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Rules for company car drivers in the Volvo Group 2015.1

2015-06-18 Issued by (dept, name, phone, location) / Utfärdat av (avd, namn, tfn, geo plac) Version No / Versionsnr Appendix / Bilaga

AB Volvo, Corporate HR Sweden, Peter Sonesson

RULES FOR COMPANY CAR DRIVERS IN THE VOLVO GROUP IN SWEDEN



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 1. BASIC REQUIREMENTS ................................................................................................................................ 5 2. THE VOLVO BRAND ...................................................................................................................................... 5 3. CAR CATEGORIES ......................................................................................................................................... 6 4. EMPLOYMENT CONTRACT AND COMPANY CAR .................................................................................. 6

4.1. APPENDIX TO EMPLOYMENT AGREEMENT .......................................................................................................... 6 4.2. CLASS C CARS – TWO VARIANTS ........................................................................................................................ 6 4.3. RETURNING A COMPANY CAR WITHOUT GETTING A NEW ONE ............................................................................ 7

4.3.1. Retained right to a company car ............................................................................................................... 7 4.3.2. Termination of the company car benefit ................................................................................................... 7

5. CHOICE OF CAR ............................................................................................................................................. 7 6. LEASING PERIOD ........................................................................................................................................... 7 7. THE COMPANY CAR DRIVER’S COSTS FOR THE CAR EXCLUDING FUEL ....................................... 8

7.1. COSTS FOR DIFFERENT COMPANY CAR CATEGORIES ........................................................................................... 8 7.2. CHANGES IN COST AT THE TURN OF THE YEAR .................................................................................................... 9

8. FUEL EXPENSES ............................................................................................................................................. 9 8.1. PAYMENT FOR FUEL ........................................................................................................................................... 9 8.2. REPORTING OF WORK MILEAGE AND CAR LOGBOOK ......................................................................................... 10 8.3. TRAVEL TO AND FROM WORK ........................................................................................................................... 11 8.4. COMPENSATION LEVELS ................................................................................................................................... 11 8.5. WORK-RELATED TRAVEL ABROAD ................................................................................................................... 11

9. ORDERING AND CHANGING OF CARS .................................................................................................... 11 9.1. FIRST ISSUE AND CHANGES OF CATEGORY ........................................................................................................ 11 9.2. CHANGE OF CAR ............................................................................................................................................... 11 9.3. FAILURE TO ORDER A NEW COMPANY CAR ....................................................................................................... 12 9.4. OBLIGATIONS BEFORE/ON CHANGING/RETURNING THE CAR ............................................................................. 12 9.5. CHANGE OF CARS AND RETIREMENT ................................................................................................................. 12 9.6. TAX RULES AND SALARY DEDUCTION DEPENDING ON THE DATE OF THE MONTH .............................................. 12 9.7. CHANGE OF CAR CATEGORY ............................................................................................................................. 13 9.8. USING ANOTHER CAR WHILE AWAITING DELIVERY ........................................................................................... 13 9.9. CHANGING BETWEEN COMPANIES IN THE VOLVO GROUP ................................................................................. 13

10. THE VOLVO CARD .................................................................................................................................. 13 10.1. FUEL PURCHASE ............................................................................................................................................... 13 10.2. WASHING, WASHER FLUID AND CAR MAINTENANCE MATERIAL ........................................................................ 13 10.3. PARKING .......................................................................................................................................................... 13 10.4. OTHER PURCHASES ........................................................................................................................................... 13 10.5. USE OF REPLACEMENT CAR .............................................................................................................................. 14 10.6. LOSS OF YOUR VOLVO CARD ........................................................................................................................... 14

11. CASH PAYMENTS .................................................................................................................................... 14 12. PARKING ................................................................................................................................................... 14

12.1. FEES ................................................................................................................................................................. 14 12.2. PARKING FINES ................................................................................................................................................. 14

13. USE AND LENDING OF COMPANY CAR .............................................................................................. 14 14. TRAVEL ABROAD .................................................................................................................................... 15 15. OVER 30,000 OF WORK MILEAGE ........................................................................................................ 15

15.1. HOW TO REPORT WORK MILEAGE ..................................................................................................................... 15 15.2. CALCULATION OF ADJUSTED BENEFIT VALUE ................................................................................................... 15

16. REPLACEMENT OF SPARE PARTS, TYRES ETC. ............................................................................... 15 16.1. TYRES .............................................................................................................................................................. 15 16.2. LIGHT BULBS AND WIPER BLADES .................................................................................................................... 15



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18

16.3. RTI – NAVIGATION SYSTEM.............................................................................................................................. 15 17. CAR ADMINISTRATOR ........................................................................................................................... 15 18. ALCOLOCK ............................................................................................................................................... 16 19. PRIVATE EXTRA EQUIPMENT .............................................................................................................. 16 20. RESPONSIBILITY AND SERVICE, CARE AND MAINTENANCE ...................................................... 16 21. MILEAGE REPORTING ........................................................................................................................... 17 22. STORAGE AND REPLACEMENT OF WHEELS.................................................................................... 17 23. REPLACEMENT CAR IN CONNECTION WITH SERVICING AND DOWNTIME ............................ 17 24. INSURANCE AND OTHER PROTECTION ............................................................................................ 18

24.1. COLLISION WITH OTHER VEHICLES ................................................................................................................... 18 24.2. VANDALISM, PARKING DAMAGE, THEFT/BURGLARY, COLLISION WITH ANIMALS, ONE-CAR ACCIDENTS (ALSO SEE NEXT HEADING)....................................................................................................................................................... 18 24.3. THEFT OF ITEMS LEFT IN THE CAR..................................................................................................................... 19 24.4. DOOR DAMAGE (MINOR DAMAGE TO BODYWORK AND/OR PAINTWORK) .......................................................... 19 24.5. CAR WINDOW DAMAGE FROM FLYING STONES ................................................................................................. 19 24.6. TRANSPORTING A CAR HOME FROM ANOTHER LOCATION ................................................................................. 19 24.7. REPAIR COSTS AND EXCESS - VOLVO AND/OR COMPANY CAR OWNER LIABLE .................................................. 19 24.8. VOLVO ASSISTANCE ......................................................................................................................................... 20 24.9. EMPLOYMENT SECURITY AGREEMENT .............................................................................................................. 20 24.10. DISPUTES WITH INSURANCE COMPANIES ...................................................................................................... 20

25. VEHICLE TAX ........................................................................................................................................... 20 26. CONGESTION TAX AND OTHER ROAD AND BRIDGE FEES ........................................................... 20 27. SUSPENSION OF DRIVING LICENSE .................................................................................................... 21 28. ALCOHOL AND DRUGS .......................................................................................................................... 21 29. LONG-TERM ABSENCE........................................................................................................................... 21

