(Updating with production capacity comments)

STOCKHOLM (Thomson Financial) - AB Volvo (nasdaq: VOLV - news - people )'s deputy chief executive Jorma Halonen said the realisation of the synergies from the Nissan (nasdaq: NSANY - news - people ) Diesel acquisition are going 'slightly ahead of plan' and will surpass the expected annual 200 mln eur after 5 years.

Halonen made the statement at Volvo's capital markets day today, the news agency Direkt reported.

Halonen said he believes Nissan Diesel can 'double' its export volumes. In 2006, Nissan Diesel exported around 23,000 trucks, around 3,000-6,000 more trucks than the domestic sales.

The head of Volvo Construction Equipment Tony Helsham said Volvo now views the first stage of the integration of the Lingong acquisition as completed.

'Right now we are going according to plan, or slightly ahead of plan,' said Helsham.

Volvo said problems in its European truck production supply chain are continuing.

'It is more or less as we said in connection with the last quarterly report. We have had as severe problems during the second quarter as during the first. But we are also seeing that the whole system is lifting gradually, but we have had considerable problems in the second quarter,' CEO Leif Johansson said.

Johansson said he sees no need for any further investments in capacity, other than those already decided, and said investments by suppliers in a few places, weren't happening as quickly as he 'maybe had hoped'.

TF.TFN-EuropeStockholm@thomson.com

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