Volvo Group Considers Expanding Production of Construction Equipment in U.S.

Volvo announced it is considering expanding production of construction equipment in the U.S., a move that would lessen production in Sweden where Volvo is headquartered. ''If the dollar keeps weakening in the long run, this means that we will steer certain investments to North America,'' said Volvo CEO Leif Johansson.

Industry analysts said Johansson was referring to Volvo bulldozers and other ''off-road'' construction equipment but not to the cement mixers and dump trucks. The Volvo industrial line of construction equipment also includes excavators, backhoes and road graders.

Volvo has already announced that it is moving assembly of some truck engines to Hagerstown, Md. and added that it would invest $150 million over four years to modernize the plant. Mr. Johansson was has not given any forecast of U.S. sales through 2007 and beyond. ''We are cautious, especially in the United States, because stricter emission regulations in combination with an economic downturn could hold back sales.''

Volvo, which sold its car division to Ford Motor Co. in 1999, raised its forecast for 2004 truck sales in Europe and North America. Volvo is the world's second-largest producer of heavy trucks.

Volvo XC90 to be Advertised During Super Bowl XXXIX

VCNA PRESS RELEASE
Volvo Cars of North America (VCNA) will for the first time advertise during football's Super Bowl, using the game as an opportunity to introduce its new V8-powered version of its Volvo XC90 SUV.

The Super Bowl is historically one of the most-watched television events of the year, with an average U.S. viewership in excess of 80 million. The staggering number of viewers and almost endless attention that will be devoted to the big game’s advertisements make it an ideal forum to preview the first-ever V8-powered Volvo model.

Introduced in 2003, the Volvo XC90 already is the best selling European luxury SUV in the United States. With 311 horsepower and a torque of 325 lb/ft at 3900 r/min, the Volvo XC90 V8 will be available in Feb. 2005.

“The launch of our V8 engine marks a new turning-point in Volvo’s history,” said Vic Doolan, president and chief executive officer of VCNA. “We sought a powerful launch to let as many individuals as possible know about the new version of the Volvo XC90. What better place to preview the most powerful Volvo than the most powerful sporting event of the year?”

Volvo is producing the campaign with advertising agency, Euro RSCG Worldwide. Super Bowl XXXIX will be held Feb. 6, 2005, in Jacksonville, Fla.

Volvo Expects Record Sales for 2004

Volvo recently announced that it expects 2004 to be a record sales year in the U.S. As of mid-December, the company reported, Volvo surpassed its record 2003 sales year of 135,023 units sold. The successful launch of its all-new Volvo S40 premium mid-sized sedan, which realized more than 100 percent month-on-month growth over Volvo S40 sales in 2003, contribruted to the record pace. Continued demand for the Volvo XC90 is also a factor, the company reported.

Final 2004 vehicle sales figures will be announced in Jan. 2005. “It has been a fiercely competitive 2004, but the consumers have responded particularly well to the new Volvo S40, its wagon counterpart the Volvo V50, the Volvo XC90 and our brand message of conscience, care and character,” a Volvo spokesman said.

The 2005 Volvo Cars model line-up includes the new Volvo S40 wagon and sedan, Volvo V50, the Volvo XC90, Volvo S60-S60 R sedan and wagon, V70 R, Volvo S80 luxury sedan, Volvo V70 wagon, Volvo XC70 (Cross Country) and the Volvo C70 convertible.

Volvo B12M Bus Named Brazil's Bus of the Year

Volvo Buses' B12M, the world's longest bus, has been named the Brazilian bus of the year by Autodata of Brazil. Autodata is a publishing firm specialising in automotive publications. According to Autodata, it nominates candidates, but the actual votes are cast by managers and experts from the Brazilian automotive industry. "The Volvo B12M is a successful chassis in Brazil today," remarked Marcio Stefani at Autodata.

"The Volvo B12M is a bus chassis that is ideally suited to Brazil's type of transport system," stated Per Gabell, Volvo Buses' South America and Caribbean regional manager. "This is a segment where Volvo Buses leads the field and can provide the most adequate products."

According to a company spokeman, Volvo Bus Corporation is the world's second-largest manufacturer of large buses and coaches, made up of complete vehicles, bus bodies, chassis, transport system solutions for metropolitan traffic, financing, leasing and service contract maintenance. Volvo Bus Corporation is part of the Volvo Group, one of the world's leading manufacturers of trucks, buses and construction equipment, power systems for industrial and marine applications, aerospace components and services.

Volvo for Life Award Program Accepting Nominations Through January 10, 2005

Volvo Cars of North America announced that for the third year it is accepting nominations for the Volvo for Life Award, a program that seeks ordinary people who are doing extraordinary things, including developing community recycling programs, creating after school programs for troubled kids and sponsoring shelters for the homeless.

Volvo said the annual national public service program honors and rewards local heroes with $1 million in financial contributions. The top hero will win a Volvo car for life. The nomination process continues through Jan. 10, 2005. During the nomination period, Volvo will profile select nominees on its website and in the media. Volvo is conducting the program in an effort to inspire people nationwide to make outstanding contributions in their own communities, a company spokesman said.

