2007 Case Series Revised: 2007/03/29

Maryann Keller19941 15%40%25% 40% 2005 6,600 38% 30% 29% 2005 4000 45 86% 11 2005 1700

2005 6,600 2001 2005 3.4% 2001 2002 2005 Strategy Analytics 2009 3.6%4.3% 2010 2.3%2.8%Exhibit 1 2 800 6,000 5% 5 IT R&D R&D 18% 850 R&D R&D 30% 200 10 R&D DaimlerChryslerVolkswagenBMWRobert Bosch R&D 170 90%GMFord DaimlerChrysler R&D 160 R&D 18% OICA International Organizational of Motor Vehicle Manufacturers 26 2004 4,300 2005 2005 2,500 2004 6% 2005 2,000 2005 1,900 2005 1,100 1,080 570 Exhibit 2 1700 580 3 300 2004 500 2001 2006 15% Exhibit 3

2

local content requirement

9 8,000 15,000 Exhibit 4 Exhibit 5 After MarketAM OEMOriginal Equipment Manufacturing ODM Original Design Manufacturing OES Original Equipment Service 40%~50% 15%20% 20% Volume ApproachPremium Approach Exhibit 6 3

Last-Minute Competitors

Exhibit 7 Ford Mondeo 60 Exhibit 8 BCG20042 4 10 20 1000 2000 10 500 600 10 20 30 40 40 3

2005 9 85% 4

Autopolis light trucks RVs MPVs SUVs 600cc

2005 GMToyota Ford 13% 10.6% 9.5%Toyota 2004 Ford Toyota GM Ford Exhibit 9GM 2006 2004 Ford 2006 127 Toyota 2004 1 GM Ford GM Delphi Ford Visteon Denso Toyota

1990 GM SAAB Fiat 50% 20% SuzukiIsuzu 20%12% Ford JaguarLand Rover Mazda Volve 2002 44.4% 15% Daimler Mercedes-Benz 1998 Chrysler DaimlerChrysler Exhibit 10 Original Equipment ManufacturerOEMVariable Brand Owner VBO OEM Toyota Toyota VBO Ford VBO platform Ford FORD FocusVOLVO 40/50 MAZDA 3 5

Ford Nissan Mercury Villager Nissan Quest Toyota Hybrid GMFord Hybrid Toyota Hybrid 2003 70.5% 75.6%2005 GMToyotaFordRenault-Nissan Volkswagen AG VAGDaimler-Chrysler PSAHyundaiHondaBMW Exhibit 11

1990

OEM ODM

6

Calsonic Kansei Faurecia Visteon Front-end module, FEM Cockpit module Door moduleSeat moduleExhaust module

GM ToyotaFord Renault-Nissan Volkswagen AG VAG Daimler-Chrysler 70% Delphi Denso Visteon Robert Bosch Siemens VDO AutoliveToyota Denso 25% Delphi GM 0.5

1970 7.5 2001 5 2005 3 5 4

2005 6,600 2005 2005 592 2006 640 BCG 2001 2006 7

15% 10% Exhibit 12

GATT WTO WTO GATT WTO

90 20 70 Honda2006 14.8% 29.6 Chrysler 2006 50% 91% 2001 0.66% 2.1% 5% 0.1% 92% Toyota Honda

ABS Telematics Navigation SystemDigital Entertainment System Driver Assist System 8

ITIS 2004 1,518 2008 1,882 IC Insight 2005 23% 2010 40%

1953 1957 1958 19671978 5060% 1990 70%2002 WTO CKD1/

2005 4018.8 4.3% 2304.9 2004 5.9%2005 44.6 2004 3.6% 86% 31.9%19.6% 29.2% 16.8% 12.7% Exhibit 13 2005 22.1 2004 75% 150% Exhibit 14

Completely Knocked DownCKD 9

1

2005 1713.8 2004 3.4% 36.3% 7.5% 46.4% 584 42.5% 13% 40 2004 708 75.6% 601 64.1% Exhibit 16 13.3% 25.6% 218.8 240 Exhibit 15

30 45 Exhibit 17 3 5% 11 Toyota AltisVios 2 3 Exhibit 18 Exhibit 19 Cefiro OEM 10

AM AM 85% 90%5

AM

AM Exhibit 20

6 Automotive Manufacturing ServiceAMSAMS AMS AMS 2003 YuLon NewYLNYuLon OriginalYLOYLO 100% YLN Nissan 40% YLO 60%YLO YLN OEM Nissan OEM YLN 2005 1 GM DaimlerChrysler Chrysler Town & Country AMS AMS AMS

