The Volvo Car Corporation is well known throughout the world due to its Automobiles contributions, though the company is no more the part of the Volvo Group however still it continues to manufacture some of the best cars of the world. The Volvo Car Corporation started its operations in Sweden back in the year 1927. The company dominated the world market for decades. In 1999 the company became the part of Automobile Giant ford. The corporation went well for almost 10 years when in 2010 the ford motor group also sold the company to china’s Zhejiang Geely Holding Group. In this article we will discuss a recent initiative taken by Volvo.
Though there have been a lot of technological initiatives taken by Volvo Car Corporation throughout the years. In this article the initiative which we will look into is more strategic rather than technological. The Volvo Car Corporation has recently decided to join forces with another emerging and popular company of the world by the name of Ubar. The initiative will be the subject of our discussion in the paragraphs below
Volvo and Ubar:
The Volvo Car Corporation and Ubar have made a critical strategic decision. The plan of both the companies is to initiate a joint project related to autonomous cars which will also include driverless cars. Both the companies have signed an agreement in this regard. The overall expense related to the project is USD 300M.
As per the agreement the same base vehicle will be utilized by both Volvo and Ubar as far as the next stage of the car strategies (Autonomous) is concerned. According to the agreement the autonomous driving systems will be developed by Ubar and fixed into the base vehicle of Volvo. Similarly the similar base vehicle will be utilized by Volvo for its autonomous car strategy’s next stage. The next stage of Volvo involves automatic driving.
The impact of the joint Initiative:
The joint initiative of Volvo and Ubar will have a significant impact on the automobile industry. The combination of Ubar and Volvo can turn out to be a never ending partnership of industrial nature. The SPA will be used for the manufacturing and development of the base vehicle. SPA actually means Scalable Product Architecture which is one of the most cutting edge car architecture currently existing in the world we live in. The famous Volvo automobiles such as XC90 SUV, V90 premium estate and S90 premium sedan were also developed via SPA.
More about SPA:
In 2010 Volvo Car Corporation launched its industrial transformation program. The program took USD 11billion. During this program SPA was developed. The preparation of SPA took some of the most cutting edge technologies, similarly the connectivity developments and electrification was also cutting edge. The SPA was the technology which attracted the company like Ubar to Volvo.
Time will tell how this project will go? What we can say is that Volvo has never been afraid of taking initiatives and its whole history is full of innovations and strategic decisions. We hope that the collaboration will result in a positive way for the world and general customers of both the companies.
A lot of people confuse the Volvo Group with Volvo Car Corporation. Though both companies are the flip side of the same coin and both the companies have a good customer data base all over the world however there is a difference in their operations and hierarchy. In this article we will just give a brief overview of both these companies so that the readers and general masses can avoid any kind of confusion. Though a lot can be written about both the companies however will keep our discussion brief and to the point.
The Volvo Group:
The Volvo Group is the name of a popular multinational company of Sweden which has its main headquarters in Gothenburg. The company has been in the market since 1927 and had been catering the customers all over the world through its qualitative automobiles from the last 89 years. The main founders of the company were Gustav Larson and Assar Gabrielsson. The main operations of the company are more related to the manufacturing and distribution of Automobiles like Buses, Trucks and construction equipment of different types.
The company has also made a considerable market in other high tech systems as well such as the supplies related to marine and industrial drive systems as well. The company has also invested in the provision of financial services to the masses as well. Throughout the years the company has produced several brands as well which gained quick market acceptance and popularity. Some of these brands are as follows
- Volvo Trucks
- Mack Trucks
- Volvo Penta
- Nova Bus
- Volvo Financial Services
- Volvo Construction Equipment
- Renault Trucks
- UD Trucks
Volvo Car Corporation:
The Volvo Car Corporation also started its operations in Sweden and the year was 1927. The Company is famous for its different Car models that fascinated people from all over the world. The company was originally the subsidiary of SKF which itself was a company involved in Ball Bearing manufacturing. However in the year 1935 a company by the name of Volvo AB (which later on became Volvo Group) came into the Swedish stock exchange. The SKF Company at that point of time made a major decision and sold the majority of its shares to the Volvo AB.
The Volvo cars continued to enjoy the market share however it went through a major transition when in the year 1999 the Volvo Car Corporation was acquired by the ford motor company. The Volvo cars became the part and parcel of Ford’s premier automotive group. However the incorporation was short lived and in 2010 the company was again acquired by china’s Geely Holding Group.
The Volvo Group does not look after the car manufacturing operations now as the Volvo Car Corporation is a separate entity now since it selling off in the year 1999. The two companies still have the same logo and the famous Volvo Museum is also maintained by both the companies.
The Volvo Car Corporation is a big name in the corporate world and is among the most popular companies of the world. The company started its operations in Sweden as SKF’s subsidiary company. SKF was a company which itself started its operations as a ball bearing manufacturer in 1907, in fact the name Volvo when translated in Latin means “I roll” which is a straight forward indicator that the company was involved in operations related to ball bearing.
The Inception of Volvo:
However a major decision was taken by the management of Volvo in the year 1927 when it detached itself from SKF and started to operate as a part of AB Volvo (better known as Volvo Group) in Sweden. The company since its inception went through several transition phases. In the year 1999 the company was purchased by the famous Ford Motor Company however this relationship also did not last long as the company was acquired by the Geely Holding Group in the year 2010.
The company has been flourishing since its inception and its major target market has been the European region as majority of the company cars are sold in the European countries. According to one statistic the company enjoys sixty percent of its sales through dealerships in Europe as opposed to thirty percent in North America.
Sometime back the company shared some data with the masses. This data showed that about 100,000 Volvo cars were alone sold in United States of America during the year 2007. The company declared United States as the largest seller of Volvo cars according to this statistic.
The company continues to grow and is making good customers and market in countries like India and china as well. The company has produced many different models and type of cars since its inception. The models that were produced earlier by the company were pretty heavy and big. However the modern day Volvo Cars is well reputed due to its high performance and smooth drive. High mileage threshold and reliability are the main features of the Volvo Cars of today.
As stated above the company has produced and manufactured many car models since its inception. Each model of the company was unique in style and had something special to offer. Some of the earlier models produced by the company were
- Volvo PV650 Series
- Volvo 66
- Volvo P1900
- Volvo TR670 Series
Similarly current models of the company are
- Volvo V40
- Volvo S60
- Volvo XC90
- Volvo V90
- Volvo V60 Cross Country
The famous club of Hong Kong by the name of Volvo night club was sued by Volvo in the year 1990. The case was related to infringement. The Law Suit became the part of media discussion until it finally concluded in an out of court settlement.
Loads of stuff can be written on Volvo Cars; however the purpose of this article was just to give insight to our readers. We hope that the article will be a source of valuable information for the students and general masses alike.