(March 20 th , 2006, Pegasus Communications) On March 20 th Volvo held a press release at the Beijing Hotel. At the meeting the new global CEO formally announced that Volvo will manufacture S40's in China . Volvo's managers and presidents of this project were all in attendance.

As the head of public relations for Volvo, Pegasus Communications was in charge of the publicity and event management for this meeting. Pegasus especially helped in the complex preparations, including organizing the media and schedule of events. The extensive preparations assured a successful meeting and proved Pegasus' competence in media relations and event management.

There is historical significance in Volvo's decision to make cars in China . The Volvo S40 is a new kind of luxury vehicle with innovative technology, improved safety and inspired modernity. Volvo S40 represents a new generation of concept car manufacturing, combining wisdom with popularity. The S40 has been awarded more than 40 times and has proven its innovation is worthy of praise. The car has improved Volvo's brand image and in turn, increased demand. Now, by making cars in China it will reach even more costumers allowing more to experience the high-quality, safe and environmentally-friendly cars.

Volvo has continually paid much attention to the Chinese market. In 2003 it applied for permission to manufacture cars in China and kept in close contact with the Chinese Government and various factories. Support from Chongqing Government, Changan Cars and Changan Ford helped secure their quest to manufacture cars in China . In addition, Ford, with their experience in the Chinese car market, has cooperated with Volvo in order to help them enter the new market- Volvo has signed a manufacturing agreement with Changan Ford and Changan Cars. According to the Chinese Auto Brand Sale Regulations, Volvo is allowed to manufacture 10,000 S40's per year. An expert will be sent to oversee production management in order to make sure it is in accordance with the Global Production Standards (PCPA). Volvo will need to follow the regulations set forth by China 's Department of Car Manufacturing as well. Volvo plans to release S40's later this year, including the price and explanation.

When talking about the global market the CEO of Volvo said, “Volvo will continue to produce cars that are of high-quality, safe and environmentally friendly. We hope to continue to lead the luxury vehicle market by strengthening the concept behind our cars and through innovation. We not only manufacture high-quality and safe vehicles but provide our costumers with the most luxurious experience.”

“Investing in China is one of our key strategies,” said the Volvo CEO emphasizing the importance of the Chinese market. The CEO chose China to be the first Asian country in which to manufacture Volvo cars, proving his interest and confidence in the Chinese market. For the time being, Volvo has set up its headquarters in Shanghai and opened offices in Beijing . In recent years, Volvo has placed much attention to sales and after-sales services, now with more than 50 stores in China . Volvo provides the most luxurious service experience for its Chinese costumers. In 2005 Volvo held, “Volvo Cares for You” as well as “Volvo On Call” to show their commitment to their costumers.

By 2005, Volvo had already made a good impression on the Chinese market. It sold 5,000 cars and increased by 84% over the previous year. This has strengthened Volvo's leading position in China 's luxury car market. In 2006 Volvo will continue its efforts in China with the imports of the S80 and XC90. Volvo will provide even more creative, high-quality products and services to Chinese consumers and will undoubtedly impact the Chinese market substantially.