Volvo (Volvo Aktiebolaget), a Swedish company that produces cars and trucks, as well as engines for various purposes, a variety of agricultural, forestry and household appliances. The headquarters is located in Gothenburg.
At the Stockholm restaurant Sturehof on July 25, 1924 - the day that is called Jacob's Day in the Swedish calendar - the decision was made to create Volvo. The first model of the car, prepared by the founders of the company, Assar Gabrielsson (Assar Gabrielsson) and Gustaf Larson (Gustaf Larson) was called "Jakob" (Jakob), and the maximum number of Swedish-made components was used in its creation. The undertaking of enthusiasts turned out to be successful and since 1927, a company was founded to produce cars of the Volvo brand (from the Latin volvo - I roll). By 1935, 10,000 cars had been sold in Sweden.
The first trucks have been produced since 1928, and since 1931 the company has been the leader in Europe in the production of heavy trucks.
In the early 40s, the company developed the relatively inexpensive Volvo PV36 and Volvo PV51 models, which became popular in Sweden. The war prevented the sale of these models in Europe, but in the first post-war years, powerful advertising campaigns brought the company fame in Europe and America. The post-war model Volvo PV44 was the leader in Sweden in terms of sales until 1953 and became the basis for subsequent "hits" - PV 444 and PV 544. The presentation of the first mass-produced Volvo car - PV 444 - took place in 1944 at the famous Volvo exhibition at the Royal Tennis Hall in Stockholm. The PV60, the first bus with a diesel engine, and many other new products were also introduced.
In 1953, the presentation of the first real Volvo station wagon, the Duett, took place. While probably more suited to small businesses, the Duett marked the beginning of Volvo's focus on family cars.
In 1956, the Volvo P 120 was released (sold in the Scandinavian countries under the name Amazon). This car was distinguished by a pronounced feminine outline. Soon the novelty bypassed the popularity of PV.
1958 Gunnar Andersson wins the European Rally Championship in a PV 544. In 1965, Volvo won the World Rally Championship.
Volvo was the first company in the world to install a three-point seat belt in a mass-produced car in 1959. The creator of the new seat belt, Nils Bohlen, has received many awards, but more importantly, this belt has saved millions of lives.
The product range expanded and in 1959 the Volvo P 1800 coupe sports car appeared.
In 1966, the Volvo 144 was released - "the safest car in the world", which received the title "Car of the Year" in the Scandinavian countries.
In 1974, the presentation of the Volvo 240 took place - more modern and safer than the 140 series cars. It remained on sale until 1993 and was produced in the amount of 2.8 million copies.
The Volvo 343 was launched in Holland in 1976, an important new model with a unique transmission called "Rem-Johan" (Belt-Johan). At first, the car had certain shortcomings, but over time, "childhood diseases" were cured, and the model gained popularity.
Volvo is the first car manufacturer in the world to introduce a catalytic converter and a lambda probe in 1976.
In 1982, the Volvo 760 became a worldwide success. At this time, the company was experiencing difficulties due to changing market trends. Following the Volvo 760, more massive, "democratic" 740 models appeared, which quickly conquered Sweden and other countries.
In 1985, the Volvo 480 ES was released in Holland, a spectacular sports coupe that became Volvo's first front-wheel drive car. It was followed in 1988 by the Volvo 440 and a little later by the Volvo 460 sedan.
The Volvo 960 and 940 were introduced in 1990. The Volvo 960 had an aluminum six-cylinder engine that was assembled at the new engine plant in Skovde and developed at least 240 hp. The car quickly entered the fray with rivals from the luxury class - primarily German. The Volvo 940, like the earlier 740 and 240 models, became the people's car.
In 1991, the Volvo 850 family car entered the market, which was a great success. With SIPS and other innovations, Volvo has shown what a reliable side impact protection system looks like.
In 1994, Volvo released a completely new version of the Volvo 960.
In 1995, the Volvo plant in Born produced new contenders for success - the Volvo S40 and V40.
In 1996, the Volvo C70 Coupe was introduced to the public. This coupe, followed by the Volvo C70 Cab, was assembled at the Uddevalla plant, which was jointly owned by Volvo and Tom Walkinshaw Racing.
In 1997, the V70 Cross Country was released. In 2000, the second generation Volvo V70 2000 was released, built on a large platform. At the same time, the Volvo Cross Country car appeared.
The Volvo S80, which was shown at 272 hp, had an IC inflatable curtain and a WHIPS whiplash protection system, the world's first safety features of its kind, and in 2000 this model was recognized as the safest car in the world.
In 1999, Volvo Cars' passenger car business was sold to Ford Motor Company.
In 2000, the third model was released, created on a large platform - the sporty Volvo S60.
In Detroit in 2002, the premiere of the SUV - Volvo XC90.
Volvo has gained a reputation as a manufacturer of expensive, prestigious, reliable and safe cars (the company's role in the development and implementation of modern security systems is widely known, for which the company has won international awards more than once).
