Volvo
Encyclopedia
- This article is about Volvo Group—AB Volvo; Volvo CarsVolvo CarsVolvo Car Corporation, or Volvo Personvagnar AB, is a Swedish automobile manufacturer founded in 1927, in Gothenburg, Sweden. It is owned by Zhejiang Geely Holding Group. Volvo was originally formed as a subsidiary company to the ball bearing maker SKF. When Volvo AB was introduced on the Swedish...
is the passenger vehicle maker using the Volvo trademark, owned by Zhejiang Geely Holding Group.
AB Volvo is a Swedish builder of commercial vehicle
Commercial vehicle
A commercial vehicle is a type of motor vehicle that may be used for transporting goods or passengers. The European Union defines "commercial motor vehicle" as any motorised road vehicle, which by its type of construction and equipment is designed for, and capable of transporting, whether for...
s, including trucks, bus
Bus
A bus is a road vehicle designed to carry passengers. Buses can have a capacity as high as 300 passengers. The most common type of bus is the single-decker bus, with larger loads carried by double-decker buses and articulated buses, and smaller loads carried by midibuses and minibuses; coaches are...
es and construction equipment
Construction Equipment
Construction Equipment is a trade publication and web site serving the information needs of construction contractors, materials producers, and other owners and operators of construction equipment....
. Volvo also supplies marine
Marine (ocean)
Marine is an umbrella term. As an adjective it is usually applicable to things relating to the sea or ocean, such as marine biology, marine ecology and marine geology...
and industrial drive systems, aerospace
Aerospace
Aerospace comprises the atmosphere of Earth and surrounding space. Typically the term is used to refer to the industry that researches, designs, manufactures, operates, and maintains vehicles moving through air and space...
components and financial services. Although Volvo was incorporated in 1915 as a subsidiary of AB SKF
SKF
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...
, a Swedish ball bearing
Ball bearing
A ball bearing is a type of rolling-element bearing that uses balls to maintain the separation between the bearing races.The purpose of a ball bearing is to reduce rotational friction and support radial and axial loads. It achieves this by using at least two races to contain the balls and transmit...
manufacturer, the auto manufacturer considers itself officially founded on 14 April 1927, when the first car, the Volvo 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...
series, affectionately known as "Jakob", rolled out of the factory in 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...
, Gothenburg
Gothenburg
Gothenburg is the second-largest city in Sweden and the fifth-largest in the Nordic countries. Situated on the west coast of Sweden, the city proper has a population of 519,399, with 549,839 in the urban area and total of 937,015 inhabitants in the metropolitan area...
.
Volvo means "I roll" in Latin
Latin
Latin is an Italic language originally spoken in Latium and Ancient Rome. It, along with most European languages, is a descendant of the ancient Proto-Indo-European language. Although it is considered a dead language, a number of scholars and members of the Christian clergy speak it fluently, and...
, conjugated from "volvere", in relation to ball bearing. The name Volvo was originally registered in May 1911 as a separate company within SKF AB and as a registered trademark with the intention to be used for a special series of ball bearing, but this idea was only used for a short period of time and SKF decided to use "SKF" as the trademark for all its bearing products.
In 1924, Assar Gabrielsson
Assar Gabrielsson
Assar Thorvald Nathanael Gabrielsson was a Swedish industrialist and co-founder of Volvo.- Family :He married Anna Theresia Andreasson in 1916...
, a SKF Sales Manager, and Engineer Gustav Larson
Gustav 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....
, the two founders, decided to start construction of a Swedish car. Their vision was to build cars that could withstand the rigors of Sweden's rough roads and cold temperatures. This has become a feature of Volvo products ever since.
The company AB Volvo had no activities until 10 August 1926, after one year of preparations involving the production of ten prototypes, was set up to carry out the car-manufacturing business within the SKF group. AB Volvo was introduced at the Stockholm stock exchange in 1935 and SKF then decided to sell its shares in the company. Volvo was delisted from NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
in June 2007, but remains listed on the Stockholm exchange.
In 1999, Volvo sold its car division Volvo Cars
Volvo Cars
Volvo Car Corporation, or Volvo Personvagnar AB, is a Swedish automobile manufacturer founded in 1927, in Gothenburg, Sweden. It is owned by Zhejiang Geely Holding Group. Volvo was originally formed as a subsidiary company to the ball bearing maker SKF. When Volvo AB was introduced on the Swedish...
to Ford Motor Company
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
for $6.45 billion. The Volvo trademark was shared between Volvo AB, where it is used on heavy vehicles, and the unit of Ford, where it was used on cars. Volvo stopped posting profits in 2005 and in 2008, Ford decided to sell its interest in Volvo Cars; in August 2010, Ford completed its sale of Volvo to the parent of Chinese motor manufacturer Geely Automobile
Geely Automobile
Zhejiang Geely Holding Group is a holding company and parent of Geely Automobile Holdings Ltd a private automobile manufacturer. Geely may often round out the top ten Chinese automakers....
for $1.8 billion.
