Annual General Meeting of AB Volvo
The Annual General Meeting of AB Volvo held on April 4, 2012 approved the Board of Directors’ motion that a dividend of SEK 3.00 per share be paid to the company’s shareholders. Read more
AB Volvo signs memorandum of understanding with Deutz
On April 5 it was announced that AB Volvo had signed a non-binding memorandum of understanding with Deutz AG with the intention to explore the potential to extend the long-term cooperation with a joint development of the next generation of medium-duty engines for off-road applications. Read more
Unfavorable court ruling in the U S pertaining to Volvo Penta engines
Volvo Powertrain Corporation and the U.S. Environmental Protection Agency are in a dispute pertaining to emission compliance of 8,354 model year 2005 Volvo Penta engines under a 1999 Consent Decree entered between the parties. On April 13, 2012, the U.S. District Court for the District of Columbia issued an order directing Volvo to pay a total of USD 72,006,337 in penalties and interest. The decision will be appealed. For further information, please see Risks and uncertainties. Press release
AB Volvo acquires shares in Deutz AG
On June 13 AB Volvo announced that it had signed an agreement under which the company is offered the opportunity to increase its shareholding in Deutz AG from 6.7% to just over 25% by acquiring a total of 22,117,693 shares from Same Deutz-Fahr Group at a price of EUR 5.88 per share, EUR 130 M in total. Completion of the transaction is subject to the fulfillment of a number of conditions, including the approval of the relevant competition authorities. The transaction would make AB Volvo the largest shareholder in Deutz AG, which since many years is a strategic partner within medium-duty engines for construction equipment. Press release
AB Volvo divests Volvo Aero to British GKN for SEK 6.9 billion
On July 5 it was announced that AB Volvo divests the Group’s subsidiary Volvo Aero to the global engineering company GKN for an enterprise value of SEK 6.9 billion. The transaction is scheduled for completion during the third quarter of 2012. The transaction is expected to generate a positive effect on the Group’s operating income for the third quarter of about SEK 200 M. The divestment is expected to reduce the Group’s net debt by approximately SEK 5 billion. To close the transaction, approval is required from the appropriate authorities. Press release
New Volvo engine for Euro VI
On July 5 Volvo Trucks presented an engine tailored for the Euro VI environmental standards. Nitrogen oxide emissions have dropped by 77% and particulate emissions have been halved from already low levels. First off the mark is Volvo’s D13 460 horsepower engine, which today powers more than one-third of all Volvo trucks. Press release
AB Volvo finalizes sale of Volvo Aero
On October 1, 2012, AB Volvo finalized the sale of Volvo Aero to the global engineering company, GKN, for the equivalent of SEK 6.9 billion on a debt-free basis. The transaction was finalized after receiving approval from the appropriate authorities.
Full lineup of Volvo Group trucks in the US earns 2014 greenhouse gas certification
On December 12, 2012 the Volvo Group announced that the US Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) had certified all Volvo Group trucks in the US, both Mack and Volvo branded, in accordance with 2014 fuel efficiency and greenhouse gas regulations.
Renault s.a.s. divests entire holding in AB Volvo
On December 13, 2012, AB Volvo received a request for the conversion of 110,048,945 Series A shares to Series B shares. Furthermore, AB Volvo’s largest shareholder, Renault s.a.s., announced that the company had divested all of its shares in AB Volvo through the sales of 138,604,945 Series A shares on the stock market. In connection with Renault’s divestment, Industrivärden increased its holding and at year-end was the largest owner with 6.5% of the outstanding number of shares (19.5% of the votes). Norges Bank Investment Management also increased its holding and at year-end was the second largest owner based on capital with 4.9% of the outstanding number of shares (5.1% of the votes).
Consolidation of the Volvo Group industrial operation in Japan
On January 11, 2013 the Volvo Group announced that it had decided to consolidate its industrial operation in Japan in order to improve the overall efficiency. In May 2013 the Ota remanufacturing plant will be closed and the operation moved to Ageo, the main plant in Japan. The project also includes cleaning of the land, demolishing of old and outdated buildings as well as moving or phasing out equipment for old products. In total, costs corresponding to SEK 280 M related to these activities was recorded in the fourth quarter of 2012, affecting the truck segment.
Strategic alliance with Chinese company Dongfeng Motor Group
On January 26, 2013 AB Volvo announced that it had signed an agreement with the Chinese vehicle manufacturer Dongfeng Motor Group Company Limited (DFG) to acquire 45% of a new subsidiary of DFG, Dongfeng Commercial Vehicles (DFCV), which will include the major part of DFG’s medium- and heavy-duty commercial vehicles business. At completion of the transaction, the Volvo Group will become the world’s largest manufacturer of heavy-duty trucks. Completion of the transaction is subject to certain conditions, including the approval of relevant anti-trust agencies and Chinese authorities. The purchase consideration amounts to RMB 5.6 billion. The ambition is to complete the transaction as soon as possible and completion is expected to take place within approximately 12 months from signing.