Mack Truck Demonstrates Diesel-Electric Hybrid Technology for Federal Officials

Government Incentives Will Play Key Role in Establishing Heavy-Duty Market

WASHINGTON, June 15 -- On June 11, 2009, Mack Trucks, Inc. gave federal legislators and policymakers a first-hand look at its industry-leading parallel diesel-electric hybrid technology for heavy-duty trucks. The Mack hybrid technology provides up to a 30% fuel economy improvement in stop-and-go applications like refuse collection, in line with the goals of reducing imports of foreign oil and slashing greenhouse gas emissions.

The MACK(R) TerraPro(TM) Cabover displayed at the base of Capitol Hill is the first production-intent parallel diesel-electric hybrid truck model in the U.S. designed specifically for Class 8 heavy-duty applications and meeting the EPA'10 emission regulations.

The Mack TerraPro model was part of a "Hybrid on the Hill Day" organized by the Hybrid Truck Users Forum (HTUF) of CALSTART. The event showcased the latest hybrid technology for trucks and sought to raise public awareness of how the U.S. government can help speed the widespread use of hybrid trucks.

"Our hybrid technology will be commercially viable, yet it will take time to establish a robust hybrid market for heavy vehicles that will enable us to invest in large scale production," said Dennis Slagle, Mack president and CEO. "Incentives will accelerate the adoption of Class 8 hybrids and bring forward the positive environmental changes."

Until these economies of scale are established, most heavy-duty hybrids will be sold at a very high premium compared to non-hybrids, he noted. Once a market is established and production volumes reach the point where the price difference becomes less, the savings from fuel and maintenance with Mack's hybrid system should be enough to recoup a payback in a few years.

"Government incentives are necessary to establish a market for these vehicles with environmental benefits, similar to the incentives offered for hybrid passenger vehicles," said Tom Kelly, Mack senior vice president, product portfolio management. "The public benefit of these incentives will be reduced environmental impact as hybrid heavy-duty trucks become more common."

Some existing short-term federal tax credit programs apply to heavy-duty hybrids, and some incentives in the federal stimulus bill could possibly apply as well. But longer-term incentives are needed.

"For example, we'd like to see Congress extend the federal Alternative Motor Vehicle Credit, enacted by the Energy Policy Act of 2005, which expires at the end of 2009," Kelly said.

Dedicated to quality, reliability, and total customer satisfaction, Mack Trucks, Inc. has provided its customers with innovative transportation solutions for more than a century. Today, Mack is one of North America's largest producers of heavy-duty trucks. All Mack manufacturing locations are certified to the internationally recognized ISO 9001 standard for quality and ISO 14001 standard for environmental management systems. Mack is also a proud sponsor of Share the Road, an American Trucking Associations' public information campaign aimed at enhancing the safety of our nation's roadways.

Mack Trucks, Inc. is part of the Volvo Group, one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services, and one of the world's leading producers of heavy-diesel engines (9-16 liter). The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 100,000 people, has production facilities in 19 countries and sells their products in more than 180 markets. Volvo Group sales for 2008 amounted to over $46 billion. The Volvo Group is a publicly-held company headquartered in Gothenburg, Sweden. Volvo Shares are listed on Nasdaq OMX Nordic Exchange and are traded OTC in the U.S.

For more information about Mack, visit our Web site at www.macktrucks.com