for Volvo's total operations on the Turkish market.

Volvo Car Components Corporation is selling its wheel assembly plant in Kungälv, Sweden, to Michelin-Continental Projects, MCP. The agreement means that MCP is acquiring the entire operation and will remain a supplier of complete wheels to Volvo Car Corporation and Saab Automobile.

Volvo is establishing a new company in Russia. Named ZAO Volvo Vostok, the new company will have coordination responsibility for Volvo's entire operations in the Russian market.

Volvo Aero has received an order valued at SEK 200 million from the French rocket motor company SEP. The order covers supply of combustion chambers to the Europe space rocket Ariane 4 during the period 1999-2001. The order, which is a result of the increased demand in the satellite market, will provide employment for about 100 persons during a two-year period at the company's facilities in Trollhättan.

Volvo Bus Corporation will expand and restructure its European industrial organisation and concentrate parts of its European production to the plant in Wroclaw, Poland. Volvo Bus is investing a total of SEK 400 million in the plant in Wroclaw, which will have an annual capacity of 1,100 buses and 1,400 bus chassis.

Volvo Excavators in Eslöv today submitted a notice of termination of employment to the County Labour Board involving 165 employees at the company's plant in Eslöv, Sweden. Those affected include 105 wage-earners and 60 salaried employees. Currently the company has about 750 employees. Codetermination negotiations will be initiated immediately with the trade unions.

Eight large suppliers have located operations closer to Volvo Car Corporation?s Torslanda plant in Göteborg and the old shipyard area is revitalized and seething with life again. The redevelopment of the area has taken two and a half years, during which time Volvo Car Corporation, Volvo-owned real estate company, Danafjord, and the eight suppliers have jointly invested SEK 620 million in the new Industrial Park. Some 300 new jobs have already been created and 130 more are planned before the end of the year.

Volvo Truck deliveries in Jan-May recorded a total of 34,005 units, an increase of 31 per cent compared with the same period last year. Sales showed the following distribution:

Today marks the inauguration of Volvo Trucks' factory in Hosakote, located near Bangalore in southern India. The factory will have a production capacity of 4,000 trucks per year, which will be realized in approximately 5 years. Investments for the factory will total 60-80 million US dollars.

Volvo Truck Corporation has reached an agreement-in-principle with Meritor Automotive Inc. (formerly Rockwell's automotive business) onthe global provision of rear axles, and signed a Memorandum ofUnderstanding.