Volvo cars have always been associated with superior 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 reliability indicators.
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 remains about where exactly these cars are produced. This is explained by the sale and resale of the company's shares, the transfer of the brand from one hand to another. This, as expected, confused consumers. And when the concept of China sounds next to Volvo, it scares you away from buying the once-best Swedish cars.
An excursion into history
When it comes to the country of manufacture of Volvo, the first thing to remember is the homeland of the brand. Namely Sweden. Yes, the company originated in this particular country, and now there are several factories operating here. But Volvo's influence has expanded since its inception, allowing the assembly to branch out into production lines in several countries.
The company currently has several main lines of business:
- production of passenger cars;
- manufacturing of freight vehicles;
- supply of parts and spare parts;
- assembly and supply of engines;
- manufacturing of units for trucks, etc.
If we talk about trucks, then we are talking about an offshoot of the company, which is called 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 person. Although the Americans have not been able to retain the Swedish brand for a long time. This was due to the 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 taken over by the Chinese carmaker Geely from Ford. It was a difficult period for the company, as low profitability, weak sales figures gave way to the transition to the beginning of the 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 drop in Volvo's rating.
But in practice, everything turned out differently. Since 2010, when the Chinese bought out Volvo from the Americans, a period of formation and revival of the brand began. Geely managed to build a correct development strategy, invested money in Volvo, which fully paid off with the start of 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 world market. And they have been doing it successfully so far.
Now more than 2.3 thousand dealers, which are concentrated in 100 countries, are engaged in the sale of cars under the Volvo brand. By the end of last year, the total staff of the auto 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. Moreover, it turned out to be 4 years 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 revenues reached 210 million kroons, 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. It is also here that 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.
Car manufacturing
Since buyers are interested in where the Volvo CX90, CX60 and a number of other cars are assembled, a more detailed understanding of the brand's production geography is required.
Initially, all Volvo cars were produced in Sweden. But then the production was taken up in other countries. At the same time, the plant in Gothenburg, originally producing Swedish cars, is still the main enterprise, where models such as 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 notice that cars are sold in Europe that are focused specifically on the European market. Asian and American assembly lines are concentrated in the USA and Asian countries, respectively. The exception is the plant in Chengdu, which is located in China. The enterprise was opened here in 2013. It assembles cars, which are subsequently sold directly at home, that is, in China, and also sent for sale in the United States.
Another Chinese plant has been operating since 2014. It is located in the city of Daqing. A little later, a plant was opened in Luqiao. The most recent Volvo assembly plant is the Charleston plant located in South Carolina, USA.
Volvo for Russia
It is worthwhile to understand in more detail where cars are assembled under the Volvo brand for Russia. It is a mistake to think 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 signs 1 or J, then the car was assembled in Sweden. If you see the number 2 on the wine code, then the car is assembled in Belgium, the city of Ghent.
So far, only at the level of rumors is the appearance of a plant in Russia expected. If this happens, the most likely option is to organize an assembly line. That is, the components will be supplied, and the final assembly will be undertaken by domestic enterprises. This scheme is practiced with many imported cars, so Volvo can become one of them.
In the meantime, you should count on cars supplied from Europe. Objectively, there is nothing wrong with this, since the European assembly is of high quality and accuracy. Whether the domestic specialists will be able to adhere to the same level, if rumors about the appearance of Volvo in Russia become reality, the question is urgent and open.
To summarize and determine where the 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 leave the assembly line and are distributed around the world for subsequent sale. Among them is Russia;
- Skövde. Currently, this enterprise, located near Gothenburg, is engaged in the production of power plants. Volvo stands out for its reliable and efficient engines, which have won numerous prestigious awards. This is all the merit of the specialists working in the Swedish Skövde;
- Copenhagen. Volvo also has offices in Denmark. There is a research and development center here. That is, they are invented here, introduced into production, tested and modernized;
- Olofström. A Swedish city renowned for its high quality Volvo bodywork components;
- Ghent. One of the main production facilities of the Volvo brand is located in Belgium. The 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 a full cycle of production of Volvo cars is carried out. The plant opened in 2018 will help meet American demand for Swedish cars. Volvo has always been popular in the North American market, but previously the cars had to be supplied from other continents. Geely's solution will largely solve the problem of long-term vehicle delivery to end-users;
- 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 the 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 a 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 established. The enterprise 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 collect everything together;
Bangalore. Another assembly plant in India. Thus, representatives of the Chinese concern Geely are trying to expand their own influence, as well as meet the demand in the emerging market for reliable Volvo cars. As in the Malaysian Kuala Lumpur, in Bangalore they only assemble from ready-made components.
