Reach Out In All Directions. Volvo First Started .
Cover picture:A tree adds annual ring to annual ring and grows steadily stronger and higher. As the trunk swells ingirth and its roots gain a firmer hold it is able to carry a larger and larger crown with branches whichreach out in all directions. Volvo first started production in 1927. Today it is an internationally activeSwedish company which has developed into the biggest engineering enterprise in the Nordic area.
Volvo, the largest industrial undertakingin the Nordic area.Volvo is the largest industrial undertaking inthe Nordic countries with a turnover of Skr.8,900 million. The Volvo Group is directlyresponsible for the employment of 51,400people, of whom about 42,500 work in Sweden. Overall, more than 100,000 people workfull time for Volvo. Volvo's responsibilitiesi mply the provision of secure employmentwith a high level of job satisfaction and working environment. They also include the creation of products which embody safety, qualityand economy - the basis for a continuedstrengthening of the production apparatus inSweden and abroad and the Group's continuedexpansion.The first series-produced Volvo car left thefactory in Gothenburg 47 years ago. Today,Volvo has 27 factories in Sweden and 12 wholly-owned or part-owned factories abroad. TheSwedish facilities are widespread, from Umeain the far north to Mjallby in the south. Inaddition, Volvo has suppliers operating fromabout 600 different places throughout SwedenApart from the 42,500 people working forVolvo in Sweden, the Company provides workfor approximately 10,000 people in its dealernetwork and for a further 15,000 people at theindependent suppliers. Altogether, Volvo operations provide more than 60,000 jobs inSweden which means that more than 2% of theSwedish population depends on Volvo for itsincome. The Volvo Group of Companies produces about 100 different products for theworld of transportation. They are sold on120 markets all over the world.There are four main fields in Volvo Groupoperations:1. AB Volvo, Car Division; AB Volvo, TruckDivision; AB Volvo, Bus and Public Tran1
sport Systems Division; and AB Volvo, PartsDivision. These are responsible for the greater part of Group turnover.2. AB Volvo Penta converts engines for marineand industrial use.3. Volvo BM AB is engaged in the productionof earthmoving, forestry and agriculturalmachines.4. Volvo Fl yg rnotor AB builds jet engines forthe Swedish Air Force, steering gear forVolvo cars, hydraulic machines and productsfor environmental care.A fifth field of operations is now beingestablished, namely the leisuretime market, anarea which is becoming more and more important to the people of today.Right from the start, Volvo's aim has alwaysbeen to create the resources for Company expansion through internal generation.Today, Volvo is owned by about 100,000shareholders, the greater part of whom holdsmall amounts of shares.Volvo continues to make considerable investments in its production and service facilities as well as in the development of the personnel. Total capital expenditure during 1973amounted to approximately Skr. 678 million.The Head Office of the Group is based atTorslanda, near Gothenburg. Torslanda is alsothe site of an assembly plant for cars, the fitting-out workshop for trucks and specialvehicles and also laboratories and test tracks.