History
The Volvo Group has its origin in 1927 when the first VolvoVolvo 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...
car rolled off the production line at the factory in Gothenburg. Only 280 cars were built that year. The first truck, the "Series 1", debuted in January 1928, as an immediate success and attracted attention outside the country. In 1930, Volvo sold 639 cars, and the export of trucks to Europe started soon after; the cars did not become well-known outside Sweden until after World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
.
Marine engines have been part of the Group almost as long as trucks. Pentaverken, founded in 1907, was acquired in 1935. As early as 1929, however, the U-21 outboard engine was introduced. Manufacturing continued until 1962.
In early models, Volvos have also been known to explode due to the engine being too close to the gas tank and igniting the tank. This myth was very popular during 1940s.
The first bus, named B1, was launched in 1934, and aircraft engines were added to the growing range of products at the beginning of the 1940s. In 1963, Volvo opened the Volvo Halifax Assembly
Volvo Halifax Assembly
The Volvo Halifax Assembly Plant located in Halifax, Nova Scotia was opened on 11 June 1963 by H.R.H Prince Bertil. It was the only North American assembly plant Volvo ever opened. Volvo decided to open to the plant to bypass hefty North American import tariffs on foreign goods and to capitalize...
plant, the first assembly plant in the company’s history outside of Sweden in Halifax, Canada
City of Halifax
Halifax is a city in Canada, which was the capital of the province of Nova Scotia and shire town of Halifax County. It was the largest city in Atlantic Canada until it was amalgamated into Halifax Regional Municipality in 1996...
.
On 28 January 1999 Volvo Group sold its business area Volvo Car Corporation
Volvo Cars
Volvo Car Corporation, or Volvo Personvagnar AB, is a Swedish automobile manufacturer founded in 1927, in Gothenburg, Sweden. It is owned by Zhejiang Geely Holding Group. Volvo was originally formed as a subsidiary company to the ball bearing maker SKF. When Volvo AB was introduced on the Swedish...
to the Ford Motor Company
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
for US$6.45 billion, with the resulting group largely set on commercial vehicles. Volvo Cars was then sold to China's Zhejiang Geely Holding Group in 2010. On 2 January 2001, Renault Véhicules Industriels (which included Mack Trucks
Mack Trucks
Mack Trucks is an American truck-manufacturing company and a former manufacturer of buses and trolley buses. A wholly owned subsidiary of Renault Véhicules Industriels since 1990, Mack Trucks is currently a subsidiary of AB Volvo. The company's headquarters are located in Greensboro, North Carolina...
, but not Renault's stake in Irisbus
Irisbus
Irisbus is a bus manufacturer which was formed through the merger of the bus and coach divisions of Fiat Industrial, Iveco and Renault in January 1999 and Ikarus Bus in late 1999...
) was sold to Volvo, which renamed it Renault Trucks
Renault Trucks
Renault Trucks is a French truck manufacturer with its corporate headquarters at Saint-Priest near Lyon. Originally part of Renault, it has been owned by Volvo Group since 2001....
in 2002. As a result, former mother company Renault
Renault
Renault S.A. is a French automaker producing cars, vans, and in the past, autorail vehicles, trucks, tractors, vans and also buses/coaches. Its alliance with Nissan makes it the world's third largest automaker...
is AB Volvo's biggest shareholder with a 20% stake (in shares and voting rights).
The last ten years the company has undergone rapid growth in the service area with, for example, financial solutions supporting the sales of the manufacturing business units. In 2006, AB Volvo acquired from Nissan Motor Co Ltd, 13% of the shares in the Japanese truck manufacturer UD Trucks
UD Trucks
UD Trucks Corporation is a Japanese company whose principal business is the manufacture and sales of light, medium and heavy duty diesel trucks, buses, bus chassis and special-purpose vehicles. The company is owned 100% by the Volvo Group since 2007. Formerly known as Nissan Diesel, the company...
former Nissan Diesel, and became major shareholder. In 2007 the Volvo Group took complete ownership of Nissan Diesel to extend its expansion in the Asian pacific market.
Business areas
Volvo Group's businesses are conducted in several companies—among them these subsidiariesSubsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
:
- Volvo TrucksVolvo TrucksVolvo Trucks is a global truck manufacturer based in Sweden, owned by Volvo Group - AB Volvo it is the world's second largest heavy-duty truck brand....
