AB Volvo signs memorandum of understanding with DEUTZ AG

AB Volvo has signed a non-binding memorandum of understanding with DEUTZ AG with
the intention to explore the potential to extend the long-term cooperation with
a joint development of the next generation of medium-duty engines for off-road
applications.
The memorandum of understanding also aims at analyzing the conditions for
establishing a DEUTZ majority-owned joint-venture company in China for the
production of medium-duty engines for off-road applications. The production
company is intended to provide support for the Volvo Group’s anticipated growth
in off-road applications in Asia.

Any implementation requires both companies
to agree on the final terms and conditions in a binding contract.

April 5,
2012

Reporters who want more information, please contact Mårten Wikforss, +46
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