The first production Volvo rolled off the Gothenburg factory in 1927. Since then, Volvo Car Group has been a world leader in innovative and safe vehicles. Today Volvo is one of the most well-known and respected automotive brands, the company's sales market includes about 100 countries.
Volvo Cars was part of the Swedish Volvo Group until 1999, when it was acquired by the American concern Ford Motor Company. In 2010, Volvo Cars was bought out Chinese concern Zhejiang Geely Holding (Geely Holding). The new owner contributed to a radical renewal of the Volvo model range, a significant increase in the company's production capacity and strengthening the position of the Swedish automaker in the global market.
The Volvo brand is owned by Volvo Trademark Holding AB, jointly owned by Volvo Cars and the Volvo Group.
The corporate and brand development strategy - Designed Around You - is focused on the needs of people and underlies the production and business activities of the company, as well as the basis of its corporate culture.
About 2,300 dealers (most of them independent companies) sell Volvo cars in about 100 countries. As of December 2018, Volvo Cars employed around 43,000 people worldwide.
Volvo Cars produces premium vehicles of various types: sedans (S60, S90), station wagons (V40, V60, V90), off-road vehicles (V60 Cross Country, V90 Cross Country) and crossovers (XC40, XC60, XC90).
In 2018, Volvo Cars sold 642,253 vehicles. This year was the company's fifth consecutive year of record sales. The largest sales market is China, accounting for 20% of total sales in 2018. It is followed by the US (15%), Sweden (10%), the UK (8%) and Germany (7%).
For the 2018 financial year, Volvo Car Group posted an operating profit of SEK 14,185 million (2017: 14,061 million). Revenue for the reporting period was SEK 252,653 million (208,646 million).
Volvo Cars is headquartered in Gothenburg, Sweden, where resources are concentrated for product development, marketing planning and administration of the company's current processes. Since 2011, Volvo Cars has had offices in Shanghai and Chengdu, China. The headquarters of the Chinese division of the company in Shanghai is engaged in sales, marketing, purchasing, development and other support functions. There is a technology center on its territory.
In addition to the main factories in Gothenburg (Sweden) and Ghent (Belgium), engines for Volvo Cars have been produced since the 1930s by a factory in Skövde (Sweden). The production of components for the body since 1969 has been established at the plant in Olofström (Sweden). In addition, the company's assembly plants operate in Kuala Lumpur (Malaysia) and Bangalore (India), and in Shanghai, Stockholm and Lund (Sweden) and Silicon Valley (USA) have research and development centers. Finally, Volvo Cars has design centers in Gothenburg, Camarillo (USA) and Shanghai.
In 2013, mass production was launched at the plant in Chengdu - Volvo cars are produced here for the Chinese and American markets. In 2014, a second plant in China, in Daqing, began operation, and car engines are also produced at a plant in Zhangjiakou (China). Also, the production of Volvo cars is carried out at a plant in the city of Luqiao (China). In June 2018, the opening of a new Volvo Cars plant in South Carolina (USA) took place.
Volvo cars have always been associated with excellent quality and unconditional reliability. But this was considered before, until the history of the company began to change dramatically.
At some point, everyone thought that the brand might disappear altogether. After returning to the market, it seemed that Volvo would never be the same again. There will not be the same quality, the same indicators of reliability.
As it turned out, the worries and doubts were in vain. Currently, Volvo still continues to produce new cars that are distinguished by excellent assembly, rich equipment, fairly high prices and a thorough approach to.
At the same time, for many, the question of where exactly these cars are produced remains open. This is explained by the sale and resale of the company's shares, the transfer of the brand from one hand to another. This is expected to confuse consumers. And when the concept of China sounds next to Volvo, it completely scares you away from buying the once best Swedish cars.
Excursion into history
When it comes to the country of manufacture of Volvo, the first thing that comes to mind is the birthplace of the brand. Namely Sweden. Yes, the company originated in this country, and several production facilities are now operating here. But Volvo's influence has expanded since its inception, allowing assembly to branch out into several countries at once.
Currently, the company has several main areas of activity:
- production of passenger cars;
- production of trucks;
- supply of parts and spare parts;
- assembly and delivery of engines;
- production of components for trucks, etc.
If we talk about trucks, then here we are talking about an offshoot of the company, which is called the Volvo Track Center and is based in Kaluga. In fact, this subsidiary has no direct relation to production.
But it all started with a relatively small Swedish factory in the city of Gothenburg. It was here in 1927 that the first car under the Volvo brand rolled off the assembly line.
For over 70 years, Volvo has been an integral part of the Volvo Group. But in 1999 the brand was sold. At that time, he became the property of the American auto giant in the face. Although the Americans did not manage to keep the Swedish brand for a long time. This was due to unprofitability and unprofitability of the further maintenance of the company. As a result, Ford management decided to get rid of Volvo by putting it up for sale.
After 11 years of ownership, Volvo was transferred from Ford to the Chinese automaker Geely. It was a difficult period for the company, as low profitability, weak sales figures were replaced by a transition under the leadership of a Chinese automaker, which at that time was not yet sufficiently recognizable. Everyone was afraid that this would lead to a drop in quality, a significant decrease in positions and a fall in the Volvo rating.
