Volvo 2008 Annual Report Download - page 32

motor grader activities currently located in
Goderich, Ontario, Canada, to the company’s
facility in Shippensburg, Pennsylvania, USA.
Volvo CE incurred a restructuring cost of SEK
300 M which was recorded in the third quarter
of 2008.
Volvo Group moves
ahead in hybrids
During the autumn, the Volvo Group intro-
duced the fourth-generation hybrid solution
on a broad front in buses, trucks and construc-
tion equipment.
At the IAA trade show in Hannover in Sep-
tember, Volvo Buses showcased the market’s
fi rst commercially viable hybrid bus, the Volvo
7700 Hybrid with up to 30% lower fuel con-
sumption and hybrid components from Volvo.
Mack and Volvo Trucks
launched North Ameri-
can optimization plan
Mack Trucks and Volvo Trucks North America
jointly formulated a plan for increasing the effi -
ciency of their North American operations. The
plan includes the relocation of Mack’s head
offi ce from Allentown, Pennsylvania, to Greens-
boro in North Carolina, and a concentration of
Mack’s truck production to the plant in
Macungie, Pennsylvania. The transfer of pro-
duction has been put on hold awaiting a new
labor agreement with UAW.
The fourth quarter
Credit rating
On October 31, 2008 Moody’s Investors
Service changed AB Volvo’s A3 long term rating
outlook to negative from stable.
First order received for new
Volvo 7700 Hybrid bus
In October, Volvo Buses received its fi rst order
for the company’s new hybrid bus, Volvo 7700
Hybrid. Sales-Lentz, a bus operator in Luxem-
bourg, ordered six hybrid buses with delivery
starting in 2009. As a result of hybrid com-
ponents developed by Volvo and fuel savings
of up to 30%, it is an economically attractive
hybrid bus. Many of Europe’s bus operators
have shown major interest in the new hybrid
bus.
Events after balance
sheet date
Credit ratings
On January 9, 2009 Moody’s placed AB Vol-
vo’s A3 rating under review for possible down-
grade. On February 13, Moodys' changed the
rating to Baa1 with stable outlook.
On January 23, 2009, Standard & Poor’s
initiated an offi cial rating on AB Volvo. Stand-
ard & Poor’s assigned an “A-“ long-term cor-
porate credit rating with stable outlook for AB
Volvo and affi rmed the A2 short-term rating. In
their credit report Standard & Poor’s says the
assigned rating refl ects AB Volvo’s “leading
market positions worldwide” and the fact that
“Volvo also benefi ts from a conservative fi nan-
cial profi le and high fi nancial fl exibility”. On
February 20, Standard & Poor's changed the
outlook to negative for the long-term rating.
Renault Trucks to distribute
Renault Trafi c
Renault Trucks intends to start distributing the
light-duty vehicle Renault Trafi c through its
dealer network in France, Belgium, the Neth-
erlands, Luxemburg, Switzerland and Austria,
then gradually in Renault Trucks’ remaining
European network. Renault Trafi c, which is
manufactured by Renault SA, will further
strengthen Renault Trucks’ customer offer of
light trucks while at the same time add service
and spare parts revenue to Renault Trucks and
its dealer network.
28 Board of Directors’ Report 2008