You can clearly see that the Volvo brand has expanded from several continents and a number of countries at once. The USA, Europe and Asia have their own factories, research centers, assembly lines.
Not everyone expected that after the sale to the Americans and the subsequent sinking of the Volvo brand, the transfer into the hands of Chinese owners would have such a positive effect on the development of the company.
But Volvo has really managed to regain its former position. Moreover, many experts are sure that now the brand is only at the initial stages of its formation after its once probable disappearance. Everything is going well, sales are growing, new models are emerging and great updates to already proven Volvo car models.
The opening of an enterprise, even in the form of an assembly plant, in Russia will be another big step for Volvo. There is a fairly high demand among Russians for cars of this brand.
It is worth remembering that not so long ago there were meetings between representatives of Russia and Volvo. The result of negotiations of the contact group with the plant in Kaliningrad was a trial run of the assembly line for 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 attempt. Negotiations should resume soon. The probability of signing a contract between the parties is quite high.
We must 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 is not directly related to the production of passenger cars, 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 meets the needs of the domestic market. Also from Kaluga, assembled Volvo trucks are delivered to the neighboring countries of the CIS and the Baltic states.
Despite the rather high price, advanced technology, excellent build quality, reliable engines and advanced safety systems, in many ways justify the overpriced.
The Volvo concern, which has shown itself as a manufacturer of high-quality and reliable equipment, is one of the most influential representatives in Europe, in particular in the premium segment. It has several factories specializing in the production of different vehicles. The XC90 model for Russia is assembled in Sweden and Belgium. Chinese-built vehicles are sold in the Asian market.
Between 2000 and 2007, the Swedish brand did not develop much, offering customers older models with a limited range of engines. The next year was decisive for the company and served as a starting point for its further successful development. This is due to the conclusion of an alliance with the Chinese Geely. In fact, the Chinese bought the Swedish company, but the agreement still looks like a merger.
The Chinese manufacturer committed itself not to change the name of the Volvo brand, to leave Sweden as the country of the manufacturer, and also not to use the Swedes' developments for the Gelly models.
In which countries are Volvo cars assembled?
There is a misconception that Volvo cars are assembled in Norway, Switzerland and even Germany. In fact, the brand's main European manufacturing facilities are located in the Swedish city of Torslanda, as well as the Belgian city of Ghent.
Until 2013, an enterprise in Uddevalla operated in Sweden, where the C70 model was produced. There are no other Volvo car assembly plants in Europe. In China, the assembly of Swedish cars is organized at a plant in Chengdu.
After the merger with the Chinese Geely, production volumes in Gothenburg did not decrease, but even increased. This was facilitated by significant Chinese investment.
Pros of merging:
- Serious investments made it possible to develop new cars, technologies and expand the brand's model range.
- Allowed to exchange experience with designers from Geely.
- For Volvo, the Chinese market opened up, where its products were exempted from duties.
- The staff of the enterprise has expanded, production lines have been updated and automated.
Second generation Volvo XC90
The company originally planned to release the new XC90 in 2009-2010, but due to the merger with Geely, the timing was postponed.
The world debut of the model took place in 2014, and the serial one at the plant in Gothenburg. The first cars were delivered to their customers in the spring of 2015. On the occasion of the brand's birthday, the Swedes have released a special version called First Edition with a circulation of 1927 units.
The cars were sold out in 47 hours.
In 2016, the model was awarded the North American SUV award. The winner is determined by a commission of independent journalists. The previous version of the car experienced a similar success in 2003. In addition, the crossover performed the best in its class according to Euro Ncap.
Volvo Personvagnar AB (Volvo Cars) sold in 2010 - the Ford concern transferred 100% of the shares of its former division to the holding Zhejiang Geely Holding Group from China, which already has one global automaker - Geely Auto.
The main production facilities of Volvo Cars are currently located in the European Union - factories in Torslanda, Uddevalla and Ghent. The company plans to open several factories in the PRC to meet the needs of the dynamically developing domestic market.
Volvo cars are not assembled in the Netherlands. By the end of 2012, Mitsubishi Motors, the owner of the plant since 2001, was going to close the plant or sell it for a nominal fee if certain conditions are met. Once upon a time, the following models came off the assembly line of the plant: 440, 460, S40 b V40.
