Volvo history. The Chinese bought Volvo Who makes Volvo

The Swedish concern, which produces high-quality and majestic Volvo cars, has become one of the most influential in the European premium car market. This happened in the last seven years, but from 2000 to 2007 the concern did not develop, offering customers the same models with old engines. The secret of the Swedish car company's success lies in its alliance with the Chinese. The formal Geely corporation simply bought out the Swedish enterprise, but the agreement is more like a merger.

The Chinese made a commitment not to rename the brand, to preserve the European Volvo brand, the country of origin should remain Sweden, and Geely does not have the right to use the concern’s technical developments in its cars. I wonder if the Chinese are honoring the signed agreement?

Are there other countries in the world where Volvos are assembled?

Many car enthusiasts confuse Sweden with other Scandinavian and European countries, believing that Volvos are assembled in Norway, Switzerland or even Germany. In fact, Volvo Corporation's only plant is located in Gothenburg, Sweden. This enterprise, even after the purchase of the concern by the Chinese, remains in this city and does not reduce its activities.

On the contrary, Chinese investment has given the Swedish company a huge boost. There are several important aspects that changed in 2007:

• money appeared and technical capabilities to develop a completely new model range;
• the efforts of the designers of the already powerful company Geely and the Swedes combined;
• the Volvo brand has received a huge Chinese market, where its cars are sold without unnecessary duties;
• new technologies began to be introduced into cars, thanks to generous investments;
• the plant expanded its staff, improved production lines and received many other benefits.

If we consider the technology of car manufacturers today, we can safely say that Volvo is one of the best factories in Europe. The latest equipment is installed here; all assembly processes are fully automated. The cars are not just of high quality, they finally live up to their price tag. Until 2007, Volvo cars were bought only in Scandinavian countries. They were too expensive and outdated.

Chinese Geely cars after cooperation with the Swedes

Immediately after the unification of European and Chinese manufacturers under the roof of one concern, Geely had new models that were three heads higher than their predecessors. In fact, the entire model range has changed, new engines began to produce more horses, requiring less fuel. Yes and appearance The Emgrand series has moved a lot forward.

We invite you to enjoy the video test drive of the new Emgrand EC7

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A crossover, which had not been announced before, even appeared in the Geely model line. Such changes are associated with the following development options for the company:

• despite the ban on the use of Volvo technologies, the Chinese pulled certain developments of the Swedes to their side;
• as a result of bilateral cooperation with European engineers, new developments were obtained;
• the company received a good income-generating asset and was able to invest in its own production;
• Engineers from Sweden were invited to work in China.

The last assumption is a tested and proven fact. But Geely denies the fact that this is related to the development of the successful Engrand series of cars. However, for the consumer there is no difference. If a company issues good cars, let her take technology where it is more convenient for her. What is more important for the consumer is how high-quality a car he can purchase at the dealership. That is why the Swedes today are quite happy with their seven-year cooperation with the Chinese.

The plant in Gothenburg is growing and developing, the brand is acquiring new models, and the Geely corporation is fulfilling all its main promises.

Let's sum it up

Over the past few years, Volvo has updated almost its entire model range. Not long ago it was announced that the last old XC90 SUV would be discontinued, and a few weeks after this news the first spy photos of the new development appeared.

The company was able to not only update model proposal and make an amazing success in the global automotive market, but also surprised all potential buyers and experts with excellent technologies, the development of which costs a lot of money.

It is not so important in which countries Volvos are assembled, because what is much more important is the perception of the car, its reliability and comfort. If you have experience in using a Volvo from the last seven years of production, describe your emotions from this car in the comments.

Today, a brand such as Volvo is world famous. But how did it all begin?

Vovlo: history of the brand

The history of Volvo began in 1924 with a meeting between college classmates Assar Gabrielson and Gustav Larson. Together they founded a car company. The company SKF, which specialized in the production of bearings, helped them with this.
In 1927, their first brainchild, the Volvo OV4/Jacob, was created. It was a convertible, equipped with a 4-cylinder engine running on gasoline fuel. A little later they released a sedan and its extended version. As a result, about one and a half thousand cars were sold over two years.
When Gunnar Ingelau comes to the position of president of the concern, the dawn of its activity begins for the company. Things were looking up. The export of Swedish cars to the United States of America was established.
Production also increased. Innovative technologies were introduced, such as three-point seat belts, pioneered by Nils Ivar Bohlin. Has also been improved brake system and deformation zones.

