Press releases 2008

The Volvo Group’s strong growth continued during the second quarter of 2008, while operating income improved and reached its highest level to date for a single quarter. The Volvo Group’s net sales rose by 13% to SEK 80.4 billion.

Volvo Aero and Rolls-Royce have entered into a risk and revenue sharing agreement for the Trent XWB engine for the Airbus A350XWB aircraft, under which Volvo Aero will develop and manufacture the intermediate compressor case, a key engine component.

Volvo Aero has entered into an agreement with aircraft engine manufacturer Pratt & Whitney to join P&W’s Geared Turbofan™ engine program. Under this arrangement, Volvo Aero will be responsible for three major components for both the Mitsubishi Regional Jet (MRJ) and the Bombardier CSeries aircraft engines.

Volvo Treasury AB (publ), a subsidiary in the Volvo Group, has successfully entered into a SEK 6.2 bn (YEN 110 bn) cross-border syndicated loan agreement. Volvo Treasury has decided to use syndicated lending in this case as a means of diversifying its funding source.

Volvo hereby invites the media to a press conference on Wednesday, July 23 in conjunction with the release of the Volvo Group’s report on the second quarter 2008.

Volvo Buses has signed a letter of intent covering the sale of the body plant in Turku, Finland. The sale is part of the company’s efforts to enhance the efficiency of the European operations.

In response to growing transport needs Volvo Trucks opened a large service facility in Belgrade, Serbia, last month. 2007 was a record year for Volvo Trucks in the Serbian market. The truck deliveries more than doubled compared to the previous year.

The government of the United States and the Swedish State intend to extend their cooperation with the Volvo Group concerning development of alternative drivelines. The consequences of the extended cooperation include the US Department of Energy, DoE, and the Swedish Energy Agency providing a three-year grant to the Volvo Group in a combined amount of USD 18 M for the development hybrid technology and drivelines for alternative fuels.

Volvo Buses has secured its largest order to date for the ITS4mobility telematics system. The system is to be installed on 1,400 buses in the city of Goiânia in Brazil and will enhance the efficiency of bus operations.

Volvo Trucks’ Hungarian subsidiary, Volvo Hungary Trading and Services Kft, has signed a frame agreement for 1,500 trucks with transport and logistics company Waberer’s Optimum Solution.