| Type | Subsidiary |
|---|---|
| Industry | Automotive |
| Founded | 1927 (liquidating) |
| Founder(s) | SKF, Assar Gabrielsson and Gustav Larson |
| Headquarters | Gothenburg, Sweden |
| Key people | Li Shufu (Chairman) Stefan Jacoby (President and CEO), Hans-Olov Olsson (Vice-Chairman) |
| Products | Automobiles, Engines |
| Revenue | US$16.697 billion (2010)[1] |
| Operating income | US$345.463 million (2010)[1] |
| Employees | 19,494 (2010)[1] |
| Parent | Zhejiang Geely Holding Group |
| Website | VolvoCars.com |
Volvo Car Corporation, or Volvo Personvagnar AB, is a Swedish automobile manufacturer founded in 1927, in Gothenburg, Sweden. It is owned by Zhejiang Geely Holding Group.[2] Volvo was originally formed as a subsidiary company to the ball bearing maker SKF. When Volvo AB was introduced on the Swedish stock exchange in 1935, SKF sold most of the shares in the company. Volvo Cars was owned by AB Volvo until 1999, when it was acquired by the Ford Motor Company as part of its Premier Automotive Group. Geely Holding Group then acquired Volvo from Ford in 2010.[3]
Volvo produces models ranging from SUVs, station wagons (estates), and sedans (saloons), to compact executive sedans and coupes. With approximately 2,300 local dealers from around 100 national sales companies worldwide, the US is Volvo Cars' largest market, followed by Sweden, the United Kingdom, China and Germany. [1] In 2010, Volvo recorded global sales of 373,525 cars, an increase of 11.2% compared to 2009.[4]
Volvos are often compared to, and nicknamed, tractors,[5][6] partially because Volvo AB was and still is a manufacturer of heavy equipment, earlier Bolinder-Munktell, now Volvo Construction Equipment. Some consumers considered older models to be slow and heavy,[7] thus earning the distinction, "brick",[8] as a term of endearment for the classic, block-shaped Volvo, with the more powerful turbocharged variants known as "turbobricks".[8] The company moved away from the boxy styles of the 1970s and 1980s, to models which gained a reputation for sporting performance, including the factory-supported Volvo 240 turbos, which won the 1985 European Touring Car Championship (ETC) and 1986 Australian Touring Car Championship (ATCC).[9]
Volvo is known for its high safety standards. Owners are often proud of achieving high mileage;[10] one well-documented 1966 Volvo P1800 has been driven over 2.8 million miles, a Guinness World Record for most miles driven by a single owner in a non-commercial vehicle.[11] According to some figures, the average age of a Volvo being discarded is 19.8 years, second only to Mercedes.[12]
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Volvo company was founded in Gothenburg, Sweden in 1927. The company was created as a subsidiary company 100% owned by SKF. Assar Gabrielsson was appointed the managing director and Gustav Larson as the technical manager.
"Cars are driven by people. The guiding principle behind everything we make at Volvo, therefore, is and must remain, safety", Assar Gabrielsson and Gustav Larson 1927.
The trademark Volvo (which is latin for I roll) was first registered by SKF the 11 May 1915 with the intention to use it for a special series of ball bearing for the American market (however in the application for the trademark, it was also designated for the purpose of automobiles), but it was never used for this purpose. SKF trademark as it looks today was used instead for all the SKF-products. Some pre-series of Volvo-bearings stamped with the brand name 'Volvo' were manufactured but was never released to the market and it was not until 1927 that the trademark was used again, now as a trademark and company name for an automobile.
The first Volvo car left the assembly line April 14, 1927, and was called Volvo ÖV 4. After this the young company produced closed top and cabriolet vehicles, which were designed to hold strong in the Swedish climate and terrain. In the registration application for Volvo logotype in 1927, they simply made a copy of the entire radiator for ÖV4, viewed from the front.
In 1964 Volvo opened its Torslanda plant in Sweden, which currently is the one of its largest production sites (chiefly large cars and SUV). Then in 1965 the Ghent, Belgium plant was opened, which is the company's second largest production site (chiefly small cars). Finally in 1989 the Uddevalla plant in Sweden was opened, which is now jointly operated by Volvo Car Corporation and Pininfarina of Italy.
