Truck deliveries - July 2003

TRUCK DELIVERIES - JULY 2003 Deliveries from Volvo's truck operations, which include Volvo Trucks, Mack and Renault Trucks, declined 18% in July, compared with the corresponding month in the preceding year. On a year-to-date basis, deliveries amounted to 86,090 trucks, which is 4% below the year-earlier period. In Europe, deliveries declined by 3%, while North America posted a 14% decline compared with the first seven months in 2002. "Our deliveries in July continued to decline in North America compared with last year, reflecting high production rates in advance of the new emission legislation in 2002. However, order bookings for July supports our somewhat more positive view on the market development, both for Europe and North America" says Volvo's CEO Leif Johansson. On a 12-month rolling basis, total order bookings for the truck brands was down 6% compared with the preceding year, with Europe down 11% and North America down 12%. Deliveries by market area: Delivered Units Year-to-Date Change Volvo Group 2003 2002 Europe 53,277 54,943 -3% Western Europe 48,064 50,366 -5% Eastern Europe 5,213 4,577 14% North America 18,372 21,244 -14% South America 2,970 2,982 0% Asia 7,161 4,808 49% Other markets 4,310 5,799 -26% Total Volvo Group 86,090 89,776 -4% Mack Deliveries from Mack through July totaled 10,811 units, down 23% from the same period in 2002. Despite some strengthening in the overall North American heavy-duty truck market, activity in Mack's core market segments of construction and refuse remained sluggish in July. In addition, Mack continues to face strong competition in its core segments from manufacturers offering trucks with engines that do not comply with the EPA '02 emissions regulations. Deliveries by market area: Delivered Units Year-to-Date Change Mack 2003 2002 North America 9,841 13,204 -25% South America 247 373 -34% Asia 51 8 538% Other markets 672 535 26% Total Mack 10,811 14,120 -23% Renault Trucks Deliveries from Renault Trucks declined by 8% through July 2003, compared with the year-earlier period. This is due mainly to lower deliveries to the French market, which were down 15%. This was partly offset by increasing deliveries in Spain (+6%). In Eastern Europe, deliveries continue to increase. This is a result of a continued positive development of the market combined with a strengthened commercial structure that has been developed during the last few years. The Renault Master, Renault Midlum and Renault Magnum truck ranges are showing the best resistance to the trend of declining volumes. Deliveries by market area: Delivered Units Year-to-Date Change Renault Trucks 2003 2002 Europe 31,632 34,262 -8% Western Europe 29,176 32,217 -9% Eastern Europe 2,456 2,045 20% North America 193 n.a. South America 78 n.a. Asia 1,342 138 n.a. Other markets 1,806 3,594 n.a. Total Renault 35,051 37,994 -8% Trucks Volvo Trucks Volvo Trucks reported higher deliveries during the January-July period in all markets. The increase compared with the year-earlier period was 7%. Eastern Europe showed continued growth and sharply rising demand was noted particulary in Poland and Hungary. In North America, demand for the new truck range continued to develop well. The South American market is still relatively strong and in Brazil Volvo Trucks is the market leader in the heavy segment. Deliveries by market area: Delivered Units Year-to-Date Change Volvo Trucks 2003 2002 Europe 21,645 20,681 5% Western Europe 18,888 18,149 4% Eastern Europe 2,757 2,532 9% North America 8,338 8,040 4% South America 2,645 2,609 1% Asia 5,768 4,662 24% Other markets 1,832 1,670 10% Total Volvo Trucks 40,228 37,662 7% August 27, 2003 For further information, please contact: Investor Relations: Fredrik Brunell +46 31 66 11 91 Christer Johansson +46 31 66 13 34 Media Relations: Bernard Lancelot, Renault Trucks, +33 4 72 96 27 59 Bob Martin, Mack +1 (610) 709-2670 Claes Claeson, Volvo Truck Corporation, +46 31 66 39 08,+46 708-36 39 08 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/08/27/20030827BIT00690/wkr0001.doc http://www.waymaker.net/bitonline/2003/08/27/20030827BIT00690/wkr0002.pdf