51,400 people work within the Volvo Group
Co-ordination gives good qualityLimited financial resources and the wish tobuild a top quality product made it necessaryfor Assar Gabrielsson and Gustaf Larson, thefounders of Volvo, to spread manufacture.This is a system which is still in use at Volvo.The Company designers specify and developthe Volvo products while the manufacture ofthe various parts and components is farmedout to independent suppliers.In close co-operation with supplier specialists, Volvo research workers and designerskeep a close watch on technical developmentsand seek new solutions to problems involvingsafety, the environment and transportation.Working hand-in-hand with the suppliers,Volvo has been able to create the conditionsnecessary for continued investment and product development.At the same time, this has resulted in anadvantageous geographical spread of produc4
tion, of benefit not only to the country as awhole and the municipalities involved, butalso to Volvo since the increased requirementsfor manpower have been spread to many places throughout the country. Today the VolvoGroup has about 1,500 independent suppliersworldwide and of these, 700 operate from600 different places in Sweden. In order tosafeguard the delivery of parts and componentsin case of production disturbances, Volvo has,in many cases, multi-sourced supplies so thattwo or more suppliers are appointed for thesame part or component.Some of the companies, particularly thoseproducing major components such as engines,transmission systems, bodies and upholstery,have been integrated into the Volvo Groupover the years.Furthermore, Volvo has concluded agreements with a number of motor vehicle manu-facturers abroad concerning component development and production. Volvo products areput through their paces at the Company'sproving ground at Hällered. This provingground, which has an area of 700 hectares, includes a high-speed track, an endurance testingtrack, off-road testing tracks, a comfort testtrack including 20 or more different test pattern sections, and also handling and switchback tracks.In the truck side of the business, Volvo hasconcluded agreements with KHD of Germany,DAF of the Netherlands and Saviem of Franceon the joint design and development of components for light trucks.Volvo has also acquired a one-third shareholding in the DAF car production operations.Volvo production is centrally co-ordinated andcomputer controlled in order to ensure dependable deliveries and economical stock holding.5
The employee and Volvo environmentAt Volvo we consider that the working environment consists not only of what is made upby the roof, walls, floor, colour combinations,air, noise levels, etc of a facility but also bythe people who work there.Great effort is made within the Group inorder to improve both these types of environment. All aspects of working environment fromlight to layout are continuously improved andjoint written standards are used within Volvowhich apply to all new buildings or extensionsbuilt by the Company. These standards havebeen drawn up in close co-operation with theemployee organizations.Volvo also considers that the employeeshould feel that he belongs to a closely-knitgroup, has the right to communicate freely,can identify himself with the product andshould be shown appreciation for the work hedoes.The employee must be able to influence hisown working situation and to feel satisfied withthe work he does.But contributory employee influence alsoimplies responsibility. In the various working6organizations utilized at Volvo, the range ofresponsibility of the individual has been increased as the levels of responsibility havemoved gradually downwards through the organization.Job rotation is another aspect of Volvo production methods. Job rotation means that theemployees change jobs with each other, oneor more times each day. This increases the levelof skills since the employees learn a number ofjobs and the system provides a wider range ofphysical and mental change. These new working practises also include, for example, qualitycontrol responsibilities for the work carried out.Production groups are also used and implythat the group in question plans its work jointly for a period of, for example, one week. Thegroup or team is paid for the combined performance achieved. A "team boss" can bechosen within the group. In this form of work,an important part is played by the joint meetings where the work and eventual problems ofthe group can be discussed at regular intervals.