But in practice, everything turned out differently. Since 2010, when the Chinese bought Volvo from the Americans, the period of formation and revival of the brand began. Geely managed to correctly build a development strategy, invested money in Volvo, which fully paid off with the start of the production of new and updated cars.
The new owners set a goal to radically change the model range, significantly increase production capacity, and globally strengthen Volvo's position in the global market. And they have succeeded so far.
Now more than 2.3 thousand dealers are engaged in the sale of cars under the Volvo brand, which are concentrated in 100 countries. By the end of last year, the total staff of the car company around the world totaled over 38 thousand people.
During the same 2017, the company managed to sell almost 600 thousand of its cars of different classes and segments. And it turned out to be the 4th year in a row when Volvo shows sales records. The results of 2018 promise to be no less successful, but the results of the annual report have not yet been summed up.
As for the financial component, the operating profit for the last year amounted to 14 million kroons against 11 million in 2016. Annual revenue reached 210 million crowns, although a year earlier this figure was at that time a record 180 million.
The main headquarters is located in the homeland of the brand, that is, in Sweden, in the city of Gothenburg. Here the company develops its products, carries out marketing operations and planning, and also deals with administrative processes. And in 2011 we opened 2 offices in China. They are more focused on working in the domestic market. The Chinese headquarters took over the functions of sales, marketing, purchasing and development, as well as some other support functions.
Automobile manufacturing
Since buyers are interested in where the Volvo CX90, CX60 and a number of other cars are assembled, it is necessary to understand in more detail the geography of the brand's production.
Initially, all Volvo cars were produced in Sweden. But then production was taken up in other countries. At the same time, the plant in Gothenburg, which originally produced Swedish cars, still remains the main enterprise, where models such as the XC90, V60, S80, etc. are now successfully assembled.
To understand where Volvo is produced and assembled for Russia and other countries, you should study the geography of the automaker.
I would like to immediately note that in Europe cars are sold that are focused specifically on the European market. Asian and American assembly lines are focused respectively on the US and Asian countries. The exception is the plant in Chengdu, which is located in China. The company opened here in 2013. It assembles cars, which are then sold directly at home, that is, in China, and are also sent for sale in the United States.
Since 2014, another Chinese factory has been operating. It is located in the city of Daqing. A little later, a factory was opened in Luqiao. The most recent facility to assemble Volvo is the Charleston plant in South Carolina, USA.
Volvo for Russia
It is worth understanding in more detail where cars are assembled under the Volvo brand for Russia. It is a mistake to assume that the process of assembling Volvo cars, which are intended for the Russian market, is established in China. Cars assembled in Sweden or Belgium go to Russia.
To find out exactly where the same Volvo XC90 or another model officially presented in Russia is assembled, you should look at. If the VIN code uses the characters 1 or J, then the car was assembled in Sweden. If you see the number 2 on the wine code, then the car was assembled in Belgium, the city of Ghent.
So far, only at the level of rumors, the plant is expected to appear on the territory of Russia. If this happens, then the most likely option is to organize an assembly line. That is, components will be supplied, and domestic enterprises will undertake the final assembly. This scheme is practiced with many imported cars, so Volvo can be one of them.
In the meantime, you should rely on cars shipped from Europe. There is objectively nothing wrong with this, since the European assembly is of high quality and accuracy. Whether domestic specialists will be able to maintain the same level, if the rumors about the appearance of Volvo in Russia become reality, is a topical and open question.
In order to sum up some results and determine where various Volvo cars, such as the XC90, XC60 and other popular models, are assembled, it is worth considering the entire current geography of the brand.
- Gothenburg. This city is the main springboard for the Swedish brand, since it is here that the headquarters of the company is located. Plus, one of the most productive factories operates in Gothenburg. Every year, a large number of machines roll off the assembly line and are distributed around the world for subsequent sale. Among them is Russia;
- Shevde. Currently, this company, located near Gothenburg, is engaged in the production of power plants. Volvo is distinguished by reliable and productive engines that have repeatedly won prestigious awards. This is all the merit of specialists working in the Swedish Skövde;
- Copenhagen. Volvo also has branches in Denmark. There is a research and development center here. That is, here they are invented, introduced into production, tested and modernized;
- Olofstrom. Swedish city known for its high quality production of Volvo body parts;
- Gent. One of the main production facilities of the Volvo brand is located in Belgium. A full production cycle is carried out here. In terms of build quality, the specialists from Ghent are considered the best in their field. Indeed, the machines coming off the assembly line in Belgium are distinguished by an excellent fit of all parts. This is not to say that other plants are much worse in this component. But for some reason, it is generally accepted that the best Volvo cars are made in Gothenburg and Ghent;
- Silicon Valley. Another research and development center. Located in the American Silicon Valley;
- Charleston. The newest enterprise, where the full cycle of production of Volvo cars is carried out. Opened in 2018, the plant will meet American demand for Swedish cars. Volvo has always been popular in the North American market, but previously cars had to be shipped from other continents. Geely's solution will largely solve the problem of long-term delivery of cars to end consumers;
- Daqing. A relatively new plant operating in the Chinese city of Daqing. It appeared after the acquisition of the Volvo brand by Geely. The cars assembled here are mainly focused on the local market. The enterprise has been operating since 2014;
- Zhangjiakou. Also a Chinese city, where the production of power plants for the entire line of Volvo cars is concentrated;
- Luqiao. A plant in China, which is engaged in the full cycle of production of cars of the Swedish brand;
- Chengdu. At the moment, this is the last among the presented Chinese factories, where the production of cars of several models from Volvo has been launched. The company started serial production in 2013;
- Kuala Lumpur. This is Malaysia, where the Chinese from Geely organized an assembly plant that deals with Volvo cars. All the necessary components are supplied here, and the Malaysians only assemble everything together;
Bangalore. Another assembly plant opened in India. Thus, representatives of the Chinese concern Geely are trying to expand their own influence, as well as satisfy the demand in an emerging market for reliable Volvo cars. As in Malaysian Kuala Lumpur, in Bangalore they only assemble from ready-made components.
