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RCSH · Apr 30th, 2010, 07:47

This is what has been issued on our website (Volvo Trucks).

Position statement prior to a possible sale of Volvo Cars to Geely

• The sale being discussed by Ford and the Chinese manufacturer, Geely, comprises the car operations, which was part of the Volvo Group until 1999 when it was sold to Ford.

• In 1999, AB Volvo’s Board of Directors resolved to divest Volvo Cars to the Ford Motor Company. Volvo Cars was then the world’s smallest independent car manufacturer with an annual manufacturing volume of about 400,000 cars. The purchase consideration was SEK 50 billion.

• Since then, the Volvo brand has been owned equally by Ford and AB Volvo via the company Volvo Trademark holding. Ford was never the owner of any other operations than the car manufacturing operations.

• The sale of the car manufacturing to Ford enabled the Volvo Group to streamline its operations and focus on heavy (commercial) vehicles. In addition to high organic growth, the Group has since also made several major acquisitions, including Renault Trucks and Mack (2001), Nissan Diesel (2007) and the manufacturer of industrial equipment, Ingersoll Rand (2007). In addition, the Volvo Group has established a joint venture company for trucks with the Indian company Eicher, in India, as well as a joint venture company for construction machinery in China, with Chinese Lingong.

• Today, the Volvo Group is the second-largest global manufacturer of heavy trucks and heavy buses as well as the third-largest manufacturer of construction machinery. The Parent Company, AB Volvo, is a public limited company and listed on the NASDAQ OMX Exchange Stockholm. Owners include the French vehicle manufacturer, Renault and the Swedish holding company, Industrivärden. Other major owners include Swedish and international institutions and investors. Neither Ford nor Geely have any holding whatsoever in the Volvo Group.

• When Ford acquired Volvo Cars, Ford was the second-largest car manufacturer and also one of the more profitable. Since the divestment of Volvo Cars, Ford’s performance has been weak and the company has reported major losses, which is the reason behind the current strategy to divest other brands and concentrate solely on Ford.

• Since spring 2009, Ford has been actively trying to find a buyer for VCC and a transaction with Geely is expected to be finalized shortly. This transaction would involve Geely purchasing VCC from Ford and also taking over Ford’s 50% ownership of the Volvo brand. The other half of the brand will remain in the Volvo Group as before.

• The Volvo Group has been monitoring the process to find a new owner for VCC. The Volvo Group has always emphasized the importance of VCC being owned by someone who will offer the right industrial and market conditions. We believe it is crucial for VCC’s future that VCC has an owner that can offer economies of scale by virtue of large proprietary production and access to new and expansive markets.

Apr 30th, 2010, 07:47	#26
RCSH G-BOAF Last Online: Feb 11th, 2015 16:46 Join Date: Feb 2010 Location: Tamworth	This is what has been issued on our website (Volvo Trucks). Position statement prior to a possible sale of Volvo Cars to Geely • The sale being discussed by Ford and the Chinese manufacturer, Geely, comprises the car operations, which was part of the Volvo Group until 1999 when it was sold to Ford. • In 1999, AB Volvo’s Board of Directors resolved to divest Volvo Cars to the Ford Motor Company. Volvo Cars was then the world’s smallest independent car manufacturer with an annual manufacturing volume of about 400,000 cars. The purchase consideration was SEK 50 billion. • Since then, the Volvo brand has been owned equally by Ford and AB Volvo via the company Volvo Trademark holding. Ford was never the owner of any other operations than the car manufacturing operations. • The sale of the car manufacturing to Ford enabled the Volvo Group to streamline its operations and focus on heavy (commercial) vehicles. In addition to high organic growth, the Group has since also made several major acquisitions, including Renault Trucks and Mack (2001), Nissan Diesel (2007) and the manufacturer of industrial equipment, Ingersoll Rand (2007). In addition, the Volvo Group has established a joint venture company for trucks with the Indian company Eicher, in India, as well as a joint venture company for construction machinery in China, with Chinese Lingong. • Today, the Volvo Group is the second-largest global manufacturer of heavy trucks and heavy buses as well as the third-largest manufacturer of construction machinery. The Parent Company, AB Volvo, is a public limited company and listed on the NASDAQ OMX Exchange Stockholm. Owners include the French vehicle manufacturer, Renault and the Swedish holding company, Industrivärden. Other major owners include Swedish and international institutions and investors. Neither Ford nor Geely have any holding whatsoever in the Volvo Group. • When Ford acquired Volvo Cars, Ford was the second-largest car manufacturer and also one of the more profitable. Since the divestment of Volvo Cars, Ford’s performance has been weak and the company has reported major losses, which is the reason behind the current strategy to divest other brands and concentrate solely on Ford. • Since spring 2009, Ford has been actively trying to find a buyer for VCC and a transaction with Geely is expected to be finalized shortly. This transaction would involve Geely purchasing VCC from Ford and also taking over Ford’s 50% ownership of the Volvo brand. The other half of the brand will remain in the Volvo Group as before. • The Volvo Group has been monitoring the process to find a new owner for VCC. The Volvo Group has always emphasized the importance of VCC being owned by someone who will offer the right industrial and market conditions. We believe it is crucial for VCC’s future that VCC has an owner that can offer economies of scale by virtue of large proprietary production and access to new and expansive markets.