Volvo Aktiebolaget

▪ Swedish automaker

      major Swedish manufacturer of automobiles and related products. Headquarters are in Göteborg.

      Volvo was created in 1926 as a wholly owned subsidiary of AB Svenska Kullagerfabriken and became an independent corporation in 1935. Its original business was the assembly of cars and trucks, but by acquiring its suppliers, as well as by internal expansion, Volvo grew from assembly into a major manufacturer. It acquired engine builder AB Pentaverken in 1930, transmission and axle manufacturer Köpings Mekaniska Verkstad AB in 1942, and car-body manufacturer Svenska Stålpressnings AB in 1969. Volvo was purchased by the Ford Motor Company in 1999.

      Volvo's auto-manufacturing subsidiaries produce primarily medium-sized passenger cars with an emphasis on comfort and conservative design. Over the years the company has earned a reputation for its attentiveness to quality control and safety features.

      The company began making trucks in 1928, becoming one of Europe's leading manufacturers of heavy-duty trucks, and it started manufacturing buses in 1931. The company also produces marine, industrial, aircraft, and rocket engines; earth-moving, agricultural, and forestry equipment; and recreational and camping products. Other Volvo subsidiaries engage in oil prospecting and trading.

      In December 2008 the Swedish government approved a 28 billion kronor ($3.4 billion) aid package for Volvo and General Motors Corporation's Saab (Saab AB), which were struggling as a result of the financial problems that had been created by falling demand in the American auto market. The measure included emergency loans, credit guarantees, and money for research and development.

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