Press releases 1999

At a ceremony in Pretoria on Friday, an export contract was signed whereby the South African Air Force will purchase 28 Gripen aircraft from Sweden. This is the first firm export order obtained for the Gripen.

Not for distribution in U.S., Australia, Canada or Japan. In view of the fact that necessary regulatory approvals have not yet been received, the Board of Directors of Volvo has decided to, for the time being, extend the acceptance period in the offer to Scania's shareholders up to and including February 8, 2000. Settlement is expected to commence on February 22, 2000 provided that the acceptance period will not be further extended.

The Supreme Administrative Court ruled on November 25, 1999 to uphold the advanced ruling issued by the Swedish Council for Advanced Tax Rulings pertaining to AB Volvo´s sale of the Volvo Car Corporation. As a result, based on Volvo´s calculations, the sale does not generate any taxable capital gain.

The European Parliament voted today in plenum for a decision concerning the EU's future exhaust emission directive for commercial vehicles. By this decision, the European Parliament follows the Environmental Ministers' proposal, which was intended to come into force in March 2000. By the same date, it will be possible to certify engines according to the Euro 3 emission level.

The new Volvo Penta TAMD103 is a 10-litre commercial diesel engine featuring redesigned combustion chambers, cylinder heads and fuel injection system. The result is increased power with reduced emissions and lower fuel consumption. The TAMD103 complies with the IMO emissions regulations.

Volvo Penta's new 7.3-litre TAMD74A marine diesel features an increased displacement, and redesigned combustion chambers, cylinder heads and fuel injection system. The result is increased power with reduced emissions and lower fuel consumption. The TAMD74A complies with the IMO emissions regulations while the low fuel consumption, combined with high reliability, easy service and low maintenance requirements, make it well suited for demanding commercial operators.

Jan Gurander has been appointed to head the Volvo Group's newly formed Finance business unit. Currently Senior Vice President of Corporate Finance at Scania, Jan Gurander will assume his new position in conjunction with the new unit starting operations on January 1, 2000.

The president of Volvo Truck Corporation, Mr Karl-Erling Trogen, recently inaugurated a new Volvo Truck Centre in Budapest. The truck centre is a part of a 4.5 M USD investment in Hungary this year.

Ej för distribution i USA, Australien, Kanada eller Japan

Swiss bus operator TPG - Transports Publics Genevois - has placed an order to buy 60 Volvo 7000 articulated buses. They are of a low-floor city bus design equipped according to the customer's specification. The agreement includes an option for another 20 buses of the same type.