Renault Trucks concludes agreement in principle to manufacture trucks in China

The AB Volvo subsidiary Renault Trucks has signed an agreement in principle with
the Chinese truck manufacturer Dong Feng Motors aimed at establishing a
joint-venture company for manufacturing trucks and truck components in China. It
is planned that the new company will manufacture Renaults Kerax heavy
construction trucks for the Chinese market.

The agreement, signed in Paris yesterday, enables Renault Trucks to acquire a
share of the capital in Dong Feng Liuzhou Motors (DFLZ), a Dong Feng subsidiary.
The agreement is still subject to final negotiation with regard to price and
ownership interests. The agreement must also be approved by the relevant Chinese
authorities. The goal is for the agreement to be finalized during 2004.

Initially, the agreement aims to establish local assembly of CKD kits for
Renaults Kerax trucks. The long-term aim, however, is to manufacture
components, primarily cabs, for Renaults and DFLZs Chinese product range. DFLZ
mainly manufactures heavy trucks and sold 20,000 trucks in the Chinese market
last year. It is planned that, in five years time, Renault will be able to
produce 7,000 trucks a year locally for the Chinese market.

In October 2002, Renault Trucks signed an agreement with Dong Feng Motors
regarding a transfer of technology relating to Renaults 11-liter dCi 11 engine,
marking the start of collaboration between the two companies.

January 28, 2004

For further information, please contact Marten Wikforss, tel. +46 31 66 11 27



Volvo ar en av varldens ledande tillverkare av lastbilar, bussar,
anlaggningsmaskiner, drivsystem for marina och industriella applikationer samt
komponenter och tjanster for flygplan och flygmotorer. Volvokoncernen
tillhandahaller ocksa kompletta finansiella tjanster. Volvo har ca 71 000
anstallda, produktionsanlaggningar i 25 lander och narvaro pa mer an 185
marknader. Volvo omsatter 180 miljarder SEK och ar noterat pa borserna i
Stockholm, London,  Frankfurt och pa NASDAQ i USA.