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6Board of Directors’ Report
Volvo Penta has introduced an entirely
new drive system for boats – the Volvo
Penta IPS (Inboard Performance System).
The IPS system is based on forward-fac-
ing, pulling propellers and steerable driv-
ing units, which make the boats faster,
more powerful, cleaner, quieter and sub-
2004
stantially easier to maneuver. It is thought
that the Volvo Penta IPS could gain the
same significance in the boating world as
another Volvo Penta innovation – the
Aquamatic drive from the end of the
1950s.
fourth quarter of 2003. The transaction
was carried out as part of Volvo’s commit-
ment to the European Commission to
divest the Scania shares not later than
April 23, 2004.
Volvo’s holding of Scania B shares was
sold to Deutsche Bank on March 4, 2004
for an amount of about SEK 14.9 billion.
As a consequence of the divestment, the
Scania holding was written down in the
SCANIA B SHARES SOLD
VOLVO ANNUAL
GENERAL MEETING
APPROVED AINAX
At the Annual General Meeting of AB
Volvo on April 16, 2004, the Board’s pro-
posal to transfer all A shares in Scania
AB to the wholly owned subsidiary Ainax
and thereafter to distribute the shares in
Ainax to Volvo’s shareholders was
approved. The value of the distribution of
Ainax was SEK 6,310 M.
MOODY’S
CONFIRMED
CREDIT RATING
Moody’s confirmed AB Volvo’s short-term
credit rating of P-2 and long-term A3 and
concurrently raised the outlook to stable.
Moody’s expects that Volvo will continue
to increase efficiency, strengthen com-
petitiveness and improve financial
strength.
INDUSTRIAL
RELOCATION
WITHIN RENAULT
TRUCKS
The Volvo Group is carrying out an indus-
trial relocation in Europe as a result of
which manufacture of crankshafts for
medium-heavy truck engines is being
increased at Villaverde, Spain, while the
production of Renault heavy trucks is
being concentrated to the plant in Bourg-
en-Bresse, France. A total of about 450
employees will be affected by the deci-
sion. As a result a cost of approximately
SEK 470 M was charged to operating
income.
NEW
BOAT DRIVE SYSTEM
INTRODUCED
THE YEAR