VOLVO TO ACQUIRE NISSAN STAKE IN NISSAN DIESEL

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TOKYO (March 21, 2006) - Nissan Motor Co., Ltd., today announced that Volvo will acquire 13% out of its 19% shareholding in Nissan Diesel Motor Co., Ltd., the manufacturer of heavy and medium-duty trucks and diesel engines.
"Nissan Diesel has seen a turnaround in its business performance during the last four years," said Nissan President and CEO Carlos Ghosn. "We are confident that Volvo is the right partner at the right time for Nissan Diesel, and will help them build a profitable long-term business," continued Ghosn.
In addition to the immediate purchase of 13% of Nissan Diesel shares, Volvo will also have the right to acquire the remaining 6% of shares owned by Nissan Motor within the next four years. The agreement was signed today in Tokyo by Carlos Ghosn and Volvo President and CEO Leif Johansson.
Nissan Motor and Volvo have also agreed to review areas of cooperation, together with Dongfeng Motor Co., Ltd., in commercial vehicles in China. Nissan Motor owns 50% of Dongfeng Motor, a partnership it formed in 2003 with Dongfeng Motor Group Co., Ltd.
"Our relationship with Dongfeng is one of mutual trust," said Ghosn. "Nissan continues to invest substantially into its automotive business in China. Through this cooperation with Volvo, we are looking for opportunities to create a more competitive and more profitable Dongfeng commercial vehicle business," said Ghosn.

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