29.1. USE OF THE VOLVO CARD DURING LONG-TERM ABSENCE ................................................................................ 21 29.2. PARENTAL LEAVE ............................................................................................................................................. 21

29.2.1. Keeping your company car during parental leave .................................................................................. 21 29.2.2. Relinquishing your company car during parental leave ......................................................................... 22 29.2.3. Change of car during parental leave ...................................................................................................... 22

29.3. SICK LEAVE ...................................................................................................................................................... 22 29.3.1. General rules .......................................................................................................................................... 22 29.3.2. Invoicing during sick leave ..................................................................................................................... 22

29.4. LONG-TERM ABSENCE FOR OTHER REASONS ..................................................................................................... 23 30. PART-TIME EMPLOYMENT AND PART-TIME ABSENCE ................................................................ 23 31. INVOICING OF COMPANY CAR DRIVERS .......................................................................................... 23

31.1. LONG-TERM ABSENCE ...................................................................................................................................... 23 31.2. UNPAID PARKING FINES .................................................................................................................................... 24 31.3. IF THE COMPANY CAR IS RETURNED WITH MISSING EQUIPMENT OR FUEL ......................................................... 24 31.4. WASHING AND RECONDITIONING ..................................................................................................................... 24 31.5. POOR MAINTENANCE ........................................................................................................................................ 24 31.6. FAILURE TO ORDER A NEW COMPANY CAR ....................................................................................................... 24

32. RETIREMENT – SUMMARY ................................................................................................................... 24 33. RETURN OF COMPANY CAR IN CONNECTION WITH VOLUNTARY RESIGNATION, RETIREMENT, WORK ABROAD ETC. .............................................................................................................. 25

33.1. VOLUNTARY RESIGNATION AND RETIREMENT .................................................................................................. 25 33.2. WORK ABROAD ................................................................................................................................................ 25 33.3. OTHER REASONS .............................................................................................................................................. 25

34. DEATH ........................................................................................................................................................ 25 35. USE OF DEPARTMENT POOL CAR FOR PRIVATE PURPOSES ....................................................... 25 36. HOME ADDRESSES .................................................................................................................................. 26



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 37. DISPUTES AND CONTESTATIONS ........................................................................................................ 26 38. PURCHASE OF COMPANY CAR ............................................................................................................ 26 39. FURTHER INFORMATION ..................................................................................................................... 26



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 These rules include rules and routines that company car drivers and other employees concerned (supervisors of employees with company cars, HR staff, administrators of department pool cars etc.) are required to know and comply with. These rules regarding company cars conform with the Volvo Group’s global company car policy (see Employee Center), but are far more detailed. Certain definitions are given in the footnote below.1 The latest version of the rules is available on the website of Svensk Vagnparksfinans. The rules are updated on an ongoing basis.

1. Basic requirements A company car is a benefit granted unilaterally by the employer. It does not result in any salary supplement or gross salary deduction, either at the time it is issued or if it is relinquished. This means that company cars do not impact negatively on pensions. Disputes concerning the company car with regard to invoicing, handling etc. must not affect other relationships between the employer and the company car driver. If company car driver violates his or her obligations under these regulations, Volvo may withdraw the company car. The employee must have a driver’s licence at the time the company car is issued.

2. The Volvo brand As a company car driver, you have a responsibility towards the Volvo brand and what it represents. Consequently, as a road user and company car driver, your traffic behaviour must be in line with Volvo’s values. For instance, bear in mind the following points:

• Quality: Take good care of the car. • Safety: Drive safely, respect speed limits and ensure that everyone in the car uses a safety belt. In

other words, adopt traffic behaviour that positively reinforces Volvo's image. Do not use a mobile phone while driving, unless it is a hands-free or integrated phone. Do not send text messages.

• Environmental care: You should preferably choose an environmentally friendly car. Drive in a way

that minimises fuel consumption. Never drive at a higher octane number than recommended.

1 Company car – all cars except department pool cars are regarded as company cars for tax purposes (i.e. they are regarded as a taxable fringe benefit). In this document, the term company car is consistently used to denote all cars leased by the company. Net salary deduction – a salary deduction made after your salary has been taxed. In principle, this is the same as invoicing an employee, except that the payroll office deducts an equivalent amount from the employee’s salary. Long-term absence – In these rules, long-term absence means full-time absence lasting at least three months.



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 3. Car categories Class A car: Company car for Volvo’s top managers. Class B car: Company car included in the company’s total benefit package. Class C car: Company car for employees who normally drive at least 15,000 km per year for

work purposes, and who need a car for their exclusive use. Class D car: Company car for employees employed within the framework of IMS (International

Assignment) in Sweden (so-called inbounds). Department pool car: Company car for work-related travel, which is at the disposal of more than one

employee for private use. See www.svpf.se/volvo “department pool cars”. Replacement car: If you use a replacement car as a substitute for one of the categories above the same

rules apply as to the relevant car category. Class A, Class B and Class D cars are issued regardless of whether the employee requires use of a car for work purposes (also see "Use and lending of company cars.) Class C cars and department pool cars are intended to be used by employees for work-related travel. Both these cars are company cars, but while Class C cars are used exclusively by one employee who may also use the car privately, department pool cars may normally not used for private purposes. Please note that the term company car is used consistently throughout this document as a collective term for all the car categories mentioned above. Certain special rules exist for Class D cars, but are not defined in detail in this document. These rules can be obtained from the group in HR Services that deals with international employment (IMS).

4. Employment contract and company car 4.1. Appendix to employment agreement HR Services will prepare an appendix/supplement to your employment contract when you are first issued with a company car, when you return your company car, and when your car category changes. Your company car is a Group benefit. This means that unless otherwise stated, you keep the company car if you move to a different Volvo company.

4.2. Class C cars – two variants With respect to Class C cars, there are two different variants of the appendix/supplement to the employment agreement: 1) The company car will be withdrawn if the employee’s position no longer requires extensive work-related travel, or if the employee changes position

http://www.svpf.se/volvo



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 2) The company car benefit will be changed to a Class B car if the employee no longer meets the conditions for having a Class C car. The employee‘s supervisor decides which of these variants will apply to a given employee, in consultation with the HR Business Partner.

4.3. Returning a company car without getting a new one If you return a company car without getting a new one, you must inform your supervisor. Your supervisor will notify HR Service Center by email that the company car has been returned, either permanently or due to parental leave, long-term sick leave or work abroad. In the event of such absence, you normally retain the right to a company car and may order a new one when you return to work. See Clauses 29 “Long-term sick leave” and 33.2 “Work abroad” for further information.

