Press releases 2009

Trade Union negotiations regarding the notice of layoffs of 160 white-collar employees at Volvo Aero have been concluded in agreement. The negotiations resulted in the layoffs of 36 employees, in addition to the 87 employees who have announce that they will leave the company and this positions will not be replaced. Volvo Aero is also decreasing more than 70 consulting positions.

For Volvo Aero, net sales during the third quarter increased by 6% to SEK 1,761 M, compared to SEK 1,656 M in the same period a year ago, mainly due to currency effects. Adjusted for currency fluctuations, sales decreased by 10%.

During the second quarter, Volvo Aero’s sales increased by 20% to SEK 2,034 M (1,700). Adjusted for currency, sales declined by 8%. The decrease was attributable to the downturn, with lower demand for spare parts within the aerospace business.

In conjunction with the international Paris Air Show, Volvo Aero and the French engine manufacturer Snecma signed an agreement stating that Volvo Aero Norway will supply components for the new, enhanced engine for the Boeing 737 aircraft, the CFM56-7BE. As Snecma is Volvo Aero Norway’s single largest customer, this agreement is of great importance to Volvo Aero Norway.

At the Paris Air Show, Snecma and Volvo Aero agreed on the basic principles of a five-year partnership between the two companies in the field of space propulsion. The agreement between Snecma and Volvo Aero involves the series production of 37 nozzles and the same number of turbines, which will be manufactured by Volvo Aero in Trollhättan from the end of 2009 until mid-2014.

Volvo Aero has signed an agreement with the regional airline VLM Airlines, soon to be renamed Cityjet, which has its registered office in Belgium. The five-year agreement pertains to the maintenance of VLM Airline’s fleet of 18 Fokker 50 aircraft with PW100 engines and is considered a key order.

Volvo Aero has designed a new nozzle for the Ariane rocket’s Vulcain 2 engine in its patented Sandwich technology. The new sandwich nozzle will be significantly less expensive to manufacture, while at the same time will be more robust and deliver higher performance, allowing Ariane 5’s payload to increase by 100 kg.

Volvo Aero has developed and manufactured a fan frame for an aircraft engine that is based on advanced load-carrying parts made of both composites and titanium.

Volvo Aero has issued notices of termination of employment to 160 white collar employees in Trollhättan.

The Swedish government has decided to continue to participate in the European launch-vehicle program. This means that Volvo Aero’s space operations in Trollhättan can continue to participate in all ongoing Ariane and technology programs.