Assar Gabrielsson
Encyclopedia
Assar Thorvald Nathanael Gabrielsson (August 13, 1891 - May 28, 1962) was a Swedish industrialist and co-founder of Volvo
.
in Göteborg in the early 1900s. He was employed in 1916 by Björn Prytz
at the sales department and was appointed sales manager for the entire SKF company group on June 20, 1922. He held that position until the new automobile company AB Volvo
was founded as a subsidiary company within the SKF company group.
in Stockholm, he unveiled his plans to try to establish the manufacturing of a new Swedish automobile. Gustav Larson had worked for SKF between 1917-1919 but now worked for the company AB Galco in Stockholm. They made an agreement in August 1924 at the Sturehof
restaurant in Stockholm, signed in a written contract more than one year later, December 16, 1925. In this contract Gustav was supposed to carry out the engineering work for a new car, as well as an investment plan for a complete new manufacturing plant, but would only be rewarded for that work in case the project would turn out well, after at least 100 produced cars and in the case this was achieved before January 1, 1928. This famous contract shows that Assar Gabrielsson "owned" the project and that it was a high-risk project without any guarantees. Assar took the economic risks himself and Gustav, in the worst case, would have worked on the project without being rewarded, but still would have had his salary from AB Galco in Stockholm. Most of the capital that Assar intended to use for the project initially was actually extra sales commissions that he had saved from the time he was the managing director for the SKF subsidiary in Paris
in 1921-22.
Back to 1922-23
The original idea, presented by Assar to SKF, was to start an automobile manufacturing business within SKF in order to get advantages over competitors when developing new bearings for the automobile industry, increased sales of bearings, but more important, the positive effects it would have on Swedish industry as a whole. He developed these ideas during the time he worked as managing director for the SKF subsidiary company in Paris 1921-22 when he discovered that competitor bearing companies in Europe
had started to invest a lot in automobile companies in order to secure their sales to key customers. However, Gabrielsson failed to convince the board of SKF about his ideas, and the SKF company core business was bearings with no room for an automobile company. Assar then decided to build a test series of ten vehicles with his own financing and later present the car and an entire investment plan to SKF. The idea to build a pre-series of ten vehicles was most certainly related to the fact that no company would have given them an offer for the components (engines, gearboxes, chassis components etc.) with a less quantity and Assar were at that time certain that SKF would approve his plans in due time. Engineering, documentation and investment planning was carried out exactly in the same way as if it had been carried out by SKF in order to prepare for the set up of a new automobile company. Assar most certainly had the full support from the managing director of SKF, Mr. Björn Prytz
, at that time, as long as his 'private' project did not interfere with his work as sales manager for SKF.
The first ten pre-series vehicles, model ÖV 4
, were designed and assembled in Stockholm at AB Galco under the supervision of Gustav Larson, at that time still having his other work at AB Galco to attend to. A "design-office", often called "Volvo's first design-office", was established in one room of Gustav Larson's private apartment at Rådmansgatan
59. The design work started in the autumn of 1924 and a number of engineers were involved, among them engineer Jan G. Smith
, that had returned from America in 1924, and later engineer Henry Westerberg. All the invoices related to the project was sent to Assar's private address at Kungsportsavenyn 32 in Göteborg. In a lot of orders that Gustav Larsson made himself, he referred to Assar Gabrielsson as a "guarantee" that the deliveries would be paid by him personally. These details shows that the Volvo automobile project in the beginning was a true private project, not sponsored by SKF from an economic point of view.
The first prototype car was ready in June 1926. Assar and Gustav took that first car and drove themselves, on bumpy roads, down to SKF in Göteborg to show the SKF-board and now present the final investment plan.