4.3.1. Retained right to a company car Retained right to a company car means that the employee is entitled to a company car but does not currently have access to the car due to long-term absence. The employee’s right to a company car should be registered in the HR system (SAP HR or equivalent). It is not necessary to prepare a new appendix to the employee’s employment contract. 4.3.2. Termination of the company car benefit This means that the employee's right to a company car is terminated, either if the employee relinquishes the company car, or if the company withdraws the employee’s right to a company car. The employee’s right to a company car should be cancelled in the HR system (SAP HR or equivalent). A new appendix to the employee’s employment contract should be prepared. The employee’s gross salary will not be raised, unless by separate agreement.

5. Choice of car The car must be a Volvo car. Exceptions may be made for department pool cars if Volvo does not have a car model suitable for the department's requirements. See the website of Svensk Vagnparksfinans for approved car models. If your car is a Class A, Class C or Class D car, you have the right to freely choose the car model and extra equipment from the list on the order form. Certain extra equipment is compulsory, such as winter wheels. Please note that you may only choose extra equipment included on the list. With respect to Class C cars, an individual company may impose limitations on the free choice of car model and equipment. Department pool cars are limited to certain previously established models with specific equipment.

6. Leasing period The leasing period for Class B, Class C and Class D cars is currently 24 months. However, this period may be changed without prior notice if this is deemed to benefit AB Volvo without significantly inconveniencing the company car driver.



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 For Class A cars, the leasing agreement may have a term of either 12 or 24 months. Company pool cars are leased for a period suitable for their purpose, although for a minimum of 24 and a maximum of 60 months.

7. The company car driver’s costs for the car excluding fuel 7.1. Costs for different company car categories The company car driver’s costs include tax on the benefit value and a net salary deduction (not applicable to Class A cars), i.e. salary deduction after tax.2 For other categories, the cost is calculated as follows: Class A cars: Fringe benefit taxation according to prevailing tax regulations. Class B cars: The net salary deduction per month is calculated as the value of the car benefit per month

minus SEK 300 minus 11% of the portion of the price of the car, including equipment, that exceeds 7.5 times the national insurance base amount.

SEK 300 of the car benefit value is intended, among other things, to cover safety equipment. The cost for the company car driver consists of the net salary deduction plus tax on the part of the benefit’s value that exceeds the salary deduction.

B-car hybrid: The net salary deduction per month is calculated as the car benefit (unreduced) per month

plus SEK 1300 and minus 300 SEK. Net salary deduction is not reduced by the benefit reduction that occurs due any eco-car classification. Net salary deduction is not reduced by the portion of the car's price, including equipment, exceeding 7.5 price base amounts. SEK 300 of the car benefit value is intended, among other things, to cover safety equipment. The addition of 1300 SEK is based on obtaining a cost for the company corresponding to the cost for a non plug-in hybrid. The cost for the company car driver consists of the net salary deduction plus tax on the part of the benefit’s value that exceeds the salary deduction.

Class C cars: The net salary deduction per month is calculated as the value of the car benefit per month

minus SEK 300 minus SEK 1,200, resulting in a total of SEK 1,500 per month.

2 From the driver’s perspective, paying tax on the benefit value is more advantageous than a net salary deduction. If you have a marginal tax rate of 50%, you pay a cost of SEK 150 for a benefit value of SEK 300, whereas with a net salary deduction, you pay the whole cost of SEK 300 yourself.




SEK 300 of the car benefit value is intended, among other things, to cover safety equipment, and SEK 1,200 is the subsidy paid due to the car primarily being used for work purposes. The cost for the company car driver consists of the net salary deduction plus tax on the part of the benefit’s value that exceeds the salary deduction.

C-car hybrid: The net salary deduction per month is calculated as the car benefit (unreduced) per month plus SEK 1300, minus 300 SEK and minus SEK 1200. Net salary deduction is not reduced by the benefit reduction that occurs due any eco-car classification. Net salary deduction is not reduced by the portion of the car's price, including equipment, exceeding 7.5 price base amounts. SEK 300 of the car benefit value is intended, among other things, to cover safety equipment, and SEK 1200 is the subsidy paid due to the car primarily being used for work purposes. The addition of 1300 SEK is based on obtaining a cost for the company corresponding to the cost for a non plug-in hybrid. The cost for the company car driver consists of the net salary deduction plus tax on the part of the benefit’s value that exceeds the salary deduction.

Class D cars: Fringe taxation for a benefit value up to 1.5 times the national insurance base amount

does not affect the net salary. If the benefit value is higher than 1.5 times the national insurance base amount, an extra deduction will be made from the calculated net salary.

Dep. pool cars: The leasing fee and other car-related costs will be charged to the department where the

car is registered. Volvo Bil’s order number (can be accessed via the homepage of Svensk Vagnparksfinans) is adapted to these rules. Here, a preliminary cost is shown per car model in each category (excluding D cars and company pool cars).

7.2. Changes in cost at the turn of the year At the turn of each year, the national insurance base amount is usually increased, and the government loan interest rate usually also changes. This affects the cost of the company car. As a result, the benefit's value usually increases slightly. However, the net salary deduction that applied when the car was ordered will remain fixed throughout the leasing period.

8. Fuel expenses 8.1. Payment for fuel You pay for all fuel yourself when you refuel your car.



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 8.2. Reporting of work mileage and car logbook When you drive for work purposes, you can claim compensation from the company according to the levels in SEK per 10 km and other rules indicated on the website of Svensk Vagnparksfinans. Unless otherwise specified, work mileage should be reported using the e-mail form “Work-related travel using a company car”. This e-mail is available from the Employee Center. The terms place of work, and place where you are going for work purposes are essential in defining what constitutes place of work-related travel. Your place of work means your normal workplace or, in certain cases, your workplaces if you work in several places. Normal workplace means the place where a large part of your work is performed. This is also applicable when a major part of your work is performed at a customer, whether it is externally or internally has no significance. This is also to be considered as a normal workplace (regardless of what is stated in your employment contract or other documents), and therefore is also a place of work. A place where you are going for work purposes is that which is not already your place of work. Consequently, work-related travel means travel from your place of work to a place where you are going for work purposes, or vice versa. On the other hand, travel from home to place of work is not work-related travel (see also clause 8.3). For employees with several places of work, work-related travel means travel between the employee’s workplaces. When you make return trips between your home and a place where you are going for work purposes, the whole journey constitutes work-related travel. If this trip is shorter than between home and normal workplace, there will be no compensation paid from the company in most instances. If the trip is longer than that between home and normal workplace, the company will normally only compensate for the extra distance. The main principle is that the compensation rules are to be applied so that company car owners are covered for extra costs incurred and nothing else. You are required to keep a car logbook indicating your work-related mileage and the locations you have travelled between for work purposes. You are required to produce your car logbook at the tax authorities’ or Volvo’s request. Copies sent by e-mail are regarded as valid for this purpose. Please note that you are required to store the car logbook at least until your income tax return has been approved by the Swedish National Tax Board, so that you can answer any questions that may arise regarding your tax return. Any requests for compensation for a given calendar year must be submitted before the end of January the following year. However, we recommend that you request compensation every month, especially if you drive extensively for work purposes If work mileage incurred during December is to be included under the calendar year that December belongs to, the approved work mileage report must be received by the payroll office before the January payroll run, which takes place at the start of the new year (see Employee Center for information on payroll run dates). This is particularly important for employees whose work mileage exceeds 30,000 km/year. Requests for compensation and payment to employees are subject to the company’s rules regarding verification.



