VOLVO TRUCKS MODIFIES NORTH AMERICAN ALTERNATIVE FUELS PLAN

October 1, 2014 by Volvo Trucks North America

Adapting to the pace of the North American alternative fuel market, Volvo Trucks has put on hold plans to launch its own compression ignition liquefied natural gas (LNG) engine for North America. Field testing of Volvo's dimethyl ether (DME)-powered vehicles will continue, and the company will continue to offer spark-ignited natural gas engines in its VNM and VNL models.

Development of the natural gas infrastructure to support long-haul trucking has been modest over the last year, and the needs of customers in the primary markets for natural gas vehicles – regional haul and dedicated routes – are being met with the company's current natural gas line-up.

Volvo Trucks continues to believe that DME – which can be produced from natural gas – holds promise as a heavy-truck fuel. Customer field tests of DME-powered vehicles will continue, but the company has decided not to establish a commercialization date as it continues monitoring market and stakeholder interest in the fuel.

Volvo Trucks North America's operations and products are guided by the company's three core values: Quality, Safety and Environmental Care. The Volvo VNM, VNL, VNX, VHD and VAH trucks are assembled in the United States at the New River Valley Plant in Dublin, Virginia, while Volvo engines for North America are assembled in Hagerstown, Maryland. The New River Valley Plant is certified to ISO50001 energy standards. Both plants are certified to ISO14001 environmental and ISO9001 quality standards.

The Volvo Group is one of the world's leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 110,000 people, has production facilities in 19 countries and sells its products in more than 190 markets. In 2013, the Volvo Group's sales amounted to $41.5 billion. The Volvo Group is a publicly-held company headquartered in Gothenburg, Sweden. Volvo shares are listed on OMX Nordic Exchange Stockholm and are traded OTC in the U.S. For more information, please visit http://www.volvogroup.com/ or http://www.volvogroup.mobi/ if you are using your mobile phone.