, Sweden on August 10, 1926, SKF decided to use the old subsidiary company Volvo AB, for the automobile project. AB Volvo, that was first registered in 1915 on the initiative of Björn Prytz, was originally set up to be used for a special series of ball bearings for the American market but it was never really used for this purpose. A small series of ball bearings stamped with Volvo was manufactured but it was never introduced on a larger scale. A contract was signed August 12, 1926 between SKF and Assar, stipulating that all ten prototype cars, engineering drawings, calculations etc. should be handed over to Volvo AB and Assar in return would be refunded most of his private investments for the prototype cars. In other words, Assar Gabrielsson sold his project to AB Volvo. The contract was signed by Björn Prytz
, managing director of SKF and Assar Gabrielsson. In the original contract from December 16, 1925 Assar stated that he might sell the automobile project to any company that would be interested, but of course hoped that SKF would be the company to stand first in line. Larsson also finally got paid for the initial engineering work with the ÖV4 according to the 'private' contract he and Assar had signed the December 16, 1925.
Assar Gabrielsson left his position as sales manager for SKF and was appointed president and managing director for the 'new' Volvo AB the January 1, 1927. Gustav Larson was at the same time appointed vice president and technical manager and left his employment at AB Galco in Stockholm.
left the new established factory on Hisingen
in Göteborg.
The ten prototype cars that had been assembled in Stockholm were never sold, except for one that was sold to Volvo's photographer Sven Sjöstedt and was later donated to the Volvo Industrial Museum
around 1930, but was used as transportation vehicles within the manufacturing plant and as 'test benches' for new developed components during the first years.
s began with the basic chassis components from ÖV4. The production of trucks was on a small scale in the beginning but the concept was successful from start. However in late 1929 it was really close that SKF sold the company to Charles Nash
, president of Nash Motors
in the United States
, but Björn Prytz and Assar Gabrielsson managed to convince the SKF board to call the deal off, just one day before Charles Nash arrived by boat to Göteborg. Charles Nash and Assar Gabrielsson became good friends during his visit in Sweden and Assar visited Nash in America on several occasions later to discuss the automobile business. At the end of 1930 AB Volvo showed a small profit for the first time. In 1935 SKF came to the conclusion that Volvo now was ready to stand on its own feet. Volvo was introduced on the Stockholm stock exchange
and SKF sold most of its shares. SKF could now concentrate on their core business, development and manufacturing of bearings, and still are, more than 100 years from when the company was founded in 1907.
(CEO) of the Volvo group. A position he held until his death in 1962.
Volvo
AB Volvo is a Swedish builder of commercial vehicles, including trucks, buses and construction equipment. Volvo also supplies marine and industrial drive systems, aerospace components and financial services...
.
Family
He married Anna Theresia ("Tessan") Andreasson (1890–1964) in 1916. They had four children; Lars, Barbro, Jan and Bo.Biography
Assar Gabrielsson held a bachelor's degree in economics and worked as a sales manager with bearing manufacturer SKFSKF
SKF, Svenska Kullagerfabriken AB , later AB SKF, is a Swedish bearing company founded in 1907, supplying bearings, seals, lubrication and lubrication systems, maintenance products, mechatronics products, power transmission products and related services globally.-History:The company was founded on...
in Göteborg in the early 1900s. He was employed in 1916 by Björn Prytz
Björn Prytz
Björn Prytz was a Swedish industrialist in the early 1900s and from 1937 to 1947 an envoyé in London for the Swedish government.He was employed 1913 at S.K.F. as marketing manager. He became managing director for S.K.F. around 1921-22. Björn Prytz was the man behind the name Volvo during the time...
at the sales department and was appointed sales manager for the entire SKF company group on June 20, 1922. He held that position until the new automobile company AB Volvo
Volvo
AB Volvo is a Swedish builder of commercial vehicles, including trucks, buses and construction equipment. Volvo also supplies marine and industrial drive systems, aerospace components and financial services...
was founded as a subsidiary company within the SKF company group.
Chronology
- 1891 Born August 13 in Korsberga, Skaraborgs län, Sweden. The son of Gabriel Nathanael Gabrielsson and Anna Helmina Larsson.
- 1911 Bachelor's degreeBachelor's degreeA bachelor's degree is usually an academic degree awarded for an undergraduate course or major that generally lasts for three or four years, but can range anywhere from two to six years depending on the region of the world...
in Business Administration from Stockholm School of Economics (HHS). - 1912–1916 Employed as stenographer in the Chancellery of the Lower House of the Swedish Parliament.
