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UAW members approve new agreement with Mack Trucks

Members of the U.S. trade union, the United Auto Workers, have approved the new 40-month Master Agreement with the Volvo Group’s subsidiary Mack Trucks. The agreement includes the establishment of an independent trust that will completely eliminate Mack’s commitments for providing healthcare to retired employees. As previously announced, this will have a negative impact of approximately USD 110 M on the Volvo Group’s operating income during the second quarter of 2009 and a negative impact of the same amount on net debt.
The trust must be approved by the U.S. District Court for the Eastern District of Pennsylvania, a process that can take up to 12 months. Subsequently, the trust will permanently take over the entire obligation to provide healthcare benefits to current UAW members who have retired from Mack, for their surviving partners and for dependent family members, as well as for UAW members who retire in the future.

May 31, 2009

Reporters who want more information, please contact:
Mårten Wikforss, AB Volvo, tel +46 31 66 11 27 or +46 705 59 11 49