Volvo 2004 Annual Report Download - page 10

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with the agreement, Prévost Car Inc.
became a wholly owned subsidiary of
Volvo Bus Corporation. The agreement
also involved Volvo converting part of the
convertible debenture loan of USD 240 M
issued to Henlys into shares in a newly
established US-based company contain-
ing the US school bus manufacturer Blue
Bird. The conversion resulted in a write-
down of approximately SEK 1.3 billion.
8Board of Directors’ Report
The year 2004
As part of the restructuring of the bus
manufacturer Henlys Group plc, the Volvo
Group reached an agreement to acquire
the remaining 50% of the North
American bus manufacturer Prévost Car
Inc., containing the Prévost and Nova
brands.
The purchase price was USD 83 M
including two loans made available to
Prévost Car Inc. by Henlys. In accordance
Volvo Aero and General
Electric Company have
signed an agreement
whereby Volvo Aero will
be responsible for the
design and manufacture
of three major compon-
ents for the new GEnx
engine. According to the
agreement signed in
Seattle on December 15,
2004, Volvo Aero becomes
arisk and revenue sharing
participant (RSP) in the GEnx engine
program.
PRÉVOST AND NOVA
BUS ACQUIRED
RENAULT TRUCKS
CONCLUDES
FRAME AGREE-
MENT TO
MANUFACTURE
TRUCKS IN CHINA
Renault Trucks has signed a frame agree-
ment with the Chinese truck manufacturer
Dong Feng Motors aimed at establishing a
joint-venture company for manufacturing
trucks and truck components in China. It is
planned that the new company will manu-
facture Renault Trucks’ Kerax heavy con-
struction trucks for the Chinese market.
The agreement is still subject to final nego-
tiation between the two companies as well
as approval from the relevant Chinese
authorities. Initially, the agreement aims to
establish local assembly of CKD kits
(Completely Knocked-Down) for Renault
Trucks’ Kerax model Kerax trucks. The
long-term aim is to manufacture compo-
nents, primarily cabs, for Renault Trucks’
and Dong Feng’s Chinese product range.
LARGEST COMMERCIAL
AIRCRAFT ENGINE
CONTRACT EVER