80-year-old Volvo rolling better than ever

Volvo’s first truck had 28 horsepower and could carry 1.5 tonnes. Today’s largest Volvo is the most powerful production truck in the world with its 660 hp engine capable of hauling 200 tonnes.

Between them lie 80 years of dedicated work by generations of enthusiastic Volvo employees. All of whom were driven by the same strong feeling of belonging and the same concern for quality and safety that the company’s two founders originally planted in Volvo from the very start.

Economist Assar Gabrielsson was just 33 years old when he became sales manager of Svenska Kullagerfabriken (SKF). However, he wanted something different – he had his heart set on building cars. Then, cheer chance in 1924 he met a former colleague, Gustaf Larson, an engineer widely acclaimed for his technical expertise and a man who shared the very same dream.

The drawings for Volvo’s first truck – the Series 1 – were already complete when the company’s first passenger car left the factory on 14th April 1927, with the first truck introduced in February 1928.

The wheel is perhaps Man’s most important invention and now Volvo – which means “I roll” in Latin – had taken over the wheel !

The Volvo spirit

Larson and Gabrielsson knew that Swedish iron was of better quality than iron from anywhere else. Accordingly, their ‘Swedish car’ would be better than imported cars. That’s exactly the way it worked out and sales went well, especially for the company’s trucks. Exports got under way back in 1928, seeing Volvo’s on roads in countries as far apart as China and Argentina.

The “Volvo” name was easy to remember and pronounce in every language the world over. Trucks continued to be the most important product for Volvo through to the 1950’s, when more people were able to afford cars and car production rose.

The two founders of the company worked consistently and with dedication to make Volvo a very special company. From the President all the way to the errand-boy, the company was characterised by a special enthusiasm for the work and dedication to the company – a feeling that soon came to be called ‘the Volvo spirit’. Having a job at Volvo was regarded as an enviable achievement, and many, many thousands of employees the world over have proudly carried the Volvo spirit further over the past 80 years.

The importance of getting into the EC

The losses of the first years evaporated in autumn 1929 and by 1935, the company’s was doing so well that SKF terminated its majority shareholding by floating Volvo on the Stockholm stock exchange.

After almost 30 years, Volvo’s founders handed over the company’s reins in 1956 to Gunnar Engellau. In the early 1960s, he gave his colleague Lars Malmros the task of examining the viability of establishing a presence in the embryonic EC. In this market, demand for Volvo’s trucks had increased considerably at the same time as the economic union was increasingly protecting itself behind high customs and tariff barriers. In 1965 a factory was inaugurated for the production of cars, while truck production was increased in the importer’s factory in Alsemberg. In 1975 truck production was relocated to a new factory alongside the car production plant in Gent, Belgium. Volvo had now gained a firm foothold in Europe and underwent considerable expansion there.

In 1970 Volvo’s truck operations were separated into an independent unit within Volvo with the formation of the Volvo Truck Division, with Lars Malmros as President and CEO.

Globalisation

There were several pioneers linked to the company during this period of global expansion for Volvo, such as Saracakis brothers in Greece and Max Winkler in Australia. Their dedicated work on behalf of Volvo meant that the company could establish a strong following in these countries.

In the mid-70’s, the company started looking west. Volvo first established a presence in Brazil and soon became one of the biggest brands on this market. This was followed by North America and in 1981 Volvo acquired US truck-maker White. This purchase also signalled the real start of sales for Volvo’s own trucks in North America and Volvo Trucks now became a truly global company. Over the next few years, a new modular concept for the largest trucks was introduced, resulting in the Volvo FH/FM Series. A decision was also taken to build the first truck in the US featuring Volvo technology.

1996 saw the launch of the Volvo VN in the USA and in the following years a global industrial system was created that encompassed a global system of suppliers. Both production and the aftermarket were streamlined, leading among other things to the use of a far smaller variety of parts.

FH – the foundation for today’s trucks

1993 saw the introduction of the trucks that form the basis for today’s model range – the Volvo FH12/FH16. They were based on a modular platform that also forms the basis for the global product range encompassing the FH, FM, VN, VHD and VT that came later. The heart of the new best-seller was an entirely new, highly modern 12-litre engine that set a new standard for transport economy and environmental performance. Safety levels too had been significantly raised.

Since the start of the 1990s, the environment has been in firm focus and Volvo has shown a variety of concept vehicles – the best-known being the hybrid Environmental Concept Truck – and vehicles running on alternative fuels such as ethanol and DME, as well as fuel cells. In 2006, a hybrid truck featuring a diesel and electric motor attracted considerable attention.

1999 was a tumultuous year for the Volvo Group. There was an unexpected announcement that Volvo Cars would be sold to the Ford Motor Co. The move was accordingly ratified at an emotionally charged extraordinary general meeting in March of that year. However, only a month or so passed before AB Volvo announced that it had acquired French truck manufacturer Renault V.I. and its subsidiary Mack Trucks in the USA.

Volvo now became Europe’s largest – and the world’s second largest – manufacturer of heavy trucks. Volvo is also the world’s largest manufacturer of 9-16 litre diesel engines and no other truck maker can match Volvo with its presence in no less than 133 countries.

The aim of the acquisition of Renault and Mack was to generate economies of scale so as to develop more efficient trucks that meet both forthcoming environmental legislation and increasingly tough productivity demands.

Taking on the future with confidence

During the following seven years, truck operations were successfully integrated within the Volvo Group. The three brands live and develop alongside each other and each has its own specific target groups.

In February 2006, Volvo Trucks launched the world’s most powerful truck engine, a 16-litre engine producing 660 hp. That same year also started off with the acquisition of a significant shareholding in and cooperation with Japan’s Nissan Diesel, and just before Volvo’s 80th jubilee it was announced that Volvo intends to acquire all of Nissan Diesel.

2006 was yet another record year for Volvo Trucks and the company faces with considerable confidence a future characterised by major challenges, not least environmental demands on tomorrow’s trucks. Volvo is all set to roll with confidence towards its next 80 years of operation !