Volvo Buses To Close Plant In Tampere, Finland

Regulatory News:

   After finalizing the negotiations with employee representatives,
Volvo Buses has decided to close the bus body plant in Tampere,
Finland. The company will also reorganize operations at the body plant
in Turku to increase the competitiveness. In total, 237 employees will
be given notice.

   Currently, Volvo Buses (NASDAQ:VOLV) (STO:VOLVA) (STO:VOLVB) has
an overcapacity in its European bus body production system and
foresees that this will be the case also in the coming years. The
intention is to adjust production capacity as a part of the strategy
to strengthen Volvo Buses' profitability.

   Volvo Buses European bus body production system consists of the
two plants in Finland, in Wroclaw, Poland, and in Saffle, Sweden. The
plants in Tampere and Wroclaw both manufacture the Volvo 8700 bus
model. The plant in Poland has spare capacity and by concentrating the
production of the Volvo 8700 to Wroclaw, Volvo Buses can obtain more
cost-efficient production.

   In Turku, the operations will be reorganized to enhance the
competitiveness. The production of the Volvo 9700 coach model in Turku
will be focused on the Nordic markets.

   The production in Tampere will end in August. Volvo Bus Finland
has, together with the representatives for the employees, negotiated
various supporting measures for the affected employees. During the
first quarter, earnings were charged with provisions related to above
amounting to SEK 120 million.

   April 24, 2008

   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.

   Volvo Bus Corporation is one of the world's largest manufacturer
of large buses and coaches. The range comprises complete vehicles,
chassis, bus bodies, transport system solutions for metropolitan
traffic, leasing, financing and service contract maintenance. Volvo
Bus Corporation is part of the Volvo Group, 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.

   This information was brought to you by Cision
http://newsroom.cision.com
  
    
  
  
    
      Regulatory News:
    
    
      After finalizing the negotiations with employee representatives, 
      Volvo Buses has decided to close the bus body plant in Tampere, Finland. 
      The company will also reorganize operations at the body plant in Turku 
      to increase the competitiveness. In total, 237 employees will be given 
      notice.
    
    
      Currently, Volvo Buses (NASDAQ:VOLV) (STO:VOLVA) (STO:VOLVB) has an 
      overcapacity in its European bus body production system and foresees 
      that this will be the case also in the coming years. The intention is to 
      adjust production capacity as a part of the strategy to strengthen Volvo 
      Buses’ profitability.
    
    
      Volvo Buses European bus body production system consists of the two 
      plants in Finland, in Wroclaw, Poland, and in Säffle, 
      Sweden. The plants in Tampere and Wroclaw both manufacture the Volvo 
      8700 bus model. The plant in Poland has spare capacity and by 
      concentrating the production of the Volvo 8700 to Wroclaw, Volvo Buses 
      can obtain more cost-efficient production.
    
    
      In Turku, the operations will be reorganized to enhance the 
      competitiveness. The production of the Volvo 9700 coach model in Turku 
      will be focused on the Nordic markets.
    
    
      The production in Tampere will end in August. Volvo Bus Finland has, 
      together with the representatives for the employees, negotiated various 
      supporting measures for the affected employees. During the first 
      quarter, earnings were charged with provisions related to above 
      amounting to SEK 120 million.
    
    
      April 24, 2008
    
    
      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.
    
    
      Volvo Bus Corporation is one of the world’s 
      largest manufacturer of large buses and coaches. The range comprises 
      complete vehicles, chassis, bus bodies, transport system solutions for 
      metropolitan traffic, leasing, financing and service contract 
      maintenance. Volvo Bus Corporation is part of the Volvo Group, 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.
    
    
      This information was brought to you by Cision http://newsroom.cision.com