According to Volvo, in February 2005, Volvo will be choosing 100 semi-finalists who will receive a Certificate of Merit honoring their accomplishments. Volvo will then select three finalists in each of the three nomination categories. From these nine finalists, a panel of judges that include Maya Lin, Hank Aaron, Paul Newman, Caroline Kennedy, Sally Ride, Bill Bradley, Eunice Kennedy Shriver and last year’s top winner Earnestine Russell-Drumgold will name one winner for each of the three categories. The category winners will each receive $50,000 to be donated to the charities of their choice. The remaining six finalists will each receive a $25,000 charitable donation.

Volvo added that the winners and finalists will be honored in New York on March 24, 2005 at the Volvo for Life Awards Ceremony in Times Square Studios Ltd. The event is to include top music entertainment, a celebrity host and three documentaries profiling the category winners. The overall winner will then be announced and given a Volvo car every three years for the recipient's life.

Volvo Announces Pricing of XC90 V8 Package

Volvo Cars of North America recently announced its new pricing strategy for its first V8 powertrain XC90 SUV package. The manufacturer's suggested retail price for the XC90 V8 is $45,395. The XC90 V8 will be available in the first quarter of 2005.

"Our new XC90 V8 addresses what is important to today's premium SUV buyer," stated Vic Doolan, VCNA CEO and President. "With class-leading performance, safety, versatility, and value, we feel the V8 will further solidify the XC90's role as the undisputed leader among European SUVs." The XC90 is the best-selling European SUV so far in 2004, with more than 25,000 vehicles sold.

The 4.4 liter V8 engine outputs 311 bhp with 325 lb/ft of torque at 3,900 rpm, and is Volvo's first ever made. The company reported that it is also the first automaker to introduce a gas-powered V8 engine that is compliant with the very stringent ULEV II emission standards. The compact engine is mounted transversely for optimum protective safety, a Volvo standard. The completely new powertrain also has a 6-speed Geartronic automatic transmission and the latest-generation AWD system, which is expected to further broaden the customer base for the Volvo XC90.

Volvo XC90 SUV Wins Mudfest Championship for Record Third Time

VOLVO PRESS RELEASE
Volvo's all-conquering XC90 SUV, with more than 50 International Awards to it's credit, has won a record-breaking third Mudfest Championship title in the face of agressive competition by new entrants from Volkswagen, Jeep, Infiniti and Porsche.

"This year there are many really strong competitors and I was reluctant to name the XC90 Northwest Sport Utility of the Year for the third consecutive year, but in my mind it continues to be the best all-around sport-utility vehicle," stated Mike Meredith of MSN, and NWAPA member.

Judged by the members of NWAPA (North West Automotive Press Association), the Mudfest competition includes a challenging two-day evaluation that tests a vehicles' handling, performance, braking as well as its' on-road and off-road capabilities. Also, tangibles such as packaging, versatility and overall value for money are factored into the equation.

"…our Mudfest event separates the real 'players' from the 'pretenders'," says Lary Coppola, Editor and Publisher of the Kitsap Peninsula Business Journal, and past NWAPA president. "So when it came time for me to buy a vehicle for my own family,…for safety, performance and overall capability, there was only one choice I even considered – the Volvo XC90," he said.

Since its inception in the US market less than two years ago, the Volvo XC90 has become the best-selling European SUV. More than 38,000 vehicles were sold in 2003 and the XC90 is on pace for more than 40,000 this year.

Called the "first of the next generation of SUV's" the XC90 has consistently led its market sector and has gained a myriad of awards including the 2003 Motor Trend Sport/Utility of the Year, North American Truck of the Year and the Truck of Texas™.

"…with its improved V8 power, the XC90 provides all the pleasures of an exceptional on- and off-road vehicle, plus it offers a high-quality powertrain package that made it a natural winner in our NWAPA's SUV of the Year competition," stated Jerry Smith, Mudfest 2004 Co-Chairman.

With the new 311-horsepower, 4.4-liter V8 engine, six-speed Geartronic automatic transmission, and refined Haldex AWD system, Volvo's first SUV is even better positioned to expand its market potential with its first V8 power train.

Volvo Truck Deliveries Surge a Combined 24 Percent

VOLVO GROUP PRESS RELEASE
Total deliveries of commercial trucks from the Volvo Group's three truck companies, Volvo, Mack and Renault, increased 24% through November 2004, as compared with the year-earlier period. Deliveries from Mack Truck escalated 33%, while deliveries from Renault Trucks rose 16%. Volvo Trucks deliveries increased 28% during the period.

"The very high pace of deliveries continues in all markets. Our market projections remain valid, but in November we did note a lower order intake in Europe," said Volvo Chief Executive Officer Leif Johansson.

During the past 12 months, order bookings for the Volvo Group's truck operations were 37% higher compared with the preceding year. Orders were up 9% in Europe, while the increase in North America surged 105%.

The Volvo Group is one of the leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services in the world. The Group also offers complete solutions for service and financing. The Volvo Group, which has about 78,000 employees, owns facilities in 25 countries and sells their products in more than 185 markets. Annual sales of the Volvo Group amount to 18 billion euro. The Volvo Group is a publicly-held entity and headquartered in Goteborg, Sweden. Volvo shares are listed on the stock exchanges in London, Stockholm and the U.S. NASDAQ.