A collection of Volvo's most important historical vehicles are now housed in The Volvo Museum, which opened in a permanent location in Arendal at Hisingen on May 30, 1995.[13] For several years, the collection had been housed at "The Blue Hangar," at the then closed Torslanda Airport.[13]
In the early 1970s, Volvo acquired the passenger car division of the Dutch company DAF, and marketed their small cars as Volvos before releasing the Dutch-built Volvo 340, which went on to be one of the biggest-selling cars in the UK market in the 1980s.
Volvo Group, as one of the largest manufacturers of commercial vehicles in the world, took the initiative to sell its automobile manufacturing in 1999 in order to fully focus its efforts on the market for commercial vehicles.
Ford, on the other hand, saw advantages in acquiring a profitable prestige mid-size European automobile manufacturer, well renowned for its safety aspects, as an addition to its Premier Automotive Group. The buyout of Volvo Cars was announced on January 28, 1999,[14] and in the following year the acquisition was completed at a price of $6.45 billion USD. As a result of the divestiture, the Volvo trademark is now utilized by two separate companies:
Volvo Car Corporation was part of Ford Motor Company's Premier Automotive Group (PAG). Since its acquisition by the PAG, the company has grown in its range of vehicles. It had been the only brand left in the group since the sale of Jaguar, Aston Martin and Land Rover.
After the sale of Jaguar Land Rover to Tata Motors of India, Ford decided to keep Volvo Cars despite mounting losses and gross economic down turns. Ford decided to restructure plans for Volvo Cars, pushing it further upmarket alongside the lower end of Mercedes and BMW sedans, wagons, and SUV crossovers. The outcome was the luxurious second generation Volvo S80 and the new small premium crossover Volvo XC60.
Talks were held about the fate of Volvo Cars in the event of failure of US automakers, including Volvo's parent Ford. Swedish concerns mounted after repeated mass layoffs at Volvo, prompting Sweden to enter the spotlight to help its automotive industry. The government was asked to look into a possible state ownership of Volvo, or financial bailout for Volvo Cars and SAAB of GM. Eventually, AB Volvo responded to heated talks and decided that they do not want to see Volvo Cars fail, so they agreed to help Volvo cut costs through partnerships and even a possible share ownership amongst a larger consortium. AB Volvo repeated and stood stern that they will not buy back Volvo cars nor be sole majority owner. They are only willing to become part share owner of their erstwhile car unit.
Ford announced in December 2008 that it was considering selling Volvo Cars and making complex evaluations; a sale price of US$6 billion was reported,[15] but meanwhile it will try to make Volvo an independent company. The Swedish government was interested in helping with a possible Swedish acquisition of Volvo Cars in the near future along with AB Volvo. It was believed that BMW AG of Germany, Investor AB of Sweden, Chinese investors, or Russian investors were all possible candidates for purchase. Ultimately price was thought not to be the sole factor in the sale – Volvo Cars preference for its new owner, as well as the long-term strategic interest of Ford, will also influence the decision. Besides, AB Volvo must release the trademark rights to the new owner. Ford ultimately chose Geely Holding Group to acquire Volvo Cars.
Geely initially denied the plan for buying Volvo,[16] followed by denials from both Ford and Volvo.[17] After later estimates suggested that Volvo is only worth US$1–1.5 billion,[18] Geely's parent company, Geely Group Holdings Co., planned to bid for Volvo,[19] with Goldman Sachs investing HK$2.59 billion (334 million USD) to the holding company.[20][21]
Ford Motor Company decided to consider putting Volvo Cars on the market in December 2008, after suffering huge losses that year.[22] On October 28, 2009, Ford confirmed that, after considering several offers, the preferred buyer of Volvo Cars was Zhejiang Geely Holding Group, the parent of Chinese motor manufacturer Geely Automobile.[23][24] On December 23, 2009, Ford confirmed that all substantive commercial terms of the sale to Geely had been settled. A definitive agreement was signed on March 28, 2010 worth $1.8 billion. The European Commission and China's Ministry of Commerce approved the deal on July 6 and July 29, 2010, respectively. The deal closed on August 2, 2010 with Geely paying $1.3 billion cash and a $200 million note. Further payments are expected with a later price "true-up".[25][26] It is the largest overseas acquisition by a Chinese automaker.[27]
Stefan Jacoby, formerly chief executive of Volkswagen of America, became Volvo Car Corporation's President and Chief Executive on August 16, replacing Stephen Odell, who became chief executive of Ford Europe. Li Shufu became Volvo Cars' Chairman of the Board. His board members include Vice-Chairman Hans-Olov Olsson, a former president and chief executive of Volvo Cars, and Håkan Samuelsson, formerly chief executive of MAN.[28]
Volvo cars have long been marketed and stressed their historic reputation for solidity and reliability. Prior to strong government safety regulation Volvo had been in the forefront of safety engineering.[29]
In 1944, laminated glass was introduced in the PV model.[30] In 1958, Volvo engineer Nils Bohlin invented and patented the modern 3-Point Safety Belt, which became standard on all Volvo cars in 1959.[31] Additionally, Volvo developed the first rear-facing child seat in 1964[30] and introduced its own booster seat in 1978.[30]
The 960 introduced the first three-point seat belt for the middle of the rear seat and a child safety cushion integrated in the middle armrest.[30] Also in 1991 it introduced the Side Impact Protection System (SIPS) on the 940/960 and 850 models, which channelled the force of a side impact away from the doors and into the safety cage.[32]
To add to its SIPS, in 1995 Volvo was the first to introduce side airbags and installed them as standard equipment needed in all models in 1996. At the start of the 1995 model year, side impact protection airbags were standard on high trim-level Volvo 850s, and optional on other 850s. By the middle of the production year, they were standard on all 850s. In Model Year 1996, SIPS airbags became standard on all Volvo models.