(midsize-duty trucks for regional transportation and heavy-duty trucks for long distance transportation, as well as heavy-duty trucks for the construction work segment) - Mack TrucksMack TrucksMack Trucks is an American truck-manufacturing company and a former manufacturer of buses and trolley buses. A wholly owned subsidiary of Renault Véhicules Industriels since 1990, Mack Trucks is currently a subsidiary of AB Volvo. The company's headquarters are located in Greensboro, North Carolina...
(light-duty trucks for close distribution and heavy-duty trucks for long distance transportation) - Renault TrucksRenault TrucksRenault Trucks is a French truck manufacturer with its corporate headquarters at Saint-Priest near Lyon. Originally part of Renault, it has been owned by Volvo Group since 2001....
(heavy-duty trucks for regional transportations and heavy-duty trucks for the construction work segment) - UD TrucksUD TrucksUD Trucks Corporation is a Japanese company whose principal business is the manufacture and sales of light, medium and heavy duty diesel trucks, buses, bus chassis and special-purpose vehicles. The company is owned 100% by the Volvo Group since 2007. Formerly known as Nissan Diesel, the company...
(midsize-duty trucks) - Volvo Construction EquipmentVolvo Construction EquipmentVolvo Construction Equipment is a subsidiary and business area of AB Volvo. Volvo Construction Equipment develops, manufactures and markets equipment for the construction and related industries.- Overview :...
(construction machines) (previously Volvo BM, see also AB Bolinder-Munktell) - Volvo BusesVolvo BusesVolvo Buses is a subsidiary and a business area of the Swedish vehicle maker Volvo, which became an independent division in 1968. It is based in Göteborg....
(complete buses and bus chassis for city traffic, line traffic and tourist traffic) - Volvo PentaVolvo PentaVolvo Penta was founded in 1907 in conjunction with the production of the first marine engine, B1. The Penta company soon became an established internal combustion engine manufacturer, which in 1927 delivered the engine to Volvo's first passenger car....
(marine engine systems for leisure boats and commercial shipping, diesel engines and drive systems for industrial applications) - Volvo AeroVolvo AeroVolvo Aero, a subsidiary of Swedish company Volvo, develops and manufactures components for aircraft and rocket engines with high technology content in co-operation with the world’s leading engine manufacturers.-History:...
(high-tech components for aircraft and rocket engines as well as services for the aircraft industry) - Volvo Financial ServicesVolvo Financial ServicesVolvo Financial Services , established in 2001, develops and coordinates AB Volvo's operations in dealer and customer financing, insurance, and related services...
(customer financing, inter-group banking, as real estate administration)
Beside this the group consists of several business units:
- Volvo Parts (Spare parts, maintain services for support to the aftermarket within Volvo Group's companies)
- Volvo Information Technology (IT services, develop new technology and business solutions for Volvo Group's companies)
- Volvo Powertrain (Responsible to Volvo Group's development of diesel engines, transmissions, and axles)
- Volvo 3P (Responsible for product planning, product development, and for purchasing to all Volvo Group's truck businesses)
- Volvo Technology (Centre of research and innovation, drives technology agenda for the future and secures synergies, commonality and operational excellence for Volvo Group companies.)
- Volvo Logistics (Plans and hands logistic solutions for the metal and air-related industry worldwide)
- Volvo Technology Transfer (Develop and support new businesses with relevance for Volvo Group's companies)
- Volvo Business Services (Maintain cost effective and high quality services within financial administration for Volvo Group's companies)
- Volvo Treasury (Manage Volvo's cash flow)
- Volvo Event Management, which coordinates sponsorship activities including the Volvo Ocean RaceVolvo Ocean RaceThe Volvo Ocean Race is a yacht race around the world, held every three years. It is named after its current owner, Volvo...
Previously Volvo Group consisted of also of these businesses subsidiaries:
- Volvo Leisure (Leisure group) (mainly Jofa sports products and Ryds boats)
- Provendor (Food and beverages group)
- Volvo Energy (Energy group) (mainly STC Scandinavian Trading Company)
- Wilh. Sonesson (Engineering group)
Volvo Group also had several associated companies from 1981 to 1997, which themselves were corporate groups:
- Kebo AB (Pharmaceutical group)
- SvedaKemi AB (Chemical group)
- AB Wilh. Becker (Paint group)
- AB LEO (Pharmaceutical group)
- AB GambroGambroGambro is a global medical technology companythat manufactures products for Dialysis treatment.The company is a global leader in developing, manufacturing andsupplying products and therapies for Kidneyand Liver Dialysis, Myeloma Kidney Therapy, and other...
