Volvo 2009 Annual Report Download - page 25

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independent trust that will completely elimin-
ate Mack’s commitments for providing health-
care to retired employees, their surviving part-
ners, dependent family members, as well as for
UAW members who retire in the future. This
had a negative impact of SEK 870 M on the
Volvo Group’s operating income during the
second quarter of 2009 and a negative impact
of the same amount on the net debt. The trust
must be approved by the U.S. District Court for
the Eastern District of Pennsylvania, a process
that can take up to 12 months.
Volvo unveils proprietary
medium-heavy engine
At Volvo’s Capital Market Day in Eskilstuna,
Sweden, on June 16, the Volvo Group CEO,
Leif Johansson, announced that the Group
develops its own medium-duty engine for
trucks and buses scheduled to begin launch in
2010.
The third quarter
AB Volvo improved its funding capabil-
ities through entry into US bond market
In October, Volvo Treasury AB, a subsidiary of
AB Volvo, issued a USD 750 M guaranteed
bond offering at an interest rate of 5.95% due
2015. The offering marked AB Volvo’s rst
entry into the U.S. institutional bond market.
The U.S. capital market is one of the world’s
largest and most liquid markets.
Hybrid vehicles from Volvo Group
exceed expectations
The Volvo Group’s proprietarily developed plat-
form for hybrid operation of heavy vehicles has
been installed in several different types of
vehicles and has been used to propel the
Group’s buses in trafc operations in Göteborg,
Sweden and London, England. The experiences
gained from the Group’s parallel hybrid tech-
nology indicated excellent fuel savings. The
Volvo Group has developed about 20 different
vehicles based on the Group’s hybrid solution,
including wheel loaders, buses and refuse
collection trucks.
New agreement between
Mack Trucks and UAW
On May 30, 2009, members of the U.S. trade
union, the United Auto Workers, approved a
new 40-month Master Agreement with the
Volvo Group’s subsidiary Mack Trucks. The
agreement includes the establishment of an
Q2 Q3
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