In 1998 Volvo also developed and was the first to install a head-protecting airbag, which was made standard in all new models as well as some existing models. The head-protecting airbag was not available on the 1996 C70 since the initial design deployed the airbag from the roof and the C70, being a convertible, could not accommodate such an airbag. A later version of the C70 featured a head-protecting airbag deploying upwards from the door, avoiding this problem. It has been stated by many testing authorities that side head protecting curtain airbags can reduce the risk of death in a side impact by up to 40% and brain injury by up to 55%, as well as protecting during a rollover.[33]
In 1998, Volvo introduced its Whiplash Protection System (WHIPS), a safety device to prevent injury to front seat users during collisions.[30] In 2004, Volvo introduced the BLIS system, which detects vehicles entering the Volvo's blind spot with a side-view-mirror-mounted sensor, and alerts the driver with a light. That year also saw Volvos sold in all markets equipped with side-marker lights and daytime-running lights. Much of Volvo's safety technology now also goes into other Ford vehicles. In 2005 Volvo presented the second generation of Volvo C70, it comes with extra stiff door-mounted inflatable side curtains (the first of its kind in a convertible).
In 2006 Volvo's Personal Car Communicator (PCC) remote control has been launched as an optional feature with the all-new Volvo S80. Before a driver enters their car, he or she can review the security level and know whether they have set the alarm and if the car is locked. Additionally, a heartbeat sensor warns if someone is hiding inside the car. The S80 is also the first Volvo model to feature Adaptive cruise control (ACC) with Collision Warning and Brake Support (CWBS).
Since 2004 all Volvo models except for the coupes (C70 and C30) are available with an all-wheel drive system developed by Haldex Traction of Sweden.[34]
Even though Volvo Car Corp has been owned by the Ford Motor Company, the safety systems of Volvo are still standard on all Volvo vehicles. Volvo has patented all their safety innovations, including SIPS, WHIPS, ROPS, DSTC, IC, and body structures. Some of these systems were fitted to other Ford vehicles in forms similar to those of Volvo systems, only because Volvo has licenced the FOMOCO and other PAG members to utilize these features.
A 2005 FOLKSAM report[35] puts the 740/940 (from 1982 on) in the 15% better than average category, the second from the top category. The Volvo 745 was also recalled due to that the front seatbelts mounts could break in a collision.[36][37]
In 2005, when the American non-profit, non-governmental Insurance Institute for Highway Safety (IIHS) released its first annual Top Safety Picks vehicles list, none of Volvo's offered vehicles in the U.S. was included on the list.[38] According to Russ Rader, a spokesman for IIHS, Volvo lagged behind its competitors.[39] Dan Johnston, a Volvo spokesman, denied that the company's vehicles are any less safe than the Institute's top-rated vehicles, adding that
"It's just a philosophy on safety that is different from building cars to pass these kinds of tests."[40]
According to the Insurance Institute for Highway Safety (IIHS), Volvo's S80 became one of 2009 Top Safety Picks Award winner, but Volvo's S40 and S60 (both 2005–09 models with standard side airbags) failed to attain the highest rating in their side impact test. Volvo's C30 has not yet been tested by IIHS,[41][42] but received 5 star safety in EuroNCAP.[43]
However, according to the IIHS, in recent years Volvo Cars have still managed to maintain their high class safety ratings as seen in test results.[44] The Volvo XC90,[45] S80[46] and C70[47] all score top scores in these rated crash tests.