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 8.3. Travel to and from work Travel to and from work is not regarded as work-related travel. Exceptions to this rule are made in the following circumstances: for employees reporting to work on standby duty, and for extraordinary travel to and from work in connection with overtime work. However, travel to and from work is regarded as work-related travel for insurance purposes. 8.4. Compensation levels AB Volvo, Corp HR, decides the level of compensation granted for different fuel types. Consideration should be given to the price levels offered by Volvohandeln, tax laws and the average fuel consumption for a combination of urban and long-distance driving using the most common car models in Volvo’s total fleet of company cars. The level of compensation should not be so high that the most fuel-intensive car models get full cost coverage. Unless there are substantial grounds for the contrary, compensation levels should be reviewed every six months. 8.5. Work-related travel abroad In connection with work-related travel abroad, the same e-mail form should be used as for work-related travel in Sweden. If the cost of buying fuel abroad exceeds the amount of fuel compensation paid, this should be solved locally through salary supplements (one-off payment).

9. Ordering and changing of cars All orders for cars should be made according to the routines on the website of Svensk Vagnparksfinans. Please note that placed orders may not be changed or amended.

9.1. First issue and changes of category When a company car is first issued, or when the car category is changed, the order must be approved by the HR Business Partner or a staff member delegated by the HR Business Partner. After a company car has been granted, the order must be placed within three months. Otherwise, the employee's entitlement to the company car will expire. As a company car driver, you are liable for taxation starting from the month when the company car benefit took effect. This may make it unreasonably expensive to sign the car out towards the end of a month. This is because fringe benefit taxation and net salary deduction are applied to the whole month, even if you have only had the car for one day of that month.

9.2. Change of car Svensk Vagnparksfinans will notify you well in advance when your car is due to be changed and you need to submit an order. You are required to order a new car as soon as possible. If you do not, your company car benefit may be withdrawn. In addition, an extra deduction will be made on your salary because you did not order a new car (see Clause 9.3). If you do not receive notification of the car change, you must inform Svensk Vagnparksfinans that the leasing contract is due to expire. No verification is required if you change to a new car in the same category.



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 Please note that the car must be changed within an interval of +/- 3 months, starting from the expiry date of the leasing contract. If this is not done, Volvo is usually required to pay a fee when the car is returned. However, if a new car was ordered according to prevailing guidelines but was delivered too early or too late due to no fault of the company car driver, resulting in extra costs for the old car, Volvo shall not be held liable for these costs.

9.3. Failure to order a new company car Svensk Vagnparksfinans will send you a letter asking you to change your company car. If you fail to do so after receiving a final reminder, you will be charged an extra fee of SEK 2,000 per month in the form of a net salary reduction. This is because not changing your company car is a breach of contract, resulting in additional costs for Volvo. Also see Clause 31.6. 9.4. Obligations before/on changing/returning the car Well in advance of returning your company car, you should read “Guidelines on returning leased cars” on the website of Svensk Vagnparksfinans. Inter alia, these guidelines state the following obligations: Before returning the car, you must do the following things:

• Report any damage to the car that is covered by the insurance, e.g. dented or scraped doors. Please note that this must be done as soon as possible, but no later than 30 days, after discovering the damage (also see Clause 24.4).

• Wash and tidy the car. • Fill the tank with petrol. • Make sure that all equipment included when the car was delivered is returned. • Specify if the car has frequently been used for transporting pets. • Remove any private extra equipment (also see “Private extra equipment”).

An authorised Volvo dealer will issue a test report, which you should sign. You should receive a copy of the test report. By signing the test report, you certify that you have read the report, and that it accurately reflects the car’s condition. By signing the test report, you do not admit guilt for any damage or normal wear and tear. The test report is the document that shows whether you are liable to compensate Svensk Vagnparksfinans for missing equipment or an unfilled petrol tank. Also see Clause 31.3.

9.5. Change of cars and retirement If you are due to retire within less than twelve months, you are not entitled to order a new company car. Instead, your existing leasing agreement must be extended up to your retirement date. Contact Svensk Vagnparksfinans for more information.

9.6. Tax rules and salary deduction depending on the date of the month According to the guidelines of the Swedish National Tax Board, fringe benefit tax shall be applied for the whole month if you have and the company car for any day of that month, and when a car is changed, you are taxable for the car that you have had for the greatest number of days in that month. If you change your car on the 1st-15th of the month, the new car will constitute the basis for fringe benefit taxation during that month,



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 whereas if you change the car on or after the 16th of the month, the old car will constitute the basis for taxation.

9.7. Change of car category When changing the company car category, the car you have had for the most days in the month will constitute the basis for fringe benefit taxation and net salary deduction.

9.8. Using another car while awaiting delivery You are entitled to a car while awaiting delivery of your company car. This may either be a company car returned by another employee, a former department pool car or a rental car. Svensk Vagnparksfinans has the right to allocate you a car. Follow the instructions on the website of Svensk Vagnparksfinans. The net salary deduction and benefit value are usually based on the temporary car, and are changed accordingly when the ordinary company car is delivered. You should inform the car rental company of their duty to report that you have been assigned a replacement car pending delivery of your company car. 9.9. Changing between companies in the Volvo Group Your company car is a Group benefit. This means that unless otherwise agreed, you keep the car if you transfer to a different Volvo company. You do not need to notify Svensk Vagnparksfinans if you change companies. This will be notified by Volvo.

10. The Volvo Card 10.1. Fuel purchase You can use the Volvo Card to purchase fuel, but you are free to purchase fuel by any method you choose. If you use the Volvo Card, your fuel expenditure will be deducted from your salary through net salary deduction. You can also use the card to purchase fuel for other vehicles besides your own, since you pay for the fuel yourself.

10.2. Washing, washer fluid and car maintenance material You should use the Volvo Card for car washing (this does not include reconditioning etc.), and for buying washer fluid and certain other approved car maintenance material. When making these purchases, you may only use the card for your own company car (or a borrowed or replacement car if your company car is away for repair). These purchases will be invoiced to Volvo.