You can clearly see that the Volvo brand has expanded not several continents at once, but a number of countries. In the USA, Europe and Asia there are own enterprises, research centers, assembly lines.
Not everyone expected that after the sale to the Americans and the subsequent sinking of the Volvo brand, the transfer to Chinese owners would have such a positive impact on the development of the company.
But Volvo really managed to regain its former positions. Moreover, many experts are sure that now the brand is only at the initial stages of its formation after the probable extinction. Everything is going well, sales are growing, new models are appearing and great updates to already proven Volvo models.
The opening of an enterprise, even in the form of an assembly plant, in Russia will be another big step for Volvo. Among Russians, there is a fairly large demand for cars of this brand.
It is worth remembering that not so long ago, meetings were held between representatives of Russia and Volvo. The result of negotiations between the contact group and the plant in Kaliningrad was a trial run of a conveyor for assembling Volvo cars. As a result, 8 station wagons were assembled, which are produced under the name XC70. But after that, it was not possible to agree on cooperation. This is just the first try. Negotiations should resume soon. The probability of signing a contract between the parties is quite high.
We should not forget about the impressive achievement in the form of the opening of the Volvo Track Center in Kaluga. Although the assembly of Volvo trucks has no direct relation to the production of passenger cars, the Russians still have experience of cooperation with representatives of the Swedish brand. In addition, excellent trucks are assembled in Kaluga, the quality of which has no complaints. This fully satisfies the needs of the domestic market. Also, assembled Volvo trucks are delivered from Kaluga to neighboring CIS and Baltic countries.
Despite the relatively high price, advanced technology, excellent build quality, reliable engines and advanced security systems largely justify the inflated cost.
Russian sales of Volvo this year, like those of other auto brands, leave much to be desired: after the collapse of the market, buyers in car dealerships have become much smaller. Sales of the new flagship model XC90, which were supposed to start in March, were eventually postponed and will start only now (the exact dates are still unknown). Together with a noticeable reduction in prices for the model range, announced at the end of April, this should improve the company's business in Russia. At the same time, despite local problems, Volvo, having passed into Chinese hands, has been demonstrating more than decent results in recent years, having managed to retain old customers and attract new ones.
In 2010, the Chinese did not just acquire the first European brand that came to hand. They bought a company best known for security technology. It was with this that Chinese auto companies had (and still remain) serious problems from the very beginning: many cars were absolutely uncompetitive in terms of European or American standards.
Five years ago, the global economic crisis forced the American concern to get rid of unnecessary assets, one of which was the passenger division of Volvo.
The Swedish manufacturer was making losses, and Ford did not want to invest in the company during the crisis. As a result, the Americans sold Volvo to the Chinese auto giant Geely for $1.8 billion. At the same time, in 1999, Volvo cost the Americans 3.5 times more — $6.5 billion.
When Volvo was taken over by the Chinese, many auto experts and fans of the brand seriously expressed fear that Volvo would lose its image and that the Chinese, taking advantage of Swedish technology, would not invest heavily in it.
But the new owner of Volvo was quick to assure that the brand would be given independence in a strategic perspective and the opportunity to work on its own business plan.
“Cooperation with the Swedish brand is, first of all, safety technologies. Volvo has a very strong position in this aspect of the automotive industry, said Geely CEO Li Shufu at the end of April. “In addition, we are now focusing on research and development work on the creation of a new modular CMA platform (for the production of C-class cars). The C-Class Sedan will go into production in 2017 and will be the first car on the new CMA small-size platform shared by Geely and Volvo. The successor to the Volvo V40 will get the same platform.”
“Based on this modular architecture, Volvo develops some products, and Geely develops others, its own,
Shufu says. “They have different directions and completely different characteristics, corresponding to positioning in their segments.”
