Volvo

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This article is about Volvo Group - AB Volvo; Volvo Cars is the passenger vehicle maker owned by Ford Motor Company, using the Volvo Trademark.
AB Volvo
Type Public (OMX: VOLV B)
Founded 1927 by SKF
Headquarters Gothenburg, Sweden
Key people Finn Johnsson (Chairman)
Leif Johansson (President and CEO)
Industry commercial vehicles
Products Trucks
Buses
Construction equipment
Drive systems for Marine and Industrial applications (Volvo Penta)
Aerospace components
Financial services
Revenue ▲285.405b SEK (2007)
Operating income ▲22.231b SEK (2007)
Net income ▼15.028b SEK (2007)
Employees aprox 100,000 (2007)
Website www.volvogroup.com Report on 2007 Operations www.allabolag.se

The Volvo Group is a Swedish supplier of commercial vehicles such as trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and financial services. The then auto manufacturer was founded on April 14, 1927 in the city of Gothenburg, as a spin-off from the roller ball bearing maker SKF. Volvo delisted from NASDAQ in June, 2007, but remains listed on the Stockholm exchange.[1]

Volvo means "I roll" in Latin, conjugated from "volvere". 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.

The company AB Volvo had no activities until 10 August, 1926 when the SKF Sales Manager Assar Gabrielsson and Engineer Gustav Larson, after one year of preparations involving the production of ten prototypes, set up the car-manufacturing business Volvo AB within SKF group. Volvo AB was introduced at the Stockholm stock exchange in 1935 and SKF then decided to sell its shares in the company.

The first series produced Volvo automobile, the Volvo ÖV 4, left the factory on 14 April, 1927 which became the official date for the founding of Volvo.

In 1999 Volvo sold its car division to Ford. Repeated reports in the media about Ford selling off its Volvo brand have been refuted by the company.[2]

Contents

[edit] Volvo Group's history

The Volvo Group has its origin in 1927 when the first Volvo car rolled off the production line at the factory in Göteborg.[3] Only 297 cars were built that year.[4] The first truck, the Series 1, debuted in January 1928. In 1930, Volvo sold 639 cars,[4] and the export of trucks to Europe started soon after; the cars did not become well-known outside Sweden until after World War Two.[4]

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.

The first bus, aptly-named B1, was launched in 1934, and aircraft engines were added to the growing range of products at the beginning of the 1940s.

On January 28th, 1999 Volvo Group sold its business area Volvo Car Corporation to Ford Motor Company for US$6.45 billion, with the resulting group since now largely set on commercial vehicles. On 2 January 2001, Renault V. I. (including Mack Trucks, but not Renault S. A.'s stake in Irisbus) was sold to Volvo, which renamed it Renault Trucks in 2002. As a result, the mother company Renault S. A. is AB Volvo's biggest shareholder, with a 20% stake, 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 2007 the Volvo Group acquired the truck division Nissan Diesel of Nissan Motors, to support its expansion in the Asian region.

[edit] The Volvo trademark

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Volvo Trademark
Volvo 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 device marks (Grille Slash & Iron Mark) Volvo Aero and Volvo Penta) 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 (incl counterfeiting) of trademarks identical or similar to the VOLVO trademarks on a global basis.

[edit] The Volvo brand

Markus Brier, winner of the 2007 Volvo China Open
Markus Brier, winner of the 2007 Volvo China Open

One of the innovative branding strategies for the trademark is the Volvo for life Awards, a grassroots program that honors ordinary people who do extraordinary things to improve their communities. The awards are given in three categories - Safety, Quality of life, and Environment - all of which speak to and constitute the brand's core values. The public can nominate individuals making valuable contributions to society at the program Web site, www.volvoforlifeawards.com. Additionally, the public can also make nominations for the Butterfly Award, which recognizes child heroes whose actions help to make the world a better place. After the nominations period, the American public can then vote at the Web site for finalists from top nominations, and the program’s distinguished judging panel then choose the program winners, whom Volvo honors at an annual gala awards ceremony held in New York City.

The brand's promotional strategies include the sailing race Volvo Ocean Race[1], 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[2] and Volvo China Open [3].

Volvo sponsored the Volvo Ocean Race, the world's leading round-the-world yacht race for the first time in 2001 - 2002, 2005-2006. The next race will take place as of 2008-2009. Volvo has also had a long-standing commitment to the ISAF and is involved in the Volvo/ISAF World Youth Sailing Championships since 1997.

Volvo Group also sponsored the Show Jumping World Cup from its inception in 1979 until 1999. The company also sponsors Culture, e g The Göteborg Opera [4], The Gothenburg Symphony Orchestra [5]. [6]

[edit] Volvo companies

Companies in the Volvo Group are:

[edit] Business units

The group companies are supported by a number of business units:

  • Volvo 3P
  • Volvo Powertrain
  • Volvo Parts
  • Volvo Logistics
  • Volvo Information Technology
  • Volvo Technology
  • Volvo Technology Transfer
  • Volvo Business Services
  • Volvo Treasury
  • Volvo Group Real Estate

[edit] See also

[edit] Brands in the Volvo Group

The Volvo brand, which has been built up over decades, is one of the world's best known and respected brand names.

Volvo Group's purchase of Renault Trucks and Mack Trucks in 2001 created Europe's largest and the world's second largest producer of heavy trucks with a broad product program. Mack is one of the most well known truck brands in North America while Renault Trucks holds a special position in Southern Europe.

Prevost Car, owned by Volvo Bus Corporation, is the leading North American manufacturer of premium touring coaches and bus shells for high-end motorhomes and specialty conversions. Nova Bus, part of Prevost, stands as a North American leader in the design, production and marketing of urban transit buses.

[edit] References

  1. ^ AB Volvo applies for delisting from Nasdaq - Forbes.com
  2. ^ David, Ruth. "Reports Say Tata Is Front Runner To Buy Jaguar, Land Rover", Forbes, 2007-12-17. Retrieved on 2007-12-17. 
  3. ^ Volvo 80 years
  4. ^ a b c Georgano, G. N. Cars: Early and Vintage, 1886-1930. (London: Grange-Universal, 1985)

[edit] External links

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OMX Stockholm 30 companies of Sweden