This is the Volvo Car DivisionThe Volvo Car Division comprisesthe largest product sector withinthe Volvo Group. Of the totalGroup sales in 1974 of Skr. 10,500million, the Car Division wasresponsible for Skr. 5,600 million.

Since January 31, 1975, Volvo CarB.V. in Holland (formerly DAFCar B.V.) has been included inVolvo's car operations. Volvo CarB.V. achieved sales of Skr. 900million during 1974.

Approximately 35,000 people workwithin Volvo on the development,

production and marketing of thecar programme. To these can beadded a further 1,500 who work forVolvo's sub-contractors.

Volvo is a Swedish company withinternational aims. The major partof Volvo car production, includingthe assembly of 165, 000 cars, isbased in Sweden. A further 70,000units are assembled in Belgium,Canada, Australia and Malaysia.Volvo Car B.V. in Holland contri-butes with an additional 70,000cars. In the USA, a new assemblyplant will be in production by 1977.

The Car Division intends to con-tinue its well-balanced expansion.

Volvo cars are sold in almost 100countries. The emphasis in oursales lies on the Nordic markets,Western Europe and North Ameri-ca.Quality, safety, economy and com-fort - these are the four fundamen-tals of our product philosophy. Byway of intensive research anddesign work, the Volvo Car Divi-sion adapts its products to therequirements and traffic environ-ment of today and tomorrow.

The car and society

the way we see itThe modern car is an efficientmeans of transport. Today, the caris a necessity if our society is tofunction.

The way we see it, our responsibili-ties involve more than just build-ing good cars, we must also ensurethat they fit into a larger context -that of our environment. The mainresponsibility for environmentalmatters and transport policies bel-ongs to our society. Volvo's endea-vour is to make an active contribu-tion in the form of viewpoints andreal-life solutions.

A living urban environment,worthy of mankind, can be com-bined with efficient transportation.New designs have made the carsafer and more compatible with theenvironment and in many cases,Volvo has been a leader in thesedevelopments.

The car gives us independence anda freedom of movement whichearlier generations never enjoyed.The demand for this way of lifewill certainly increase. Since thereis no realistic alternative to the car,these two developments must gohand in hand.

However, the car also has obviousdisadvantages. Pollution, traffici njuries, congestion and so on.These disadvantages must be res-tricted - it is Volvo's intention toparticipate actively in this work.

The technThis is the Technical Centre of theVolvo Car Division. It is here inGothenburg that Volvo's engineer-i ng advancements and new cardesigns are born.

The Technical Centre was openedi n 1972 - putting the combineddevelopment and research re-

sources of the Car Division underone roof. This complex is Volvo'sbiggest investment in a singleproject and called for capital expen-diture exceeding Skr. 220 million.Roughly 1,200 people work in thetechnical departments, the labora-tories and the experimental work-shops. The management and ad-

ministration of the Car Division isalso based here.The demands made on the car areever increasing. They include cus-tomer requirements and the needto meet tough international compe-tition, they also include safety andenvironmental requirements asstipulated by the authorities. In

ical centreaddition, the growing complexityof the traffic environment also hasan influence on the design of thecar.

These demands call for advancedtechnical resources which the Vol-vo Car Division has in its Techni-cal Centre. Within the Centre, weseek to simulate realities. Our

facilities enable us to create condi-tions just as arduous as the heat ofthe desert or cold of the arctic. Ourengines and transmissions are putthrough test programmes which,through the use of computers, canbe repeated identically, time andtime again. We can also simulateroad accidents in our car safety

centre and assess the ability of thecar to protect its occupants. Ournumerous laboratories test andevaluate the components of the carunder every conceivable type ofstress. And all of this takes placeunder strict control, a necessity inthe science of accelerated testing togive quicker access to new designs.

The proving groundDesign work starts at the drawing board.These drawings result in a prototypewhich is tested in our laboratories. Butlaboratory tests are not enough - theymust be followed by road tests undertrue-to-life conditions.

