Green corridors provide for safer and more environmentally sound transports

Green corridors provide for safer and more environmentally sound transports

The Volvo Group is initiating cooperation within the Swedish government's
logistics forum and with the authorities to realize the EU Commission's concept
regarding environmentally sound goods transport in “green corridors.” The goal
is to reduce the impact on the environment while simultaneously increasing
efficiency and safety on highways through specially adapted transport stretches
for heavy traffic.

The EU Commission estimates that goods transports in Europe will have increased
by 50% between 2000 and 2020. These rising volumes will require investments in
all transport modes, including railways and seaborne traffic.

“Increased investments are required in railways and seaborne traffic, but it
will not be sufficient, neither from an efficiency nor an environmental
perspective,” says Volvo CEO Leif Johansson. “At the same time, we must provide
for more efficient and more environmentally sound road transports and, among
other aspects, this is one of the goals of the green corridors.”

In support of the development of green transport corridors, the Volvo Group and
the DB Schenker transport company, which are both members of the government's
logistics forum, are now initiating cooperation with VINNOVA (Swedish
Governmental Agency for Innovation Systems) and the Swedish Road Administration.
The aim is to jointly start a project already in January 2009 regarding a more
efficient handling of goods on Swedish highways.

The project is in line with the EU's action plan for logistics, that
specifically highlights the need for green transport corridors in which goods
traffic is concentrated to efficient highways, sea routes and railways that
complement one another so that transportation becomes as environmentally sound
as possible. The Swedish government has already begun work with proposals for
such corridors that will be presented in conjunction with Sweden's presidency of
the EU Council next autumn.

The project comprises the development of new technologies and new approaches to
applying existing technology that can quickly reduce environmental impact. It
will be carried out using realistic tests of goods transports that are rolling
on stretches of highways approved in advance by the authorities.

One of the tests involves a so-called Duo-trailer, which involves an extension
of the entire vehicle rig, including the trailer, and is based on the European
module concept. A longer vehicle, with greater load capacity, results in fewer
trucks in the green transport corridors, which in turn means fewer accidents and
reduced environmental impact. In addition, the project will test new IT systems
in the vehicles that help the driver to drive more fuel economically and
communicate with the vehicle and with the road system, which increases
efficiency and road safety.

Other conceivable projects within the framework for the cooperation could
comprise evaluation of how to simplify reloading and transfer of goods between
different transport modes such as trains, trucks and ships. Another project
proposal involves how to distribute and use alternative and renewable fuels via
the goods terminals in the green transport corridors.

December 8, 2008

Reporters who want more information, please contact:

Andreas Svenungsson, AB Volvo, tel +46 702 057199
Mårten Wikforss, AB Volvo, +46 31 66 11 27 or +46 705 59 11 49

Read more about ”green corridors” at:
http://www.volvo.com/group/global/en-gb/sustainability/envdev/events_projects/gr
een_corridors/green_corridors

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http://imagegallery.volvogroup.volvo.se/

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pursuant to the Securities Markets Act. The information was submitted for
publication at 08.30 p.m. CET, December 8, 2008.



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 100,000 people,
has production facilities in 19 countries and sells their products in more than
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