AB Volvo and Navistar discontinue engine negotiations

| 1/2/2002

AB Volvo and Navistar International Corp. nixed plans for putting Volvo 12 litre engines in Navistar International trucks.

In May 2001, the company's engine manufacturing business unit, Volvo 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 Corp. Volvo's official statement says the companies ceased negotiations because "it has not been possible to fulfill the conditions outlined in the letter of intent."