Volvo cars - S40 and S80L were produced at the Changan Ford plant in Chongqing, China.
| Production of Volvo cars | ||||
| Plant | Location | Country | Model | VIN sign of the factory |
| Torslan-daverken | Torslanda | Switzerland | V70 XC70 S80 XC90 V60 |
1 |
| Pinifarina sverige ab | Uddevalla | C70 | J | |
| Volvo Cars Ghent | Ghent | Belgium | C30 V40 S40 V50 S60 XC60 |
2 |
Volvo Cars sold about 422 thousand vehicles in 2012. The largest market for Volvo cars is the North American market. So, in the US market in 2012, 68,079 cars were sold. Contrary to the company's expectations, the Chinese market did not grow, under the pressure of competitors who deployed their production in China, there was a decline in sales. The opening of a plant in China, cheaper cars due to the absence of customs duties, will significantly increase sales. Today the duty is up to 25% of the cost of the car.
Which plant collects the most Volvo cars?
The company's plant in the Belgian city of Ghent in 2011 collected about 265 thousand cars, and in 2012 about 258 thousand cars. The production of small cars is a landmark for the plant, it is with them that the growth of production is associated.
Volvo production in Russia.
Back in 2002, the first production of trucks of this brand was started in Zelenograd. In connection with the company's plans to open a modern high-capacity plant in Russia, production in Moscow was closed in 2008. In January 2009, a Volvo Group plant was opened in Kaluga with a design capacity of 15 thousand vehicles per year. The main products are trucks from the Volvo range: FH, FM and FMX.
The Swedish car company Volvo is now owned by the Chinese carmaker Geely. The agreement to buy the famous automobile brand from the American giant Ford was signed on Sunday. The deal amounted to almost two billion dollars.
1.8 billion dollars - this is the price of companies that produce passenger cars under one of the most famous European brands. For the Swedes, this is unlikely to be a blow to national pride, because this is not the first time Volvo has been sold. In 1999, the enterprise became part of the Ford Corporation, and it cost the Americans 3.5 times more than the Chinese - 6.5 billion dollars. The crisis forced to dump excess assets - one of them was the Swedish mark.
“The main goal of the deal is to find a new owner who shares Ford’s vision of Volvo’s future. We needed to find a new owner who can develop the business while taking special care of the unique features of the Swedish brand. And who also treats employees responsibly. the company and the community in which we work. We have found, and I am pleased to report this, such an owner in the person of Geely, "said Lewis Booth, vice president of Ford.
It took some time to find it. They talked about plans to sell Volvo back in 2008, but there was no buyer. Negotiations lasted almost two years, in the end, the Chinese promised to preserve the Swedish image of the car company as much as possible.
"Volvo will be managed by Volvo's management. The company will be granted independence from a strategic perspective. It will operate according to its own business plan. We are committed to maintaining the brand identity and regard Volvo as a Swedish company with a strong Scandinavian tradition," says Li Shufu. chairman of Geely.
Leaders do not have to pack their bags - the headquarters remains in Gothenburg. At first glance, according to the results of the deal, Volvo will not decrease, but will increase. Factories in Sweden and Belgium will continue to assemble cars, but production in China will join them.
Geely's plans are not ambitious enough, they are simply grandiose. Now the Swedish manufacturer assembles about 300 thousand cars a year - a new plant in China should do the same. And this is only the Volvo brand - the total production of the concern will be in the millions.
"We set a goal to achieve production of two million vehicles per year by 2015. This is the strategic plan of Geely. Our strongest positions are in Russia and Ukraine. In Ukraine, in particular, we have deployed the assembly of one of our company's models," says Zhang Nenger , a Geely employee.
The acquisition of a well-known brand raises the prestige of the Chinese car industry. Volvo will open a more expensive segment of the European market to manufacturers from the Middle Kingdom, its sales network. The Chinese even managed to persuade the union, at first it was categorically against the deal. But after lengthy discussions, the unionists changed their anger to mercy. As they themselves explain, after familiarizing themselves with Geely's financial plans.
“I believe the company has the strength and the opportunity to grow and I have a positive view of the future. Geely is able to make Volvo a profitable business again,” says Søren Karlson, head of the local Volvo Workers Union.
