Volvo Aktiebolaget

Volvo Aktiebolaget (Volvo AB) is a Swedish manufacturer of commercial vehicles, construction equipment, and industrial power systems and the historic originator of the Volvo nameplate. As of 2026, the Volvo name is shared by two independent companies—Volvo Group, which manufactures commercial vehicles and industrial equipment, and Volvo Cars, the passenger vehicle maker owned by Geely Holding Group. Although Geely is a privately held Chinese company, both Volvo companies remain headquartered in Gothenburg.

Founding and early growth

Volvo was created in 1926 as a wholly owned subsidiary of AB Svenska Kullagerfabriken and became an independent corporation in 1935. The company introduced its first trucks in 1928 at its Lundby plant in Gothenburg and added buses in 1931, initially using truck-based chassis. Its original business was the assembly of cars and trucks, but by acquiring its suppliers, as well as by internal expansion, Volvo grew from a small assembly operation into a major manufacturer.

The company 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. These moves anchored Volvo’s strategy of building an integrated automotive and industrial business long before the brand later diverged into separate companies.

By the mid-20th century Volvo had expanded steadily across Europe and into other export markets, broadening both its passenger car and commercial vehicle lines. The company became known for its emphasis on safety features—most notably the now-standard three-point seat belt introduced in 1959—and for a growing lineup of compact and midsize passenger cars, wagons, and sport utility vehicles. Through the 1970s and 1980s, Volvo continued to develop new models and manufacturing sites, becoming a prominent international automaker by the 1990s.

Separate automobile and truck businesses

In 1999 the Volvo subsidiary responsible for automobiles, Volvo Cars, was purchased by Ford Motor Company, allowing Volvo to focus on its commercial vehicle and industrial operations.

Volvo cars

Under Ford, Volvo Cars was placed within the company’s Premier Automotive Group, alongside brands such as Jaguar and Land Rover, though it continued to operate largely from Sweden with its own engineering and design teams. In 2010, Ford sold Volvo Cars to Zhejiang Geely Holding Group, the privately held Chinese company founded and controlled by Li Shufu. Under Geely’s ownership, Volvo Cars remained based in Gothenburg and expanded its global manufacturing footprint while accelerating development in hybrid and fully electric vehicles.

Volvo Group

With the sale of Volvo Cars, Volvo Group continued to expand its position as one of the world’s leading manufacturers of trucks. In 2001 it purchased Renault’s truck division, and six years later Volvo became the sole owner of Japan’s Nissan Diesel.

The company also continued produce marine, industrial, aircraft, and rocket engines; earthmoving, agricultural, and forestry equipment; and recreational and camping products. Other Volvo subsidiaries engage in oil exploration and trading.

Together, Volvo Group and Volvo Cars represent the modern evolution of a nameplate that began as a single Swedish automaker and grew into two globally recognized companies operating in different segments of the transportation industry.