10.3. Parking In certain places, you can use the Volvo Card for work-related parking. These parking costs should not be reported on your travel account or receipt form (if you have any).

10.4. Other purchases The Volvo Card may not be used for purchasing goods other than those specified above, or for private parking.



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 10.5. Use of replacement car You should use the Volvo Card as indicated above if you are using a replacement car while awaiting delivery of your normal company car, or while your company car is away for service or repairs. 10.6. Loss of your Volvo Card If you lose your Volvo Card, you must report this immediately to Svensk Vagnparksfinans. Phone: +46 8 634 93 10 (weekdays during office hours), +46 31 83 89 80 (evenings and weekends). Email: [email protected]

11. Cash payments In exceptional cases, you may need to make cash payments for expenses relating to the company car. In such cases, you should use the form on the website of Svensk Vagnparksfinans. Such payments must be authorised by your immediate supervisor. Separate rules apply to parking fees for work-related parking. See Clause 13.1.

12. Parking 12.1. Fees Volvo pays the parking costs in connection with work-related travel. You can use the Volvo Card for this. No specific report is required when you use the Volvo Card. If the card cannot be used, you can request compensation through Volvo's travel account or receipt routines.

12.2. Parking fines As a company car driver, you are liable to pay parking fines regardless of who was using the car. Fines must be paid as promptly as possible, to prevent payment reminders being sent to Svensk Vagnparksfinans. Also see under “Invoicing” for information on the consequences of failing to pay parking fines. Please note that you are liable to pay the fine even if you contest it. If you wish to contest a parking fine, you should contact Svensk Vagnparksfinans directly. They will also assist you if the signature of an authorised signatory of the company is required (it usually is if the police issued the parking fine).

13. Use and lending of company car Your company car should be used for work-related travel if this is deemed the most financially favourable option. You are free, but not obliged, to lend the car to other drivers. All insurances will remain valid regardless of who is driving it. The car may be used for normal purposes, but not for professional activities or car racing. Practice driving is permitted.



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 14. Travel abroad You may use the company car abroad, but must make sure that the car is adequately insured. In a few countries, use of the company car is strictly forbidden due to the absence of an insurance contract. Contact Svensk Vagnparksfinans for more information.

15. Over 30,000 of work mileage 15.1. How to report work mileage Work-related mileage should be reported using the e-mail form “Work-related travel using a company car". Your mileage is checked at the end of the year. Also see Clause 8.2 for important information on reporting dates.

15.2. Calculation of adjusted benefit value At the end of the year, when your statement of earnings and tax deductions is processed, the payroll office will check your work mileage to see whether you have reported a mileage of 30,000 km or more during the year. If you have, the taxable benefit value (calculated before net salary deduction) will be reduced by 25% on your statement of earnings and tax deductions, down to a minimum value of 0. However, this does not affect your net salary deduction.

16. Replacement of spare parts, tyres etc. An authorised Volvo dealer will decide whether parts should be replaced. Under an agreement for Göteborg, this is to be handled by Volvo Bil i Göteborg AB. You are not authorised to make decisions regarding purchase or replacement of parts. All costs must be invoiced to Svensk Vagnparksfinans.

16.1. Tyres Volvo Bil, an authorised Volvo dealer or another workshop contracted by Volvo may replace tyres after receiving authorisation from Svensk Vagnparksfinans.

16.2. Light bulbs and wiper blades These parts are to be replaced by the workshop. You are not required to pay for their replacement, as this cost is covered by the service agreement.

16.3. RTI – navigation system Replacement of DVDs is not included during the leasing period.

17. Car administrator If you have any questions regarding your company car, contact Svensk Vagnparksfinans, phone +46 08 634 93 30, email: [email protected].

mailto:[email protected]



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 For information regarding your company car ownership in AB Volvo, see www.svpf.se/volvo. Svensk Vagnparksfinans is the Volvo Group's administrator for all company cars in Sweden. This means that they are responsible for all cost management, i.e. they pay all car-related costs. They are also responsible for examining and monitoring the feasibility of costs, and for ensuring that these costs conform with these rules regarding company cars and other agreements. They have the right to contact you, as the company car driver, to ask questions regarding the car and its costs, and are required to inform Volvo of any non-conformities. They also have the right to invoice you for costs relating to your company car that you are liable to pay under these rules, e.g. for missing equipment, abnormal wear or missed net wage deductions during long-term absence (see Clause 31). Moreover, in response to requests by the police or the public prosecutor’s office, they are required to provide information regarding the registered user of a specific company car. Svensk Vagnparksfinans will e-mail you a report every month. You should go though this report, check that the costs listed in the report are reasonable, and report any non-conformities to Svensk Vagnparksfinans.

18. Alcolock Volvo reserves the right to install an alcolock on your company car. Also see Clause 28, “Alcohol and drugs".

19. Private extra equipment If you have added your own extra equipment to your company car, you must pay any costs relating to this equipment, such as installation, repairs and removal. It must be possible to dismantle the equipment without damaging the car when you return the car. If the extra equipment cannot be dismantled without damaging the car when the car is returned, the equipment will be regarded as included in the car’s normal equipment, and you will receive no compensation for it. All extra equipment must be original Volvo equipment.

20. Responsibility and service, care and maintenance You must take good care of your company car, and must ensure that the car is serviced and maintained according to the supplier's instructions. Consequently, you are required to read the car's service and instruction manual and maintain the car in accordance with these instructions. Also see the maintenance instructions on the website of Svensk Vagnparksfinans. Service, repairs, tyre replacement etc. in the Göteborg area are to be carried out by Volvo Bil i Göteborg AB. The car must be washed with the required frequency (approximately twice a month). This must be done by a Volvo Bil facility or another authorised Volvo dealer, or at OKQ8. You should preferably use the economy wash programme to minimise environmental impact. The car may also be washed by hand. If possible, avoid transporting pets in the car since if you do, the car must be reconditioned so that people with allergies can use it. Smoking is strictly forbidden in all company cars.

http://www.svpf.se/volvo




21. Mileage reporting You must report the distance indicated on your car’s mileage meter at least once per quarter, or at the request of Svensk Vagnparksfinans, according to the instructions on the website of Svensk Vagnparksfinans. This is so that Volvo can monitor the total costs of its company car fleet, and so that Svensk Vagnparksfinans can notify company car drivers about change of cars etc. when a certain mileage has been reached.

22. Storage and replacement of wheels Volvo will pay for the replacement of wheels, if they are replaced by an authorised Volvo workshop. In the Göteborg area, this is to be carried out by Volvo Bil i Göteborg AB. Volvo will not pay storage costs for wheels that are not attached to the car. If Svensk Vagnparksfinans receives an invoice specifying a package price that includes tyre replacement, cleaning and storage, you will be personally invoiced for the amount that Volvo Bil currently charges for storage.