In Sweden, Volvo works 16 thousand people, another six thousand work outside the kingdom. The head of the company Li Shufu personally persuaded the union leaders. But now, after the signing, the suppliers of components are nervous, their technologies will become available to the Chinese, which means, perhaps, you can not explain. Auto experts can only speculate what is better - the future under the Chinese flag or the curtailment of production, as is the case with the no less legendary Hummer brand. Indeed, after the breakdown of the deal with representatives of the Chinese car industry, General Motors decided to say goodbye to this brand altogether.
In Latin Volvo means “I roll,” the circle with arrows is just a convenient symbol of steel - the largest industry in Sweden before iKEA. The circle and arrow symbolize the shield and spear of Mars, which are also alchemical symbols of iron. In 1924, at the Sturehof restaurant in Stockholm on July 25 - the day that is called Jacob's day in the Swedish calendar - Assar Gabrielsson and Gustaf Larson decided to create a Volvo.
Volvo's birthday is April 14, 1927, the day the first 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 became really interested in cars in 1923 after an exhibition in Gothenburg. In the early 1920s, 12 thousand 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, did not always selectively approach 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 Volvo's creators, 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 has followed this principle. Let's find out the history of this brand in more detail ...
1927 Volvo OV4 "The Jakob"
Created by Volvo
Assar Gabrielsson and Gustaf Larson are the creators of Volvo. Assar Gabrielsson - the son of Gabriel Gabrielsson, the office manager, and Anna Larson - was born on 13 August 1891 in Kosberg, Skaraborg. Graduated from the Higher Latin School of Knorra in Stockholm in 1909. Received a BA in Economics and Business from the School of Economists in Stockholm in 1911. After working as a clerk and stenographer in the lower house of the Swedish Parliament, Gabrielsson secured a job as a trade 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 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 at White and Popper Ltd. After graduating from the Royal Institute of Technology, Gustaf Larson worked for SKF as a manager and chief engineer of the company's transmission department in Gothenburg and Katrinholm from 1917 to 1920. He worked as a plant manager and later as a technical director and executive vice president of Nya AB Gaico with 1920-1926 Collaborated with Assar Gabrielsson to build Volvo. From 1926 to 1952 - Technical Director and Executive Vice President of Volvo.
Volvo's story began with crayfish
As the book "Volvo Cars" narrates, the history of Volvo begins in June 1924, when Assar Gabrielson, the future managing director of the brand, happened to meet in a cafe with former college classmate Gustav Larson, who would later become the technical director of Volvo. They had a short conversation in a cafe that day, and Gabrielson proposed the idea of creating a car manufacturing enterprise. 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 particular importance to it. Perhaps this idea would not have received development if they had not met a second time in August of the same 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 accidentally walked by the Sture-hof restaurant. I saw an advertisement for fresh crayfish, and decided to go inside, where saw Gabriel sitting alone in front of a mountain of red crayfish. I joined him and we took crayfish with great appetite. " So they sat at the same table. Gabrielson had an excellent opportunity to revisit his idea. The verbal agreement, which 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 establish a car manufacturing enterprise in Sweden, I make an offer to G. Larson to cooperate with me as an engineer." "I, Larson, accept this offer." Gustav Larson had to design a new car. The remuneration for this work would be between 5,000 and 20,000 Swedish kronor, provided that production reaches an industrial level - at least 100 cars per year by January 1, 1928. If the target level of production is not achieved, Larson agreed not to claim any what payment. The chassis drawings for the new car were ready six months before the signing of this agreement.
On April 14, 1927, the first production car Volvo was born - the birth year of the automotive industry in Sweden. On that day, the gates of the factory on the island of Hisingen, Gothenburg, were thrown open. The first Volvo car drove out of the gate. It was an open-topped phaeton with a four-cylinder engine. Sales manager Hilmer Johansson was driving.
The designer Mass-Olle was guided by American methods when designing it. 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 version "PV-4" was a sedan.
The short drive to the place where the press was waiting for the car passed without incident. But the night before was not an easy one for those in charge of assembling the car. The last parts needed for assembly arrived by train from Stockholm the previous evening. The rush that accompanied the assembly of the car made itself felt: when in the morning engineer Eric Karlberg decided to inspect and check the car, it turned out that it could only move backward. The main component in the rear axle gearbox was installed incorrectly. Such a beginning was perceived as a good omen: from that moment on, the movement should have been only in the forward direction.
