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Three months ended March 31, 2008

Volvo Buses plans to close plant in Tampere, Finland

On March 5, it was announced that Volvo Bus Finland was to initiate negotiations with representatives of the employees with the intention to close the bus body plant in Tampere. On April 24, the decision to close the plant was announced. There are also plans to reorganize operations at the body plant in Turku to increase the competitiveness. In total, 237 employees will be affected. Currently, Volvo Buses has an overcapacity in its European bus body production system and foresees that this will be the case also in the coming years. The intention is to adjust production capacity as a part of the strategy to strengthen Volvo Buses’ profitability. During the first quarter, a provision amounting to SEK 120 M was made regarding Volvo Buses’ plans to adjust the production capacity.

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