The company has determined that it is more efficient to sell the plant and purchase bodies from the new owner. In accordance with the letter of intent, the new owner will also continue to, under license, produce the Volvo 9700 for Nordic customers. Volvo Buses will keep the commercial responsibility for the Volvo 9700.
The buyer consists of a group of private Finnish investors and managers from Volvo Buses in Finland. The ambition is that the final agreement will be signed during the coming months and takeover can occur during September. In accordance with the letter of intent, the buyers are taking over the plant, including personnel. Today there are about 300 employees in the plant.
The intended divestiture of the assets will be made at book value and will not have a material impact on the earnings or the financial position of the Volvo Group.
July 3, 2008
For further information, please contact Per-Martin Johansson, press officer, +46 31 322 52 00, firstname.lastname@example.org