The Industrial Operations’ investments in fixed assets and capitalized R&D during 2010 amounted to SEK 10.3 billion (10.3).

Capital expenditures in Trucks amounted to SEK 7.2 billion (7.4). The capital expenditures within Trucks consist to a large extent of investments related to product renewals in our product program, within product development and adaptations in the plants. Examples of product renewals are the new Volvo FMX construction truck and UD Trucks’ launches of a new version of the Quon heavy truck and a new Condor medium duty truck equipped with a new medium-duty engine. The ongoing investments aiming for increased capacity and flexibility have more or less been finalized during the year. Those relate to the cab plant in Umeå, Sweden, and the engine plants with the new foundry but also investments in machining and assembly processes in Skövde, Sweden, and the assembly line in Ageo, Japan. During 2010, Trucks invested in the dealer network and workshops, mainly in Europe, however on a lower level than previous year.

Capital investments for Construction Equipment increased to SEK 1.4 billion from SEK 1.0 billion previous year. A majority of the investments refer to expansion of the excavator business in the BRIC countries, during 2010 especially in China. It includes product offerings as the new EC200B Volvo excavator for the Chinese market, and increased manufacturing capacity in China, Lingong with SDLG, and also in Korea, Changwon, for components and assembly. Product related investments during the year also refer to the emission regulations with Tier4i and Stage IIIB engines.

The investments within Volvo Aero during 2010 were SEK 0.8 billion (0.6). The majority of the investments refer to the involvement in the new engine programs, PW1000G with Pratt & Whitney, and Trent XWB with Rolls-Royce. The investments also refer to finalization of a number of investments in Aero’s production facilities in order to secure the capacity required for the GEnx program, carried out in cooperation with General Electrics, and capacity investments in the Low Pressure Turbine shop.

The investments in Buses were SEK 0.2 billion (0.4). They were mainly related to maintenance and efficiency-enhancing investments in the factories. Product related investments during the year relate mainly to emission standards and product renewals.

The level of investments in Volvo Penta were SEK 0.2 billion (0.3) and consist mainly of product-related investments in the new D13 engine and IPS3, the finalization phase of investments in the new logistics system as well as tooling and other development activities.

Investments in leasing assets amounted to SEK 0.3 billion (0.2).

For 2011, the Volvo Group estimates that investments in property, plant and equipment will be around SEK 10 billion. This is higher than in 2010 as investments in future product programs will increase, as well as the expansion of the business in the BRIC countries. The process in which ongoing and future investments are continuously reviewed and prioritized is still in focus.