However, here it is worth recognizing that Volvo did not initially count on such a format of cooperation. Shortly after the deal, Volvo's then CEO made it clear that no technical collaboration with Geely was out of the question.
“We understand ourselves as part of a financial, not an industrial holding, so we maintain independence, which is very important to us. Geely and I work in completely different areas of the automotive industry, which makes cooperation on a wide range of issues almost meaningless, ”he said.
Well, a few years later the situation has changed, and it is not difficult to guess that the Chinese still managed to impose their vision of mutual cooperation on the Swedes.
For the star-struck Geely, the Volvo purchase opened up access to unique safety technologies and other developments. But at the same time, the deal allowed Geely to become the first Chinese car company to expand not only in Europe and the United States, but also in developing countries, becoming a global brand.
At least such plans are declared by Li Shufu, who is called the "Chinese Henry Ford." In the near future, Geely plans to start exporting Swedish brand cars from factories in China to other countries. Among the export destinations, in addition to the United States, experts also name Russia. Shipments will be made from a factory in Chengdu in southwest China.
The Swedish company also does not hide the fact that it is quite satisfied with the cooperation. The main criterion is the growing volume of world sales.
According to Lars Danielson, head of Volvo China, 2014 was one of the best years for Volvo Cars. “More than 466,000 vehicles have been sold, all models,” Larson said. —
Business was also going well in Western Europe, which is also an important market for us. 56 thousand cars were sold in the USA. Overall sales were good, with our profits up 17% to $2.2 million.
However, the margin is still low.
Here you need to keep in mind the context. We invest a lot, invest in new products. It would be much easier to do what the whole industry does, and the profits would be different. But the plan is what it is."
The Chinese market for Volvo today is the largest - its share reached 17% of global sales last year. Sweden is in second place, the United States is third with 12%. Next come the UK (about 9%) and other European countries - 7%.
“I don’t think that Volvo, having become the property of Geele, could lose something,” says the general director of Strana radio, a well-known auto expert. — Quite the opposite: the brand has retained all its positions.
Yes, they had big plans to develop the brand in the Chinese market, but so far they have not actually achieved any noticeable results.
However, the fact that the Swedish brand is present in China, Europe and the US is already a good thing. Here we can cite as an example the fate of another Swedish manufacturer - Saab, which simply went bankrupt and ceased to exist.
According to the expert, when both companies announce joint technical developments, they are of a very specific nature.
“For Geely, buying Volvo was the fastest way to get modern automotive technology. They didn't really have any work of their own. Therefore, speaking about the joint development of the two brands, one must understand that only the Europeans provide the entire technical base, and the Chinese side provides funding. Therefore, it is quite logical that the joint technical center of the two companies is located in Sweden,” he said.
According to Denis Eremenko, General Director of PodborAvto, the perception of the brand by Russian consumers has not changed since the moment it came under the wing of a Chinese company. “If the build quality of cars, the design and positioning of the brand as a whole do not change, then the consumer does not think at all about who owns the brand,” Yeremenko shared his opinion with Gazeta.Ru. “The purchase of Volvo by the Chinese is just such a case, so this circumstance did not affect the demand from Russian buyers.”
The example of Volvo is not the only one. On account of the Chinese - the purchase by Dongfeng Motor Group of a 14% stake in the French concern PSA, which is experiencing difficult times, the acquisition of BAIC from Saab technologies. It is impossible not to recall the failed deal to sell the Hummer brand to the Chinese. In addition, it recently became known that the Chinese state-owned chemical corporation ChemChina plans to acquire the Pirelli tire brand for 7.1 billion euros.
But the same tactics are used not only by the Chinese. The Indian company has owned the British Jaguar Land Rover for several years now and is doing everything to avoid being associated with the legendary premium brand among ordinary buyers.
Volvo means "I'm rolling" in Latin, and the circle of arrows is just a convenient symbol for steel, Sweden's biggest industry before iKEA. The circle and arrow symbolize the shield and spear of Mars, which are also alchemical symbols for iron. In 1924, in the Stockholm restaurant Sturehof on July 25 - the day that is called Jacob's Day in the Swedish calendar - Assar Gabrielsson and Gustaf Larson decided to create Volvo.
Volvo's birthday is April 14, 1927, the day the first car, called the Jakob, left the factory in Gothenburg. However, the real history of the development of the concern began a few years later. The 1920s are characterized by the beginning of the real development of the automotive industry simultaneously in the USA and Europe. In Sweden, they really became interested in cars in 1923 after an exhibition in Gothenburg. In the early 1920s, 12,000 cars were imported into the country. In 1925 their number reached 14.5 thousand. In the international market, manufacturers, in pursuit of increasing their volumes, were not always selective in their approach to components, so the quality of the final product often left much to be desired, and as a result, many of these manufacturers quickly went bankrupt. For the creators of Volvo, the issue of quality was fundamental. Therefore, their main task was to make the right choice among suppliers. In addition, tests were carried out after assembly. To this day, Volvo follows this principle. Let's find out the history of this brand in more detail...
