Volvo Truck splits truck operations

| 1/8/2002

Volvo Global Trucks has plans in the works to create a more cost-effective structure and will now be linked with Volvo Group Headquarters. The three truck companies, Volvo Trucks, Renault V. I. and Mack Trucks, will become separate business areas. Because of this shift, the company is announcing changes on organization and management levels.

Effective immediately, Jorma Halonen, President of Volvo Trucks and Chairman of Volvo Trucks North America and Philippe Mellier, President of Renault V.I., will report directly to Leif Johansson and will be members of Volvo Group Executive Committee. Michel Gigou, President of Volvo Trucks North American, who is responsible for the integration of truck operations in North America, will become chairman of Mack Trucks and a member of Volvo Group Executive Committee, reporting to Leif Johansson. Paul Vikner, President of Mack Trucks, will report to Michel Gigou. The present President of Global Trucks, Tryggve Sthen, will continue to serve on the Volvo Group Executive Committee.

Volvo 3P will become a business unit in the Volvo Group with responsibility for product planning, purchasing and product development for the three truck companies. The president of Volvo 3P, Odile Desforges, will report to Lars-Goeran Moberg, technical director in the Volvo Group Executive Committee. The other staff units within Global Trucks are being integrated within Volvo Group Headquarters.

Global Trucks will continue to be a business area within the Volvo Group only with regard to external reporting of finances. Other business areas within the Volvo Group are not affected by the changed organization.