Another Record Year for Volvo Trucks

Volvo Truck's deliveries in 2005 were the highest ever recorded inthe history of the company. In total 103,696 (97,264) trucks weredelivered, an increase of 7% on 2004.

The total market in Europe increased by 9% during the year,comprising 276,700 vehicles (254,700). On Volvo Trucks' partdeliveries decreased in Europe by 1%. The number of vehicles deliveredamounted to 42,633 (43,210).

On the North American market demand for heavy trucks was veryhigh. The total market comprised 329,000 vehicles (255,000), anincrease of 29%. Deliveries from Volvo Trucks increased by 23%,totalling 32,151 vehicles (26,035).

Even within Volvo Trucks International Division deliveriesincreased. Both South America and Asia increased their deliveries by2%, comprising 7,723 (7,580) and 17,678 (17,328) vehiclesrespectively.

In February 2005 the company presented its new flagship, the VolvoVT880, on the North American market. The new truck is aimed at theprestige segment and is equipped with a new 16 litre engine installedin the USA. The investment totalled $67 million USD.

In Europe last autumn Volvo Trucks launched its new generation ofVolvo FH and Volvo FM models which are the cleanest and mostfuel-efficient so far. The entirely new 13 litre model and theimproved 9 litre model fulfil the exhaust gas emissions to beintroduced in Europe with SCR catalysator cleaning. And the investmenttotalled EUR 300 million.

In Russia Volvo Trucks kept its strong position, and salesincreased steadily. Up to December 2005 1,339 trucks had beendelivered, which was an increase of 99% compared with thecorresponding period in 2004. In September the company took a furtherstep into the Russian market when the first wholly-owned service plantwas opened. The total investment comprised SEK 100 million.

In Durban South Africa Volvo Trucks opened a new factory in theautumn. At the same time work at the assembly plant in Botswanaceased, where since 2000 CKD (Completely Knock Down) kits had beenassembled. The reason for the move of factory was a demand for shorterlead times and lower haulage costs.

During this year it was decided to make the Volvo Trucks factoryat Tuve into the world's first carbon dioxide free vehicle factory. Byinvesting in wind power and biofuels the factory will be able toobtain electricity and heat which does not add any carbon dioxide intothe atmosphere.

Attachment: Deliveries by region

February 3, 2006

Volvo Trucks sells trucks and transport solutions, specialized inheavy trucks with total weights above 16 tons. The company's productsare marketed in more than 130 countries. Volvo Trucks is part of theVolvo Group, one of the world's leading manufacturers of trucks, busesand construction equipment, drive systems for marine and industrialapplications, aerospace components and services. The Group alsoprovides complete solutions for financing and service.

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