(Medical dialysis group) - AB Nils DackeNils DackeNils Dacke was the leader of a 16th century peasant revolt in Småland, southern Sweden called the Dacke War , fought against the Swedish king Gustav I. It was the most widespread and serious civil war in Swedish history and almost toppled the king.-Background:Gustav Vasa had come to power at the...
(Engineering group) - Procordia AB (Food and Beverages group)
- BCP Branded Consumer Products AB (Food and Beverages group)
- PharmaciaPharmaciaPharmacia was a pharmaceutical and biotechnological company in Sweden.-History:Pharmacia was founded in 1911 in Stockholm, Sweden by pharmacist Gustav Felix Grönfeldt at the Elgen Pharmacy. The company is named after the Greek word φαρμακεία, transliterated pharmakeia, which means 'sorcery'...
AB (Pharmaceutical group) - Alfred BergAlfred BergAlfred Berg is a Nordic investment bank and today a wholly owned subsidiary of Fortis Investments. The base company was founded in 1863, the same year that the Stockholm stock exchange opened its doors, but was renamed Alfred Berg in 1901 when acquired by Mr. Alfred Berg.Until the mid-1970s, Alfred...
Holding AB (Financial services group) - FalconFalconA falcon is any species of raptor in the genus Falco. The genus contains 37 species, widely distributed throughout Europe, Asia, and North America....
Holding AB (Brewing group) - Swedish MatchSwedish MatchSwedish Match is a Swedish company based in Stockholm that makes snus, tobacco, cigars , Red Man Chewing Tobacco, dipping tobacco, matches and lighters. It was founded as Svenska Tändsticksaktiebolaget by Ivar Kreuger in 1917 in Jönköping...
AB (Matches and lighters group)
Trademark
The main activity of the company is to own, maintain, protect and preserve the Volvo trademarks (including Volvo, the Volvo device marks (grille slash & iron mark) Volvo Aero
Volvo Aero
Volvo Aero, a subsidiary of Swedish company Volvo, develops and manufactures components for aircraft and rocket engines with high technology content in co-operation with the world’s leading engine manufacturers.-History:...
and Volvo Penta
Volvo Penta
Volvo Penta was founded in 1907 in conjunction with the production of the first marine engine, B1. The Penta company soon became an established internal combustion engine manufacturer, which in 1927 delivered the engine to Volvo's first passenger car....
) on behalf of its owners and to license these rights to its owners. The day-to-day work is focused upon maintaining the global portfolio of trademark registrations and to extend sufficiently the scope of the registered protection for the Volvo trademarks.
The main business is also to act against unauthorised registration and use (including counterfeit
Counterfeit
To counterfeit means to illegally imitate something. Counterfeit products are often produced with the intent to take advantage of the superior value of the imitated product...
ing) of trademarks identical or similar to the Volvo trademarks on a global basis.
The Volvo brand
The brand's promotional strategies include the sailing race Volvo Ocean RaceVolvo Ocean Race
The Volvo Ocean Race is a yacht race around the world, held every three years. It is named after its current owner, Volvo...
, formerly known as the Whitbread Around the World Race. Volvo likes to encourage its affluent image by sponsoring golf tournaments all over the world including major championship events called the Volvo Masters
Volvo Masters
The Volvo Masters was the concluding official money event of the European Tour season until 2009, when it was replaced by the Dubai World Championship...
and Volvo China Open
Volvo China Open
The Volvo China Open is a men's golf tournament that has been held annually in China since 1995. The event is organised by the China Golf Association and has been co-sanctioned by the European Tour since 2003....
.
Volvo sponsored the Volvo Ocean Race
Volvo Ocean Race
The Volvo Ocean Race is a yacht race around the world, held every three years. It is named after its current owner, Volvo...
, the world's leading round-the-world yacht race for the first time in 2001–2002. Volvo has also had a long-standing commitment to the ISAF
International Sailing Federation
The International Sailing Federation is recognised by the International Olympic Committee as the world governing body for the sport of sailing....
and is involved in the Volvo/ISAF World Youth Sailing Championships since 1997.
The Volvo Group also sponsored the Show Jumping World Cup
Show Jumping World Cup
The FEI World Cup Show Jumping Final, is an annual international competition among the world’s best show jumping horses and riders. The series, created in 1978, today comprises 14 leagues on all continents. The best riders from 132 preliminary competitions qualify for the final. The FEI World Cup...
from its inception in 1979 until 1999, and sponsors culture institutions, including the Göteborg Opera and Gothenburg Symphony Orchestra
Gothenburg Symphony Orchestra
The Göteborgs Symfoniker is an orchestra based in Gothenburg, Sweden. Founded in 1905, it was granted the title of the "National Orchestra of Sweden" in 1997...
.
External links
- volvo.com—official site for Volvo-branded companies