UAW members approve new agreement with Mack Trucks

UAW members approve new agreement with Mack Trucks

Members of the U.S. trade union, the United Auto Workers, have approved the new
40-month Master Agreement with the Volvo Group's subsidiary Mack Trucks. The
agreement includes the establishment of an independent trust that will
completely eliminate Mack's commitments for providing healthcare to retired
employees. As previously announced, this will have a negative impact of
approximately USD 110 M on the Volvo Group's operating income during the second
quarter of 2009 and a negative impact of the same amount on net debt.

The trust must be approved by the U.S. District Court for the Eastern District
of Pennsylvania, a process that can take up to 12 months. Subsequently, the
trust will permanently take over the entire obligation to provide healthcare
benefits to current UAW members who have retired from Mack, for their surviving
partners and for dependent family members, as well as for UAW members who retire
in the future.

May 31, 2009

Reporters who want more information, please contact:
Mårten Wikforss, AB Volvo, tel +46 31 66 11 27 or +46 705 59 11 49

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AB Volvo (publ) may be required to disclose the information provided herein
pursuant to the Securities Markets Act. The information was submitted for
publication at 10.30 a.m. CET, 31 May, 2009.

The Volvo Group is one of the world's leading manufacturers of trucks, buses and
construction equipment, drive systems for marine and industrial applications,
aerospace components and services. The Group also provides complete solutions
for financing and service. The Volvo Group, which employs about 100,000 people,
has production facilities in 19 countries and sells their products in more than
180 markets. Annual sales of the Volvo Group amount to about SEK 300 billion.
The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden.
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