Chinese authority approves joint venture between the Volvo Group and Dongfeng Motor Group

On January 7, 2014 the National Development and Reform Commission (NDRC) in
China gave its approval of the establishment of a joint venture between the
Volvo Group and Dongfeng Motor Group Company Limited.  Before completion of the
transaction, additional authority approvals are to be obtained.
As announced in January 2013, AB Volvo has signed an agreement with the Chinese
vehicle manufacturer Dongfeng Motor Group Company Limited (DFG) to acquire 45%
of a new subsidiary of DFG, Dongfeng Commercial Vehicles (DFCV), which will
include the major part of DFG’s medium- and heavy-duty commercial vehicles
business. Through the approval by NDRC an important step has been taken towards
completion of the transaction. Completion is subject to certain conditions
including the approvals of other Chinese authorities, which have not yet been
obtained.

Completion of the transaction is currently expected to take place mid 2014. At
completion of the transaction, the Volvo Group will significally strengthen its
position in the medium-duty and heavy-duty truck segment.

The National Development and Reform Commission (NDRC) is a macroeconomic
administrative agency under the Chinese State Council, with administrative and
planning control over the Chinese economy.

January 22, 2014

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