Volvo Buses to sell body plant in Turku

Volvo Buses to sell body plant in Turku

Volvo Buses has signed a letter of intent covering the sale of the body plant in
Turku, Finland. The sale is part of the company's efforts to enhance the
efficiency of the European operations.


The plant in Turku produces bodies for the Volvo 9700 model. The Turku plant is
the smallest plant within Volvo Buses, primarily producing for the Nordic
markets. During 2007, 160 bodies were produced.

The company has determined that it is more efficient to sell the plant and
purchase bodies from the new owner. In accordance with the letter of intent, the
new owner will also continue to, under license, produce the Volvo 9700 for
Nordic customers. Volvo Buses will keep the commercial responsibility for the
Volvo 9700.

The buyer consists of a group of private Finnish investors and managers from
Volvo Buses in Finland. The ambition is that the final agreement will be signed
during the coming months and takeover can occur during September. In accordance
with the letter of intent, the buyers are taking over the plant, including
personnel. Today there are about 300 employees in the plant. 

The intended divestiture of the assets will be made at book value and will not
have a material impact on the earnings or the financial position of the Volvo
Group.

July 3, 2008

For further information, please contact Per-Martin Johansson, press officer, +46
31 322 52 00, per-martin.johansson@volvo.com

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Volvo Bus Corporation is one of the world's largest manufacturer of large buses
and coaches. The range comprises complete vehicles, chassis, bus bodies,
transport system solutions for metropolitan traffic, leasing, financing 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, drive systems for marine and industrial applications, aerospace
components and services. The Group also provides complete solutions for
financing and service.