Press releases 2001

Volvo Trucks are presenting a new generation of trucks with many improve-ments in the areas of safety, haulage economy, fuel consumption and the envi-ronment.The company's three new models amount to one of the biggest product renewals ever, with a brand new D9 engine, a new, more powerful 12-litre 500 hp engine, a new automatic gearchanging system, a new electronics system, a new chassis range, a new cab variant, an updated exterior with improved aerodynamics and a new interior.

Volvo Construction Equipment and Komatsu Ltd have initiated discussions regarding future co-operation in the production and development of construction equipment components. Tangible outcomes from the discussions are expected by mid-year 2002.

In the single largest deal for full size buses in the UK this year, confirmed at the Coach and Bus Show 2001 in Birmingham, 175 new Volvo B7L Single Deck and B7L Double Deck buses have been ordered by leading UK transport group FirstGroup plc.

Volvo Truck Corporation is proud to present the third generation of its highly-successful FH12 model.The launch of the company's new flagship the Volvo FH12 with the new 500 bhp engine and fully-automatic Volvo I-Shift gearchanging system signals the start of a comprehensive product renewal for the Volvo Trucks heavy vehicle range, with more of the innovations to be presented soon.The new Volvo FH12 incorporates a series of major improvements in terms of engine range, transmission, cab, chassis and electronics systems

Volvo Aero and Norwegian air operator NAS, (Norwegian Air Shuttle), have signed a five-year agreement covering the overhaul of all of the operator's PW125B aircraft engines.The order is valued at approximately SEK 70 M.

The Volvo Group is characterized by measures to adapt its operations to economic conditions, and long-term efforts to create an effective industrial structure. The difficult market conditions resulted in clearly unsatisfactory profitability, but our efforts to improve cash flow showed results and the Group reported positive cash flow during the third quarter. At the same time as we focus on cost efficiencies, we are prioritizing renewal of the product portfolio, and thereby strengthening our market positions, says Leif Johansson, CEO.

The growing Indian middle and business' class is the main target group for the intercity buses just launched by Volvo Buses on the Indian market. Comfortable vehicles of this type can compete actively with rail and air travel as part of the increasing mobility of the Indian people.

Leo de Vin will shortly be promoted to the post of professor at the University of Skövde. He is currently working as a senior lecturer in automation technology at the Department of Engineering Science.

AB Volvo hereby invites the mass media to a press conference on October 24 in conjunction with the release of the Volvo Group's report on the third quarter 2001.

Volvo Information Technology and Frontec offer systems for more effective invoice handling. Using the iSupply concept, companies can save millions of Swedish kronor every year as a result of more effective e-invoicing, business communication and purchase handling.