The Volvo proving ground is at Hällered,a few miles outside of Gothenburg. Thisfacility cost approximately Skr. 50 mil-lion. But it was money well spent. Theexperience gained at Hällered is fed backto our laboratories and used in the con-tinuing research and development work.

The main track at the Hällered provingground is 6.2 kilometres long. It is usedfor long-term and high speed tests. To-tally, the tracks of the proving ground are26 kilometres long and are designed tosimulate every type of road surface. Thesteering gear, shock absorbers and sus-pension take more punishment during afew short days of testing here than theywould during years of normal use. Themud and salt water troughs give Volvorustproofing a baptism of fire.Special sections of one track are sprayedwith water to give slippery road condi-tions even in the middle of summer.Very steep hills are used to test clutchesand handbrakes to breaking point.

Experience guides our developmentWe study the needs of the consumer andhis wishes in the many areas of our busi-ness. Legislative requirements concerningsafety, driver training, speed limits andso on also have an influence on develop-ment. Extensive studies and marketresearch are carried out regularly.

Through the Volvo workshops and thestatistics received from many countries,we have access to a continuous stream offacts which tell us what happens to ourcars in the field.

Another example of our follow-up activi-ties is the work carried out by Volvo'straffic accident investigation researchers.Volvo cars which have been involved ina road accident are carefully examined bythe researchers. They work in close co-operation with doctors, the police, salvag-i ng companies and the authorised Volvoworkshops. Their reports, for example, onthe protective effect of seat belts, havehad a considerable influence on the safetyl egislation in a number of countries.

Quality means more than long lifeWhat do Volvo's resources withinresearch and development mean inmore concrete terms to car design?On the next few pages, we wouldlike to tell you a little more aboutour basic objectives.

At Volvo, quality is a key word. Itis also a word which has manymeanings. Operational reliabilityand stamina, comfort in drivingand travelling, road safety, econ-omy and so on.

Volvo cars are designed and builton a foundation of very tough

quality requirements. Our normsnot only cover the quality of thei ndividual component or material,but also the complete car and itsfundamentals of design.

Volvo cars have a long service life.In Sweden, all road vehicles, olderthan two years, are checked an-nually by the non-partisan SwedishMotor Vehicle Inspection Com-pany. Their statistics prove that aVolvo has the longest probable lifeexpectancy of any make of car soldi n Sweden. After 16.6 years, half of

all the Volvo cars sold were still onthe road. This is about two yearsl onger than the average car. Andwe think it is ample proof of Volvoquality.

The way Volvo looks at qualitymeans that we are fully prepared toaccept the consequences of andresponsibility for our products. Thewillingness to admit a qualityobligation also implies the willing-ness to admit a weakness in aproduct and endeavour to see thatthis weakness is eradicated.

Total economyCar economy can be discussedfrom many viewpoints. At Volvo,we have always tried to makeoverall appraisals.

The basic factors include whatdemands one makes on a car, whatservices one expects of it. Thelarger type of car can offer more inmatters of safety, space and com-fort than the smaller car.

Many factors are involved in theoverall economy of a car - thebuying price and the trade-in va-lue, fuel consumption, repairs,taxes and insurances, etc.

However, there are also a numberof other questions which have adecisive effect on the total econ-omy - factors such as service inter-vals, access to authorised work-shops and the availability of re-placement parts.

A Volvo is designed to give manyyears of reliable motoring. It is

built to keep service, repair andmaintenance costs to a minimum.

The total economy of a car is, inmany aspects, vitally dependent onthe quality of the car.

Man,the car, and the trafficenvironment

zones front and rear and heavytubular members in the doorswhich protect the occupantsagainst side impact. The steeringcolumn collapses under heavyi mpact and the steering wheel isdesigned to minimise injury. Theouter shape of the car is also basedon safety - the safety of other roadusers, especially the unprotectedcategories such as cyclists, pedes-trians, etc. Possibly of more impor-tance than anything else withregard to safety are the inertia reel,three-point seat belts fitted toVolvo cars. Volvo has had three-point seat belts as standard since1959 - longer than any other motormanufacturer.

