Adding Göteborg and Malmö – now Volvo Powertrain has work time reduction agreements at all sites in Sweden

Volvo Powertrain has signed an agreement with the white collar unions in Göteborg and Malmö regarding work time and income reduction.

By that, work time reduction for white collars can be applied in all Volvo Powertrain operations in Sweden. Since earlier, Volvo Powertrain has signed agreements including white and blue collar employees also in Skövde and Köping. “Through this agreement the operations in Göteborg and Malmö contribute to decreased cost, thereby making it possible to keep competence within the company and continue full speed ahead with our future oriented projects”, says Peter Karlsten, CEO of Volvo Powertrain. “For many reasons, it is of major importance that we have reached an agreement in all locations in Sweden.” The agreement applies from July 1, 2009 through March 30, 2010 and covers all salaried employees in Göteborg and Malmö, including the Volvo Powertrain Sweden management team and Volvo Powertrain’s global management team in Sweden. The company guarantees that no layoff notices will be issued during the agreement period. In total, some 1400 white collars and 2450 blue collars are included in agreements regarding work time and compensation reduction. July 8, 2009 Journalists who would like further information, please contact Kina Wileke, Press Contact, AB Volvo, tel +46 (0)31-66 1232 Visit http://www.thenewsmarket.com/volvogroup to access broadcast-standard video from Volvo Group. You can preview and request video, and choose to receive as a MPEG2 file or by Beta SP tape. Registration and video is free to the media. 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 180 markets. In 2008 annual sales of the Volvo Group amounted to about SEK 300 billion. The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden. Volvo shares are listed on OMX Nordic Exchange Stockholm. For more information, please visit www.volvogroup.com or www.volvogroup.mobi if you are using your mobile phone. AB Volvo (publ) may be required to disclose the information provided herein pursuant to the Securities Markets Act. The information was submitted for publication at 10.00 a.m. CET, 8, July, 2009.