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Company Profile

Volvo

The Volvo Group, shortened to AB Volvo, stylized as VOLVO) is a Swedish multinational manufacturing corporation headquartered in Gothenburg. While its core activity is the production, distribution and sale of trucks, buses and construction equipment, Volvo also supplies marine and industrial drive systems and financial services. In 2016, it was the world's second-largest manufacturer of heavy-duty trucks through its subsidiary Volvo Trucks.

History
Early years and international expansion , left the assembly line on 14 April 1927. The brand name Volvo was originally registered as a trademark in May 1911, with the intention to be used for a new series of SKF ball bearings. It means "I roll" in Latin, conjugated from "volvere". The idea was short-lived, and SKF decided to simply use its initials as the trademark for all its bearing products. In 1924, Assar Gabrielsson, an SKF sales manager, and Gustav Larson, a KTH educated engineer, decided to start construction of a Swedish car. They intended to build cars that could withstand the rigours of the country's rough roads and cold temperatures. AB Volvo began activities on 10 August 1926. After one year of preparations involving the production of ten prototypes, the firm was ready to commence the car-manufacturing business within the SKF group. The Volvo Group considers itself to have started in 1927, when the first car, a Volvo ÖV 4, rolled off the production line at the factory in Hisingen, 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. 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. Volvo was also responsible for producing the Stridsvagn m/42. 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 1950, Volvo acquired the Swedish construction and agricultural equipment manufacturer Bolinder-Munktell. Bolinder-Munktell was renamed as Volvo BM in 1973. In 1979, Volvo BM's agricultural equipment business was sold to Valmet. Later, through restructuring and acquisitions, the remaining construction equipment business became Volvo Construction Equipment. and Renault acquired a minority stake, The alliance was officially dissolved in February 1994 and Volvo sold off its minority stake in Renault in 1997. During the 1990s, Volvo also partnered with the American manufacturer General Motors. In 1999, the European Union blocked a merger with Scania AB. Refocusing on heavy vehicles , Poland In January 1999, Volvo Group sold 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. In November 1999, Volvo Group purchased a 5% stake in Mitsubishi Motors, as part of a partnership deal for the truck and bus business. In 2001, after DaimlerChrysler bought a large stake in Mitsubishi Motors, Volvo sold its shares to the former. 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. AB Volvo acquired 13% of the shares in the Japanese truck manufacturer Nissan Diesel (later renamed UD Trucks) from Nissan (part of the Renault-Nissan Alliance) during 2006, becoming a major shareholder. Volvo Group took complete ownership of Nissan Diesel in 2007 to extend its presence in the Asian Pacific market. Renault sold 14.9% of its stake in AB Volvo in October 2010 (comprising 14.9% of the share capital and 3.8% of the voting rights) for €3.02 billion. This share sale left Renault with around 17.5% of Volvo's voting rights. That same year, Volvo sold Volvo Aero to the British company GKN. In 2017 Volvo Cars owner Geely became the largest Volvo shareholder by number of shares after acquiring an 8.2% stake, displacing Industrivärden. Industrivärden kept more voting rights than Geely (Geely getting 15.8% of voting rights). In December 2013, Volvo sold its Volvo Construction Equipment Rents division to Platinum Equity. In November 2016, Volvo announced its intention of divesting its Government Sales division, made up mainly of Renault Trucks' Renault Trucks Defense but also of Panhard, ACMAT, Mack Defense in the United States, and Volvo Defense. The project for selling the division was later abandoned and, in May 2018, Volvo reorganized Renault Trucks Defense and renamed it Arquus. In December 2018, Volvo announced it intended to sell a 75.1% controlling stake of its car telematics subsidiary WirelessCar to Volkswagen with the aim of focusing on telematics for commercial vehicles. The sale was completed in March 2019. In December 2019, Volvo and Isuzu announced their intention of forming a strategic alliance on commercial vehicles. As part of the agreement, Volvo would sell UD Trucks to Isuzu. The "final agreements" for the alliance were signed in October 2020, with the UD Trucks sale to be finalized pending regulatory clearances. The sale was completed in April 2021. In the early 2020s, Volvo partnered with other manufacturers to deploy infrastructure for non-hydrocarbon energies. In April 2020, Volvo and Daimler (later Daimler Truck) announced that the former planned to acquire half of Daimler's fuel cell business, forming a joint venture between the two companies. In March 2021, the fuel cell business was reorganised as a joint venture called Cellcentric. In December 2021, Volvo, Daimler Truck, and Traton agreed to the formation of an equally owned joint venture aimed to build an electric vehicle charging network for heavy vehicles in Europe. In December 2022, the joint venture (called Commercial Vehicle Charging Europe) began operations under the trade name of Milence. In April 2021, Volvo announced that it had signed up a new partnership with steel manufacturer SSAB to develop fossil fuel-free steel for future use in Volvo's vehicles. The partnership is derived from SSAB's own green steel venture, HYBRIT. In November 2023, Volvo acquired Proterra's battery business for US$210 million. Volvo has announced that it is developing trucks with combustion engines that run on hydrogen. Commercial tests will begin in early 2026. 2025, BIEC ==Corporate==
Corporate
