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Volvo Cars Reports Steady Sales for North America

XC90 and S60 Post Best-Selling Month of the Year

IRVINE, Calif., July 1 -- Volvo Cars of North America, LLC. announces June sales driven by strong performances of the Volvo XC90 and S60. The XC90 sales were fueled by strong acceptance of new V8 variant, and the S60 increase is attributed to Volvo's effective turbo strategy. In addition, popularity of the new Volvo S40 continues to grow. The segment is nearly 25 percent ahead of last year.

"Strong sales across our product lineup shows the broad appeal of Volvo," says Anne Belec, Volvo Cars of North America president and CEO. "This is an increasingly competitive market and our diversity of products is well-positioned. Our 2006 models arrive to showrooms during July, which will enhance our portfolio offering," she said.

During June, Volvo Cars sold 12,276 units in the United States, representing a decrease of 6 percent compared to the same period of 2004.

In Canada, sales were 14 percent up over June of last year, with 1,098 units sold. Volvo Mexico also reported an increase for the period -- 22 percent ahead of 2004. Overall, NAFTA (Canada, Mexico, and the United States, including Puerto Rico) sales were off 3.8 percent from last year's record year.

VCNA, part of the Volvo Car Corporation of Gothenburg, Sweden, provides marketing, sales, parts, service, technology and training support to Volvo automobile retailers in the United States, and oversees Volvo operations in Canada, Mexico and Puerto Rico.

Volvo has been building cars with Safety in mind for over 75 years. The 2005 Volvo Cars model line-up includes: the award-winning new S40 and its wagon counterpart the all-new V50; the award-winning XC90; the sporty S60 sedan -- including the award-winning performance sedan -- S60 R and the performance wagon version -- V70 R; the flagship S80 luxury sedan; versatile V70 wagon and rugged XC70 (Cross Country); and, the C70 convertible.

   * U.S. Sales include Puerto Rico

   VOLVO CARS OF NORTH AMERICA, LLC

   Retail Sales by Model                                        01-Jul-05

                              UNITED STATES
                              June *                   Year-to-Date *
                    2005      2004       %        2005      2004       %
   Volvo Model
   S40                 1        32    -96.9%         4     4,702    -99.9%
   All New S40     2,190     1,783     22.8%    12,955     5,691    127.6%
   V40                 0       187   -100.0%         5     1,246    -99.6%
   V50               470       263     78.7%     2,932       263   1014.8%
   S60             2,685     2,242     19.8%    13,743    15,887    -13.5%
   V70               762     1,254    -39.2%     4,084     5,871    -30.4%
   XC70            1,525     1,958    -22.1%     7,092     7,500     -5.4%
   C70               149       460    -67.6%     1,305     2,279    -42.7%
   S80               874     1,483    -41.1%     5,660     7,215    -21.6%
   XC90            3,620     3,355      7.9%    18,287    18,504     -1.2%

   USA TOTAL      12,276    13,017     -5.7%    66,067    69,158     -4.5%

                                  CANADA
                              June                      Year-to-Date
                    2005      2004       %        2005      2004       %
   Volvo Model
   S40                 0        11   -100.0%         0       266   -100.0%
   All New S40       231        14   1550.0%     1,134        14   8000.0%
   V40                 0         6   -100.0%         0       156   -100.0%
   V50               102         6   1600.0%       532         6   8766.7%
   S60               187       297    -37.0%     1,249     1,839    -32.1%
   V70                86       123    -30.1%       486       768    -36.7%
   XC70              211       231     -8.7%     1,108       929     19.3%
   C70                 0        13   -100.0%         7        66    -89.4%
   S80                25        35    -28.6%       131       295    -55.6%
   XC90              256       227     12.8%     1,460     1,166     25.2%

   CANADA TOTAL    1,098       963     14.0%     6,107     5,505     10.9%

                                  MEXICO
                              June                      Year-to-Date
                    2005      2004       %        2005      2004       %
   Volvo Model
   S40                 0         4   -100.0%         3       202    -98.5%
   All New S40       195       163     19.6%       912       438    108.2%
   V40                 0         1   -100.0%         0         7   -100.0%
   V50                 5         0      n/a         25         0      n/a
   S60                22        66    -66.7%       221       335    -34.0%
   V70                 0         0      n/a          0         0      n/a
   XC70                3         1    200.0%        14         8     75.0%
   C70                 0         0      n/a          4         6    -33.3%
   S80                 6        10    -40.0%        60        66     -9.1%
   XC90              118        41    187.8%       571       433     31.9%

   MEXICO TOTAL      349       286     22.0%     1,810     1,495     21.1%

   NAFTA TOTAL    13,723    14,266     -3.8%    73,984    76,158     -2.9%

   * U.S. totals include Puerto Rico