11

2005 IT Exhibit 21 IT PCB LED 2004 IT 2005 2 IA 2005 460 2006 560 2007 600 650

2004 2007 2007 ToyotaLexus OEM MazdaFord 1990 17 2004 Q1 AM CAPA 26.84% 23.2%2

2006 12

12.99% 26.95% 10.05% IT

13

6800 6600 6400 6200 6000 5800 5600 5400 5200 5000 2000 2001 2002 2003 2004 2005

Exhibit 1FOURIN IEK 2006/04

14

in Units MOTOR VEHICLE EUROPE - EUROPEAN UNION 25 countries - EUROPEAN UNION 15 countries Double Counts Germany / Austria Double Counts Germany / Belgium Double Counts Japan&Spain/ Portugal AUSTRIA BELGIUM FINLAND FRANCE (1) GERMANY(2) ITALY NETHERLANDS(1) PORTUGAL SPAIN SWEDEN (3) UNITED KINGDOM (1) - EUROPEAN UNION New Members Double Counts Germany / Slovakia CZECH REPUBLIC HUNGARY POLAND(4) SLOVAK REPUBLIC SLOVENIA - EAST AND CENTRAL EUROPE ROMANIA SERBIA CIS Double Counts Ukraine / Russia Double Counts Ukraine / South Korea Double Counts Ukraine / Italy Double Counts Ukraine / Romania Double Counts Ukraine / Japan RUSSIA BELARUS UKRAINE UZBEKISTAN (4) - TURKEY 2003 20,000,286 17,973,321 16,778,252 62,899 253,879 70,922 139,656 904,383 19,658 3,620,066 5,506,629 1,321,631 215,281 239,361 3,029,826 323,032 1,846,429 1,195,069 94,353 441,699 126,116 322,061 281,347 118,199 1,493,611 95,247 13,903 1,384,461 30,167 25,588 5,480 2,362 2,434 1,278,792 17,336 107,890 46,474 533,354 2004 20,834,700 18,330,912 16,851,240 63,244 231,503 74,777 248,718 900,273 10,510 3,665,990 5,569,954 1,142,105 247,503 226,728 3,012,174 340,270 1,856,539 1,479,672 47,542 448,360 122,666 601,000 223,542 131,646 1,680,380 122,185 15,194 1,543,001 71,035 50,000 5,000 2,500 2,500 1,386,127 20,290 186,890 80,729 823,408 2005 20,801,468 18,176,860 16,440,332 66,818 253,000 82,733 253,194 928,965 21,644 3,549,008 5,757,710 1,038,352 180,748 219,135 2,752,500 338,578 1,803,049 1,736,528 42,160 604,930 152,015 625,443 218,349 177,951 1,745,516 194,802 14,179 1,536,535 77,887 60,000 5,500 3,000 3,000 1,351,199 23,150 215,759 95,814 879,092 % CHANGE (2004-2005) 0% -1% -2% 6% 9% 11% 2% 3% ++ -3% 3% -9% -27% -3% -9% 0% -3% 17% -11% 35% 24% 4% -2% 35% 4% 59% -7% 0% 10% 20% 10% 20% 20% -3% 14% 15% 19% 7%

