Volvo AB

Volvo cut energy consumption by 90 percent

Volvo cut energy consumption by 90 percent

By developing a new drying method for painted engine blocks, Volvo
Powertrain in Skövde succeeded in reducing its energy consumption by 90
percent. Volvo's executive management is eager to see more efficiency
improvements of this kind within the Group. "I have urged all of our
employees to do their best to make Volvo a world leader in terms of
energy efficiency and low emissions," says the Volvo Group's President
and Chief Executive Officer, Leif Johansson.

The five employees in the team at Volvo Powertrain in Skövde who devised
the new drying method were awarded the Volvo Group's Internal
Environmental Prize at a ceremony held today. In the past, the plant
used heat to dry newly painted engine blocks. However, by switching to
dry air in the drying process, the team succeeded in reducing energy
consumption from 650 to 70 kW per hour. This corresponds to a total
decrease in energy consumption of a full 90 percent.
The award ceremony was held in connection with the Volvo Group's
internal environmental conference. During the conference, Leif
Johansson, the Volvo Group's President and Chief Executive Officer, and
Karl-Erling Trogen, member of Volvo's Executive Management Group,
encouraged efforts to make the Volvo Group a world leader in the field
of energy efficiency and low emissions, in terms of both production and
finished products. Environmental care is one of Volvo's core values.

October 8, 2002


For further information, contact Lena Gevert, +46 30 66 69 90