- 1916 Marries Anna Theresia Andreasson.
- 1916–1920 Employed by SKF in Göteborg in the sales department.
- 1921–1922 Managing Director of the SKF subsidiary in Paris, FranceFranceThe French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
. - 1922–1926 Sales ManagerSales managementSales management is a business discipline which is focused on the practical application of sales techniques and the management of a firm's sales operations. It is an important business function as net sales through the sale of products and servicess and resulting profit drive most commercial...
for the SKF-company group. - 1926–1956 Managing Director at AB Volvo.
- 1947-1951 President of the Congress of Industrial OrganizationsCongress of Industrial OrganizationsThe Congress of Industrial Organizations, or CIO, proposed by John L. Lewis in 1932, was a federation of unions that organized workers in industrial unions in the United States and Canada from 1935 to 1955. The Taft-Hartley Act of 1947 required union leaders to swear that they were not...
. - 1956–1962 Chairman of the board of AB Volvo.
Volvo - the automobile project
In June 1924 when Assar Gabrielsson met his old friend Gustav LarsonGustav Larson
Erik Gustaf Larson was a Swedish engineer and co-founder of Volvo.Family: Married to Elin Octavia Fröberg, 1918. Four children: Erik, Anders, Gunnel and Britt....
in Stockholm, he unveiled his plans to try to establish the manufacturing of a new Swedish automobile. Gustav Larson had worked for SKF between 1917-1919 but now worked for the company AB Galco in Stockholm. They made an agreement in August 1924 at the Sturehof
Sturehof
Sturehof is a famous seafood and shellfish restaurant on the Stureplan in Stockholm, Sweden, established in 1897. Sturehof and the restaurant Riche today belongs to same company group. It was at Sturehof the automobile company Volvo was "born" when, in August 1924, Assar Gabrielsson and Gustaf...
restaurant in Stockholm, signed in a written contract more than one year later, December 16, 1925. In this contract Gustav was supposed to carry out the engineering work for a new car, as well as an investment plan for a complete new manufacturing plant, but would only be rewarded for that work in case the project would turn out well, after at least 100 produced cars and in the case this was achieved before January 1, 1928. This famous contract shows that Assar Gabrielsson "owned" the project and that it was a high-risk project without any guarantees. Assar took the economic risks himself and Gustav, in the worst case, would have worked on the project without being rewarded, but still would have had his salary from AB Galco in Stockholm. Most of the capital that Assar intended to use for the project initially was actually extra sales commissions that he had saved from the time he was the managing director for the SKF subsidiary in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
in 1921-22.
Back to 1922-23
The original idea, presented by Assar to SKF, was to start an automobile manufacturing business within SKF in order to get advantages over competitors when developing new bearings for the automobile industry, increased sales of bearings, but more important, the positive effects it would have on Swedish industry as a whole. He developed these ideas during the time he worked as managing director for the SKF subsidiary company in Paris 1921-22 when he discovered that competitor bearing companies in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
had started to invest a lot in automobile companies in order to secure their sales to key customers. However, Gabrielsson failed to convince the board of SKF about his ideas, and the SKF company core business was bearings with no room for an automobile company. Assar then decided to build a test series of ten vehicles with his own financing and later present the car and an entire investment plan to SKF. The idea to build a pre-series of ten vehicles was most certainly related to the fact that no company would have given them an offer for the components (engines, gearboxes, chassis components etc.) with a less quantity and Assar were at that time certain that SKF would approve his plans in due time. Engineering, documentation and investment planning was carried out exactly in the same way as if it had been carried out by SKF in order to prepare for the set up of a new automobile company. Assar most certainly had the full support from the managing director of SKF, Mr. Björn Prytz
Björn Prytz
Björn Prytz was a Swedish industrialist in the early 1900s and from 1937 to 1947 an envoyé in London for the Swedish government.He was employed 1913 at S.K.F. as marketing manager. He became managing director for S.K.F. around 1921-22. Björn Prytz was the man behind the name Volvo during the time...
