History of Volvo Cars
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History of Volvo Cars

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Questions and Answers

Match the following individuals with their roles in Volvo's history:

Assar Gabrielsson = Sales Manager Gustav Larson = Engineer Ford Motor Company = Purchased Volvo's car manufacturing Geely Automobile = Current owner of Volvo Cars

Match the following Volvo car models or features with their descriptions:

'Jacob' = First car produced by Volvo Safety = Image associated with Volvo Rough roads = Targeted design feature of Volvo cars Explosion risk = Issue with early Volvo models

Match the following years with significant events in Volvo's history:

1924 = Volvo was founded 1927 = First car built was 'Jacob' 1999 = Volvo sold its car manufacturing to Ford 2010 = Geely acquired Volvo from Ford

Match the following financial actions with the respective companies involved:

<p>Ford = $6.45 billion for Volvo Geely = Intended sales of 200,000 to 300,000 Volvos</p> Signup and view all the answers

Match the following challenges faced by Geely after acquiring Volvo:

<p>Lack of management experience = Struggled with running a large company like Volvo Limited export experience = Had only exported a few cars to developing countries Cost reduction challenges = Difficult to maintain standards while reducing costs Brand recognition = Geely was not known as a global player</p> Signup and view all the answers

Match the following sales figures with their corresponding years for Volvo:

<p>2009 = 335,000 cars sold 2010 = 30,000 cars sold in China 2019 = Geely sold 1,360,000 cars</p> Signup and view all the answers

Match the following technologies or markets with their relevance to Volvo:

<p>Electric cars = 27% of Volvo's total sales volume in 2021 Chinese market = World's largest automobile market Car production factory = Planned by Geely to produce 300,000 cars per year Volvo's technology = Used by Geely in its vehicles</p> Signup and view all the answers

Match the following major milestones with their timelines in Volvo's journey:

<p>1945 = Volvo known outside Sweden 1999 = Sale of car manufacturing to Ford 2010 = Geely acquisition completion 2021 = Electric cars made up a significant portion of sales</p> Signup and view all the answers

Study Notes

Volvo's Origins

  • Founded in 1924 by Assar Gabrielsson and Gustav Larson in Sweden, originally aimed at producing vehicles suited for harsh conditions.
  • First car produced, named "Jacob," launched in 1927, focusing on durability for Sweden's severe winters and rough roads.
  • Early models, despite the brand's safety image, faced issues with engine explosions due to proximity to gas tanks.

Growth and Challenges

  • By 1945, Volvo gained international recognition but had a high price point that limited accessibility to most consumers.
  • In 1999, sold car manufacturing division to Ford Motor Company for $6.45 billion, expecting significant profits which did not materialize.

Transfer to Geely

  • In 2010, Ford sold Volvo Cars to Geely Automobile for 1.8billion,alongsideaninvestmentof1.8 billion, alongside an investment of 1.8billion,alongsideaninvestmentof900 million for continued production.
  • Geely aimed to leverage Volvo’s technology and build a factory in China capable of producing 300,000 cars annually.
  • Toyota's Car sale in China reached 16 million units in 2010, motivating Geely's plans to sell 200,000 to 300,000 Volvo cars yearly.

Initial Challenges in the Chinese Market

  • Faced with management struggles due to lack of experience in handling a large company.
  • Geely's limited export capabilities hindered its position as a globally recognized car manufacturer.
  • Balancing cost reduction with quality standards proved difficult.

Successful Outcomes

  • By 2019, Volvo achieved record sales of 705,000 cars, significantly up from 335,000 in 2009, indicating a successful rebound in market performance.
  • Geely's sales surged from 329,000 in 2009 to 1,360,000 in 2019, establishing itself firmly in the market.
  • Collaboration between Geely and Volvo on electric vehicles led to electric sales making up 27% of Volvo’s total sales volume in 2021.

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Description

Explore the fascinating history of Volvo, from its founding in 1924 to its transitions through various ownerships. This quiz highlights key milestones, growth challenges, and strategic decisions, including its sale to Ford and later to Geely. Test your knowledge about this iconic Swedish car manufacturer and its evolution over the decades.

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