15

in Units MOTOR VEHICLE AMERICA - NAFTA CANADA (1) MEXICO UNITED STATES OF AMERICA - SOUTH AMERICA ARGENTINA BRAZIL CHILE(4) COLOMBIA(4) ECUADOR(4) URUGUAY VENEZUELA(4) ASIA-OCEANIA Double Counts Malaysia / world AUSTRALIA CHINA INDIA INDONESIA IRAN JAPAN MALAYSIA PAKISTAN (4) PHILIPPINES(4) SOUTH KOREA TAIWAN THAILAND VIETNAM(4) AFRICA Double Counts Egypt / world Double Counts South Africa / world BOTSWANA EGYPT KENYA MOROCCO(4) NIGERIA(4) Others SOUTH AFRICA ZIMBABWE TOTAL COUNTRIES SHOWN ONLY 413,261 4,443,686 1,161,523 322,044 582,099 10,286,218 344,284 51,692 53,777 3,177,870 386,686 742,062 21,492 395,933 30,579 74,006 1,567 50,012 96 18,546 5,472 1,230 421,335 2,260 60,663,225 12,996 4,272 1,020 455,702 384 64,496,220 49,335 12,540 21,986,694 2003 18,280,312 16,243,280 2,552,862 1,575,447 12,114,971 2,037,032 169,176 1,827,791 6,020 19,985 1,520 2004 18,947,305 16,278,082 2,711,536 1,577,159 11,989,387 2,669,223 260,402 2,317,227 7,185 42,959 3,620 78 37,752 24,291,548 58,000 411,406 5,234,496 1,511,157 408,311 788,658 10,511,518 471,975 93,172 70,728 3,469,464 430,814 927,981 19,868 422,667 31,269 69,773 49,198 25,817,187 91,000 394,713 5,707,688 1,626,755 494,551 817,200 10,799,659 563,837 156,222 45,311 3,699,350 446,345 1,125,316 31,600 522,262 29,898 66,053 1,566 69,223 405 14,881 2,937 2,970 525,271 960 66,465,768 15% -31% ++ 15% ++ 3.10% 40% 30% 6% 57% -4% 9% 8% 21% 4% 3% 19% 68% -36% 7% 4% 21% 59% 24% -4% -5% 2005 19,324,491 16,339,678 2,688,363 1,670,403 11,980,912 2,984,813 319,755 2,528,300 6,660 55,435 25,465 % CHANGE (2004-2005) 2% 0% -1% 6% 0% 12% 23% 9% -7% 29% ++

1 All manufacturers. 2 Official figures include Belgian GM assembly. 3 Official figures take account of Swedish manufacturers world production; in this report, we only use the vehicles produced in Sweden, and the vehicles for which Volvo Trucks does not specify the country of production.. 4 Estimation

Exhibit 2OICA2006 16

Exhibit 3Japan Automobile Manufacturers Association (2006)

Exhibit 41997

17

Toyota

0.5 0.5

ISO9000 QS9000

AM

Exhibit 52003

Exhibit 6Premium VolumeBCG2004,Beyond Cost Reduction. March:6-48

18

-10~50 0~70 -5G~5G 10%

0.1~1% -0~40 1G 10%

1~ -40~120-40~140 2~25G25G 50%

0.1~1% -55~70-65~350 0.1~10G20G 10%

Exhibit 72006/10

Exhibit 8 IEK2003/06

19

Revenue COGS Gross profit Operating cost Operating Income Revenue COGS Gross profit Operating cost Operating Income

GM 194,655 158,887 35,768 53,574 17,806 Daimler-Chrysler 177,185 145,384 31,801 29,141 2,660

Toyota 178,339 138,482 39,858 23,934 15,924 Honda 73,331 51,189 22,142 16,794 5,348

Ford 176,896 144,924 32,145 33,522 1,550 PSA 66,564 51,819 14,745 11,536 3,209

Renault-Nissan 48,902 NA NA NA 4,477 BMW 55,195 42,579 12,616 8,022 4,488

VW 59,440 50,461 8,979 4,675 4,304

Exhibit 92005 3:;

3

2005 ,=11.183=1117.96 20

Opel

100%(1931)

Isuzu50%(1990)

12%(2002) 20%(2000) 21%(1999) (1984)

Saab20%(2000)

General Motor

SuzukiFuji/Subaru

Fiat

95%(1965)

Nummi Audi51.2%(1998)

VW PSA BMW

Daihatsu

ToyotaHino50.1%(2001)

Rover

2000Land Rover

Honda33.4%(1996)

Mazda Volvo100%(2001) DCX(1998)

Ford

Chrysler

DCXMitsubishi43%(2003)

42%(2003)

Mitsubishi Fuso

44%(2002)

Renault

Nissan13%(2002) 22.5%(1999)

22.5%(1999)