The car was called simply and uncomplicated - OV4 and had the affectionate nickname Jacob (Jacob). The letters OV indicated the model was an open-top car, and the number 4 was the number of cylinders in the engine. Volvo Jacob was engineered with an American design, a powerful chassis and independent suspension with long springs at the 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.
Initially, Swedish buyers were not eager to buy new cars
The car's four-aperture body was painted dark blue, and the black mudguards stood out against this background. The Jacob open 5-seater had four doors and was constructed from sheet steel with an ash and copper beech frame. The interior was upholstered in leather, the front panel was in wood. Unlike the seats in many other cars, the seats of the first Volvo were sprung. The wheel structure of this car was a removable rim that was mounted on lacquered wood spokes. Minor luxury items 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 4,800 kroons, and a little later the PV4 sedan was introduced, and an additional 1,000 kroons was added to its price. According to the plans, the plant should produce 500 cars of each model, however, contrary to expectations, Swedish buyers did not seek to buy up new cars. Only 297 cars were sold in the first year. 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 PV4's top speed was quite decent - 90 km / h
A year later, a new model is presented - this is the Volvo Special, an extended version of the PV4 sedan. The Volvo Special featured a longer bonnet, slender A-pillars and a rectangular rear window. This car was already fitted with bumpers. At this time, bumpers had not yet become standard vehicle equipment.
Only two years later, the company was able to make its first modest profits. In 1929, Volvo sold 1,383 vehicles. However, in the late 1920s. the car made a real breakthrough, both in the European market and in America.
During his several years at SKF, Assar Gabrielsson noted that Swedish ball bearings were inexpensive compared to international prices, and the idea of creating a production of Swedish cars that could compete with American cars grew stronger. Assar Gabrielsson worked with Gustaf Larson for several years at SKF, and the two people, after also working 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 automobile industry. Their similar views and goals led to collaboration after the first few chance encounters in 1924. As a result, they decided to found a Swedish car company. While Gustaf Larson hired young mechanics to assemble cars, Assar Gabrielsson studied the economic background for their vision. In the summer of 1925, Assar Gabrielsson was forced to use his own savings to fund a trial series of 10 passenger cars.
The vehicles were assembled at Galco's Stockholm plant with the involvement of SKF, which had a capital stake of SEK 200,000 in Volvo, and SKF also made Volvo a controlled but growth-oriented automobile company.
All work was relocated to Gothenburg and neighboring Hisingen, and SKF equipment was eventually relocated to Volvo's production site. Assar Gabrielsson identified 4 basic criteria that contribute to the successful development of a Swedish car company: Sweden was a developed industrial country; low wages in Sweden; Swedish steel had a solid reputation around the world; there was a clear need for passenger cars on Swedish roads.
Gabrielsson and Larson's decision to start manufacturing passenger cars in Sweden was clearly articulated and based on several business concepts:
- Production of Volvo passenger cars. Volvo will be responsible for both machine design and assembly work, and materials and components will be purchased from other companies;
- Strategically secure with major subcontractors. Volvo must find reliable support and, if necessary, partners in the field of rail transport;
- Concentration on export. Export sales began a year after the start of the conveyor production;
- Attention to quality.
Neither effort nor expense can be spared in the car building process. It's cheaper to get production right in the beginning than to allow mistakes and fix them at the end. This is one of the main tenets of Assar Gabrielsson. If Assar Gabrielsson was astute in business, then the brilliant financier and merchant Gustaf Larson was a genius in mechanical engineering. Together, Gabrielsson and Larson controlled Volvo's two main areas of business - the economy and mechanical 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. This was their common approach, which laid the foundation for Volvo's first and most important value - quality.
Volvo name
SKF acted as a serious guarantor of the production of the first thousand cars: 500 with a convertible top and 500 with a rigid. Since one of the main activities of SKF was the production of bearings, the name Volvo was proposed for the cars, which means "I roll" in Latin. Thus, 1927 was the year Volvo was born.
A symbol was needed to characterize his child. They have chosen steel and Swedish heavy industry since cars were made from Swedish steel. The "iron symbol" or "the symbol of Mars" as it was named after the Roman god of war, was placed in the center of the radiator grille on the first passenger passenger car Volvo, and later on all Volvo trucks. The "sign of Mars" was tightly attached to the radiator using the simplest method: a steel rim was attached diagonally across the radiator grill. As a result, the diagonal stripe has become a reliable 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 was 50 years old, the Swedish automaker decided to "modernize" the car. True, only on paper - no one is going to launch mass production of the modernized 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. Commercial success would be based on the glory of the original P1800 sports car, which was considered the most attractive Volvo in the history of the Swedish brand. The exterior 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 start production of this model at the German enterprise Karmann, owned by the Volkswagen concern, but disagreements that arose during the negotiations led to the need to find another partner. As a result, the serial production of the car was only started in 1961, while cars were assembled in the UK at the Jensen plant.
