Volvo Trucks Prepares for Production of 2017 Powertrain at Hagerstown, Maryland Site

Volvo Trucks North America is preparing for production of its updated 2017 powertrain at the Hagerstown, Maryland powertrain manufacturing facility. The site, which assembles the full line of Volvo Trucks' proprietary engines and I-Shift automated manual transmissions, will produce Volvo's updated powertrain beginning in late 2016.

"The success of Volvo's proprietary powertrain components is a direct result of the Hagerstown facility and its distinctive combination of powertrain engineering and manufacturing in one campus," said GÓ§ran Nyberg, president of Volvo Trucks North America. "These unique capabilities had a significant impact on the development of our updated 2017 powertrain, which will no doubt further our leadership in integrated powertrain technology."

Volvo Trucks' 2017 powertrain has been engineered to increase fuel efficiency, productivity, reliability, packaging, comfort and uptime. Enhancements include revisions to the Volvo D11 and D13 engines; an all-new Volvo D13 with turbo compounding; significant updates to the Volvo I-Shift; and a new transmission option - the I-Shift with Crawler Gears - designed to improve startability and enable low-speed capabilities for applications like curb pouring and paving.

"Hagerstown possesses the latest manufacturing capabilities, and our people are our number one asset when it comes to producing high-quality powertrain components," said Pierre Jenny, vice president of powertrain production. "With assembly of Volvo's updated 2017 powertrain beginning later this year, we look forward to continuing to deliver the engines and transmissions our customers depend on."

Since its acquisition in 2001, more than $350 million has been invested into the Hagerstown plant to modernize the facility, establish new research and production capabilities, and improve manufacturing processes. These investments have transformed the site into one of the world's most advanced powertrain research and manufacturing facilities.

Recent investments include $30 million to upgrade the engine assembly process for improved efficiency, as well as an $8 million investment that brought production of the Volvo I-Shift to Hagerstown through the creation of a new assembly line, installation of new equipment and tooling, and employee training.

The Hagerstown site has also made great strides toward improving its energy efficiency. In 2014, the site was named a Superior Energy Performance® Platinum-Certified Partner, the highest level in the U.S. Department of Energy (DOE) program. The site also participates in the DOE's Better Buildings, Better Plants program, which has a target to reduce energy intensity by 25 percent over a 10-year period.

In 2015, the Hagerstown site partnered with ConEdison Solutions and Entropy Solar Integrators on the design and installation of a 5,000-panel solar canopy, which is among the largest on the U.S. east coast. Covering the plant's entire north parking lot, the solar canopy generates 1.3 megawatts of electricity that is delivered directly to the facility, helping to offset the plant's electrical demand.

Volvo

Volvo Trucks North America is preparing for production of its updated 2017 powertrain at the Hagerstown, Maryland powertrain manufacturing facility. The site will begin producing the updated powertrain beginning in late 2016.

Volvo Trucks provides complete transport solutions for professional and demanding customers, offering a full range of medium to heavy duty trucks. Customer support is secured via a global network of 2,200 dealers and workshops in more than 125 countries. Volvo trucks are assembled in 15 countries across the globe. In 2015 more than 113,000 Volvo trucks were delivered worldwide. Volvo Trucks is part of the Volvo Group, one of the world's leading manufacturers of trucks, buses and construction equipment, and drive systems for marine and industrial applications. The Group also provides solutions for financing and service. Volvo's work is based on the core values quality, safety and environmental care.

The Volvo Group, which employs about 100,000 people, has production facilities in 18 countries and sells its products in more than 190 markets. In 2015, the Volvo Group's sales amounted to about $37 billion. The Volvo Group is a publicly-held company headquartered in Gothenburg, Sweden. Volvo shares are listed on Nasdaq Stockholm. For more information, please visit www.volvogroup.com or www.volvogroup.mobi if you are using your mobile phone.