1927 Volvo OV4 "The Jakob"
Creators of Volvo
Assar Gabrielsson and Gustaf Larson are the creators of Volvo. Assar Gabrielsson - son of Gabriel Gabrielsson, office manager, and Anna Larson - was born on August 13, 1891 in Kosberg, Skaraborg county. He graduated from the Higher Latin School Norra in Stockholm in 1909. He received a bachelor's degree in economics and business from the School of Economics in Stockholm in 1911. After working as an official and stenographer in the lower house of the Swedish Parliament, Gabrielsson got a job as a sales manager at SKF in 1916. He founded Volvo and served as president until 1956.
Gustaf Larson - the son of Lars Larson, a farmer, and Hilda Magnesson - was born on July 8, 1887 in Vintros, County of Erebro. In 1911 he graduated from the technical elementary school in Erebro; received an engineering degree from the Royal Institute of Technology in 1917. In England from 1913 to 1916 he worked as a design engineer for White and Popper Ltd. After graduating from the Royal Institute of Technology, Gustaf Larson worked for SKF as manager and chief engineer of the firm's transmission department in Gothenburg and Katrinholm from 1917 to 1920. He worked as a plant manager and later as technical director and executive vice president of Nya AB Gaico with 1920 to 1926 Collaborated with Assar Gabrielsson to create Volvo. From 1926 to 1952 - technical director and executive vice president of Volvo.
The history of Volvo began with crayfish
As the book "Volvo Cars" tells, the history of Volvo begins in June 1924, when Assar Gabrielson, the future managing director of the brand, accidentally met in a cafe with a former college classmate Gustav Larson, who would later become Volvo's technical director. That day in a cafe they talked for a short time, and Gabrielson proposed the idea of creating an enterprise for the production of cars. Gustav Larson agreed that they should have discussed this topic in more detail, but he considered the proposal itself hardly serious and did not attach much importance to it. Maybe this idea would not have developed if they had not met for the second time in August of that year.
Here is how Gustav Larson describes this meeting, recalling Assar Gabrielson (the article was published in Volvo magazine after Gabrielson's death in 1962): I saw Gabriel sitting alone in front of a whole mountain of red crayfish. I joined him, and we set to work with great appetite." So they sat at the same table. Gabrielson had an excellent opportunity to re-discuss his idea. The verbal agreement that they reached in August 1924 took the form of a formalized document on December 16, 1925.
This document proclaimed the following: "I, Gabrielson, intending to create a car manufacturing company in Sweden, make an offer to G. Larson to cooperate with me as an engineer." "I, Larson, accept this offer." Gustav Larson had to develop a new car. The remuneration for this work would be between 5,000 and 20,000 SEK, provided that production reached an industrial level - at least 100 cars a year by January 1, 1928. If the target level of production was not reached, Larson agreed not to claim any what payment. Drawings of the chassis of the new car were ready already six months before the signing of this agreement.
On April 14, 1927, the first mass-produced Volvo car was born - it was the year of the birth of the automotive industry in Sweden. On that day, the gates of the factory on the island of Hisingen, Gothenburg, opened wide. The first Volvo car drove out of the gate. It was an open-top chaise with a four-cylinder engine. Sales manager Hilmer Johansson was driving.
When designing it, the designer Mass-Olle (Mass-Olle) was guided by American methods. The car was equipped with a 1.9-liter 4-cylinder engine with side valves. Under the designation "OV-4" it was offered with an open body, the "PV-4" variant was a sedan.
The short drive to where the press was waiting for the car was uneventful. But the night before was not an easy one for those in charge of assembling the car. The last parts needed for assembly had arrived by train from Stockholm the previous evening. The haste that accompanied the assembly of the car made itself felt: when engineer Eric Carlberg decided to inspect and check the car in the morning, it turned out that he could only move backwards. The main component in the rear axle gearbox was installed incorrectly. Such a beginning was taken as a good omen: from now on, the movement should have been only in the forward direction.
The car was called simply and uncomplicated - OV4 and had an affectionate nickname Jacob (Jacob). The letters OV denoted that the model was an open-top car, and the number 4 denoted the number of engine cylinders. The Volvo Jacob was American designed, with a powerful chassis and independent suspension with long leaf springs front and rear. The engine developed a power of 28 hp. at 2000 rpm. The maximum speed of the car was quite decent for that time - 90 km / h.
At first, Swedish buyers were not eager to snap up new cars.
The four-hole car body was painted in dark blue, and black mudguards stood out against this background. Jacob's open 5-seater body had four doors and was constructed from sheet steel on an ash and copper beech frame. The upholstery was leather, the front panel was wood. Unlike the seats in many other cars, the seats of the first Volvo were sprung. The structure of the wheel of this car was a removable rim, which was mounted on varnished wooden spokes. Minor luxuries in the cabin included a small flower vase, an ashtray and (in the sedan version) curtains on all windows.
