The Volvo Group invests in new concept for emissions resulting from function tests

The Volvo Group is investing slightly more than SEK 330 M in a new concept for reducing emissions and improving quality in connection with the function testing of newly produced engines. Use of the new technology will reduce emissions by approximately 85 percent.

The concept has been tested for about a year at the Volvo Group’s engine-production plant in Curitiba, Brazil. The new technology enables safer and more efficient quality assurance of new engines. While it previously took about 30 minutes to check all functions during testing, the new method generates the same results significantly faster and with greater precision.

With leading-edge evaluation methods in the background, this brief engine test provides complete information about functionality. At the same time, emissions of nitrous oxides and other harmful substances from the plant are reduced by 85 percent.

During 2008, the new technology will be introduced at the engine-production plants in Skövde, Sweden, and Hagerstown, Maryland in the US. In 2009, the equipment will be installed at all of the Volvo Group’s engine plants worldwide.
The investment also comprises upgrading and improving quality assurance of the assembly process in engine production.

March 4, 2008

For reporters who want more information, please contact Mårten Wikforss +46 31 66 11 27 or +46 705 59 11 49

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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 13.30 p.m. March 4, 2008.