The crash tests we have carried outwith the cars of the 240/260 Seriesshow that they more than wellconform with the very toughAmerican safety requirementsexisting now and also those pend-i ng for future legislation.

means, for example, that the steer-i ng and suspension must be goodand predictable so that the carcannot unpleasantly surprise itsdriver. Brakes are another vitalitem.Good visibility and ample heatingand ventilation also reduce therisks of driving as does powerfuland correctly designed lighting.

A safe car must also minimise thechance of injury if a collisionshould take place. The Volvo240/260 Series have a safety bodywith energy-absorbing crumple

Man, the car, and the traffic envi-ronment are the three factorswhich make up road safety. As amotor manufacturer, we concen-trate on the car.

A safe car must reduce the risk ofan accident. Plainly speaking, this

Comfort and performanceSafety and comfort go hand in hand.Good visibility and ventilation, plenty ofroom, good road holding, convenientlyused seat belts and so on are all impor-tant to safe and comfortable driving. Andthey are all a part of Volvo's qualitythinking.The driving seat of the 240/260 Series isan excellent example. Designed in co-operation with medical experts, adjustableheight, infinitely variable backrest angle,fully adjustable lumbar support, built-inhead restraints on all models, designed tomake even long distance driving a pleas-ure. On markets which have colder win-ters, the driving seat incorporates a heat-ing unit. This heating unit is thermostati-cally controlled and switches on whenthe temperature of the seat is below 14° Cand heats it up quickly to 27° C beforeswitching off again.

Comfort requirements differ considerably.To satisfy all categories, Volvo has in-vested in a very high level of comfort.Within this framework Volvo offers awide range of choice. The Volvo carprogramme is very comprehensive. Aversatile range of equipment, engines andtransmissions enables us to satisfy theneeds and wishes of practically any moto-rist.

This is how a Volvo is built

The materials and components flow into the as-sembly plant from our own factories and sub-con-tractors.

The actual production starts in the pressing shopwhere sheet-metal is formed into components for theVolvo body which consists of about 330 differentparts.

In the body shop, these many metal pressings arewelded together. The automatic welding equipmentplaces the welds with fantastic accuracy. And eachone of these welds is strong enough to carry theweight of the entire body.

The body then moves on to the paintshop where it isdegreased and specially treated to improve paintadhesion. Primer painting, oven hardening, rubbing-down and spray painting are carried out to particu-larly high standards. This is followed by very exten-sive rustproofing treatment which includes usingboth fluids and compound.

The body then moves on to the final assembly shopwhere the engine, wheels, electrical system and allthe many thousands of other parts are fitted.

And throughout production, a very careful check iskept on quality. After final adjustment and testingon a rolling road, a new Volvo is ready for delivery.

One of the fundamentals of ourproduction policy is that Volvocarries out its own developmentand design work as well as produc-ing the major components andcarrying out the assembly work.

Parts such as the body, engines,transmissions, axles and the inter-ior fittings are manufactured inVolvo's own factories.

The Volvo sub-contractor systemmeans that a large number ofcomponents, carefully made toVolvo specifications, are suppliedto the Volvo assembly plants fromapproximately 1,500 sources.

Volvo plants andThe' quality requirement runs like ared thread through production,both at Volvo's own plants andalso those of the sub-contractors.

About 80% of our production issold outside of Sweden. Therefore,a growing percentage of assemblyis placed within the biggest mar-kets. Today, Volvo has assemblyplants in a number of countries.

Together with Peugeot and Ren-ault, Volvo has an engine plant inFrance where the B27-engine,powering the 260 Series, is built.

sub-contractorsThanks to Volvo's success onmany markets, production and alsothe number of jobs - both inSweden and abroad - has increasedvigorously. This implies still great-er requirements on Volvo. Bothfrom society and from the indivi-

dual employee. An extensive socialresponsibility is an important partof Volvo policy. Working in closeco-operation with the employees,the Company improves workingenvironment and introduces newtypes of work organisation.

