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Volvo Increases Investment in U.S. Truck Maker

23 July 1997

Volvo Increases Investment in U.S. Truck Maker

     GREENSBORO, N.C., July 23 -- Volvo GM Heavy Truck
Corporation announced today that its name will be Volvo Trucks North America,
Inc. as a result of Volvo's increased investment in the U.S.-based truck
manufacturer.  Volvo Trucks' Canadian affiliate will also change its name.
     The agreement was made between GM and the parent of Volvo Trucks, Volvo
Truck Corporation of Gothenburg, Sweden.  Terms of the agreement were not
disclosed.
     "We are now Volvo," said Marc Gustafson, President and CEO of Volvo
Trucks.  "As with our products, the Volvo name now stands alone in this
marketplace as a symbol of trucks that have no equal for ride and comfort,
quality and safety.
     "This investment is a concrete sign of Volvo's commitment to the North
American truck market," said Gustafson.  "Volvo Trucks is poised to build a
stronger organization which will enable it to achieve the same level of
success as its parent has in other parts of the world.  We will grow to become
one of the top OEMs in the North American marketplace."
     According to Gustafson, the process of changing the name began two years
ago when all trucks produced by the company became Volvo models.  In addition,
the people, processes and products of Volvo Trucks have embodied the values of
Volvo companies throughout the world.  The core values common to all Volvo
companies are quality, safety and care for the environment.

    Company History
     The joint venture that preceded Volvo Trucks North America was
established by Volvo Truck Corporation and General Motors in 1988 to
manufacture and market heavy-duty trucks in the U.S.  At that time, Volvo
owned 76 percent, GM, 24 percent.  Volvo Trucks' Canadian affiliate began
operations one year earlier.

    Recent milestones for Volvo Trucks include:

    -- Introduction of the Volvo 770 Integral Sleeper(R) tractor
    -- First Class 8 truck built in North America with a driver's-side SRS
       airbag
    -- Introduction of the Volvo VN Series on-highway tractors
    -- Creation of Volvo Truck Finance North America, Inc.
    -- Completion of a robotic cab-assembly plant and new painting facility
    -- Creation of Volvo IntraNet Communications System
    -- ISO 9000 registration of manufacturing facilities

     "Since the late 1980s, GM has played an important role in the development
of our company," Gustafson said.  "GM's contributions will remain a part of
the rich truck-building heritage that makes up Volvo Trucks."
     Volvo Trucks North America, Inc. manufactures Class 8 trucks and
tractors.  The company leads the heavy-truck industry in the areas of safety
research and development, quality manufacturing processes and environmental
care.  Volvo Trucks also markets heavy-duty diesel engines, transmissions and
rear suspensions.  Volvo Trucks is headquartered in Greensboro, N.C.

SOURCE  Volvo Trucks North America, Inc.