Business Volvo Group's operations include: • Volvo Trucks (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 Trucks (light-duty trucks for close distribution and heavy-duty trucks for long-distance transportation) • Renault Trucks (heavy-duty trucks for regional transportations and heavy-duty trucks for the construction work segment) • Arquus (military vehicles) • Dongfeng Commercial Vehicles (45% ownership) (trucks) • VE Commercial Vehicles Limited Ltd., India (VECV), a joint venture between Volvo Group and Eicher Motors Limited in which Volvo holds 45.6% ownership (trucks and buses) • Volvo Construction Equipment (construction equipment) • SDLG (70% ownership) (construction equipment) • Volvo Group Venture Capital (corporate investment company) • Volvo Buses (complete buses and bus chassis for city traffic, line traffic and tourist traffic) • Volvo Financial Services (customer financing, inter-group banking, as real estate administration) • Volvo Penta (marine engine systems for leisure boats and commercial shipping, diesel engines and drive systems for industrial applications) • Volvo Energy (management and support for electric vehicles, batteries and electrification networks) According to the company, in 2021 almost two-thirds (62%) of its revenue came from trucks and services related to them. Second came construction equipment (25%), and the rest was from buses, marine engines, and minor operations, each of them contributing less than 5%. Production facilities , pictured in 2010 Volvo has various production facilities. , it has plants in 19 countries, with 10 other countries having independent assemblers of Volvo products. The company also has product development, distribution, and logistics centers. Its first plant for vehicle assembly, on the Hisingen island, was owned by SKF until it was made part of the Volvo company in 1930. In 1942, Volvo acquired its supplier of transmissions, Köpings Mekaniska Verkstad, located in the town of Köping. In 1954, Volvo built a new truck assembly plant in Gothenburg and, in 1959–1964, a car assembly plant in Torslanda. In the early part of that period Volvo also started to venture into vehicles other than passenger cars and road-going commercial vehicles by acquiring the Eskilstuna plant (Bolinder-Munktell). most of them within a 150-kilometer radius of Gothenburg, From the mid-1970s onwards, Volvo began building assembly plants with smaller assembly lines, more worker-centric and with better use of automation, no longer adhering to Fordism. These were Kalmar (car assembly, built in 1974), and Uddevalla (car assembly, 1989). Kalmar and Uddevalla were closed down in the early 1990s, following yearly losses. Starting in the late 1980s, Volvo expanded its limited bus production capabilities through acquisitions in various countries (Swedish Saffle Karroseri, Danish Aabenraa, German Drögmöller Karroserien, Canadian Prévost Car, Finnish Carrus, American Nova Bus, Mexican Mexicana de Autobuses). In the late 1990s, after a short-lived joint venture with Polish manufacturer Jelcz, Volvo built its main bus production hub for Europe in Wrocław. In 1998, the company opened an assembly facility for its three main heavy product lines (trucks, construction equipment, and buses) near Bengaluru, India. in the 2000s, Volvo gained various production facilities in Europe, North America, and Asia. Trademark Volvo Trademark Holding AB is equally owned by AB Volvo and Volvo Car Corporation. The main activity of the company is to own, maintain, protect and preserve the Volvo trademarks, including Volvo, the Volvo branding symbols (grille slash and iron mark), and Volvo Penta, on behalf of its owners and to license these rights to its owners. Its day-to-day work is focused upon maintaining the global portfolio of trademark registrations, and to extend sufficiently the scope of registered protection for Volvo trademarks. It also acts against unauthorised registration and use (including counterfeiting) of trademarks identical or similar to the Volvo trademarks on a global basis. ==Collaboration with universities and colleges==
Collaboration with universities and colleges
Volvo has strategic collaborations for purposes of research and recruitment with a number of colleges and universities, such as Penn State University, INSA Lyon, EMLYON Business School, NC State University, Sophia University, Chalmers University of Technology, The Gothenburg School of Business, Economics and Law at the University of Gothenburg, Mälardalen University College, and the University of Skövde. In 2019, Volvo partnered with Nanyang Technological University (NTU), SMRT, and the Land Transport Authority (LTA) in Singapore to unveil the first 12-meter fully electric autonomous bus which was set to be tested at NTU in Singapore before extending the route beyond the university campus. == Communication campaigns ==
Communication campaigns
In November 2013, Volvo Trucks enlisted Jean-Claude Van Damme to perform a split between two moving trucks in reverse. The goal of this campaign, titled "Epic Split," was to demonstrate the stability and precision of its "Dynamic Steering" model. In just three weeks, the video went viral, garnering over 61 million views on YouTube. Two years after the "Epic Split", Volvo Trucks aimed to demonstrate the durability of one of its trucks by handing over the controls to a four-year-old girl named Sophie. Conceptualized by the Swedish agency Forsman and Bodenfors, the widely shared video clip features Sophie using a remote control to navigate the truck through various obstacles, showcasing the vehicle's robustness and precision. == Controversies ==
Controversies
Israeli ties during the Gaza war Volvo has provided heavy construction equipment — specifically excavators and bulldozers — through authorized dealers that have been deployed in destroying Palestinian residences and public facilities, with incidents documented in East Jerusalem and communities such as Umm al-Khair and Hebron. Although Volvo maintains that these vehicles were purchased by intermediaries and meant for civilian applications, a United Nations expert investigation determined the company bears substantial responsibility for enabling "the displacement system" and cautions that inactive suppliers transform into active participants in occupation-related activities. According to UN experts, corporations can be held liable when providing assistance or enter into trade dealings with Israel, as it commits war crimes and forced displacement against Palestinians. ==See also==
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