Volvo: country of origin

The history of the Volvo brand began in Sweden. When interviewing random passers-by to the question: “Whose car is Volvo?” Country of manufacture of this brand? the results were as follows:
70% - Germany;
20% - Sweden;
15% - USA;
5% do not know the answer to this question.

Volvo today

In 1999, the concern sold production plants to Ford. passenger cars mobiles. And even later, in 2010, Ford Motor sold the brand to the Chinese company Geely. Volvo history has survived more than one crisis. But, having survived them, the brand expanded production. In the automotive industry, it was repurposed and moved away from the production of passenger cars. Today on the market you can see a wide range of products and services under the Volvo brand:
cars (trucks, buses, etc.);
engines;
automotive equipment;
construction equipment;
space components.
Many people now associate the Volvo car brand with good safety and build quality. Combines great style, power and reliability. "I'm rocking!" - this is how the brand name is translated, which completely justifies it. Anyone who already owns or has owned a car of this brand recommends it to others.

Volvo is a Swedish car brand that produces sedans, station wagons, sports cars, coupes, and trucks. The headquarters of Volvo Car Corporation is located in Gothenburg. It is part of the Geely Automobile holding.

When creating cars, the brand's engineers take a particularly careful approach to the issue of safety. They have developed the largest number of innovative technologies in the field of passive and active safety compared to other brands.

When the company was created, it was part of the world's largest manufacturer of bearings, lubrication systems, seals and mechatronics, SKF. The word "Volvo" was the company's slogan. Translated from Latin, it means “torsion.”

Volvo was founded in 1927 in Gothenburg as a subsidiary of SKF. Assar Gabrielsson became its managing director, and Gustav Larson became its chief engineer. They immediately announced that the main principle when creating Volvo cars would be safety for all road users.

The first Volvo car left the assembly line on April 14, 1927. This was the ÖV 4 model, nicknamed "Jacob". The main chassis components were developed by Ian G. Smith, who worked for many years in the American automobile industry and borrowed many technical solutions from American cars.

Gustav Larson worked on the creation of a four-cylinder in-line 2-liter engine with side valves. The power unit developed 28 hp. at 2000 rpm. Maximum speed model was 90 km/h. The open body with five passenger seats was made of sheet steel and placed on a frame made of ash and birch. In the harsh climate of Sweden, the open version of the model was not successful. But the PV4 sedan was much more convenient and popular. Its body was a wooden frame, covered not with sheet steel, but with artificial leather. By folding the seats, it was possible to get two comfortable berths.

Volvo ÖV 4 (1927-1929)

In 1928, an extended version of the PV4, Special, was introduced, which was distinguished by a longer hood, a smoothed dashboard line, narrower windshield pillars, a rectangular rear window. In the same year, the first Volvo truck, Type 1, was released.

Since its inception, the company had plans to create a six-cylinder engine. In April 1929, the first model with a new engine, the PV651, was introduced. Under its hood there was a 3-liter power unit 55 hp The PV651 and PV652, which became its successor, were wider and longer than previously produced cars.

The six-cylinder engine models helped the company enter the taxi market it was aiming to enter. In the first year of sales alone, 1,383 copies were sold, and 27 of them were exported.

Reliable and safe cars really appealed to taxi companies. Demand prompted Volvo engineers to develop seven-seat models TR671 and TR672, which received an extended chassis. In 1935, they were replaced by the TR701-704 with a 3670 cc engine. cm and power 80-84 hp.

In 1933, the new PV653 (Standard) and PV654 (De Luxe) entered the market. They received an all-metal body, 17-inch wheels instead of 19-inch, updated dashboard with glove box. The cars differed from their predecessors in improved sound insulation: the engine was separated from the chassis by rubber cushions, and the wall between the passenger compartment and the engine compartment was covered with noise-absorbing material.

Volvo PV653 (1933-1937)

Then came the 654 De luxe model with a plush interior, two spare wheels and a canopy reverse. In 1935, the PV658 and PV659 models were released, which had a significant impact on the appearance of all cars produced after them. Their radiator had a slightly tilted position back, and the wheel hub covers took on an unusual shape. There were hydraulic brakes on all wheels.

In 1935, a new model appeared with a streamlined design similar to American cars. It was a Volvo PV36 Carioca, a comfortable, quiet sedan with independent front suspension with wishbones and springs, durable steel body and high safety indicators. The cabin could accommodate six people: three in front and three in the back. The seats were spacious and comfortable. A total of 500 copies of the model were produced, plus one chassis, which Nordbergs Karosseri turned into a luxury convertible.

