VOLVO TRUCKS INTRODUCES THE VOLVO VM - A NEW MEDIUM TRUCK FOR SOUTH
AMERICA

Volvo Trucks today unveils a new medium truck model. The Volvo VM has
been developed specifically for the South American market. Investment in
the new model totals 35 million US dollars and the aim is to secure ten
percent of the market for medium trucks within just one year.

The new Volvo VM is the company's first medium truck model to be
developed and produced outside Europe. The Volvo NH, Volvo FH and Volvo
FM have already been in production at the factory in Curitiba, Brazil,
for a number of years.

The Volvo VM has been developed to meet the South American customers'
demand for a medium truck for regional distribution and urban
operations. The new Volvo VM is delivered with a fully-built body
directly from the factory in Curitiba. About 75-80 percent of the
components in the new model are made locally in Brazil. The Volvo VM
comes with a choice of two engines producing 210 and 240 horsepower
respectively.

With the new truck come the concrete synergy benefits of the company's
global streamlining process. Some components in the new model come from
Renault's medium-range model, the Midlum.

The company expects to sell 1,500 Volvo VM trucks already next year,
corresponding to about ten percent of the market for medium trucks in
South America.

September 2, 2003

For further information, please contact:
Claes Claeson, Media Relations, Volvo Truck Corporation
Telephone. +46 31-66 39 08 or +46 708-36 39 08.