Nissan Diesel

Exhibit 1020052006

21

Marque Country of Origin Ownership 1. General Motors (United States) - 9,040,309 vehicles (13.4%) Buick United States Division Cadillac United States Division Chevrolet United States Division Daewoo Korea Subsidiary Geo (defunct) United States Division GMC United States Division Holden Australia Subsidiary Hummer United States Division Oldsmobile (defunct) United States Division Opel Germany Subsidiary Pontiac United States Division Saturn United States Subsidiary Saab Automobile Sweden Subsidiary Vauxhall United Kingdom Subsidiary 2. Toyota Motor Company (Japan) - 7,100,167 vehicles (10.6%) Daihatsu Japan Subsidiary Hino Japan Subsidiary Lexus Japan Division Scion Japan Division Toyota Japan Division 3. Ford Motor Company (United States) - 6,418,416 (9.5%) Ford Motor Company United States Division Jaguar United Kingdom Subsidiary Land Rover United Kingdom Subsidiary Lincoln United States Division Mercury United States Division Volvo Cars Sweden Subsidiary 4. Volkswagen AG (VAG) (Germany) - 5,173,351 vehicles (7.7%) Audi Germany Division Bentley United Kingdom Subsidiary Bugatti France Subsidiary Lamborghini Italy Subsidiary SEAT Spain Subsidiary koda Czech Republic Subsidiary Volkswagen Germany Division 5. Daimler-Chrysler (Germany)- 4,319,399 vehicles (6.4%) Chrysler United States Division Dodge United States Division Eagle (defunct) United States Division Jeep United States Division Mercedes-Benz Germany Division Maybach Germany Division Mitsubishi Fuso Truck and Bus Corporation Japan Subsidiary Plymouth (defunct) United States Division Smart Germany Division 6. PSA Peugeot Citron (France) - 3,375,366 vehicles (5%) Citron France Division Peugeot France Division 7. Honda (Japan) - 3,372,924 vehicles (5%) Acura Japan Division Honda Japan Division 8. Nissan (Japan) - 3,348,033 vehicles (5%) Infiniti Japan Division Nissan Japan Division Datsun (defunct) Japan Division 9. Hyundai (South Korea) - 2,853,436 vehicles (4.2%) Hyundai Motor Company Korea Division Kia Motors Korea Division 10. Renault (France) - 2,616,818 vehicles (3.9%) Dacia Romania Subsidiary Renault France Division Renault Samsung Motors Korea Subsidiary 11. Suzuki (Japan) - 2,071,707 vehicles (3.1%) Maruti Udyog India Subsidiary Suzuki Japan Division 12. Fiat (Italy) - 1,934,476 vehicles (2.9%) Alfa Romeo Italy Subsidiary Ferrari Italy Subsidiary Fiat Italy Division Lancia Italy Subsidiary Maserati Italy Subsidiary 13. Mitsubishi (Japan) - 1,327,035 vehicles (2%) Mitsubishi Japan Division Galloper Europe Division 14. BMW Group (Germany) - 1,323,119 vehicles (2%) BMW Germany Division MINI United Kingdom Subsidiary Rolls-Royce United Kingdom Subsidiary 15. Mazda (Japan) - 1,285,130 vehicles (2%) Mazda Japan Division

Type of vehicle Near-luxury Luxury Mainstream Mainstream/Entry-level Entry-level Truck Mainstream Luxury Truck Near-luxury Mainstream Mainstream-Performance Entry-level Near-luxury Mainstream Entry-level Truck Luxury Entry-level Mainstream Mainstream Luxury Luxury Truck Luxury Near-luxury Near-luxury Luxury Luxury Performance Performance Mainstream/Entry-level Entry-level Mainstream Near-luxury Mainstream-Performance Entry-level Truck Luxury Luxury Truck Mainstream/Entry-level Luxury/Mini Mainstream Mainstream Luxury Mainstream Luxury Mainstream Mainstream Mainstream Mainstream Entry-level Mainstream Mainstream/Entry-level Entry-level Entry-level Near-luxury/Performance Performance Mainstream/Entry-level Near-luxury Luxury/Performance Mainstream Trucks Luxury Luxury/Mini Luxury Mainstream

Main market North America / China North America / Europe North America / Europe Asia / Europe (as Chevrolet) North America North America Australia/New Zealand/China/UAE North America / Europe North America Continental Europe North America North America Europe / North America United Kingdom Global Asia Global North America Global Global Europe/North America Global North America North America Europe/North America Europe, North America Global Global Global Europe/Latin America Europe Global North America / Europe North America / Europe North America North America / Europe Global Global Asia North America Europe/Canada/Mexico Europe/Latin America Europe/Latin America North America Global North America Global Asia Global Global Europe Europe/Latin America Asia India Global Global Global Global Europe Global Global Europe Global Europe/North America Global Global

Exhibit 112005 OICA2006

22

Exhibit 122001 2006 BCG2003 Rethinking Made in China Cars and Parts. November:1-13.

