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Volvo Trucks and Cummins Join Forces

13 October 1998

Volvo Trucks and Cummins Join Forces To Create Smarter Customer Solutions

    GREENSBORO, N.C., Oct. 12 -- Volvo Trucks North America, Inc.
today announced a milestone agreement with Cummins Engine Company, Inc.
in which the two companies will join forces to create innovative
solutions for Volvo Trucks' customers in North America. Volvo officials said
they will join forces to deliver products utilizing advanced technology that
will ultimately benefit customers by providing increased productivity and
lower operating costs.
    The Volvo-Cummins agreement covers efforts in the areas of product
development, sales, marketing, and customer support.
    "The new realities of trucking are here, created by customers who want
greater uptime and more productive vehicles," said Marc F. Gustafson,
president and CEO of Volvo Trucks. "To meet those expectations, we must work
more closely with leading suppliers to develop products and services that
create a clear competitive advantage for our customers.
    "We are allying ourselves with Cummins because with our mutual strengths
in customer support, information products and engines we can create measurable
performance breakthroughs in vehicle design and engine systems."
    The first result of this effort will be designed for owner-operator
segments of the heavy-truck market. Several new Volvo truck models with
Cummins engines will be developed and marketed as "Signature Series" products.
    According to Gustafson, during the last three years, Volvo Trucks and
Cummins have invested over $2 billion to develop some of the industry's most
advanced vehicles and diesel engines. By combining some of their engineering
and design efforts, the two companies can better leverage their combined
research and development resources.
    According to Cummins, the agreement should strengthen its position in the
heavy-duty truck engine market.
    "We're eager to work more closely with Volvo Trucks because its
organization understands that these types of efforts are critical to
delivering better products," said Roberto Cordaro, president-Automotive Group
at Cummins. "Our customers expect nothing less. It is a natural fit between
two market-driven companies."
    Cummins Engine Company, Inc. is the world's largest producer of 200+ hp
diesel engines. Based in Columbus, Ind., Cummins is also a leading
manufacturer of alternative fuel engines, diesel engine components, service
products and power systems. In 1997 Cummins reported record sales of $5.6
billion.
    Volvo Trucks North America, Inc. manufactures Class 8 Volvo trucks and
tractors. The company leads the heavy-truck industry in the areas of safety
research and development, quality manufacturing processes and environmental
care. The company also markets Volvo heavy-duty diesel engines, transmissions,
and rear suspensions. Headquartered in Greensboro, N.C., the company is an
affiliate of Volvo Truck Corporation, Gothenburg, Sweden.