LOUISVILLE, KY (March 31, 2005) – The Volvo VN has developed a reputation as the preferred highway tractor in North America.  Now it has even more reasons for customers to love it, as Volvo Trucks North America, Inc. announced today that the Volvo VN will be available later this year with the new 16-liter Volvo D16 engine.

The Volvo D16 will be available in Volvo VNLs: the VNL Daycab; and the VNL 430, VNL 630, VNL 670 and VNL 780 sleeper cab tractors.  Orders for the Volvo VNL with D16 will be accepted beginning in June, with production beginning in late August.  The D16 is also available in the premium owner-operator Volvo VT 880, which was introduced in early February 2005.  The D16 is cast and machined at Volvo’s foundry and engine plant in Skövde, Sweden, and assembled in Hagerstown, Md.

“The D16 is the first of Volvo’s new family of engines for North America, and is the most advanced engine on the road today,” said Scott Kress, senior vice president – Sales & Marketing.  “This engine in the Volvo VN will target premium line-haul fleets and heavy truckload applications, along with any other application that calls for outstanding reliability and durability, best-in-class performance and best-in-class fuel economy.  Michigan trains, heavy equipment haulers and time-sensitive operations are just a few of the applications that will be interested by the VNL with the D16.

“This is a technologically sophisticated engine in a truck with advanced design, and together they produce truly outstanding levels of productivity and performance,” said Kress.  “The combination of the D16, with its big power and torque, plus the safe, comfortable, efficient and aerodynamic Volvo VN, will strongly appeal to fleets that want to run full loads at high legal average speeds as efficiently as possible.  And as fuel costs continue to rise sharply, Volvo’s focus on optimizing the D16’s design for fuel economy will be more appreciated than ever.”

Available ratings for the D16 in all Volvo VNL models are:
· 450 hp @ 1650 lb-ft
· 500 hp @ 1650 lb-ft
· 500 hp @ 1850 lb-ft (I-Torque)
· 535 hp @ 1850 lb-ft (I-Torque)

Both the 500 hp @ 1850 lb-ft and 535 hp @ 1850 lb-ft ratings feature Volvo’s Intelligent Torque, or I-Torque, torque management system.  I-Torque protects drivelines from excessive torque at low speeds.   For the Volvo VNL with D16, I-Torque is designed to extend tire wear and protect drivelines by limiting engine torque output to 1650 lb-ft in startup gears, switching to 1850 lb-ft as speed increases.  (NOTE TO EDITORS:  Please see separate news release dated 3/31/05 for technical details about I-Torque.)

The Volvo D16 offers Volvo VN customers advantages in terms of performance, operational costs and enhanced resale values.  For instance, the D16 maintains high torque capacity at high altitudes, which means stronger engine performance and better fuel economy while operating in the mountains.  Also, the D16 has a standard oil change interval of 25,000 miles, while an optional cast aluminum oil pan with a 55-quart capacity permits an extended oil change interval of 35,000 miles.  And the already excellent resale values of Volvo VNs can be enhanced, since the D16 can be uprated to the manufacturer-specified limits of the drivetrain in terms of horsepower and torque.
 
Volvo D16 Features
The Volvo D16 was designed with the very stringent 2007 and 2010 emissions standards in mind.  The development work on the D16 to meet U.S. emissions regulations and to prepare its power curves, engine timing strategies and fuel injection strategies was performed in the U.S. 

The Volvo D16 was also developed to carry on Volvo’s tradition of building advanced, fuel efficient and productive diesel engines.  Volvo engines are also famous for their reliability and durability, as well as their smooth and quiet operation.

The Volvo D16’s larger displacement gives it advantages over existing 15-liter engines. The larger bore (or diameter) of the D16’s cylinders gives the tops of its pistons more surface area.  This means it can generate more power and torque than a 15-liter engine, with lower internal forces.  And its shorter stroke means less piston travel inside the cylinder, which Volvo has found leads to less engine wear.  Shorter-stroke engines also have less stress on the cylinder liner walls during the stroke.  These design factors lead to a longer service life.

Service life is also enhanced by the length of the Volvo D16 engine block.  The D16’s block has more space between the cylinders, which makes the base engine stronger, and results in more consistent engine temperatures.  This reduces mechanical and thermal stresses, which can prematurely weaken engines.

As an integrated manufacturer of trucks and engines, Volvo is able to optimize fuel economy by increasing exhaust gas recirculation (EGR) rates and heat rejection from the engine, while also increasing cooling capacity.  The Volvo VNL with the Volvo D16 has a new heavy-duty cooling package for greater cooling capacity, with a larger radiator and a cross-flow charge air cooler, similar to the cooling system for the new Volvo VT 880. 

The Volvo D16 has a rear-mounted gear train, which drives the camshaft, air compressor, fuel feed and power steering pump.  The D16 also uses a damper on the camshaft to reduce torsional vibration, for a quiet and smooth running engine.  The cam is designed to lift up and out from the engine for easy servicing, if needed, unlike other designs which require the removal of the engine or radiator to service the cam.

The VolvoD16 includes a number of other notable Volvo engine features:
· The Volvo Engine Brake (VEB) is an integrated engine compression brake that provides exceptional retardation at cruise rpm – up to 340 hp of braking power at 1500 rpm – to control downhill vehicle speed, while conserving foundation brake service life.  The VEB performance is less sensitive to altitude compared to other engine brakes.
· The Volvo Exhaust Pressure Governor (EPG) allows the engine to warm up quickly and to maintain engine temperature at very low idle speeds, thus saving fuel and money, and reducing emissions.  It also works in conjunction with the Volvo Engine Brake to provide very high retarding power throughout the entire rpm range.
· The Volvo Pre-Heater heats the intake air for fast and reliable engine startup in cold weather, minimizing white smoke.
· The fuel system is similar to the Volvo D12’s system, and provides constant fuel temperature to the injectors, while using a low flow fuel return.  This means more consistent power output and longer injector service life.
· Volvo’s Vectro electronic engine management system, with additional engine protection features.
· The primary fuel filter is engine-mounted, with a standard water separator that can be drained from inside the cab, and is available with an optional electric fuel heater.
· A standard electronic oil level indicator allows the driver to check engine oil levels from inside the cab.

Volvo Trucks North America assembles its Volvo VT, VN and VHD trucks in the United States, at the ISO14001 and ISO9001 certified New River Valley Plant in Dublin, Virginia.  Volvo sponsors the America’s Road Team national highway safety outreach program.

Volvo Trucks North America, Inc., is part of the Volvo Group of companies, a publicly held company headquartered in Gothenburg, Sweden.  With 2004 sales of approximately $27 billion, Volvo’s business areas include heavy trucks, buses, construction equipment, marine and industrial drive systems, aerospace, and financial services.  In the United States, Volvo shares are listed on NASDAQ and are traded as ADRs (symbol: VOLVY).