A new car with a phaeton body cost 4800 kroons, and a little later the PV4 sedan was introduced, and another 1000 kroons were added to its price. According to plans, the plant should produce 500 cars of each model, however, contrary to expectations, Swedish buyers did not seek to buy up new cars. In the first year, only 297 cars were sold. One of the reasons for such a small quantity was the requirement for a very high level of quality of the supplied components and its strict control by the manufacturer.
The top speed of the PV4 was quite decent - 90 km/h
A year later, a new model is introduced - this is the Volvo Special, an extended version of the PV4 sedan. The Volvo Special featured a longer hood, thin A-pillars and a rectangular rear window. This car was already equipped with bumpers. At this time, bumpers had not yet become standard equipment on the car.
It wasn't until two years later that the company was able to make its first modest profits. In 1929, Volvo sold 1,383 cars. However, in the late 1920s the car made a real breakthrough, both in the European market and in America.
During several years at SKF, Assar Gabrielsson noted that Swedish ball bearings were inexpensive compared to international standard prices, and the idea of creating a production of Swedish cars that would be able to compete with American cars became stronger and stronger. Assar Gabrielsson worked with Gustaf Larson for several years at SKF and the two men, having also worked together for several years in the British automotive industry, learned to recognize and respect each other's experience and know-how.
Gustaf Larson also had plans to create his own, Swedish automotive industry. Their similar views and tasks led to cooperation after the first few chance meetings in 1924. As a result, they decided to found a Swedish car company. While Gustaf Larson was hiring young mechanics to assemble cars, Assar Gabrielsson was looking into the economics of their vision. In the summer of 1925, Assar Gabrielsson was forced to use his own savings to fund a trial run of 10 passenger cars.
The cars were assembled at the Galco's Stockholm plant with the involvement of the interests of SKF, whose capital share in Volvo was 200,000 Swedish kronor. SKF also made Volvo a controlled, but capable of growing car company.
All work was moved to Gothenburg and neighboring Hisingen, and SKF equipment was eventually moved to Volvo's production site. Assar Gabrielsson singled out 4 basic criteria that contribute to the successful development of the Swedish automobile company: Sweden was a developed industrial country; low wages in Sweden; Swedish steel had a strong reputation all over the world; there was a clear need for passenger cars on Swedish roads.
Gabrielsson and Larson's decision to start producing passenger cars in Sweden was clearly articulated and based on several business concepts:
- Manufacture of Volvo cars. Volvo will be responsible for both machine design and assembly, while materials and components will be sourced from other companies;
- Strategically secure key subcontractors. Volvo must find reliable support and, if necessary, partners in the rail sector;
- Focus on exports. Export sales began a year after the start of assembly line production;
- Attention to quality.
Neither effort nor expense can be spared in the process of building a car. It's cheaper to get things going in the right direction at the beginning of the journey than it is to make mistakes and fix them at the end. This is one of the main postulates of Assar Gabrielsson. If Assar Gabrielsson was shrewd in business, then the brilliant financier and merchant Gustaf Larson was a mechanical genius. Together, Gabrielsson and Larson controlled Volvo's two main business areas, economics and engineering. The efforts of two people were based on determination and discipline - two qualities that were often the key to the success of business in industry during the first half of the 20th century. It was their common approach that laid the foundation for Volvo's first and most important value - quality.
Volvo name
SKF was a serious guarantor of the production of the first thousand cars: 500 convertibles and 500 hardtops. Since one of the main activities of SKF was the production of bearings, the name Volvo was proposed for cars, which means “I roll” in Latin. Thus, 1927 was the birth year of Volvo.
To characterize your child, a symbol was needed. They chose steel and Swedish heavy industry, since cars started being made from Swedish steel. The "Symbol of Iron" or "Symbol of Mars" as it was called after the Roman god of war was placed in the center of the grille on the first Volvo passenger car and later on all Volvo trucks. The "Mark of Mars" was tightly attached to the radiator by the simplest method: a steel rim was attached diagonally across the radiator grille. As a result, the diagonal stripe has become a trusted and well-known symbol of Volvo and its products, in fact one of the strongest brands in the automotive industry.
When the Volvo P1800 sports car turned 50 years old, the Swedish automaker decided to “modernize” the car. True, only on paper - no one is going to launch into mass production an upgraded version of the model, drawn by Volvo's chief designer Christopher Benjamin.
At the same time, some experts note that such a car could well find its buyer. The key to commercial success would be the glory of the original P1800 sports car, which was considered the most attractive Volvo in the history of the Swedish brand. The appearance of the Volvo P1800 coupe in 1957 was created by designer Pelle Pettersson, who at that time worked in the Italian studio Pietro Frua. At first, the Swedes were going to launch the production of this model at the German company Karmann, which belonged to the Volkswagen concern, but the disagreements that arose during the negotiations led to the need to find another partner. As a result, serial production of the car was started only in 1961, while cars were assembled in the UK, at the Jensen factory.
The first Volvo P1800s were equipped with a 100-horsepower gasoline engine, but in 1966 it was replaced by a 115-horsepower unit. In addition to the coupe, the car could be ordered in cabriolet and station wagon bodies. The total circulation of P1800 for 13 years amounted to 37.5 thousand copies.