ProductionVolvo Bergslagen PlantsA special factory for transmissions,front and rear axles and front sus-pensions is situated in Köping.Another in Arvika makes forgingsfor the Volvo Car Division.

Volvo Olofström PlantsScandinavia's leading metal pres-sings industry. In addition to metalpressings, the company also pro-duces pressing tools and specialmachines for welding.

Volvo Dalsland PlantsThis group makes upholsteries,seat belts and injection mouldedplastics components at its factoriesi n Bengtsfors, Färgelanda andTanumshede.

Volvo's Swedish-based plants in-volved in car production are thefollowing:

Volvo Skövde PlantsThe Skövde Plants manufactureengines for Volvo cars, trucks andbuses. This facility has one ofEurope's most modern foundries.The Skövde Plants also include afactory at Floby which manufac-tures, among other things, brakediscs and wheel hubs.

in SwedenVolvo Torslanda PlantThe Torslanda Plant in Gothen-burg is the Group's biggest as-sembly facility with its 8,500 em-ployees. This complex includes:Pressing Shop, Body Shop, Paint-shop, and Assembly Shop. Itscapacity is approximately 850 com-plete cars per day and an additional150 painted bodies. These separatebodies, together with other com-ponents, are sent to various desti-nations, including the assemblyplants at Kalmar and in Canada.

Volvo Kalmar PlantIn many ways, the Kalmar Plant isa unique assembly facility withregard to the techniques used,working environment and thel abour organisation. It was inaugu-rated in 1974 and now producesapproximately 30,000 cars per yearoperating a single shift.

Most of the work is carried out ingroups of between 15 to 20 work-ers. The bodies are transportedthroughout the plant on battery-powered and individually control-led carriers which, together withthe buffer zones arranged betweeneach group, help the teams todetermine the rate at which theywork and the methods used.

Production outside SwedenIn early 1975 Volvo took over theshare majority of Volvo Car B.V.(formerly DAF Car B.V.), whichrepresented a considerablestrengthening of our resources,partly through the first-class facili-ties of the plant at Born in theNetherlands, and partly throughthe resulting broadening of the carprogramme by the Volvo 66 -Volvo's new medium size car. TheBorn facilities produced ap-proximately 70,000 cars in 1974.Volvo Car B.V. also includes a

newly built plant at S:t Truiden inBelgium, which builds the specialautomatic transmission for theVolvo 66 - as well as other com-ponents.

Volvo Europa in Ghent, Belgiumis the second of Volvo's largeassembly plants in Europe and itprovides, among others, the grow-i ng European market with itsneeds of Volvo 240/260 Series cars.In 1974, production reached 50,000units.

There are also facilities in Mel-bourne, (Australia), Kuala Lumpur,(Malaysia), Halifax, (Canada) andDjakarta, (Indonesia).

Volvo is also the first non-Ameri-can motor manufacturer to build acar assembly plant in the USA.This will be at Chesapeake, Virgin-ia and the new venture is expectedto be on stream during the first sixmonths of 1977. It will have aninitial capacity of 10,000 cars peryear working on a one-shift basis.

In 1976, a small assembly plantwill be opened in Bangkok, Thai-l and.

Worldwide marketingThe products of the Volvo Groupare sold in more than 160 countriesaround the world. The sales net-work for the products of the CarDivision is continuously growing.It now covers about 100 countries.

The Volvo Car Division operateswithin four large market blocks:32% of production is sold in theNordic countries, 26% in the re-mainder of Europe, 33% in NorthAmerica and 9 % in the group ofcountries known at Volvo as the

Overseas Market. Between 1960and 1974, Volvo car sales increasedfrom 80,000 to 237,000 units. TheNorth American and Europeanmarkets showed the fastest growth.

Volvo's marketing strategy in-cludes an increased investment inthe major European and NorthAmerican markets as well as cer-tain markets in Asia and Australiato strengthen our footholds abroad.

The marketing of our products iscarried out through our own sub-sidiaries as well as by independenti mporters.