Volvo PV36 (1935-1938)

In 1936, the first generation of small Volvo models appeared - the PV51. It was equipped with the same 3.6-liter engine producing 86 hp as the PV36 Carioca, but it was simpler, more affordable and popular. The model was distinguished by a narrow body with an undivided windshield, the presence of only one windshield wiper and modest interior trim.

In the spring of 1939, the company began developing mechanisms to switch to gas produced from coal. These developments were more useful than ever, since there was a shortage of gasoline in Europe. After the outbreak of hostilities, the production of civilian cars froze. The company switched to the production of special military vehicles and gas-powered devices.

The first post-war car was the PV60 model. Fans of the brand also remember it as last car from the generation of huge Volvo passenger cars with a six-cylinder engine. Its appearance was already old-fashioned, but the PV60 still sold well. Whatever you say, this was the last representative of the “old school”, very reliable and comfortable.

In 1944, the PV444 was introduced, a car that became a landmark for the brand. It was the first Volvo model to feature compact dimensions and a new design that followed modern trends demonstrated by American automakers. The car received a solid steel monocoque body without frame and new four cylinder engine with a short flywheel and overhead camshaft. It developed a power of 40 hp. For the first time, a triplex windshield was installed on a car. Another significant advantage of the new model is its low price, which was 4,800 Swedish kronor. The company's first car was sold for this amount in 1927.

The PV444 debuted at the Volvo show in Stockholm, where 2,300 purchase contracts were signed in 10 days. This is despite the fact that the company’s plans included producing only 8,000 copies of the model. In total, about 200,000 units were sold during the production of the car.

Volvo PV444 (1946-1958)

In 1954, Volvo created a real sensation in the automotive world. It was the open sports two-seater Sport P 1900. No one expected this from a conservative and safety-focused automaker. The model was developed with an eye to export markets, since the company already had negative experience sales of convertibles to the Swedish public. However, this time the car sold successfully. Still would! In addition to its dashing appearance and sophisticated security system, it boasted a five-year warranty, which included the car company's obligation to pay for repairs costing more than 200 crowns. The insured event included an accident or accident on the road. Under the hood of the Sport P 1900 was a 1,414 cc inline-four engine. cm power 70 hp

In August 1966 Volvo introduced the 144 model, which until 1974 was the most popular in the company's history. This car was distinguished by a large glass area and a successful exterior design. It also benefits from many of Volvo's innovative safety features. This list included energy-absorbing zones at the front and rear of the body, a unique braking system, disc brakes on all wheels, smooth interior, without protruding parts and seat belts for the driver and front passenger.

In 1974, the manufacturer introduced a new generation of cars - the 240 and 260 series, created on the basis of the 140 series. They were distinguished from their predecessors by a different front end, a modernized chassis with MacPherson front wheel suspension, larger engines and new four-cylinder engines.

Volvo 240 (1974-1984)

Mid 70's Volvo company bought the Dutch DAF Car BV, which allowed it to get accustomed to the small car segment. The first new product in this series was the Volvo 66, which was produced as a two-door sedan or three-door station wagon. It was equipped with a continuously variable automatic transmission gears and rear-wheel drive system.

In 1986, the Volvo 480ES, the first production front-wheel drive model of the brand, rolled off the assembly line. It received a design that was different from the company’s previous work, with retractable headlights.

In 1991, the company introduced the SIPS side impact protection system, and in 1994, it created the world's first airbags that protect against side impacts.

In 1999, the division responsible for the production passenger cars, was purchased by Ford Motor Company for $6.45 billion. The following year, Volvo's truck division and Renault entered into an agreement to create a single vehicle manufacturing facility, becoming Europe's largest truck manufacturer. In 2010, Ford sold Volvo Cars Indian company Geely Automobile.

Russian buyers became acquainted with Volvo back in the USSR, when in 1973 they purchased for the needs of Sovtransavto tractor units brands. In 1989, official sales of cars and trucks began in the Soviet Union. The brand is currently represented on Russian market three companies: VFS Vostok LLC, Volvo Vostok CJSC, responsible for the sale of trucks, and Volvo Cars LLC, which promotes passenger models. Since 2009, assembly has been carried out in Kaluga trucks Volvo FH, FM, FMX. Investments in the construction of the new plant cost 100 million euros. In 2014, the Volvo Group launched production of cabins at the plant full cycle, investing another 90 million euros.

