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AB Volvo (or Aktiebolaget Volvo) is a world-leading Swedish manufacturer of commercial vehicles, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services. The automaker was founded in August 10, 1926 in the city of Gothenburg, as a spin-off from roller ball bearing maker SKF (Svenska Kullagerfabriken AB). Volvo Cars, the automobile manufacturer, has since 1999 been owned by the Ford Motor Company. Volvo is Latin for "I roll or I turn". The name Volvo was originally registrated in May 1911 as a separate company within SKF AB and as a reg. 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 it's bearing products. The company Volvo AB had no activities until the 10th of August 1926 when the Sales Manager at SKF, Assar Gabrielsson and Engineer Gustav Larson after one year of preparations, including the production of 10 prototypes, sets up the car-manufacturing business Volvo AB within SKF company group. Volvo AB was introduced at the Stockholm stock exchange in 1935 and SKF then decided to sell it´s shares in the company. The first series produced Volvo automobile, called 'ÖV4' (Öppen vagn (Open wagon)-4 cylinders) left the factory on a sunny day 10pm, the 14th of April 1927. The sales did not turn out so well however. A total of just 996 cars was produced between 1927-1929. 'OV4' was replaced by model PV651 in april 1929. Volvo's first success in the automobile production came with the PV444 that was introduced in september 1944. The Volvo Group today has more than 81,000 employees, with manufacturing in 25 countries and sales in more than 185 markets. The group provides complete solutions for financing and service. The Volvo Group's net sales 2004 amounted to €22 billion. Renault owns 20% of the Volvo Group.
Change of strategyAmong the reasons why Volvo took the initiative to sell the automobile manufacturing was the increasing development costs for new car models, coupled with the fact that it was a relatively small producer. The strategy was instead to grow as a truck manufacturer where it had a stronger market position. The buyout of Volvo Cars was announced on January 28, 1998. In the following year acquisition was completed at a price of $6.45 billion USD. Volvo used the funds from the sale of the automobile division to finance the purchase of Scania, another leading Swedish truck manufacturer, but the deal was stopped for competition reasons by the European Union. Instead Volvo acquired the commercial vehicles division of French Renault and the American truck manufacturer Mack. Volvo Automotive's motto is "Volvo for life" attributed to the reliability and safety of their cars. The Volvo trademarkThe Volvo™ trademark is now jointly owned (50/50) by Volvo and Ford. One of the main promotional activities for the trademark is the sailing contest Volvo Ocean Race, formerly the Whitbread Around the World Cup. There is also a Volvo Baltic Race. Volvo companiesThe ( Ex- CMB )Volvo Heavy Duty Recovery, BR8072, is used to tow back to the Depots the abnormal buses which are beyond simple repairs or the result of serious accidentsBusiness areasThe Volvo Group is organised into the following business areas:
Business unitsThe group business areas are supported by a number of business units:
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