The first Volvo P1800s were powered by 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 as a "convertible" and "station wagon". The total circulation of P1800 for 13 years was 37.5 thousand copies.
In parallel, Volvo begins to produce its first trucks, which were based on the same "Jacob".
So, starting from the 30s of the twentieth century, Volvo presents all the new introductions to mechanical engineering. A new six-cylinder engine was invented, tested and put into production, brake pads are installed on all 4 wheels, interior noise insulation, a muffler is installed, a radiator grill appears - and after all these innovations, the power of the car does not drop in any way! Unsurprisingly, the company is weathering the global economic crisis. Before World War II, Volvo delights 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 keeps afloat, invents new innovations. Having survived the war and finished the production of car modifications for military needs, Volvo returns to the production of civilian cars. The PV444 model, after all the modifications, conquers the market. The company is increasing its production and, consequently, the export of cars.
In the 50s, Volvo places great emphasis on safety. Brakes and seat belts are being improved. A special committee is being set up to study various accidents.
In 60 - 70 years. the company enters into agreements with DAF and Renault, which increase the productivity and power of vehicles. New modifications and models are being released - Amazone, models 240 and 345. In the 80s, the production of cars per year reaches the 400 thousandth mark! It should not be forgotten that the company continues to be concerned about safety, as evidenced by numerous awards for the modification of the seat belt - the world's first three-point belt that improves safety by 50%.
The 90s brought success to the company again. We have established relations 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 has been modified with the help of Japanese colleagues from Mitsubishi and has a nice design.
At the moment, the Volvo brand is a safety brand. Popular models such as S40, S60, S80, V70, XC70, XC90 drive along the streets. Cars are chosen for comfort, safety and reliability. Every year the brand pleases with novelties and innovations, both in the field of security and the field of reliability of robots of the car. And besides this, Volvo produces reliable motors for boats and ships.
Now let's take a 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, 300 cars are assembled.
1937 - release of new similar models - PV51 and PV52, 1800 cars were produced.
1940s - modernization of vehicles for military needs, then workers' strike, lack of materials. Design and assembly of PV444, an average of 3000 cars are produced per year.
1953 - the release of a new family car - the Volvo Duett.
1954 - an unprecedented step by the company - a 5-year warranty is issued for a car! The first Volvo sports car is produced, which never became fashionable.
1956 - The Amazon brand is released.
1958 - the export of Volvo cars reaches 100 thousand.
1959 - an event occurred that later made Volvo considered the safest car - the three-point seat belt was invented.
1960-1966 - presented the new cars Volvo 1800 and Volvo P 144, 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 was launched, 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 car with front-wheel drive appears - the sports car Volvo 480 ES.
1990-1991 - Side impact protection developed and installed on the Volvo 850. The production of the Volvo 960 model, which had a 6-cylinder engine and a power of 240 hp, was launched.
1995 - the release of the famous cars Volvo S40 and V40.
1996 - Volvo now delights its customers with the excellent Volvo C70.
1998 - The Volvo S80 is released not only as a comfortable car, but also one of the safest cars in the world, thanks to its lash protection.
1999 - Volvo buys out Ford, which still owns to this day.
2000 - such "giants" of the car market as Volvo V70 and Volvo S60 come out. Volvo is recognized as the safest car in the world.
2002 - The year of great changes in the products of the Volvo company. The first XC90 SUV was announced, the s40 and s80 models were restyled. Volvo has already stepped firmly into the super-performance market with the S60R and V70R models. 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 to produce their parquet "jeeps". And finally, in August 2002, mass production of the XC90 model was started.
2003 - At the Geneva Motor Show, Volvo unveiled its next concept car from the Volvo Designers Vision of the Future series. VCC (Versability Concept Car) The Swedish Volvo lineup has been expanded with another four-wheel drive vehicle - following the Volvo S60 and V70, the company's flagship sedan, the Volvo S80, has also received all-wheel drive. This vehicle 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 the larger Volvo models.