Despite the division and different owners, Volvo brand continues its glorious development as a manufacturer of quality and safe cars with a balanced character. The companies plan to expand production and further improve cars.

The first production Volvo rolled off the assembly line at the Gothenburg plant in 1927. Since then, the Volvo Car Group has remained a world leader in the production of innovative and safe cars. Today Volvo is one of the most famous and respected car brands, the company's sales market includes about 100 countries.

Volvo Cars was part of the Swedish Volvo Group until 1999, when it was acquired by the American concern Ford Motor Company. In 2010, Volvo Cars was bought out Chinese concern Zhejiang Geely Holding (Geely Holding). The new owner contributed to a radical update of the Volvo model range, a significant increase in the company's production capacity and strengthening the position of the Swedish automaker in the global market.

The Volvo brand is owned by Volvo Trademark Holding AB, jointly owned by Volvo Cars and the Volvo Group.

The corporate and brand development strategy - Designed Around You - is focused on people's needs and underlies the company's production and business activities, as well as the basis of its corporate culture.

About 2,300 dealers (most of them independent companies) sell Volvo cars in about 100 countries. As of December 2018, Volvo Cars employed approximately 43,000 people worldwide.

Volvo Cars produces premium cars different types: sedans (S60, S90), station wagons (V40, V60, V90), SUVs (V60 Cross Country, V90 Cross Country) and crossovers (XC40, XC60, XC90).

In 2018, Volvo Cars sold 642,253 vehicles. This year marked the company's fifth consecutive year of record sales. The largest sales market is China, accounting for 20% of total sales in 2018. It is followed by the USA (15%), Sweden (10%), UK (8%) and Germany (7%).

For the 2018 financial year, the Volvo Car Group recorded an operating profit of SEK 14,185 million (14,061 million in 2017). Revenue for reporting period amounted to SEK 252,653 million (208,646 million).

Volvo Cars' headquarters is located in Gothenburg, Sweden, where resources for product development, marketing planning and administration of the company's current processes are concentrated there. Since 2011, Volvo Cars has offices in Shanghai and Chengdu (China). The company's Chinese division is headquartered in Shanghai and handles sales, marketing, purchasing, development and other support functions. A technology center is located on its territory.

In addition to the main plants in Gothenburg (Sweden) and Ghent (Belgium), engines for Volvo Cars have also been produced at the plant in Skövde (Sweden) since the 1930s. The production of body components has been established at the plant in Olofström (Sweden) since 1969. In addition, the company has assembly plants in Kuala Lumpur (Malaysia) and Bangalore (India), and in Shanghai, Stockholm and Lund (Sweden) and Silicon Valley (USA) there are research and development centers. Finally, Volvo Cars has design centers in Gothenburg, Camarillo (USA) and Shanghai.

Launched in 2013 mass production at the Chengdu plant - Volvo cars are produced here for the Chinese and American markets. In 2014, a second plant in China began operating in Daqing, and automobile engines are also produced at a plant in Zhangjiakou (China). Also, Volvo cars are produced at a plant in Luqiao (China). In June 2018, the opening of a new Volvo plant Cars in South Carolina (USA).

Russian sales of Volvo this year, like those of other car brands, still leave much to be desired: following the collapse of the market, there are significantly fewer buyers in car dealerships. Sales of the new flagship model XC90, which were supposed to begin in March, were eventually postponed and will only start now (the exact timing is still unknown). Together with a noticeable reduction in prices for the model range, announced at the end of April, this should improve the company’s affairs in Russia. At the same time, despite local problems, Volvo, having passed into Chinese hands, demonstrates last years more than decent results, managing to retain old clients and attract new ones.

In 2010, the Chinese didn’t just buy the first European brand they came across. They bought a company known primarily for security technology. It is with this that Chinese auto companies had serious problems from the very beginning (and still remain today): many cars were completely uncompetitive from the point of view of European or American standards.

Five years ago the world economic crisis forced the American concern to get rid of excess assets, one of which was the passenger division of Volvo.

The Swedish manufacturer was making losses, and Ford did not want to invest in the company during the crisis. As a result, the Americans sold Volvo to the Chinese auto giant Geely for $1.8 billion. At the same time, in 1999, Volvo cost the Americans 3.5 times more expensive - $6.5 billion.

When Volvo passed into the hands of the Chinese, many auto experts and fans of the brand seriously expressed fears that Volvo would lose its image and that the Chinese, having taken advantage of Swedish technologies, would not invest heavily in it.

But new owner Volvo hastened to assure that the brand will be given independence in a strategic perspective and the opportunity to work according to its own business plan.