Toyota Mitsubishi Ford Nissan Mazda Honda Hyundai Suzuki Benz BMW Formosa Volvo GM/Opel Chrysler Subaru

2004 133.726 89,252 49,768 70,316 24,822 18,831 18,718 20,567 7,316 5,564 6,234 1,731 1,036 508 345 35,552 484,286

2005 150.324 86,661 55,283 65,292 29,997 23,137 23,984 19,317 7,604 6,633 3,627 1,605 592 458 380 39,732 514,626

05/04 % 12.4 -2.9 11.1 -7.1 20.8 22.9 28.1 -6.1 3.9 19.2 -41.8 -7.3 -42.9 -9.8 10.1 11.8 6.3

% 29.2 16.8 10.7 12.7 5.8 4.5 4.7 3.8 1.5 1.3 0.7 0.3 0.1 0.1 0.1 7.7 100.0

Exhibit 13 IEK 2005/04

23

6,030 9,982 50%50% 5.2 46% 30% 24% 3,100 75%

2005

FreecaDelica 58,953 LinocelVeryca Soveran BluebridSunny 156,583 QuestTeana Tiida SentraCefiro 161,882 X-TRAIL

Exhibit 14 IEK 2006/04

2002 1.1 8,221 9,547 10,131 165 2,142 124 13,703 13,560 42,172 99,766 0.3 13,850 14,430 4,215 2,183 2,940 468 1,825 2,287 12,938 55,136

2003 1 9,165 10,932 12,232 240 2,052 154 15,519 15,208 52,581 118,084 1 16,472 17,992 4,650 2,644 3,887 616 4,159 2,820 15,267 68,508

2004 67 10,104 12,576 13,303 250 2,312 181 18,209 18,594 63,376 138,972 4 20,981 23,358 5,366 3,400 5,257 870 5,918 3,984 19,753 88,891 3 10,370 13,396 16,354 210 2,605 229 18,467 18,805 58,434 139,864 10 21,889 24,024 5,825 3,243 5,775 981 6,949 4,395 20,789 93,811

2005 0 7.4 9.6 11.7 0.1 1.9 0.2 13.2 13.4 42.5 100.0

0 23.3 25.6 6.2 3.5 6.2 1.0 7.4 4.7 22.1 100.0

7 11,519 10,628 10,529 3,043 3,170 752 11,518 14,410 38,645 45,983

Exhibit 15IEK 2006/04

24

% 05/04 % 50,732 36.3 3.3 10,428 7.5 -46.4 8,423 6.1 0.8 3,937 2.8 6.4 3,815 -3.8 9.0 3,784 2.7 1.1 3,764 2.7 10.2 3,204 2.3 12.9 2,952 2.1 4.6 2,948 94,026 139,865 2.1 67.2 100 6.4 -5.7 0.6

% 05/04 % 60,151 64.1 -1.3 5,688 6.1 50.8 5,037 5.4 7.3 4,409 4.7 14.7 3,743 4.0 39.0 3,101 3.3 10.5 2,526 2.7 26.2 1,345 1.4 11.0 1,227 1.3 18.4 1,091 88,318 93,892 1.2 94.1 100 94.5 4.6 5.6

Exhibit 16IEK 2006/04

600,000 500,000 400,000 300,000 200,000 100,000 0 1997 1998 1999

30.00% 20.00% 10.00% 0.00% 10.00% 20.00% 30.00% 2000 2001 2002 2003

2004

2005

Exhibit 17

25

120 56.95 47.46 29.3 110 53.17 48.34 17.3 160 99.74 62.34 27.4 120 37.56 31.3 16.2 100 14.23 14.23 2.6 24 15.04 62.67 2.9 24 1.29 5.38 2.3 0 0.2 0 12.5 1.2 7 4.68 66.86 0.6 42 20.56 48.95 707 303.22 42.89 100

2002 6 100%

Exhibit 182005

5%

40%

50%

50%

10%

75%

30%

50%

15%

37%

60% 40%

100%

2%

39.13%

88%

13.97%

70% 100%

46.65%

10%

10.5% 10%

44.4%

34%

33.8%

20%

49%

Exhibit 19 IEK-ITIS 2003/3

AM

26%25%12%12

90%

Exhibit 20 AM 2005 271 65-72 26

GPS

Exhibit 212006/2

1 2

Maryann Keller1994 21 BCG, 2004, Beyond Cost Reduction. March:6-48.

3

Maxton, G. P. and Wormald, J., 2004, Time for a Model Change: Re-engineering the Global Automotive Industry, Cambridge. Maxton, G. P. and Wormald, J., 2004, Time for a Model Change: Re-engineering the Global Automotive Industry, Cambridge. 2005 2005 AMS

4

5

6

27