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THE VOLVO GROUP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
62
Value in Value in Deprecia- Subsidaries Trans- Value in Book value
Accumulated balance balance tion and acquired lation Re- balance in balance
depreciation and sheet sheet amortiza- Sales/ and differ- classifi- sheet sheet
amortization 1998 1999 tion 2scrapping divested ences cations 2000 2000 3
Goodwill 1,592 1,836 491 – – 74 (47) 2,354 4,969
Entrance fees,
aircraft engine programs 1,134 1,170 82 (32) – 2 (1) 1,221 457
Other intangible assets 113 325 75 (17) – 9 (2) 390 1,499
Total intangible assets 2,839 3,331 648 (49) 0 85 (50) 3,965 6,925
Buildings 6,840 3,654 461 (73) 51 99 6 4,198 7,846
Land and land improvements 597 226 25 (5) – 10 (1) 255 2,535
Machinery and equipment131,550 15,143 2,247 (916) (197) 332 (95) 16,514 10,462
Construction in progress,
including advance payments – – – – – – – – 1,388
Total buildings, machinery
and equipment 38,987 19,023 2,733 (994) (146) 441 (90) 20,967 22,231
Assets under operating leases 5,354 4,179 2,870 (1,621) – 276 (666) 5,038 14,216
Total tangible assets 44,341 23,202 5,603 (2,615) (146) 717 (756) 26,005 36,447
1 Machinery and equipment pertains mainly to production equipment.
2 Includes write-downs.
3 Acquisition cost less accumulated depreciation and amortization.
Capital expenditures amounted to 5,430 (5,172;
10,549). Investments in assets under operating leases
amounted to 5,709 (5,578; 12,654).
Capital expenditures approved but not yet implement-
ed at December 31, 2000, amounted to SEK 6.8 billion
(7.2; 18.0).
automation. It offers products, services and complete
solutions in production equipment, maintenance and ser-
vice to customers within the manufacturing industry.
Eddo Restauranger AB
As from December, 2000, Volvo owns 30% of Eddo
Restauranger after the divestment of 51% to Amica AB,
which acquired 51% of the shares in 2000 and has the
option to acquire the remaining shares in 2002.
Mitsubishi Motors Corporation
In 1999, an agreement was signed between Volvo and
Mitsubishi Motors Corporation covering ownership co-
operation and a letter of intent to form a strategic alliance
between the companies regarding market, product and
industrial cooperation in trucks and buses. In conjunction
with this agreement Volvo acquired shares corresponding
to 5% of the votes and capital in Mitsubishi Motors.
Scania AB
During 1999, Volvo acquired 43.5% of the capital and
28.6% of the voting rights in Scania, one of the world’s
leading manufacturers of trucks and buses. At December
2000, Volvo’s holding in Scania was 45.5% of the capital
and 30.6% of the voting rights.
Petro Stopping Centers Holding LP
In 1999, Volvo acquired 28.7% of the truck-stop chain
Petro Stopping Centers in the U.S. This expanded
service to Volvo’s truck customers along the interstate
network in the U.S., offering preventative maintenance,
spare parts sales, emergency road service and minor
repairs.
A specification of Group holdings of shares and partici-
pations appears on page 89.
The Volvo Group has transactions with some of its
associated companies. As of December 31, 2000, the
Group’s net receivables from associated companies
amounted to 358 (820; 6,260).
The market value of Volvo’s holdings of shares and
participations in listed companies as of December 31,
2000 is shown below.
Book value Market value
Scania AB 24,051 19,015
Mitsubishi Motors 2,344 1,331
Deutz AG 670 166
Bilia AB 570 721
Henlys Group 524 443
Total holdings
in listed companies 28,159 21,676
Holdings in non-
listed companies 2,322 –
Total shares and
participations 30,481 –
Shanghai Sunwin Bus Corporation
In 2000, Volvo and the Chinese vehicle manufacturer,
Shanghai Automotive Industry Corporation, signed
agreeements covering establishment in Shanghai of a
joint-venture company, Shanghai Sunwin Bus Corporation,
for the manufacture and sale of city and commuter bus-
es. Each party will own 50% of the new company.
Euromation AB
In 2000, a new company was formed, in which Volvo
acquired 55%. Euromation is a supplier within industrial
Note 13 Shares and participations