In 2008 a French court found Volvo partially responsible for causing the death of two children and serious injuries of one in Wasselonne on June 17, 1999, when the brakes of a 1996 Volvo 850 failed. The court subjected Volvo to a 200,000 Euro fine.[29][48][49][50]
Starting with the 140 series in 1966, Volvo used a tri-digit system for their cars. The first number was the series, the second number the number of cylinders and the third number the number of doors; so a 164 was a 1-series with a 6-cylinder engine and 4-doors. However, there were exceptions to this rule—the 780 for example, came with turbocharged I4 and naturally aspirated V6 petrol engines and I6 diesel engines, but never an eight-cylinder, as the 8 would suggest. Similarly, the 760 often was equipped with a turbocharged I4 engine, and the Volvo 360 only had four cylinders. Some 240GLT had a V6 engine. The company dropped the meaning of the final digit for later cars like the 740, but the digit continued to identify cars underhood on the identification plate.
Today, the company uses a system of letters denoting body style followed by the series number. S stands for saloon or sedan, C stands for coupé or convertible (including 3-door hatchback aka shooting brake) and V stands for versatile as in estate car. XC stands for cross country originally added to a more rugged V70 model as the V70XC and indicates all wheel drive paired with a raised suspension to give it a mock SUV look. Volvo would later change the name to the XC70 in keeping with its car naming consistent with the XC90. So a V50 is an estate ("V") that is smaller than the V70.
Originally, Volvo was planning a different naming scheme. S and C were to be the same, but "F", standing for flexibility, was to be used on station wagons. When Volvo introduced the first generation S40 and V40 at Frankfurt in 1994, they were announced as the S4 and F4. However, Audi complained that it had inherent rights to the S4 name, since it names its sporty vehicles "S", and the yet-introduced sport version of the Audi A4 would have the S4 name. Volvo agreed to add a second digit, so the vehicles became the S40 and F40. However, that led to a complaint from Ferrari, who used the Ferrari F40 name on their legendary sports car. This led to Volvo switching the "F" to "V", for versatile. As of January 2011, all coupes (C30 and C70) are based on Volvo P1 small car platform.
In 2005 Volvo introduced to the Sweden market the company's first E85 flexifuel models. Volvo introduced its S40 and V50 with flexible-fuel engines, joined in late 2006 by the then new C30. All Volvo models were initially restricted to the Sweden market, until 2007, when these three models were launched in eight new European markets.[52] In 2008 Volvo launched the V70 with a 2.5-litre turbocharged flexifuel engine.[53]
The Volvo ReCharge is a plug-in hybrid concept car with an all-electric range (AER) of 60 miles (97 km). It was officially unveiled at the 2007 Frankfurt Auto Show.[54]
On June 1, 2009, Volvo announced the launching of series production diesel-electric plug-in hybrids by 2012.[55][56][57] The company plans to sell a series hybrid with the goal of achieving emissions of less than 50 grams of CO2 per kilometer.[56][57] As part of a joint venture with Vattenfall, a Swedish energy company, Volvo converted two Volvo V70 to plug-in hybrid demonstrators that have been in field testing in Göteborg, Sweden since December 2009.[58] Vattenfall offered customers participating in this trial the supply of renewable electricity generated from wind power or hydropower.[59] Among other challenges, this test has allowed to experience the all-electric range at low temperatures, which has been a disadvantage of plug-in vehicles.[57][58][59]
The Volvo C30 DRIVe Electric concept car was exhibited at the 2010 Paris Motor Show and Volvo announced that field testing will begin in 2011 in the U.S., Europe, and China.[60] The C30 DRIVe electric car has a lithium-ion battery, a top speed of 130 km/h (81 mph), and an all-electric range of up to 150 kilometres (93 mi). Field testing began in 2010 with 10 units in Göteborg, Sweden.[61]
The Volvo ECC(Environmental Concept Car) was exhibited at the 1992 Paris Motor Show. The vehicles range on batteries alone was 90 miles (140 km), and when combined with a full tank of fuel for the turbine, about 415 miles (668 km).
Assembly locations around the world:
Volvo Cars have previously had production facilities on these locations:
There are reports that, after being acquired by Geely, Volvo is looking into building a new plant in China that could double its annual global production.[62]
Volvo uses in-line, or straight engines in their production vehicles. Volvo is also known for the application of the in-line 5-cylinder engine to its vehicle line up since its introduction in 1993 in the Volvo 850.
