Volvo CE to move motor grader business as part of North American consolidation plan

Volvo CE to move motor grader business as part of North American consolidation
plan 

Volvo Construction Equipment (Volvo CE) will move the majority of its motor
grader activities currently located in Goderich, Ontario, Canada, to the
company's facility in Shippensburg, Pennsylvania, USA.  Volvo CE will incur an
estimated restructuring cost of approximately 45 MUSD, which will be recorded in
the third quarter of 2008. 

The decision to consolidate the industrial operations for road machinery in
North America to Shippensburg was taken to improve the competitiveness and
profitability of the total road machinery business and will also reduce our
exposure to exchange rate fluctuations within North America. The move, which
will affect 500 employees in total, will take place in various phases,
concluding no later than 2010.

The adjustment measures to be adopted for employees represented by the
International Association of Machinists and Aerospace Workers will be the
subject of discussions to be held with the Union.
The central parts warehouse currently located in Goderich will be relocated to
the Volvo Parts warehouse in Columbus, Ohio, USA. 

A comprehensive Human Resources plan will be developed in collaboration with the
local union and government agencies.  This plan will include, but will not be
limited to, training programs, counseling support and help in the search for new
employment.

September 30, 2008

For more information, please contact:

Beatrice Cardon 
Vice President, Corporate Communication
Volvo Construction Equipment	
Road Machinery	
312 Volvo Way
Shippensburg, PA 17257 - USA
Phone	+1 717 530 3030	
Cell	+1 717 422 7967	
beatrice.cardon@volvo.com 	

Klas Magnusson
Senior VP, Corporate Communication 
Volvo Construction Equipment 
Hunderenveldlaan 10
1082 Brussels, Belgium
Phone 	+32 2 482 5065
Cell	+32 475 576 214
klas.magnusson@volvo.com 



Volvo Construction Equipment is a major international company developing,
manufacturing and marketing equipment for construction and related industries.
Its products, leaders in many world markets, include a comprehensive range of
wheel loaders, hydraulic excavators, articulated haulers, motor graders and
compact equipment. Volvo Construction Equipment is part of the Volvo Group, 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.