AB Volvo and Navistar Discontinue Negotiations

    GOTEBORG, Sweden--Dec. 21, 2001--In May 2001, AB Volvo's business unit Powertrain signed a Letter of Intent regarding the supply of 12 litre engines to International Truck and Engine Corporation, a wholly-owned subsidiary of Navistar International Corporation.
    As it has not been possible to fulfil the conditions outlined in the Letter of Intent, the parties have decided to cease negotiations.
    Volvo Powertrain is one of the world's largest manufacturers of heavy-duty engines, with an annual production of over 125,000 heavy-duty engines.

    December 21, 2001

    For further information, please contact

    Marten Wikforss, Director of media relations, AB Volvo +46 31 66 11 27, +46 705 59 11 49