The Volvo Group has 27 plantsin Sweden manufacturingmore than 100 productsAB Volvo, Gothenburg: Head Office - GroupExecutive CommitteeLundby Factory (AB Volvo, Truck Division),2,7 17 employees,Gothenburg: assembly of trucks and buses.Volvo Torslanda Plant, 8,923 employees,Gothenburg: assembly of cars.Volvo Skövde Plants, 4,725 employees,Skövde Plants: petrol and diesel engines.Floby Factory: brake drums, disc brakes anddrive shafts.Flen Factory: marine diesel engines and overhauls.Volvo Bergslags Plants, 3,500 employees.Köping Plants: gearboxes, front and rear axlesand spare parts for Volvo cars.Drive sets for Volvo Penta Aquamatic.Arvika Forge: forged blanks for Volvo cars.Lindesberg Factory: rear axles for heavy vehiclesand tractor differentials.Uppsala Factory: outboard engines.Volvo Dalsland Plants, 913 employees.Färgelanda Factory: interior fittings for cars.Bengtsfors Factory: car upholstery.Tanumshede: interior fittings for cars.Volvo Umeå Plant, 778 employees.Umeå: truck cabs, compressed air, fuel andvacuum tanks, brackets and bonnet hinges.Volvo Olofström Plants, 4,962 employeesOlofström Plants: body components, metalpressings and pressing tools.Mjallby factory: radiators and car heaters.Konga Factory: heavy components.Volvo Penta, 536 employees.Gothenburg: marine and industrial engines, alsopower units based on Volvo engines.Volvo BM, 4,541 employees.Eskilstuna: tractors, tractor chassis, diesel engines.Arvika Plant: loaders, excavators and road graders.Hallsberg Factory: combine harvesters.Livab AB, Braas: component manufacture andassembly of dumper vehicles.Volvo Flygmotor, 2,548 employees.Trollhättan : jet engines, hydraulic machines,steering gear, military tank components andmaterial research.Volvo Kalmar Plant, in full production by late1 974, will have 600 employees.Kalmar: assembly of cars.Jofa AB, approx. 500 employees.Malung: Tents, ice hockey equipment, skiingequipment, boats.Kungälv : i ce skates, tents, boats.Lindesberg: i ce skatesRyds Industri AB, 85 employees.Ryd: boats, skiis, garden furniture.Employee figures estimated at December31,1973
Volvo products for 120 markets worldwideThe products of the Group are sold in 120markets all over the world. Although Swedenis still a very important market for Volvo, atrend of development is the growing proportion of export sales. During 1973, sales outsideSweden amounted to Skr. 6,300 million orroughly 70 % of total Group turnover. The increasing sales abroad are reflected in the increased exports from Sweden which, during1973, attained a value of about Skr. 4,500million or approximately 8 % of all Swedishexports. As a result of Volvo's intensified production abroad, however, exports have increased more slowly than overall sales abroad.From the viewpoints of both turnover andexports, the activities of the Automotive Companies of the Group are the most important.About 80 % of the products manufactured bythe Automotive Companies are sold abroadwhich means that as a truck exporter, Volvo topsworld statistics for exports in relation to itsproduction.Volvo Penta - one of the world's leadingmarine engine manufacturers - exports morethan 80 % of its production.Volvo BM is Europe's leading manufacturerof loaders. In order to ensure the stability andexpansion of production, the aim of Volvo isto spread its sales over a large number of markets. Sweden, Europe and North America are,at the moment, three areas with fairly similarsales levels while the consolidated results of anumber of other countries comprise a fourthrapidly expanding area.9
AB Volvo, Torslanda PlantThe Volvo Torslanda Plant is Sweden's biggestcar factory. The factory site has an area of8,000,000 square metres. With its 8,900 employees, the Torslanda Plant is an importantunit and has played a leading role in Volvo'swork of increasing job motivation and improvi ng working environment. The factory facilitiesare only 10 years old yet considerable expenditure has been made to improve engineeringtechniques and the environmental conditions.The mechanization of boring and heavy work aswell as the extensive use of bright and cheerfulcolours are other improvements to which canbe added the improvements in personnel areas.A new car leaves the assembly lines every 40thsecond. The materials, which arrive in speciallydesigned containers, are first off-loaded at the"goods square" and are then taken directlyi nto quality control and assembly. The finishedcars are driven on test tracks within the factoryconfines before being handed over for finali nspection and delivery.11
The Lundby FactoryThe Lundby Factory, which is a part of theVolvo Truck Division produces trucks and buschassis. Production is located at the originalVolvo premises on the island of Hisingen.During the years, these premises have beenadded to and are now fully adapted to modernproduction principles. In order to providescope for further improvements to productionand the environment, some parts of the manufacturing process have been moved to facilitiesin the Torslanda area. These include a fittingout shop for trucks and a highly-automatedtruck frame factory. The rate of production atthe Lundby Factory varies depending on thetype of truck built, but a finished vehicle leavesthe lines about every 10 minutes. The production of bus chassis which is a part of the VolvoBus and Public Transport Systems Division willbe moved to the Boras region where the Divi-sion plans on building new facilities which, itis estimated, will be on stream by the beginningof 1977.13
