Press releases 2005

Further to the decision taken by AB Volvo's Board of Directors on June 17, 2004, regarding repurchase of own shares, AB Volvo has, during February 21-24, acquired a total of 2,000,000 series B shares and 60,000 series A shares.

Total deliveries of trucks from the Volvo Group’s three truck companies increased 30% in January this year, compared with the year-earlier period. Deliveries from Mack rose 80%, while deliveries from Renault Trucks were up 14%. Deliveries from Volvo Trucks increased 31% during the period.

Volvo Penta gasoline sterndrives rank highest in customer satisfaction, according to the JD Power and Associates 2005 Marine Engine Competitive Information Study (SM) released at the Miami International Boat Show.

The part of the hearing dedicated to the Volvo truck involved in the Mont Blanc Tunnel fire of March 1999 ended on Monday at the criminal trial in Bonneville. "The theory presented by expert Vigier is completely inconsistent," Lars Lidman, Executive Vice President and General Counsel told the Court. "We are convinced that the cause of the fire was due to an accidental oil leakage and not a design or manufacturing error."

Volvo Financial Services has through Danafjord AB, the Volvo Group's real estate company, entered into an agreement with AEVS Alfa AB, a subsidiary of Sveafastigheter, regarding the sale of all shares in two wholly owned companies which own properties located in Torslanda and Kalmar, Sweden.

Further to the decision taken by AB Volvo's Board of Directors on June 17, 2004, regarding repurchase of own shares, AB Volvo has, during the week February 14-18, acquired a total of 2,410,000 series B shares and 70,000 series A shares.

Volvo Penta’s new drive system for boats, Volvo Penta IPS, has been recognized with the Best of the Year Award by the American boating magazine Motor Boating.

Volvo has decided to become a partner in the East India clipper Götheborg III and sponsor the ship's trip to China. Volvo is providing financial support for the trip, which will be used to market the Volvo brand in China and throughout Asia. The East India clipper will also have an exciting role in the next Volvo Ocean Race.

Volvo Aero is playing a major role in the newly started EU development project, VITAL. VITAL is a four-year programme with 53 partners and a total budget of EUR 90 M (slightly more than SEK 800 M), including EUR 50 M (SEK 450 M) in funding from the EU. Volvo Aero is investing about SEK 85 M in the project.

Volvo Trucks North America, Inc., announced that employees represented by the United Auto Workers yesterday rejected two of three tentative labor agreements covering approximately 2,800 members of UAW Local #2069 at the New River Valley, VA, plant. Volvo Trucks North America and the UAW have agreed that the plant will continue to operate under the terms of the agreements that expired on February 1, 2005, as negotiations on new contracts continue.