An increase in demand could potentially result in delivery disturbances due to suppliers' financial instability or shortage of resources.
Uncertainty regarding customers’ access to the financing of products in emerging markets might have a negative impact on demand.
Volvo verifies annually, or more frequently if necessary, the goodwill value of its business areas and other intangible assets for possible impairment. The size of the overvalue differs between the business areas and they are, to a varying degree, sensitive to changes in the business environment. Instability in the business recovery and volatility in interest and currency rates may lead to indications of impairment.
The reported amounts for contingent liabilities reflect a part of Volvo’s risk exposure, see note 29 for contingent liabilities.
Contractual conditions related to take over bids
Some of AB Volvo's long term loan agreements contain conditions stipulating the right for a bondholder to request repayment in advance under certain conditions following a change of the control of the company. In Volvo's opinion it has been necessary to accept those conditions in order to receive financing on otherwise acceptable terms. Provisions stipulating that an agreement can be changed or terminated if the control of the company is changed are also included in some of the agreements whereby Renault Trucks' has been given the right to sell Renault s.a.s.' and Nissan Motor Co. Ltd's light-duty trucks as well as in some of the Group's purchasing agreements.