New ownership for Volvo Construction Equipment in Spain

NEW OWNERSHIP FOR VOLVO CONSTRUCTION EQUIPMENT IN SPAIN Volvo Construction Equipment has entered into an agreement to sell its Sales Company in Spain. Volvo Maquinaria de Construccion Espana SA will be sold to Auto-Sueco (Coimbra) Lda. Auto-Sueco is based in Portugal where it has been a Volvo partner for more than 50 years, building a strong and successful market position during that time. The decision to sell the Spanish Company follows Volvo Construction Equipment's clear strategy of sales growth through strong independent dealers, part of an ambitious ongoing program to increase still further Volvo's effectiveness in the market place. Recently Volvo Construction Equipment also sold a part of its distribution in France in line with this change process. "This step will reinforce Volvo's presence in the vitally important Iberian construction equipment market, where we have a clear and strong commitment to grow for the future" says Tryggve Sthen, President and CEO of Volvo Construction Equipment. Volvo Maquinaria de Construccion Espana SA has 68 employees, with a turnover during 1998 of 88 million US Dollars. The company, under its new ownership, will continue to be led by its current President, Mr. José Dominguez. Employees will continue to support the Volvo Construction Equipment business in Spain based in the new purpose built Sales and Support facilities in Madrid. June 28, 1999 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/06/28/19990628BIT00260/bit0001.doc http://www.bit.se/bitonline/1999/06/28/19990628BIT00260/bit0002.pdf