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Volvo Cars Sets Best Six-Months on Record

Year-to-date Sales 2 percent ahead of last year in U.S.

IRVINE, Calif., July 1 -- Volvo Cars of North America, LLC (VCNA) recorded its best ever first six months with year-to-date sales of 69,158 units. The mark represents a 2.1 percent increase over the pace of the 2003 record year. For the month, 13,017 units were sold -- off 2.8 percent from the same period a year ago.

By model, the all new Volvo S40 has ramped up since its introduction this spring, recording 5,691 sales -- a 42 percent increase for the segment compared to last year.

"Sales results are an indicator that consumers are finding our class leading safety, all new S40, appealing," said Vic Doolan, president and CEO, Volvo Cars of North America. "We are reaching out to a new target audience with this vehicle in an extremely competitive segment, and we are pleased with the progress we're making," he said.

In addition, the XC90 continues as the best selling European SUV. XC90 sales are up 19.8 percent year-to-date compared with last year. And with the upcoming '05 model year updates to the S60, V70, and XC70, which includes significant changes to the existing models, it is encouraging news in the short-term for that range.

Overall in June, sales in North America totaled 14,266 units -- down 2.8 percent. For the month, Volvo sales in Canada were down 4.7 percent, while sales increased slightly at 0.4 percent in Mexico.

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, Canada, Mexico and Puerto Rico.

The Volvo automobile model line includes the newly introduced award-winning 2004.5 all new S40, the award-winning XC90, the sporty S60 sedan -- including the award-winning performance sedan -- S60 R and its performance wagon counterpart -- V70 R, the flagship S80 luxury sedan, versatile V70 wagon and rugged XC70 (Cross Country), the C70 convertible, and the compact S40 and V40 models.

          VOLVO CARS OF NORTH AMERICA, LLC

          Retail Sales by Model                                  1-Jul-04

                              UNITED STATES

                                      June *            Year-to-Date *

                               2004    2003     %      2004   2003     %
          Volvo Model
          S40                    32   1,380  -97.7%   4,702  7,317  -35.7%
          All New S40         1,783     n/a    n/a    5,691   n/a    n/a
          V40                   187     257  -27.2%   1,246  1,646  -24.3%
          V50                   263   n/a      n/a      263   n/a    n/a
          S60                 2,242   3,514  -36.2%  15,887 18,585  -14.5%
          V70                 1,254   1,375   -8.8%   5,871  6,549  -10.4%
           XC70               1,958   1,566   25.0%   7,500  8,741  -14.2%
          C70                   460     416   10.6%   2,279  2,021   12.8%
          S80                 1,483   1,593   -6.9%   7,215  7,422   -2.8%
          XC90                3,355   3,285    2.1%  18,504 15,447   19.8%

          USA TOTAL          13,017  13,386   -2.8%  69,158 67,728    2.1%

                                  CANADA

                                       June             Year-to-Date

                               2004    2003     %      2004   2003     %
          Volvo Model
          S40                    11     147  -92.5%     266    627  -57.6%
          All New S40            14     n/a    n/a       14    n/a    n/a
          V40                     6      97  -93.8%     156    414  -62.3%
          V50                     6     n/a    n/a        6    n/a    n/a
          S60                   297     253   17.4%   1,839  1,543   19.2%
          V70                   123     110   11.8%     768    584   31.5%
          XC70                  231     156   48.1%     929  1,036  -10.3%
          C70                    13      16  -18.8%      66     32  106.3%
          S80                    35      22   59.1%     295    233   26.6%
          XC90                  227     210    8.1%   1,166  1,151    1.3%

          CANADA TOTAL          963   1,011   -4.7%   5,505  5,620   -2.0%

                                  MEXICO

                                      June               Year-to-Date

                               2004    2003     %      2004   2003     %
          Volvo Model
          S40                     4      95  -95.8%     202    578  -65.1%
          All New S40           163     n/a    n/a      438    n/a    n/a
          V40                     1       0  100.0%       7      7    0.0%
          V50                     0     n/a    n/a        0    n/a    n/a
          S60                    66      80  -17.5%     335    366   -8.5%
          V70                     0       0    n/a        0      4 -100.0%
          XC70                    1       2  -50.0%       8     10  -20.0%
          C70                     0       1 -100.0%       6     10  -40.0%
          S80                    10      19  -47.4%      66     91  -27.5%
          XC90                   41      88  -53.4%     433    307   41.0%

          MEXICO TOTAL          286     285    0.4%   1,495  1,373    8.9%

          NAFTA TOTAL        14,266  14,682   -2.8%  76,158 74,721    1.9%

         *  U.S. totals include Puerto Rico