AB Volvo, Skövde PlantsFrom the very start, engines for Volvo vehicleshave always been manufactured in Skövde. Thepresent engine plant has grown from a mucholder company known as the Skövde Gjuteri& Mekaniska Verkstads AB. The acquisitionby Volvo of the share majority of this company in 1931 was the first step towards theestablishment of the Volvo Group of Companies and enabled Volvo to invest in its ownmanufacture of engines.The Volvo Skövde Plants, as the companyhas been known since 1961, has factories inSkövde, Floby and Flen. Approximately4,800 people are employed at these facilities.The Skövde factory, which covers an area of470,000 sq.m. produces petrol and dieselengines. Production is sub-divided into threesections: the foundry, the car engine plant andthe diesel engine plant. The foundry has anannual capacity of 60,000 tons of castings.During 1974, the engine plants will producemore than 300,000 engines and will also recondition about another 7,000 engines. Component manufacture and the assembly of enginesis carried out both in Skövde and Flen. TheFlen factory also carries out engine reconditioning and manufactures small marine diesels.Brake drums, disc brakes and drive shafts areproduced at the Floby factory.At the moment, the Volvo Skövde Plantsare passing through an intensive process ofmodernization and reorganization. This workwas started on a large scale by rebuilding thefoundry and it continues through the erectionof new production facilities for both petrol anddiesel engines. Extensive investments in bothinner and outer environment are supplementedby completely new concepts concerning production technology and working organization.15
AB Volvo, Bergslag PlantsThe Volvo Bergslag Plants (as the Volvo KöpingPlants have been called since July 1974) employ approximately 3,500 people. They wereone of Volvo's very first suppliers and are stillone of the most important. The first gearboxeswere manufactured in Köping as long ago as1927. In 1943, Volvo acquired the share majorityin Köpings Mekaniska Verkstads AB, as the company was then called, and built a new transmission plant.The facilities at Köping, Lindesberg, Arvikaand Uppsala are all under the administrationof the Volvo Bergslag Plants.Production at Köping consists of gearboxes,components for front and rear car axles, andgearboxes and front axles for trucks. The programme also includes the Aquamatic outboarddrive for Volvo Penta. The Lindesberg factoryproduces rear axles for Volvo trucks and alsotractor differentials for Volvo BM AB.The Arvika foundry produces forgings forengines, gearboxes and front axle components.The Uppsala factory produces outboardengines for Volvo Penta.Annual production of the Volvo BergslagPlants is approximately as follows:CarsGearboxes180,000Rear axles260,000Front axle components260,000TrucksGearboxes22,000Front axles25,000Rear axles27,000Aquamatic outboard drives30,000Outboard engines45,000Tractor differentials14,000The facilities at Köping and Lindesberg arecurrently being expanded to enable an increasein the production.17
AB Volvo, Olofström PlantsThe Volvo Olofström Plants comprise the largest and longest-established metal pressings industry in the Nordic area, dating back to theeighteenth century. About 5,000 people worki n these plants. The company became a member of the Volvo Group in 1969. The mainworkshops are located at Olofström, other production units being located at Konga andMjällby.The most important products on the manufacturing programme are pressed and weldedbody components. Pressing tools and specialmachines for welding and assembly are alsomanufactured here. The Mjällby factory produces radiators and car heater units. Shortseries of heavy gauge components are manufactured at the Konga factory.The Company also markets its specializedskill and produces pressing tools and assemblyequipment for customers in Europe, the SovietUnion and America.19
AB Volvo, Umeå PlantThe Umeå Plant is Volvo's most northerlyproduction company and has been a memberof the Group since 1964. About 800 peoplework here and cabs for Volvo trucks are themost important item. In the early 1960's, thiscompany carried out the pioneer work whichis the basis on which the safety requirementsof today concerning truck cabs are based. In1964, the Umeå Plant won a styling award atan exhibition in Paris.The Umeå Plant also manufactures compressed air tanks, fuel tanks and vacuum tanks forVolvo trucks and buses.Tank brackets, running boards and bonnethinges for cars are also manufactured here.Since 1974, the programme includes bodies forVolvo's new crosscountry vehicle. Productionof this vehicle is off to a good start and a considerable number will be delivered to theSwedish armed forces and other customers.Co-participation is applied extensively atthe Umeå Plant which has made considerableadvancements in conforming to the requirements of the 70's with regard to both theinner and the outer environments.
AB Volvo, Dalsland PlantsThe Volvo Dalsland Plants include the factoriesin Bengtsfors, Färgelanda and Tanumshede. Atthe Färgelanda factory, from which the Dalsland Plants are administered, plastic components, roof linings and interior replacementparts for Volvo cars are manufactured.Seats and upholstery are made and assem-bled at Bengtsfors, while interior fittings anddoor panels for Volvo's car production aremade at Tanumshede.Volvo's establishment in these parts of thecountry has meant a great deal to employment.At present, the Dalsland Plants provide workfor about 900 people.
