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                                                                    EXHIBIT 20.1

[FORD LOGO] |  NEWS RELEASE
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FOR IMMEDIATE RELEASE

Contact:  John W. Spelich                       Mats Edenborg
          Ford Motor Company                    AB Volvo
          313-322-1524                          +46-31-591126  or +46-708-591126

FORD REACHES AGREEMENT TO BUY VOLVO'S
WORLDWIDE PASSENGER VEHICLE BUSINESS


DEARBORN, Mich., January 28, 1999 -- Ford Motor Company [NYSE: F] has reached an
agreement with AB Volvo to buy its worldwide passenger vehicle business, Volvo
Cars, for a price of $6.45 billion.

"Our 21st century vision is to become the world's leading consumer company that
provides automotive products and services," said Ford Chairman William Clay
Ford, Jr. "The addition of Volvo is a meaningful step toward achieving this
vision."

"Volvo is a premium automotive brand with unique appeal that represents a good
opportunity to profitably extend our lineup and grow the Ford business
worldwide," said Jacques Nasser, Ford president and chief executive officer.
"Volvo is a perfect complement to the Ford family of brands worldwide. Volvo has
a world-class reputation for safety, quality, durability and environmental
responsibility - all of which are attributes that are increasingly important to
our customers, and fit with our 21st century vision for Ford Motor Company."

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"The proposed sale of Volvo Cars to Ford will have very important benefits to
the parties concerned," said Leif Johansson, president of AB Volvo and chief
executive officer of the Volvo Group. "Volvo Cars' future prospects will, by
being an important part of one of the world's largest and most profitable
automotive groups, improve considerably."

Nasser said that Ford is pleased to be able to expand its technology and
research capabilities through this transaction, as well as expand its operations
in Sweden. "Ford has been operating in Sweden since 1924, and today we sell
passenger and commercial vehicles through a network of 87 dealers there. We have
been serving our Swedish customers for 75 years," Nasser said. "We are not just
in Sweden, we are part of Sweden. And, through our new relationship with Volvo,
we plan to be part of the fabric of the country for many years to come."

Ford will take ownership of all of Volvo Cars' facilities worldwide, including
three major assembly plants and two powertrain plants in Europe and Volvo's
passenger vehicle product development center in Gothenburg, Sweden. Ford will
have the right to use the Volvo brand for passenger vehicles including cars,
minivans, sport utility vehicles and light trucks on a perpetual basis. Volvo
has the right to use the Volvo brand for commercial vehicles and its
non-automotive-related products. 


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"By adding Volvo as our seventh global automotive brand, we expect to generate
increased revenue and profitability while broadening the choices that we at Ford
provide our customers, and strengthening our image," Nasser said. "Volvo Cars
has a strong demographic and regional appeal that fits well with other Ford
products. In addition, Volvo's fine global distribution network will give us
added flexibility to grow our other brands."

This transaction is subject to regulatory and Volvo shareholder approval.

"The agreed price represents full and fair value to the Volvo shareholders and
excellent long-term value to the Ford shareholders," said Ford. "We expect
increased annual earnings through a combination of expanded product lineup,
volume growth, global economies of scale in engineering resources and
purchasing, and platform and manufacturing synergies."

Ford Motor Company is the world's second largest automaker. Its automotive
brands include Aston Martin, Ford, Jaguar, Lincoln, Mazda and Mercury. Its
automotive-related services include Ford Credit, Quality Care, Hertz and Visteon
Automotive Systems.


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