If your wheels (rims and tyres) are stolen or vandalised during private storage, Volvo will pay the excess of your home insurance policy or other insurance policy. If, under such circumstances, you claim for other damages under the same insurance, Volvo will pay in proportion to how large a share the wheels represent of the total value compensated by your insurance policy.

23. Replacement car in connection with servicing and downtime When your company car is away for servicing, guarantee repairs or damage repairs at a supplier’s facility or another authorised Volvo dealer (Under an agreement for the Göteborg area, this is to be done by Volvo Bil i Göteborg AB), you have the right to use a borrowed or rented car. Any costs for such cars will be charged to Svensk Vagnparksfinans. However, remember that because this usually costs Volvo money, you should try to avoid using a replacement car if your car is serviced for brief periods only (e.g. one day). Company car drivers have the opportunity to get replacement car when your regular company car is away for servicing, warranty or damage repair. Keep in mind - that except for warranty repairs - the cost of replacement car affects your department. So you can avoid taking out a replacement car while your car is being serviced in a day, this is preferable. The possibility of obtaining replacement car is associated with the following conditions: • Manager will decide if you should receive replacement car as part of scheduled servicing and/or damage repair. • Consent is given on the form "Certificate of damage in connection with the driving" that is available on the website for Svensk Vagnparksfinans. • Booking of a replacement car is made by phone or alternatively email with VolvoBil/authorized Volvo dealer, where the vehicle was picked up. • In Göteborg there is an agreement to service, warranty and damage repair should be done by the vehicle supplier VolvoBil. • In other locations shall the authorized Volvo dealer where the vehicle was picked up be used. I you do not have the form with you when picking up replacement car, you must add money for the rental cost.



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 • In conjunction with warranty repairs, you always have the right to replacement car. Then you do not need form "Certificate of damage in connection with the execution," because the supplier in these cases stands for the rental cost. Replacement car in connection with warranty repair is provided by the supplier in connection with handing in your car.

24. Insurance and other protection Your company car is insured with Volvia. This insurance is valid regardless of who drives the car and whether it is used for work-related or private travel (for information on excess, see below). To report damage, or if you have any questions regarding the insurance, please contact Svensk Vagnparksfinans or Volvia. The phone numbers are in the car’s folder. Under an agreement for the Göteborg area, this is to be done by Volvo Bil i Göteborg AB.

24.1. Collision with other vehicles In the event of collision, use the blue and yellow form “Damage report for motor vehicles”. The two parties should jointly fill in and sign the front page of the form. After this, both parties should write their own report on the back of the relevant page. Regardless of whether the parties agree on the facts of the accident, it is vital to include witness statements. Always write what happened, even if the other party refuses to sign. Make no hasty admissions of guilt. Let your insurance companies decide who is at fault. Please note that damage must always be reported within 30 days after the date it occurred.

24.2. Vandalism, parking damage, theft/burglary, collision with animals, one-car accidents (also see next heading)

A police report must always be made in the event of parking damage, theft/burglary, collision with animals and vandalism. Damage must always be reported within 30 days. The incidents mentioned in the heading must be reported in one of the following ways:

• Report the incident to the police online on www.polisen.se (only applies to theft and burglary). • Report the incident to Volvia (online) on www.volvia.se or by phone on +46 (0)31 345 67 10. • Report the incident directly to an authorised Volvo workshop (sheet metal shop). • Contact Svensk Vagnparksfinans.

In the event of parking damage, you will need to state where the car was parked, when it was parked there and how the damage was inflicted. You must be able to prove this with a witness a) who saw the incident happen or witness(es) b) who saw that the car was damaged while it was parked and c) saw that the car was damaged when you arrived to drive it away. Alternately, you must have a witness who testifies that there were tyre marks on the accident site or fallen glass/car parts showing that your car was damaged while it was parked. Volvo’s insurance does not cover theft of items left in the car (your home insurance may cover this). See below for further information.

http://www.polisen.se/

http://www.volvia.se/



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 24.3. Theft of items left in the car In the event of car burglary, the insurance for your company car only covers equipment that is permanently installed in the car and designed to be used exclusively in the car. Permanently installed equipment means equipment that can only be removed using tools. Consequently, the car’s insurance does not cover laptop computers, mobile phones, GPS devices that are not fixed to the car, CDs, sunglasses etc. Statistics show that car burglary or attempted car burglary is provoked by leaving attractive items visible in the car. Consequently, never leave or store any objects or items in your parked car that might attract burglars or vandals. Leaving a bag visible is sufficient to provoke burglary, even if it contains nothing valuable Items that are stolen from the car and not covered by the car’s insurance may, in some cases, be covered by your home insurance or AB Volvo’s company insurance, depending on who the stolen items belonged to. If the stolen items belonged to AB Volvo, the excess is usually so high that no compensation is paid out.

24.4. Door damage (minor damage to bodywork and/or paintwork) It is often hard to determine exactly when such damage occurred. You may not notice it immediately, but only after some time. To avoid unnecessary costs, you must report the damage as soon as possible after discovering it, and within no more than 30 days. If you do not, the damage warranty will not be valid and your department may be required to pay the full cost. You can normally report damage online on www.volvia.se, or by phone to Volvia or via an authorised Volvo workshop. You must specify the date the damage occurred or was discovered. Any damage must be reported before you change your company car.

24.5. Car window damage from flying stones Report the damage as soon as possible to an authorised Volvo workshop. Do not report it to Volvia. If the damage is minor, cover the damaged area with the special tape that you have been given (available from the workshop). This increases the chances of repairing the damage and limits the cost, as it keeps dust and gravel out of the holes.

24.6. Transporting a car home from another location If you are obliged to leave your company car at a workshop far from the location where you work and are unable to drive the car home yourself, you have the right to collect the car at a pick-up point near your work location. Contact Svensk Vagnparksfinans for help with car transport.

