Volvo GM Heavy Truck Announces Plant Closing

10/21/96


Volvo GM Heavy Truck Consolidates Manufacturing Operations

GREENSBORO, N.C., Oct. 17 -- Volvo GM Heavy Truck
Corporation announced today that it will consolidate its truck
assembly operations into its Dublin, VA, manufacturing complex. The
move will result in the closure of its Orrville, OH, truck assembly
plant on April 18, 1997. The Orrville plant currently produces 15
trucks per day and has 473 employees, of whom 291 are production
workers.

Volvo GM Heavy Truck recently expanded its Dublin complex with the
addition of a cab assembly plant and paint facility, providing a
central location for the production of its newly launched Volvo VN
Series highway tractors. Included in the expansion and modernization
was the addition of a separate assembly line for the company's current
products. The consolidation will result in more efficient industrial
operations and lower manufacturing costs.

"The decision was a difficult one because we have a loyal, skillful
work force in Orrville," said Marc Gustafson, president and CEO of
Volvo GM Heavy Truck, "but the savings we will realize from this
consolidation are important for our future. Our Dublin complex has the
capacity for projected volume requirements, and our investments there
make it extremely efficient for the long term. This puts us in a very
good competitive position to serve our customers with quality and
flexibility from a facility located within a convenient distance of
our engineering and design facilities in Greensboro."

Volvo truck models currently produced in Orrville include the
Xpeditor(R), Autocar(R), WG straight truck, Autohauler, and the FE
Series. Normal production at current line rates is anticipated to
continue there through April 1997. Production transfer to Dublin will
be accomplished in such a way as to ensure uninterrupted availability
of high-quality products to dealers and customers.

The Orrville plant closing will not affect other Volvo operations
located in Columbus and Westerville, OH.

Some employees at the Orrville plant will be offered employment with
Volvo at other locations. Company executives will meet with all
employees, including the leadership of the United Paperworkers
International Local 786, to discuss the effects of the closure.

Following the cessation of production, a small staff will continue
work at the Orrville plant to complete the close-down of the
facilities, which will be sold. The shutdown will not affect the
operations of two American Commercial Vehicles (ACV) plants in
Orrville engaged in the production and painting of cabs for Volvo's
current product models. These cabs will be supplied by ACV to the
Dublin assembly plant.

Volvo GM Heavy Truck Corporation manufactures Class 7 and Class 8
Volvo highway tractors and trucks.  The company also markets Volvo
heavy-duty and mid-range diesel engines, transmissions, and rear
suspensions. The company leads the heavy truck industry in the areas
of quality manufacturing processes, safety research and development,
and environmental care. Volvo GM Heavy Truck, headquartered in
Greensboro, NC, is owned 87 percent by Volvo Truck Corporation,
Gothenburg, Sweden, and 13 percent by General Motors
Corporation. Volvo is the world's second largest producer of heavy
trucks.
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