In parallel, Volvo begins to produce its first trucks, which were based on the same Jacob.
So, since the 30s of the twentieth century, Volvo has been introducing new introductions to mechanical engineering. A new six-cylinder engine was invented, tested and put into production, brake pads were installed on all 4 wheels, interior soundproofing, a silencer was installed, a radiator grill appeared - and after all these innovations, the power of the car does not drop in any way! No wonder the company weathers the global economic crisis. Before the Second World War, Volvo pleases its customers with an aerodynamic body.
The 40s passed under the sign of the World War. But Volvo does not lose ground, but on the contrary, it stays afloat, invents new innovations. After surviving the war and having completed the production of car modifications for military needs, Volvo returns to the production of civilian cars. Model PV444, after all the modifications, conquers the market. The company is increasing production and, consequently, the export of cars.
In the 50s, Volvo put a lot of emphasis on safety. Improved brakes, seat belts. A special committee is set up to study various accidents.
In the 60s - 70s. the company enters into agreements with DAF and Renault, which increases the performance and power of cars. New modifications and models are released - Amazone, models 240 and 345. In the 80s, car production per year reaches 400,000! We should not forget that the company continues to care about safety, as evidenced by the numerous awards for modifying the seat belt - the world's first three-point belt that improves safety by 50%.
The 90s again bring success to the company. Relations have been established with the French company Renault in the field of production of cars, trucks and buses; a lucrative agreement was signed with Mitsubishi and the Dutch government to create a new brand. But the main fact of this decade is the release of the 960, which was equipped with an automatic transmission. The new car was modified with the help of Japanese colleagues from Mitsubishi - a nice design appeared.
At the moment, the Volvo brand is a safety brand. Popular models such as S40, S60, S80, V70, XC70, XC90 drive through the streets. Cars are chosen for comfort, safety and reliability. Every year, the brand pleases with novelties and innovations, both in the field of safety and in the field of reliability of car robots. And besides this, Volvo produces reliable engines for boats and ships.
And now let's look at the history of Volvo in chronological order:
1924 - the idea of creating the first machine-building plant in Sweden.
1927 - after three years of preparation, the first car of the Volvo brand - OV4 "Jakob" is released into the world, 300 cars were assembled.
1937 - release of new similar models - PV51 and PV52, 1800 cars were produced.
1940s - modernization of cars for military needs, then a strike of workers, a lack of materials. Design and assembly of PV444, an average of 3000 cars are produced per year.
1953 - release of a new family-type car - Volvo Duett.
1954 - an unprecedented step of the company - a guarantee is issued for a car for as much as 5 years! The first Volvo sports car is produced, which never became fashionable.
1956 - Amazon brand launched.
1958 - Volvo exports reach 100,000.
1959 - an event occurred that later made Volvo considered the safest car - the three-point seat belt was invented.
1960-1966 - new cars Volvo 1800 and Volvo P 144 are presented, which were rightfully considered the safest cars in the world.
1967 - the child seat was modernized, now it can be placed against the movement.
1974 - the Volvo 240 model was released, which included all types of safety that existed at that time.
1976-1982 - the company produces Volvo 343 and Volvo 760, which conquer the market, Volvo is famous all over the world.
1985 - The first front-wheel drive car appears - the Volvo 480 ES sports car.
1990-1991 - developed and installed on the Volvo 850 side impact protection. The production of the Volvo 960 model was launched, which had a 6-cylinder engine and a power of 240 hp.
1995 - the release of the famous cars Volvo S40 and V40.
1996 - Now Volvo pleases its customers with the beautiful Volvo C70.
1998 - The release of the Volvo S80 is not only a comfortable car, but also one of the safest cars in the world, thanks to whiplash protection.
1999 - Volvo buys out Ford, which still owns it to this day.
2000 - such "giants" of the car market as the Volvo V70 and Volvo S60 are released. Volvo is recognized as the safest car in the world.
2002 - A year of great changes in Volvo products. The first SUV XC90 was announced, the restyling of the s40, s80 models was carried out. Volvo has already taken a firm step into the super-powered car market with the S60R and V70R. The company's design studio has been developing its own SUV for some time now. All leading European manufacturers, even Posrsche, have prepared or started producing their parquet "jeeps". And finally, in August 2002, mass production of the XC90 model was launched.
2003 - At the Geneva Motor Show, Volvo showcased its next concept car from the "Volvo Designers' Vision for the Cars of the Future" series. Concept car VCC (Versability Concept Car - "Adaptive Concept Car") The model range of the Swedish company Volvo has replenished with another all-wheel drive car - after the Volvo S60 and V70, the company's flagship, the Volvo S80 sedan, also received all-wheel drive. This car uses a system similar to that of the Volvo S60.
2004 - The appearance of the long-awaited new products of the Swedish company: cars Volvo S40 and Volvo V50. The new Volvo S40 is 50 mm shorter than its predecessor, but despite this, Volvo offers the features and qualities of larger Volvo models.