On This Day

Friday 25th July 1924

96 years ago

Engineer Gustaf Larson and SKF sales manager Assar Gabrielsson met by chance over a plate of crayfish, and after enjoying their meal agreed to start up production of 'The Swedish Car', ie Volvo. Their vision was to build cars that could withstand the rigors of the country's rough roads and cold temperatures. The first Volvo car rolled off the production line at the factory in Gothenburg in 1927. 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. Pentaverken, who had manufactured engines for Volvo, was acquired in 1935, providing a secure supply of engines and entry into the marine engine market. 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 plant, the first assembly plant in the company's history outside of Sweden in Halifax, Nova Scotia, Canada. In 1999, the European Union blocked a merger with Scania AB. That same year, Volvo Group sold its car division Volvo Car Corporation to Ford Motor Company for $6.45 billion. The division was placed within Ford's Premier Automotive Group alongside Jaguar, Land Rover and Aston Martin. Volvo engineering resources and components would be used in various Ford, Land Rover and Aston Martin products, with the second generation Land Rover Freelander designed on the same platform as the second generation Volvo S80. The Volvo T5 petrol engine was used in the Ford Focus ST and RS performance models, and Volvo's satellite navigation system was used on certain Aston Martin Vanquish, DB9 and V8 Vantage models. Ford sold the Volvo Car Corporation in 2010 to Geely Automobile of China for $1.8 billion. The move followed Ford's 2007 sale of Aston Martin, and 2008 sale of Jaguar Land Rover. Renault Véhicules Industriels (which included Mack Trucks, but not Renault's stake in Irisbus) was sold to Volvo during January 2001, and Volvo renamed it Renault Trucks in 2002. Renault became AB Volvo's biggest shareholder with a 19.9% stake (in shares and voting rights) as part of the deal. Renault increased its shareholding to 21.7% by 2010.