24.7. Repair costs and excess - Volvo and/or company car owner liable Volvo will pay all repair costs, including excesses in connection with work-related travel and travel to and from work. The same applies if the car is used during the working day, e.g. at lunchtime. You must be able to verify work-related travel before Volvo will pay for repairs or an excess. This can be done by your supervisor on the "Claims verification form". The form is available on the website of Svensk Vagnparksfinans. If you do not bring with you the verified form to the workshop, you must pay the cost when picking up the car. In the event of damage, parking damage, theft and burglary), door marks and scratches and car window damage from flying stones Volvo will always pay. In such cases, no distinction is made between work-

http://www.volvia.se/



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 related driving and private driving. In the event of collision with wild animals, one-car accidents and for collisions with other vehicles, Volvo will differentiate between work-related or private driving. You will always be responsible for taking the necessary steps to minimise costs. This entails informing Volvia within 30 days of the damage and a police report when necessary. In the event of uncertainty, contact Svensk Vagnparksfinans. In the event of private travel, you will have to pay the cost of repairs or excess. Personal payments, including VAT if relevant, will however never exceed 10% of the national insurance base amount. This also applies when you have to pay the other party's excess, i.e. your cost will never exceed that stated above. Your repair or excess costs are payable when you collect the car. If they exceed 10% of the national insurance base amount, the workshop is required to invoice the surplus amount to Svensk Vagnparksfinans, who will, in turn, invoice the amount to Volvo. The national insurance base amount used will be that in force at the time of the damage.

24.8. Volvo Assistance Your company car is covered by so-called Assistance. This means that you are entitled to on-site breakdown service in the event of breakdown and other product-related failures such as punctures, flat battery, loss of car keys or car keys locked inside the car. You should be able to find the relevant telephone numbers in the car.

24.9. Employment security agreement Volvo has entered into an employment security agreement for all company cars. Briefly speaking, this means that service and repairs resulting from normal wear and tear are covered by the employment security agreement. Light bulbs and wiper blades are also covered by this agreement, so you should have them changed by the workshop. The agreement does not cover tyres and car window damage.

24.10. Disputes with insurance companies If a dispute arises between the company car driver and Volvia or any other insurance company, the main principle is that the company car driver is fully liable for any costs relating to the dispute. Insurance disputes that cannot be settled amicably between Volvo and the insurance company may be finally determined in a court of law. If Volvo decides not to press charges, the company car driver can request Volvo’s authorisation to press charges at his/her own expense.

25. Vehicle tax Vehicle tax is paid by Volvo.

26. Congestion tax and other road and bridge fees Congestion tax in Stockholm and Göteborg is included in the company car benefit (decision from the Swedish Supreme Administrative Court), so you do not need to pay it either for work-related or private



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 driving. This tax is paid by Svensk Vagnparksfinans, and you do not need to report when you pass a congestion tax control point. You will be compensated for other road and bridge fees incurred through work-related driving according to Volvo's travel account or receipt procedures. If you incur such fees while driving privately, you must personally contact Svensk Vagnparksfinans to settle the costs.

27. Suspension of driving license If your driving license is suspended, you must report this to your immediate supervisor, specifying the reason. If your driving licence suspended for a period of over eight months, the company car must be returned. In this case, you will not automatically be entitled to a company car in future. Instead, a new evaluation will be required.

28. Alcohol and drugs If your driving license is suspended due to use of alcohol or drugs, or for other reasons relating to substance abuse, the car must be either returned or equipped with an alcolock, and a special action plan must be established. In such cases, the company may require you to install an alcolock on the car at your own expense. This will not affect the benefit value. Your supervisor and the HR Business Partner will jointly decide on a suitable course of action in each individual case.

29. Long-term absence Because company cars are primarily paid for by the company car driver (except for A cars) through net salary deduction (deduction after tax), long-term absence will result in a debt to the company. To avoid this, company car drivers are required to request monthly invoicing. This is done by filling in and signing a form especially for this purpose. The form is available on the website of Svensk Vagnparksfinans.

29.1. Use of the Volvo Card during long-term absence You should not use the Volvo Card for buying fuel during absence from work, as these purchases will be reported as a debt to the company. In other words, they cannot be invoiced. However, the card can be used as normal to pay for car washing and buying washer fluid.

29.2. Parental leave

29.2.1. Keeping your company car during parental leave You are entitled to keep your company car during parental leave. However, when you stop receiving your salary from the company, a debt will build up since net salary deductions can no longer be made. For this reason, you must request to have the charges invoiced to you. The employee will be invoiced for an amount equivalent to the net salary deduction made for a B car. This applies to all car categories (A, B and C). You can download the request form at the website of Svensk Vagnparksfinans.

3 The information under this heading regards full-time parental leave. There are no specific rules for part-time parental leave (see under “Part-time employment and part-time absence”).



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 29.2.2. Relinquishing your company car during parental leave If you wish to relinquish your company car during parental leave, you have the right to do this if at least nine months have passed of the existing leasing contract for the company car, and if your parental leave is to last for at least six months. If the leasing contract for your company car expires before the end of the time limits specified above, you can relinquish the car on expiry of the leasing period. If you relinquish your company car during parental leave, you are entitled to have your car back when your parental leave ends, provided a new car is ordered no later than three months after you resumed working at least 50% of full time.

29.2.3. Change of car during parental leave If your company car is due to be changed during your parental leave, the rules above apply. In other words, you can choose to either change or relinquish the car.

29.3. Sick leave

29.3.1. General rules In the event of full-time sick leave, the car must be returned after 12 months if the employee is still on sick leave. The company car driver does not have the right to return the car before the end of these 12 months. Exceptions to this rule are made in the following circumstances:

• If the leasing contract expires during these 12 months, the company car driver can choose to return the car when the contract expires.

• If the employee is expected to return to work after a period of 12 months, the employee's supervisor and the HR Business Partner can jointly decide that the employee can keep the car after this period.

• In the event of illness that prevents the employee from driving the car, or if it is established after less than 12 months than this that the employee on sick leave will be unable to return to work, the employee has the right to relinquish his/her company car at shorter notice.

In most cases, the employee on sick leave has the option of changing the company car whilst on sick leave. However, Svensk Vagnparksfinans must always be consulted in such cases, to determine the best possible financial solution in each individual case. The HR Business Partner is responsible for this. An employee returning to work after long-term sick leave (during which the car was returned) is entitled to have the company car back, provided a new car is ordered no more than three months after the employee resumed working at least 50% of full time. No special rules apply in the case of part-time sick leave. In such cases, the employee will keep the full company car benefit.

29.3.2. Invoicing during sick leave If you are on sick leave, you should submit a request to have the charges invoiced. This should be done within three months after your sick leave period began. The employee will be invoiced for an amount equivalent to the net salary deduction made for a B car. This applies to all car categories (A, B and C). When you return to work, you must submit a request for the salary deductions to be resumed.




29.4. Long-term absence for other reasons The basic rule is that the existing leasing contract should not be broken. However, each case will be evaluated based on the individual circumstances, taking into account the financial circumstances and the reason for long-term absence on other grounds than parental leave or illness.

30. Part-time employment and part-time absence If you are a part-time employee or are on part-time absence, you must make sure that your salary is sufficient to cover your salary deduction. If it is not, you must submit a request to be invoiced. Apart from this, there are no specific limitations regarding part-time employment or part-time absence (see under “Invoicing”), for instance part-time sick leave. Neither do you have the right to relinquish your company car before the leasing contract expires.

