Volvo Construction Equipment Gives Notice of Redundancy to 850 Employees in Sweden

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Thu Oct 23, 2008 8:39am EDT 

STOCKHOLM, Sweden--(Business Wire)--
Regulatory News:

   Volvo (STO:VOLVA) (STO:VOLVB) Construction Equipment, that earlier
this autumn announced a notice of redundancy to 500 employees in
Sweden, is today giving notice to an additional 850 employees in
Sweden. This is due to the slow down of the global construction
equipment market.

   The weakening of the market which started in North America during
last year and was later spread to Europe has now developed into a
global slow down in the construction equipment market. The global
financial crisis has further accelerated the weakening of the business
cycle.

   "The actions we are taking now are needed in order to adjust
production capacity to declining demand and to ensure that the company
is coming out stronger from this downturn," says Yngve Rosen,
President of Hauler Loader Business Line, Volvo Construction
Equipment.

   It is estimated that out of the additional 850 employees that has
now been given notice within Volvo CE in Sweden, approximately 10% are
white collars and the rest are blue collars. All Volvo CE's locations
in Sweden are affected. The distribution in the number of redundancies
of blue collars is indicative as follows: Arvika 200, Braas 200,
Eskilstuna 200 and Hallsberg 150. Distribution in number of
redundancies of white collars per each location is not yet decided.

   Negotiations with the unions start immediately.

   October 23, 2008

   Volvo Construction Equipment is a major international company
developing, manufacturing and marketing equipment for construction and
related industries. Its products, leaders in many world markets,
include a comprehensive range of wheel loaders, hydraulic excavators,
articulated haulers, motor graders and compact equipment. Volvo
Construction Equipment is part of the Volvo Group, 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.

   This information was brought to you by Cision
http://www.cisionwire.com

Volvo Construction Equipment
Klas Magnusson, +32 475 576214

Copyright Business Wire 2008
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