Against the background of the consolidation under way in the transport vehicle industry, Volvo conducted a strategic review of the company's operations.

 

As a result of this evaluation, Volvo's Board of Directors proposed a sale of Volvo Cars to Ford, which also was approved by the Extraordinary General Meeting in AB Volvo on March 8, 1999. The sale improves Volvo Cars' future prospects and means that Volvo can establish a partially new, stronger Volvo totally focused on commercial products; incorporating trucks, buses, construction equipment, marine and industrial engines and aerospace components.