31. Invoicing of company car drivers Volvo may invoice the company car driver in the event of the following circumstances:

1. Long-term sick leave. 2. Unpaid parking fines. 3. If the service book, tyres, keys, fuel or other equipment is missing when the company car is returned. 4. If washing or reconditioning are required when the company car is returned. 5. If the company car has been poorly maintained. 6. If repair costs and/or car insurance excess are due as a result of damage during private driving (also

see Clause 24.7.). 7. On failure to order a new company car after being requested to do so. 8. On receipt of invoices that the individual company car driver is liable to pay under the present rules.

The inspection report or other documentation may be shown instead of a formal invoice when the company car is returned. In certain instances, VAT can apply to the cost stated in the inspection report, for which the company car owner will be personally responsible for payment. The invoice shall be sent to the company car driver’s home address. In certain cases, the invoice may be replaced by a net salary deduction. Volvo reserves the right to carry out the invoicing through Svensk Vagnparksfinans or another external supplier.

31.1. Long-term absence Company car drivers on long-term absence (sick leave, parental leave etc.) are required to submit an “Invoicing request” to Svensk Vagnparksfinans using the form on the website of Svensk Vagnparksfinans. This should be done as soon as possible, and no later than three months after the long-term sick leave period began. The employee will be invoiced for an amount equivalent to the net salary deduction made for a B car. This applies to all car categories (A, B and C).



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 When you return to work after long-term sick leave, you must submit a request for the salary deductions to be resumed.

31.2. Unpaid parking fines Unpaid parking fines, including any reminders, will be invoiced to the company car driver with a surcharge of SEK 500.

31.3. If the company car is returned with missing equipment or fuel If the company car is returned with equipment missing (e.g. winter tyres, service manual, keys), or without having been filled up with petrol, the company car driver must compensate Volvo for the resulting costs by paying the due amount to Svensk Vagnparksfinans. This amount will be decided on the basis of the inspection carried out when the car is returned. This decision may be appealed to Svensk Vagnparksfinans. For more information of the cost of various types of negligence, see the website of Svensk Vagnparksfinans. Also see Clause 10.3.

31.4. Washing and reconditioning If the car is dirty and/ or in a condition that necessitates reconditioning, you will be invoiced for the additional cost arising from this.

31.5. Poor maintenance Costs arising from poor maintenance will be invoiced to the company car driver. This will be decided by the HR Business Partner in consultation with AB Volvo, Corporate HR Sweden.

31.6. Failure to order a new company car Svensk Vagnparksfinans will send you a letter asking you to change your company car. If you fail to do so after receiving a final reminder, you will be required to pay an extra fee of SEK 2,000 per month. This fee will either be charged as a net salary deduction or invoiced to your home address. The reason for this extra fee is that failure to change your company car constitutes a breach of contract resulting in additional costs for Volvo. If you do not order a new car, you may be required to accept a car other than your preferred model in order to keep your company car benefit. In such cases, Svensk Vagnparksfinans has the right to assign you a car. Furthermore, Volvo may completely withdraw your company car benefit because you did not fulfil your obligations. Also see Clause 9.3.

32. Retirement – summary If you are due to retire within less than twelve months, you are not entitled to order a new company car. Instead, your existing leasing agreement should be extended up to your retirement date. Contact Svensk Vagnparksfinans for more information. Your company car benefit will be terminated on the day your employment expires. You must contact Svensk Vagnparksfinans yourself to notify them of the date your employment will end, in order to agree on a date



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 for returning the car. In connection with all forms of full retirement, as well as full sick pay, you have the right to buy your company car. The price and conditions are entirely subject to agreement between you and your authorised Volvo dealer. If you intend to buy the car, please contact Svensk Vagnparksfinans. Your right to buy the car is subject to agreeing on a price.

33. Return of company car in connection with voluntary resignation, retirement, work abroad etc.

33.1. Voluntary resignation and retirement Your company car benefit will be terminated on the day your employment expires. You may not change your car during your period of notice. You must contact Svensk Vagnparksfinans yourself to notify them of the date your employment will end, in order to agree on a date for returning the car. You should also notify Svensk Vagnparksfinans if you are due to retire and wish to buy the car.

33.2. Work abroad If you are stationed to work abroad, you are required to return the car. You must contact Svensk Vagnparksfinans yourself to agree on a date for returning the car. You will regain your company car benefit when you resume working in Sweden, unless otherwise agreed.

33.3. Other reasons The company car may not be returned during the term of a leasing period. If this nevertheless becomes necessary (e.g. due to unforeseen family circumstances, changed employment conditions etc.), the approval of the HR Business Partner must be obtained.

34. Death If a company car driver dies, his/her estate should be given the option of buying the company car at a price and on conditions to be decided between the estate and the authorised Volvo dealer. However, the employee's estate should be given the option of keeping the company car during the month when the employee's death occurred, and for two months thereafter. The HR Business Partner will provide assistance in such cases.

35. Use of department pool car for private purposes If you use a department pool car for private purposes, fringe benefit tax and social contributions must be paid if an individual utilises this benefit on more than ten occasions in one calendar year, or accumulates a mileage of 10,000 km or more. The option of lending the car is only applied in certain departments and companies. If you borrow a department pool car for private purposes, you must pay the fuel costs yourself. In other words, you may not use the company’s fuel card (Volvo Card). You can find the relevant routines and forms at Employee Center – Salaries and benefits – Other benefits – Borrowing of department pool cars.



Rules for company car drivers in the Volvo Group 2015.1 2015-06-18 36. Home addresses Svensk Vagnparksfinans has access to your home address, and has the right to use it for sending you information and material relevant to you as a company car driver, including magazines and other printed matter. Your address and other personal data may not be disclosed to third parties, with the exception of the police and the public prosecutor's office.

37. Disputes and contestations If you disagree with an invoice you have received or other decisions regarding your company car, you should, in the first instance, contact Svensk Vagnparksfinans and, in the second instance, contact your supervisor. Disputes and other issues that cannot be settled in this way will be dealt with by the company’s HR Business Partner in consultation with AB Volvo, Corporate HR Sweden.

38. Purchase of company car If you wish to buy your company car, you must wait until the current leasing contract expires. You should notify Svensk Vagnparksfinans if you wish to buy the car. Please note that this transaction is entirely between you and your authorised Volvo dealer, and in no way involves AB Volvo. You have no automatic right to buy the car; the decision is entirely at the supplier's discretion. An exception exists in the case of retirement. See Clause 33.

39. Further information If you require further information, please contact Svensk Vagnparksfinans. If necessary, Svensk Vagnparksfinans will consult Volvo’s contact persons or another external source for further clarification.

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