Volvo Corp History

VOLVO CAR COROPORATION
Volvo is a Swedish builder of commercial vehicles,

including trucks, buses and construction equipment.
Until 1999 it also produced cars. It also supplies
marine and industrial drive systems, aerospace
components and financial services. Although Volvo
was incorporated in 1915 as a subsidiary of AB SKF, a
Swedish ball bearing manufacturer, the auto
manufacturer was officially founded on 14 April 1927,
when the first car, the Volvo ÖV 4 series, rolled out of
the factory in Hisingen, Gothenburg
HISTORY
• The Volvo Group has its origin in 1927 when the first Volvo car
rolled off the production line at the factory in Warwick. Only 280
cars were built that year.
• 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.
• On 28 January 1999 Volvo Group sold its business area Volvo Car
Corporation to Ford Motor Company for US$6.45 billion

• On 2 January 2001, Renault Véhicules Industriels (which included
Mack Trucks, but not Renault's stake in Irisbus) was sold to Volvo,
which renamed it Renault Trucks in 2002. As a result, former
mother company Renault is AB Volvo's biggest shareholder with a
20% stake (in shares and voting rights).
•The last ten years the company has undergone rapid growth in the
service area
BUSINESS AREAS
Volvo Group's businesses are conducted in several
companies - among them these subsidiaries:
•Volvo Trucks
•Mack Trucks
•Renault Trucks
•UD Trucks
•Volvo Construction Equipment
•Volvo Buses
•Volvo Penta
•Volvo Aero
•Volvo Financial Services
SWOT ANALYSIS OF VOLVO
Strength:
• VCC is a wholly owned subsidiary unit of Ford Motor Company, which is one
of the global automotive leaders. . This helps VCC derive synergies in
technological innovations and advancement from its parent company
•. With its strong focus on research and developments from its parent company.
With its strong focus on research and development (R&D) activities, VCC’s cars
are well recognized and respected for their advanced technologies including the
preventive safety systems, protective safety systems and post crash safety
systems.
•VCC has a strong market presence in its domestic market, where every fifth car
sold is a Volvo. VCC’s vehicle sales vehicle sales volume in Sweden, during
fiscal 2005, totaled 52,696 units, an increase of 2.4% over the previous year.
SWOT ANALYSIS OF VOLVO
(CONTD…)
Weaknesses:
• The company’s sales of Bi-Fuel cars have been decreasing over the
years, in spite of its aggressive marketing campaigns and significant

price reductions.
•The number of Bi-Fuel cars sold annually had decreased from 3,529
units in 2002 to 1,478 in 2004, reflecting the weakening demand for the
company’s Bi-Fuel products.
•VCC suffers from the lack of manufacturing facilities in the US, from
where it derives nearly 28% of its sales volume. This makes the cars
produced in Sweden, more expensive for the US customers.
SWOT ANALYSIS OF VOLVO (CONTD…)
Opportunities:
•VCC’s cars accounted for 2.3% of the Chineese premium car market
during 2004.
•To tap the growth potential in the emerging markets of Southeast Asia,
VCC is planning to set up a joint-venture production operation in China
in the coming years.
•VCC has planned to double its dealership base in China (40 dealers as
of December 2004) in the near future and thereby strengthen its sales
network.
SWOT ANALYSIS OF VOLVO (CONTD…)
Threats:
•With the manufacturers of premium brands, including Audi, Mercedes

Benz and BMW, set to expand their product offering, VCC expects the
competitive pressure to increase in the European markets during the
forthcoming years.
•Japanese manufacturers are increasing their production in Europe,

which is also posing a threat to the company’s business.
• Relaxation of import restrictions and duty reductions are expected to

increase the competition from the Japanese players in the Asia pacific
regions.
MANAGEMENT & BOARD
Stephen Odell
President and CEO
Steven Armstrong
Chief Operating Officer
Olle Axelson
Senior Vice President
Public Affairs
Bjorn Sallstrom
Senior Vice President
Human Resources
Elisabet Wenzlaff
Senior Vice President and General Counsel
TRADE MARK

Volvo Corp History

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Volvo Corp History

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VOLVO CAR COROPORATION

Volvo is a Swedish builder of commercial vehicles,

engines were added to the growing range of products at the

Corporation to Ford Motor Company for US$6.45 billion

years, in spite of its aggressive marketing campaigns and significant

•With the manufacturers of premium brands, including Audi, Mercedes

•Japanese manufacturers are increasing their production in Europe,

• Relaxation of import restrictions and duty reductions are expected to

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