Press releases 2001

The city embedded in the heart of the Amazon - whose temperature exceeds 40 degrees Celcius in Summer - will feature buses with air conditioning, "a proof of respect for the population"

Volvo Aero has been selected by Pratt & Whitney as a strategic partner in the development of the company's new rocket engine, the RL60.

Volvo Buses and Berkhof-Jonckheere have entered into an agreement covering marketing and sales with a view to exploiting synergies between the two parties. The two companies see the collaboration as an important step in improving the product offering and services which they offer to customers, mainly in the UK and Benelux.

Volvo Penta is now launching entirely new industrial engines based on the D12 diesel engine manufactured at Volvo´s Skövde plant in Sweden. The new, electronically controlled 12-liter engine creates new prospects for Volvo Penta for further growth in markets for industrial engines.

Mack Trucks, Inc today announced that in response to a declining truck market that is already down 37 percent so far this year, the company will reduce its workforce by approximately 700 positions, or about 12 percent of its workforce, by the end of July.

The management of Carrus OY has today requested a meeting with the local trade unions at the plant in Vanda, Finland, for discussions regarding a possible shutdown of bus production. The structural changes in Carrus OY were announced in 1998, which meant that one of three plants - Vanda - would be shut down. Discussions will begin within a week and are expected to be completed within six weeks.

Volvo Trucks has signed a new cooperative agreement with Saipa Diesel in Iran on the manufacture of heavy trucks. The aim is to produce 1,500 units a year.

Deliveries from Volvo Global Trucks through February 2001 amounted to 26 017 trucks compared to pro forma 27 925 trucks last year (-7%). Compared to the same period last year total order intake was down 13%, whereof North America was down 18% and Europe 7%.

The Board of Directors of AB Volvo has on February 1, 2001, decided to repurchase up to 10 percent of the Company's shares, whereof 5 percent will be transferred to Renault S.A. as final payment for Mack Trucks and Renault V.I.

Volvo do Brasil will supply over 300, out of the 470 articulated buses that will be running in one of the most modern and advanced urban passenger transport systems in the world, in Bogotá, Colombia. The vehicles are being built in Curitiba and shipped CKD to that country, where they are to be assembled and delivered to the system operators