Volvo plans to invest in Southern Africa

VOLVO PLANS TO INVEST IN SOUTHERN AFRICA Volvo plans to establish a new company structure for its operations in the Southern African region. The work to establish this new structure is expected to be finalized by the end of 1999. Volvo´s products - trucks, buses, construction equipment and marine and industrial engines - have been marketed and in part assembled locally since the beginning of the 90's in the Sub Saharan region. Currently, the local operations are managed by an independent company, Scandinavian Motor Corporation (SMC), with several related companies in the region. Main markets penetrated are the Republic of South Africa, Botswana, Namibia, Zimbabwe, Mozambique, Tanzania, Zambia, Uganda, Kenya and Congo (DRC). Volvo is presently in an advanced stage of negotiations with SMC to take over the franchises for the countries involved and acquire certain assets, thereby utilizing the infrastructure built up by SMC. These negotiations, involving also certain creditors to SMC, are forecasted to be finalized by the end of year 1999. Volvo plans to establish a new company to operate its business in the region. Mr. Lennart Jeansson, Deputy CEO of the Volvo Group says: "For many years now, Volvo has looked upon these markets as most interesting in our growth and globalization strategy. SMC has developed our business with an extensive aftermarket network, to a sizeable business. Given the potential for further expansion and the considerable capital needs, it is now time for Volvo to enter and to operate the business ourselves". October 20, 1999 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/10/20/19991020BIT00300/bit0001.doc http://www.bit.se/bitonline/1999/10/20/19991020BIT00300/bit0002.pdf