Volvo automatic transmissions in the past were made by the ZF Friedrichshafen company, but now the transmissions are co-developed with Aisin of Japan. Geartronic is Volvo Cars' name for its manumatic transmission.
Volvo Cars sales during 2010 (2009).[1]
1. United States 53,952 (61,426)
2. Sweden 52,894 (41,826)
3. United Kingdom 37,940 (34,371)
4. China 30,522 (22,405)
5. Germany 25,207 (25,221)
6. Belgium 17,969 (13,223)
7. Italy 17,509 (15,896)
8. Netherlands 14,308 (14,035)
9. France 12,211 (11,596)
10. Russia 10,650 (6,894)
Others: 100,363 (87,915)
1. XC60 80,723
2. V50 56,098
3. V70 48,877
4. XC90 37,597
5. C30 35,981
6. S40 31,688
7. XC70 22,068
8. S80 19,162
9. S60 14,786
10. S80L 11,778
The name Volvo, is Latin for "I roll".
The Volvo symbol is an ancient chemistry sign for iron. The iron sign is used to symbolize the strength of iron used in the car as Sweden is known for its quality iron. The diagonal line (a strip of metal) across the grille came about to hold the actual symbol, a circle with an arrow, in front of the radiator.
Volvo entered the European Touring Car Championship with the Volvo 240 in the mid-80s. The cars also entered the Guia Race, part of the Macau Grand Prix in 1985, 1986 and 1987, winning in both 1985 and 1986.
Volvo also entered the British Touring Car Championship in the 90s with Tom Walkinshaw Racing. This partnership was responsible for the controversial 850 Estate racing car, which was only rendered uncompetitive when the FIA allowed the use of aerodynamic aids in 1995. TWR then built and ran the works 850 Saloon, six wins in 1995 and five wins in 1996, and S40, one wins in 1997 in the BTCC. In 1998, TWR Volvo won the British Touring Car Championship with Rickard Rydell driving the S40R.
In 2008 Volvo entered the Swedish Touring Car Championship with a C30 powered by bioethanol E85 fuel. Robert Dahlgreen and Tommy Rustad were the drivers, finishing 5th and 10th respectively in the championship. Volvo have also signalled their intentions to enter the 2009 British Touring Car Championship with the same car.[63]
The Volvo trademark is now jointly owned (50/50) by Volvo Group and Volvo Car Corporation.[64] One of the main promotional activities for the brand is the sailing Race Volvo Ocean Race, formerly known as the Whitbread Around the World Race. There is also a Volvo Baltic Race and Volvo Pacific Race, and Volvo likes to encourage its affluent image by sponsoring golf tournaments all over the world including major championship events called the Volvo Masters and Volvo China Open.
Volvo sponsored the Volvo Ocean Race, the world's leading round-the-world yacht race for the first time in 2001–2002. The next edition is taking place between 2011 and 2012. Volvo has also had a long-standing commitment to the ISAF and is involved in the Volvo/ISAF World Youth Sailing Championships since 1997.
In 2011, Volvo Cars is the main sponsor of the winter sports and music festival Snowbombing in Austria.
Volvo has since the 1950s had special international sales programs for customers assigned abroad, for example Diplomat Sales, Military Sales and Expat Sales.
| Type | 1960s | 1970s | 1980s | 1990s | 2000s | 2010s | ||||||||||||||||||||||||||||||||||||||||||||||
| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 0 | 1 | |
| Small family car | 544 | 66 | S40 | S40 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 340/360 | C30 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Volvo 440/460/480 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Large family car | Amazon / 120 / 130 | S60 | S60 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 140 | 240 | 850 | S70 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Luxury car | 740 | 940 | S80 | S80 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 164 | 760 | 960 | S90 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 260 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sport | P1800 | 1800S | 1800 E | 1800 ES | 242 GT | 240 Turbo | 850 R | S/V70 R | S60/V70 T5 | S60/V70 R | ||||||||||||||||||||||||||||||||||||||||||
| Coupé | 262C | 780 | C70 | C70 II | ||||||||||||||||||||||||||||||||||||||||||||||||
| Estate car | V40 | V50 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 145 | 240 | 850 | V70 | V70 | V70 | |||||||||||||||||||||||||||||||||||||||||||||||
| Duett | 740 | 940 | V90 | V60 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Crossover | XC60 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| XC70 | XC70 | XC70 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| XC90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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