Volvo Rents

Message from the President

Although the historical tendency in challenging economic times is to pull back and conserve, we believe current times provide unique opportunities for our franchises to increase their customer base. What is most memorable to a customer is how his business was handled and the attention he received during difficult times.

That is why we have numerous marketing initiatives in place and a Marketing Department available to our franchises to aid in the development and maintenance of customer relationships all the time. The Volvo Rents marketing team allows our franchisees to concentrate on their business while we help them grow their business.

MARKET UPDATE

In response to the current economy, major rental companies have moved their fleets around creating overcapacity and price pressure in areas previously immune. On the whole, rental rates have declined 1 to 2 percent in the first half of 2008 with the full year expected to come in at a 3- to 4-percent decline.

However, as Volvo Rents' competition continues to downsize its stores and lay off employees, our franchise rental revenues for July 2008 rose 15 percent over the prior year period and same-store rental revenues were up 14 percent versus last year.

SUCCESSFUL MARKETING INITIATIVES

The Volvo Way works. Our Marketing Department works hand in hand with individual franchises to facilitate successful customer appreciation events, open houses and sales blitzes.

Recently in Lakeland, Fla., more than 100 customers and prospects attended an open house/sales blitz. The Volvo Rents team served food and, for an extra special touch, attendees selected cold beverages from the bucket of a new Volvo Mc70B Skid Steer. Amid the fun, four prospects opened new accounts, five customers ordered eight rentals and the store made equipment sales.

"Thank you...thank you and thank you! Our open house was a huge success and we could not have done it without you. We served almost 500 pounds of walleye fillets to about 500 people. We had everything a customer could want - dignitaries, lots of food, giveaways, vendor demos, a racecar, live music and a beautiful day! These are activities that motivate us to be No. 1."

VOLVO RENTS - CARING FOR THE COMMUNITY

With the help of Volvo Rents, the city of Chattanooga, Tenn., opened its first Disc Golf Course. Hard-working volunteers installed the course in one day with equipment donated by a Volvo Rents franchise.

HITTING A HOME RUN

Volvo Rents Construction Equipment recently sponsored New York City's Una Noche de Gala, a Latino-focused All-Star celebration that honors the accomplishments of Latinos in baseball.

CONTINUING EDUCATION

Volvo Rents offers educational sessions that cover all aspects of making your business run smoothly. These training opportunities are held in various national locations and online. Our online Training Tune-Ups cover everything from safety to how to effectively use the V-Rents system. Instructor-led courses include Rental Management Training, Outside Sales Training, Service Manager Training, V-Rents Training and Advanced Back Office Training.

WE'RE ON THE LOOKOUT...

...for Volvo Rents team members including store managers, rental operators, equity partners for franchise owners, salespersons / counterpersons. For information contact Volvo's Franchise Business Development Group, 866-387-3687, or [email protected].

Our doors are always open because we are The Friendliest Rental Store in Town.

The following is an excerpt from a section in "The Volvo Way," a booklet that describes Volvo's values, its corporate culture and the way Volvo works.

"We must have the desire, self-confidence and ability to set a clear course toward established objectives and increased profitability."