Volvo Investor Relations Material

Founded in 1927 in Gothenburg, Sweden, Volvo has acted as a symbol of Swedish engineering and design for decades. It’s important to note that the modern iteration of the company operates in two separate entities: Volvo Group and Volvo Car. While the brand might first bring to mind passenger cars, Volvo Group's operations primarily encompass commercial vehicles, including trucks, buses, and construction equipment with Volvo Car continuing to build personal vehicles.

Volvo, a Swedish automobile giant, was founded in 1927 by Assar Gabrielsson and Gustaf Larson in Gothenburg. Originally, the company's primary focus was on producing high-quality cars equipped to withstand Sweden's rough terrain and cold conditions. The name "Volvo" originates from the Latin word "volvere," meaning "to roll", and the name of the company literally translates to “I roll”. Over the years, Volvo expanded its portfolio to include trucks, buses, construction equipment, and marine products, which also is the present-day focus of Volvo Group.

In 2010, Geely, a leading Chinese automotive company, made a significant move by acquiring Volvo Car from Ford Motor Company. This acquisition was a strategic play to elevate Geely's global presence and harness Volvo's renowned reputation for safety and innovation. Post-acquisition, it's crucial to distinguish between two distinct entities: Volvo Car and the Volvo Group. While Geely took ownership of Volvo Car, focusing on passenger vehicles that compete with companies such as Volkswagen and BMW, the Volvo Group remained independent, concentrating on trucks, buses, and construction equipment.

Volvo Group's products find use in numerous applications worldwide, from city streets to remote construction sites. Their division producing trucks has several brands under its umbrella, each catering to different market segments and regions. In the bus segment, Volvo's electric and hybrid buses are specially designed to be utilized in sustainable urban public transportation. Furthermore, Volvo Construction Equipment produces a variety of machines used in sectors like mining and road construction, ranging from excavators to haulers. Beyond vehicles, Volvo Penta supplies marine and power systems for both small boats as well as larger industrial customers.