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VOLVO AND GE CAPITAL TO FORM DEDICATED FINANCE COMPANY

 VOLVO AND GE CAPITAL TO FORM DEDICATED FINANCE COMPANY
 ROCKLEIGH, N.J., Aug. 11 /PRNewswire/ -- Volvo Cars of North America, Inc., the importer of Volvo automobiles and General Electric Capital Corporation have announced their intention to form a joint venture which will provide financial services to Volvo customers and Volvo dealers in the United States and Canada.
 The new company will provide the same services presently offered to Volvo dealers and customers by Volvo Finance North America (VFNA). Floorplanning, commercial and real estate loans will be available to Volvo dealers. Leasing for fleets and individuals as well as retail financing, will be offered to Volvo customers.
 "Rapid growth in these areas during the past several years led Volvo to look for a financing partner. We chose GE Capital because of its capital strength and experience in automotive financing. Volvo will contribute its existing organization and products currently provided through its VFNA subsidiary to the venture," said Joseph L. Nicolato, president and CEO, VCNA.
 A letter of intent was signed on July 31, 1992 and, subject to detailed negotiations and board approvals, it is planned that the company will begin operations before the end of the year. The existing VFNA office located in Montvale, N.J., will service as the headquarters for the new company. Regional operations will also continue at VFNA's locations in Irvine, Calif., Charlotte, N.C.; and Dallas, Texas.
 Volvo Finance North America was founded in 1974 to provide leasing services for Volvo customers. Currently the company provides financing or leasing to approximately 50 percent of all new Volvo buyers. In 1992 the VFNA portfolio amounts to nearly $2.8 billion and services a customer base of 134,000.
 GE Capital has been involved in automotive financing since 1978 when it established its subsidiary GE Capital Auto Lease, Inc. Automotive related assets total $6.0 billion, representing a customer base of over 450,000.
 GE Capital, headquartered in Stamford, Conn., a wholly owned subsidiary of General Electric Company, is a diversified financial services company with assets exceeding $80 billion. GE Capital's financing activities include equipment management, equipment financing, corporate financing, automotive financing, consumer/retail financial services, commercial real estate financing, and specialty insurance. GE is a diversified manufacturing, technology and services company with operations worldwide.
 Volvo Cars of North America sells approximately 75,000 upscale family cars in North America annually. The strength of the jointly held finance company positions Volvo to accommodate additional sales volume in the future.
 -0- 8/11/92
 /CONTACT: Bob Austin of VCNA, 201-767-4704, or Johan Beyer of VFNA, 201-307-6059/ CO: Volvo Cars of North America Inc.; General Electric Capital Corp. ST: New Jersey, Connecticut IN: AUT FIN SU: JVN


PS-OS -- NY031 -- 8902 08/11/92 11:01 EDT
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Publication:PR Newswire
Date:Aug 11, 1992
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