, at that time, as long as his 'private' project did not interfere with his work as sales manager for SKF.
The first ten pre-series vehicles, model ÖV 4
Volvo ÖV 4
Volvo ÖV 4 is the first car built by Volvo. The designation ÖV4 stands for , "Öppen Vagn 4 cylindrar" in Swedish, which means Open Carriage 4 cylinders. The model ÖV4 was often referred to as "Jakob" but that was just a name for one of the 10 pre-series ÖV4 that was ready on July 25 Jakob's name-day...
, were designed and assembled in Stockholm at AB Galco under the supervision of Gustav Larson, at that time still having his other work at AB Galco to attend to. A "design-office", often called "Volvo's first design-office", was established in one room of Gustav Larson's private apartment at Rådmansgatan
Rådmansgatan
Rådmansgatan Stockholm Metro station is located in Vasastaden, by the Sveavägen street and the Rådmansgatan street. The station was opened in 1952.The station is decorated with yellow tiles, and the theme in some of the artwork is August Strindberg....
59. The design work started in the autumn of 1924 and a number of engineers were involved, among them engineer Jan G. Smith
Jan G. Smith
Jan Gustav Salomon Smith, born 19 June 1895 in Stockholm, Sweden, died 30 April 1966 in Stockholm. In the literature he is known as Jan G. Smith. He was an engineer with a M.Sc. degree from KTH, Stockholm. For many years he worked in the American automobile industry and returned to Sweden in 1924...
, that had returned from America in 1924, and later engineer Henry Westerberg. All the invoices related to the project was sent to Assar's private address at Kungsportsavenyn 32 in Göteborg. In a lot of orders that Gustav Larsson made himself, he referred to Assar Gabrielsson as a "guarantee" that the deliveries would be paid by him personally. These details shows that the Volvo automobile project in the beginning was a true private project, not sponsored by SKF from an economic point of view.
The first prototype car was ready in June 1926. Assar and Gustav took that first car and drove themselves, on bumpy roads, down to SKF in Göteborg to show the SKF-board and now present the final investment plan.
The automobile company AB Volvo is founded
At a board meeting held in HoforsHofors
Hofors is a locality and the seat of Hofors Municipality, Gävleborg County, Sweden with 7,021 inhabitants in 2005.-Districts:*Born *Böle*Bönhusberget*Centrum*Göklund*Hammaren*Lillån*Muntebo*Rönningen*Silverdalen*Standarn...
, Sweden on August 10, 1926, SKF decided to use the old subsidiary company Volvo AB, for the automobile project. AB Volvo, that was first registered in 1915 on the initiative of Björn Prytz, was originally set up to be used for a special series of ball bearings for the American market but it was never really used for this purpose. A small series of ball bearings stamped with Volvo was manufactured but it was never introduced on a larger scale. A contract was signed August 12, 1926 between SKF and Assar, stipulating that all ten prototype cars, engineering drawings, calculations etc. should be handed over to Volvo AB and Assar in return would be refunded most of his private investments for the prototype cars. In other words, Assar Gabrielsson sold his project to AB Volvo. The contract was signed by Björn Prytz
Björn Prytz
Björn Prytz was a Swedish industrialist in the early 1900s and from 1937 to 1947 an envoyé in London for the Swedish government.He was employed 1913 at S.K.F. as marketing manager. He became managing director for S.K.F. around 1921-22. Björn Prytz was the man behind the name Volvo during the time...
, managing director of SKF and Assar Gabrielsson. In the original contract from December 16, 1925 Assar stated that he might sell the automobile project to any company that would be interested, but of course hoped that SKF would be the company to stand first in line. Larsson also finally got paid for the initial engineering work with the ÖV4 according to the 'private' contract he and Assar had signed the December 16, 1925.
Assar Gabrielsson left his position as sales manager for SKF and was appointed president and managing director for the 'new' Volvo AB the January 1, 1927. Gustav Larson was at the same time appointed vice president and technical manager and left his employment at AB Galco in Stockholm.