AB Volvo, Kalmar PlantVolvo's final assembly plant for cars in Kalmarhas aroused considerable international attention due to the new methods used there inproduction technology, material handling,quality control and working organization.At Kalmar, Volvo has created a form of carproduction which will give the employee asense of purpose and feeling of satisfaction inhis work with the possibility of contributoryinfluence. The employees work in small groupsor teams, each with its own clearly definedworkplace, which are spread around the extensively glazed outer walls of the new four-leafedclover-shaped plant. The atmosphere of the"small factory" has been built into the plantin this manner. There are about 25 teams,each of which works in its own "private" partof the plant on specific production activities.For example, a team may specialize on theelectrical system, the driving controls or thesafety equipment. To a large extent, the employees set their own working schedule andcoffee breaks within the overall limits. An information centre equipped with four computers co-ordinates production which is built uparound a special type of robot carrier which isvital to this type of flexible production system.The robot carrier enables the car body tobe tilted and work on the underbody can thereby be carried out in a convenient working position. Assembly work is characterised by adegree of flexibility which is unique to theautomotive industry. Buffer stations betweenthe groups enable bodies to be parked, thisallowing variations in the rate of work andenabling pauses to be taken "at will".The Kalmar Plant will be in full productionby the end of 1974, 30,000 cars being produced annually on a one shift basis, and 600 persons will be employed.23
Volvo plants and import facilities abroadSince the 1960's, Volvo has had its own orpartly-owned assembly plants in Belgium, Canada, Peru, Iran, Malaysia, Australia and Indonesia. The Group has sales companies in 13 countries, most of which have their own importfacilities.The largest assembly company outside Sweden is the Volvo Europa NV car plant at Ghent,Belgium. Capacity here is 70,000 cars per year.At Alsemberg, on the outskirts of Brussels, thesame company produces 2,800 trucks annually.A new truck plant, estimated to be in production by 1975, is being built at Ghent.In Canada, the plant at Halifax builds12,000 cars annually for the Canadian market.By expanding, it is planned to increase capacity to 15,000 units annually.In Peru, Volvo is the sole foreign manufacturer to have been given a manufacturing concession for heavy diesel trucks and buses.In Iran, Volvo trucks and tractors areassembled in a plant at Teheran.Together with the Importer for Malaysia,Volvo carries out assembly at Batu Tiga nearthe capital Kuala Lumpur.Current plans include the building of anassembly plant for cars in Chesapeake, USA,which will be in production by 1976. Thisestablishment will make Volvo the first foreigncar manufacturer with a plant in America.'1 5
AB Volvo PentaVolvo Penta was founded in 1935 when Volvotook over AB Pentaverken of Skövde. The company is now one of the largest manufacturersin the world of marine and industrial engines.Turnover during 1973 amounted to Skr. 364million.In addition to its production facilities onthe island of Hisingen, Volvo Penta has a marine test station in the Gothenburg archipelagowhere boats and engines are tested all the yearround. Volvo Penta carries out considerableresearch and development work and was firstin the world to produce a commercially successful outboard drive coupled to an inboard engine. Volvo Penta marine diesels are used todayin very many different types of vessels rangingfrom ferries, freighters and fishing boats toleisure craft.An important proportion of productionconsists of industrial engines intended for ex-cavators, dumpers, road graders, fork lift trucks,etc. Volvo Penta also produces generator setsand power packs for irrigation units. The VolvoPenta product range, which includes 33 marineengines of both diesel and petrol type, withoutputs ranging from 10 to 365 horsepower, aresold in more than 100 different countries. Noless than 83 % of production is exported.During 1973, Volvo took over the outboardengine production and sales facilities of MCBat Uppsala. The Volvo Bergslag Plants are responsible for the production of these engineswhile development work and marketing comesunder the Volvo Penta organization.Volvo Penta's extensive sales success in theUSA has resulted in the company establishingVolvo Penta of America, Inc., which will beresponsible for the sales, distribution and service of Volvo Penta products throughout theentire USA market.27
