Volvo to Supply Truck Engines to Navistar

    STOCKHOLM, Sweden--May 31, 2001--AB Volvo's business unit Powertrain has signed a Letter of Intent and is negotiating a long-term agreement with International Truck and Engine Corporation, a wholly-owned subsidiary of Navistar International Corporation, regarding the supply of 12 litre engines to International.
    "This is a very exciting development for business unit Powertrain," says the Volvo Group's President and CEO, Leif Johansson. "At a time when our North American truck operations are faced with serious challenges, this opportunity for growth within Volvo Powertrain is most welcome."
    The engines will be used in trucks manufactured by International in NAFTA countries, and will comply with the US 02 emission regulations.
    "We are very pleased that International have demonstrated confidence in our ability to fulfill the demands for the ever-stricter US emission regulations," says Lars-Goran Moberg, President of Volvo Powertrain. The engines will initially be produced at Volvo Powertrain's plant in Skovde, Sweden. However, Volvo eventually intends producing the engines in North America.