Press releases 1999

The Taiwanese airline China Airlines has selected CF60-80C2 General Electric engines for the 13 Boeing aircraft ordered earlier. This results in a major order for Volvo Aero, which delivers components for the engine. The order value for Volvo Aero is estimated at about USD 25 million, corresponding to slightly more than SEK 200 million.

Volvo is strengthening its position as market leader in the heavy bus and coach segment on the Israelian market. The largest bus operator in Israel, EGGED, has placed orders for 130 Volvo bus chassis for delivery this year.

Volvo Penta has secured an order from Bangladesh for 100 diesel engines to power generator sets. The order is valued at approximately SEK 20 million. The engines are to be delivered during 1999.

When the first Volvo articulated hauler produced in South Korea leaves the factory, it is a new step in a success story that began in Scandinavia in the sixties.

Volvo Trucks' deliveries up to August 1999 recorded a total of 54,236 units. Sales showed the following distribution:

Volvo will shortly be accessing the euromarkets with a euro 1 billion five year transaction. Lead banks are BNP, Merrill Lynch and Salomon Smith Barney. A co-management group of five additional banks has been appointed.

Starting this week, Volvo Trucks will supply D12 engines from the engine plant in Curitiba in Brazil to the assembly plant factory in Gent, Belgium. With this shipment from Brazil Volvo Trucks utilizes the flexibility of the global manufacturing system for diesel engines for the first time.

Volvo Construction Equipment has announced an increased yearly production capacity at the company's plant in Asheville, North Carolina. The yearly production capacity will increase by around 50 percent from 2,000 to 3,000 units.

In connection with Volvo's public offer to Scania's shareholders, Volvo's Board of Directors, subject to approval of an extraordinary shareholders' meeting, has approved a new issue of shares whereby the company's share capital is to be increased by a maximum of SEK 578,689,464.

The British bus manufacturer Henlys is acquiring the American bus manufacturer Bluebird for a total of approximately USD 428 M (about SEK 3.5 billion). The acquisition will make Henlys the leading manufacturer of school buses in the North American market.