“Collaboration with the Swedish brand is primarily about safety technologies. Volvo has a very strong position in this aspect of the automotive industry,” Geely CEO Li Shufu said at the end of April. “In addition, we are now focused on research and development work to create a new modular CMA platform (for the production of C-class cars). The C-Class sedan will go into production in 2017 and will be the first car on the new CMA platform for small models, common to Geely and Volvo. The successor to the Volvo V40 will receive the same platform.”

“Based on this modular architecture, Volvo develops some products, and Geely develops others, its own,

— Shufu clarifies. “They have different directions and completely different characteristics, corresponding to positioning in their segments.”

However, it is worth admitting that Volvo did not initially count on this format of cooperation. Soon after the deal, the then CEO of Volvo clearly stated that there could be no talk of any technical cooperation with Geely.

“We understand ourselves as part of a financial, not an industrial holding company, so we maintain independence, which is very important to us. Geely and I work in completely different areas of the automotive industry, which makes cooperation on a wide range of issues almost pointless,” he said.

Well, a few years later the situation changed, and it is not difficult to guess that the Chinese still managed to impose their vision of mutual cooperation on the Swedes.

For star-starved Geely, the purchase of Volvo opened up access to unique safety technologies and other developments. But at the same time, the deal allowed Geely to become the first Chinese automobile company to expand not only in the European and US markets, but also in developing countries, becoming a global brand.

At least these are the plans declared by Li Shufu, who is called the “Chinese Henry Ford.” Geely’s immediate plans are to begin exporting Swedish brand cars from factories in China to other countries. In addition to the United States, experts also name Russia among export destinations. Shipments will be made from a plant in Chengdu in southwest China.

The Swedish company also does not hide that it is quite pleased with the cooperation. The main criterion is the growing volume of global sales.

According to the head of Volvo in China, Lars Danielson, 2014 was one of the best years for Volvo Cars. “More than 466 thousand cars were sold, of all models,” Larson cites the data. —

Business was also successful in Western Europe, which is also an important market for us. 56 thousand cars were sold in the USA. Overall sales were good, our profit increased by 17% and reached 2.2 million.

However, margins remain low.

There's context to keep in mind here. We invest a lot in new products. Doing the same thing that the entire industry is doing would be much easier and the profits would be different. But the plan is what it is.”

The Chinese market is Volvo's largest today, with its share reaching 17% of global sales last year. Sweden is in second place, the USA is in third with 12%. Next come Great Britain (about 9%) and other European countries - 7%.

“I don’t think that Volvo, having become the property of Geele, could have lost anything,” says the general director of Radio Strana, a well-known auto expert. — Quite the contrary: the brand retained all its positions.

Yes, they had big plans to develop the brand in the Chinese market, but so far they have not actually achieved any noticeable results.

Nevertheless, the fact that the Swedish brand is present in China, Europe, and the USA is already good. Here we can cite as an example the fate of another Swedish manufacturer, Saab, which simply went bankrupt and ceased to exist.”

According to the expert, when both companies announce joint technical developments, they are of a very specific nature.

“For Geely, purchasing Volvo was the shortest route to obtaining modern automotive technology. In fact, they didn’t have any experience of their own. Therefore, speaking about the joint development of two brands, one must understand that the entire technical base is provided only by Europeans, and the Chinese side provides financing. Therefore, it is quite logical that the joint technical center of the two companies is located in Sweden,” he noted.

As Denis Eremenko, general director of the PodborAvto company, notes, the perception of the brand by Russian consumers has not changed since the moment it came under the wing of the Chinese company. “If the build quality of cars, the design and positioning of the brand as a whole do not change, then the consumer does not think at all about who owns the brand,” Eremenko shared his opinion with Gazeta.Ru. “The purchase of Volvo by the Chinese is just such a case, so this circumstance did not affect the demand from Russian buyers in any way.”

The Volvo example is not the only one. On the Chinese account, Dongfeng Motor Group purchased a 14% stake in the French company, which is going through difficult times. PSA concern, acquisition of BAIC from Saab technologies. One cannot help but recall the failed deal to sell the Hummer brand to the Chinese. In addition, it recently became known that the Chinese state-owned chemical corporation ChemChina plans to acquire the Pirelli tire brand for 7.1 billion euros.

But it’s not just the Chinese who use the same tactics. Indian has owned British Jaguar for several years now Land Rover and does everything to avoid being associated with the legendary premium brand among ordinary buyers.