Important events

Chinese authority approves joint venture between Volvo Group and Dongfeng Motor Group

On January 7, 2014 the National Development and Reform Commission (NDRC) in China gave its approval of the establishment of a joint venture between the Volvo Group and Dongfeng Motor Group Company Limited (DFG). Completion is subject to certain conditions including the approvals of other Chinese authorities. As previously announced, AB Volvo has signed an agreement with DFG to acquire 45% of a new subsidiary of DFG, Dongfeng Commercial Vehicles (DFCV), which will include the major part of DFG's medium- and heavy-duty commercial vehicles business.

AB Volvo divests Volvo Rents in North America

As part of its strategic effort to focus on the core business, the Volvo Group in December agreed to sell Volvo Rents to the US private equity firm Platinum Equity for approximately SEK 7.0 billion. The transaction had a negative impact on the Group's operating income of SEK 1.5 billion in the fourth quarter of 2013. The transaction was completed at the end of January and as a consequence net financial debt in the Volvo Group's Industrial Operation was reduced by SEK 7.0 billion. Volvo CE will continue to sell products to Volvo Rents under the new ownership.

Volvo Construction Equipment set to acquire hauler business from Terex

In a move that will improve the company's penetration in the core earthmoving segment and extend its presence in light mining, Volvo Construction Equipment in December agreed to acquire the off-highway hauler business of the Terex Corporation for a purchase consideration of approx. USD 160 M (approx. SEK 1 billion) on a cash and debt free basis. The acquisition includes the hauler manufacturer Terex Equipment Ltd and related assets and intellectual property. The deal, which is subject to regulatory approval, includes the main production facility in Motherwell, Scotland and two product ranges that offer both rigid and articulated haulers. It also includes the distribution of haulers in the U.S. as well as a 25.2% holding in Inner Mongolia North Hauler Joint Stock Co (NHL), which manufactures and sells rigid haulers under the Terex brand in China. NHL is listed on the Shanghai Stock Exchange. The transaction is expected to be finalized during the second quarter of 2014.

Previously reported important events

  • New Volvo FM
  • New Volvo FMX
  • More fuel efficient engines launched in North America
  • Annual General Meeting of AB Volvo
  • New Renault Trucks Range
  • Volvo Trucks has renewed its entire European truck range and launched Euro 6
  • Volvo Group to increase warranty reserves
  • Termination of local assembly of Renault Trucks in Turkey
  • Volvo Group takes an important strategic step with the launch of Quester
  • The Volvo Group ranked as one of the world's most sustainable companies
  • The Volvo Group announces comprehensive efficiency program linked to the strategy
  • Volvo Group to optimize truck manufacturing in Europe
  • Staff and support function rationalization

Detailed information about the events is available at www.volvogroup.com