Volvo to invest in cab production in France

Volvo to invest in cab production in France

AB Volvo's Board of Directors has decided to invest SEK 530 M in subsidiary
Renault Trucks' cab plant in Blainville, France. The investment is being made to
increase capacity and comprises both assembly and painting.

Renault Trucks' cab plant in Blainville produces cabs for all of Renault Truck's
truck models. Today, manufacturing and painting capacity is limited. Due to the
investment it will be possible to manufacture more cabs as well as being able to
offer customers new and better paint coats, so-called base clear coat lacquers.
As a result of the investment in the paint shop, Renault Trucks can also switch
to water-based paints, which is a more environmentally correct alternative
compared with today's paints based on solvents. The changes at the plant are
scheduled to be completed in 2009.

April 10, 2007

For further information, please contact Mårten Wikforss, +46 31 66 11 27 or +46
705 59 11 49

The Volvo Group is one of the world's leading manufacturers of trucks, buses and
construction equipment, drive systems for marine and industrial applications,
aerospace components and services. The Group also provides complete solutions
for financing and service. The Volvo Group, which employs about 83,000 people,
has production facilities in 18 countries and sells their products in more than
180 markets. Annual sales of the Volvo Group amount to about 27 billion euro.
The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden.
Volvo shares are listed on the Stockholm stock exchange and on NASDAQ in the US.