The first series produced Volvo ÖV4
On April 14, 1927 at about 10 p.m., the first series produced ÖV 4Volvo ÖV 4
Volvo ÖV 4 is the first car built by Volvo. The designation ÖV4 stands for , "Öppen Vagn 4 cylindrar" in Swedish, which means Open Carriage 4 cylinders. The model ÖV4 was often referred to as "Jakob" but that was just a name for one of the 10 pre-series ÖV4 that was ready on July 25 Jakob's name-day...
left the new established factory on Hisingen
Hisingen
Hisingen is the fourth-largest island of Sweden , with an area of , and the most populous, forming part of Gothenburg Municipality, Västra Götaland County. It is bordered by the Göta älv in the south and east, the Nordre älv in the north, and the Kattegat in the west...
in Göteborg.
The ten prototype cars that had been assembled in Stockholm were never sold, except for one that was sold to Volvo's photographer Sven Sjöstedt and was later donated to the Volvo Industrial Museum
Volvo Museum
The Volvo Museum is in Gothenburg, Sweden. It covers the development of Sweden's leading vehicle manufacturer Volvo, from the first ÖV 4 to the current cars, trucks, buses and other products. The museum also contains many other exhibits, including Gabrielsson’s and Larson’s joint desk from the...
around 1930, but was used as transportation vehicles within the manufacturing plant and as 'test benches' for new developed components during the first years.
Economic problems
The new company did not show any profit for the first couple of years and SKF invested a lot of money to keep the company running. In 1928 the production of truckTruck
A truck or lorry is a motor vehicle designed to transport cargo. Trucks vary greatly in size, power, and configuration, with the smallest being mechanically similar to an automobile...
s began with the basic chassis components from ÖV4. The production of trucks was on a small scale in the beginning but the concept was successful from start. However in late 1929 it was really close that SKF sold the company to Charles Nash
Charles W. Nash
Charles Warren Nash was a United States automobile entrepreneur and served as an executive in the automotive industry.- Early life :...
, president of Nash Motors
Nash Motors
Also see: Kelvinator and American Motors CorporationNash Motors was an automobile manufacturer based in Kenosha, Wisconsin, in the United States from 1916 to 1938. From 1938 to 1954, Nash was the automotive division of the Nash-Kelvinator Corporation...
in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, but Björn Prytz and Assar Gabrielsson managed to convince the SKF board to call the deal off, just one day before Charles Nash arrived by boat to Göteborg. Charles Nash and Assar Gabrielsson became good friends during his visit in Sweden and Assar visited Nash in America on several occasions later to discuss the automobile business. At the end of 1930 AB Volvo showed a small profit for the first time. In 1935 SKF came to the conclusion that Volvo now was ready to stand on its own feet. Volvo was introduced on the Stockholm stock exchange
Stockholm Stock Exchange
The Stockholm Stock Exchange is a stock exchange located in Stockholm, Sweden. Founded in 1863 it is the primary securities exchange of the Nordic Countries....
and SKF sold most of its shares. SKF could now concentrate on their core business, development and manufacturing of bearings, and still are, more than 100 years from when the company was founded in 1907.
Volvo - finally a success
When Assar celebrated his 50th birthday in 1941, the 50,000th Volvo car was delivered. It took ten years to produce the first 25,000 cars but only four years for the next 25,000 cars. In 1944-45, just after the end of the Second World War, the 'modern' family car PV444, with a completely new design, was introduced and the car was an immediate sales success. The company now stood on solid ground and the production of both cars and trucks was increasing fast.The last years
Assar Gabrielsson held his position as managing director for AB Volvo until 1956 when he became the chairman of the boardChairman of the Board
The Chairman of the Board is a seat of office in an organization, especially of corporations.Chairman of the Board may also refer to:*Chairman of the Board , a 1998 film*Chairmen of the Board , a 1970s American soul music group...
(CEO) of the Volvo group. A position he held until his death in 1962.