Volvo BM ABVolvo BM is the leading manufacturer in Scandinavia of tractors and combine harvesters aswell as being Europe's largest manufacturer ofloaders. More than one-third of the tractorsdoing service in Sweden are from Volvo BMand it is also the dominating make in Swedenof forestry machines and dumpers. The largestVolvo BM facility is at Eskilstuna where tractors, diesel engines and chassis for earthmovingmachines are manufactured. At Arvika, loaders,road graders and excavators are assembledwhile the Hallsberg facility builds combineharvesters.Volvo BM turnover during 1973 reachedSkr. 872 million, exports accounting for abouthalf. Volvo BM products are sold today inabout 60 markets all over the world and thecompany has subsidiaries in Denmark, Norway,France and Austria. In Iran, Volvo BM andVolvo are part-owners of an assembly plantfor tractors and trucks.To meet the need of good service, a vitalpoint in the highly-mechanized farming of today, the company arranges training for mechanics. There is also a mobile service schoolwhich travels around the export markets. Starting this year, and extending up to 1979, VolvoBM production will be gradually moved fromthe present premises to new premises whichare to built at Hällby on the outskirts of Eskilstuna. The first stage of this project will includean assembly plant, a parts warehouse and apower station.29
Volvo Flygmotor ABVolvo Flygmotor is best known as a manufacturer of jet engines for the Swedish Air Force.Current items of production are the jet enginefor the strike version of the Aircraft 37 Viggen.Development work is underway on an enginefor the fighter version of this aircraft. Operations also include overhaul work on jet enginesfor civilian airlines.Parallel to its series manufacture of aircraftengines, the company carries out a great dealof research and development work on aircraftengines and rocket engines. The results of thiswork include an advanced liquid fuel rocketengine which is now in series production and isused in a robot missile for the strike version ofthe Aircraft 37 Viggen.The company has a modern research laboratory, one feature of which is a unique compres-sed air magazine blasted out of the solid rockat a depth of 85 metres. It holds 130 tons ofair and is used to power a series of wind tunnels and other test facilities.The civilian activities of the company arebecoming more widespread and significant.Volvo Flygmotor also manufactures hydraulicmachines (the illustration shows one beingtested) and unique installations for the cleaning of industrial waste gases. Other items in theproduct range include steering systems forVolvo cars and diesel engines in co-operationwith the Volvo Skövde Plants. The companyhas 2,600 employees and turnover in 1973reached Skr. 310 million.The company's workshops and laboratoriesare situated in Trollhättan and a test stationfor rocket engines is based at Uddevalla.31
AB Volvo-DataMost of the data processing and systems devel opment work carried out within the VolvoGroup in Sweden is the responsibility of ABVolvo Data. The company is an independentsubsidiary with facilities in Gothenburg andEskilstuna. It has about 400 employees. TheADP systems cover the handling of parts andmaterials as well as the organization of produc-tion, accounting, technical calculations, andalso the planning and follow-up of production.Volvo Data is a consultant and service unit, theamenities of which are available to all of theGroup companies. This also applies to theassociated companies of the Group such asdealers and importers.
RecreationalproductsModern man's increasing prosperity and his possibilities of utilizing free time make recreationmore and more important. At present, Volvo isbuilding up its fifth main establishment alongthese lines. One stage in these activities was theacquisition this year of AB Jofa which included facilities at Malung, Lindesberg and Kungälv.The Jofa manufacturing programme includes both summer and winter articles such asice skates, skiing equipment, camping equipment and glass fibre boats. A new plant willbe built at Kungälv to replace the old plant.Another company acquired by Volvo this yearis Ryds Industri AB. This company is one ofSweden's leading manufacturers of small leisureti me boats. The company also manufacturesplastics garden furniture. Ryds Industri AB iswell-known through its unique vacuum/compression moulding method for the productionof boats in ABS plastics.Other Volvo acquisitions include the MCBoutboard engine operations at Uppsala.Together, these items will form a complement to the car and its use for recreationalpurposes.
Swedish population depends on Volvo for its income. The Volvo Group of Companies pro-duces about 100 different products for the world of transportation. They are sold on 120 markets all over the world. There are four main fields in Volvo Group operations: 1. AB Volvo, Car Division; AB Volvo, Truck Division; AB Volvo, Bus and Public Tran-1
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