Important events

Renault Trucks Defense to acquire French manufacturer Panhard
On July 26 it was announced that Renault Trucks Defense, which is included in the Volvo Group’s Governmental Sales business area, is to acquire the French company Panhard, which specializes in manufacturing light transport vehicles adapted for defense operations. In 2011, Panhard reported sales of EUR 81 M and operating profit amounted to EUR 9.4 M. The transaction is expected to be finalized during the fourth quarter of 2012.

New Volvo FH launched
On September 5, Volvo introduced its new Volvo FH series. The new Volvo FH is pushing the envelope for what a premium truck can offer. The Volvo FH is a truck built with the driver in mind and with the focus on improving the haulage firm’s profitability.

AB Volvo finalized the acquisition of shares in Deutz AG
On September 13, AB Volvo announced that it had completed the transaction whereby it increased its shareholding in Deutz AG from 6.7% to just over 25%. In total, AB Volvo acquired 22,117,693 shares from Same Deutz-Fahr Group for an amount of EUR 130 million. The transaction made AB Volvo the largest shareholder in Deutz.

Volvo Group to invest in Russia
On September 13, the Volvo Group announced that it will invest SEK 783 M in a new facility for the production of cabs at the plant in Kaluga, Russia. The facility, which is expected to become operational in 2014, will manufacture cabs for the Volvo and Renault Trucks brands with a total annual capacity of 15,000 cabs.

Volvo Group announced new truck strategy to achieve profitability improvement
The new strategy, which is an important step for the Group towards achieving the objective to improve the operating margin by 3 percentage points, was presented in detail at the Capital Market Day on September 25.

AB Volvo finalized the sale of Volvo Aero
On October 1, AB Volvo finalized the sale of Volvo Aero to GKN. The sale is expected to generate a positive non-recurring effect on operating income of SEK 300 M in the fourth quarter of 2012, net after reversed depreciations. Financial net debt is expected to be reduced by approximately SEK 5 billion.

Volvo Buses to consolidate the manufacture of complete buses in Europe
On October 3, Volvo Buses announced plans to concentrate its European production of complete buses to the main plant in Wroclaw, Poland. Production at the plant in Säffle, Sweden, will be terminated at end June 2013, if necessary union negotiations have been completed. The relocation is expected to negatively impact the Volvo Group’s operating profit in the fourth quarter of 2012 in an amount of about SEK 100 M.

New organization for the truck dealer networks in Europe, the Middle East and Africa
On October 10, the Volvo Group announced that it intends to introduce a new organization for its truck dealer networks in Europe, the Middle East and Africa (EMEA). The reorganization aims to capitalize more effectively on opportunities for the Group’s brands and products in line with the new truck strategy.