In many countries, Volvo and itsvarious importers have their ownimport facilities. In recent years,import facilities have been openedin Switzerland, Finland, WestGermany, France, the Netherlandsand the USA.

Every single Volvo product issubject to rigorous control duringproduction and before delivery.These quality control methods areused just as extensively on Gen-uine Volvo Parts. Use of theseparts gives the Volvo customer thepossibility of keeping his car inperfect condition, thereby increas-i ng the service life and the overalleconomy of motoring. A widerange of accessories specially de-signed for Volvo cars is also mar-keted.

The Volvo Parts Division is res-ponsible within the Group for theprocurement, quality control, mar-keting and distribution of GenuineVolvo Parts and Accessories. Withthe assistance of advanced comput-er systems, the Volvo Parts Divi-sion monitors the stock require-ments of both the importers andalso many dealers. The centralwarehouse in Gothenburg carries astock of 85,000 different parts. A

Parts, accessorY

ies and servicecentral warehouse in Ghent, Bel-gium, meets the needs of Volvo'sother markets.

Before we start to sell cars on anew market, we build up a goodstock of parts and establish autho-rised Volvo workshops staffed bytrained mechanics and equippedwith special tools.

Each importer is responsible forservicing matters on his market. In

addition, the Volvo Car Divisionhas a special central unit for ser-vice matters. This departmentproduces the driver instructions,workshop manuals and other tech-nical publications and is also res-ponsible for the training of instruc-tors for the importer serviceschools. Our field department,staffed by specially trained servicei nspectors, is responsible for con-tacts with the dealer network andwith our customers throughout theworld.

A car for every requirementThe Volvo car programme com-prises three series, the 240 and 260Series, and the Volvo 66. Together,these fine cars cover a very wideregister of requirements.

The Volvo 66 is a new addition tothe 1976 Volvo programme. TheVolvo 66 is available in four ver-sions - a Sedan (two-door) and aStation Wagon (three-door), eachof which is available in a DL andGL-version. The GL-versions havea more powerful engine: 57 hpDIN compared with the 47 hp DINof the DL-models. In addition, the

GL has auxiliary halogen lightsrecessed into the grille and a widersize of tyre. The Volvo 66 is theresult of many years' developmentwork between the Volvo engineer-ing departments in Gothenburgand Eindhoven, work in which theemphasis was placed on matters ofsafety.

The Volvo 240 Series comprisesSedan and Station Wagon modelsas well as a range of special pur-pose vehicles. These cars are av-ailable in L, DL and GL-versions,the difference lying in the equip-

ment and engines, from the B20A,giving 82 hp DIN to the B21E withfuel injection and an output of123 hp DIN.

Top of the Volvo range is the 260Series, available as a four-doorSedan and also as a five-door Sta-tion Wagon.The Sedan models are available inboth DL and GL-versions. TheVolvo 260 Series is powered by aV6 engine of 2.7 litres displace-ment which develops 125 hp DIN(carburetor version) and 140 hpDIN (fuel injection version).

Scandinavia's biggest engineeringindustry

Volvo is Scandinavia's leading engineering industry.

Volvo manufactures over 100 products, primarily forthe world of transport. They are sold in more than160 countries.

The product units of the Volvo Group are:

Volvo Car DivisionVolvo Car B.V. (since January 31, 1975)Volvo Truck DivisionVolvo Bus DivisionVolvo Penta (industrial and marine engines)Volvo BM (earthmoving, forestry and agriculturalmachines)Volvo Flygmotor (jet engines, hydraulic machinesand environmental products)Jofa-Företagen AB (recreational and sports articles)

Sales in 1974 amounted to more than Skr. 10,500million. Number of employees - 56,000.Earnings before allocations and taxes amounted toSkr. 737 million.

Volvo

factsIncreasing investments

Volvo's capital expenditure isincreasing continuously. In 1970,the Company invested Skr. 478million. By 1974, the correspondingfigure was Skr. 871 million.Among the larger capital expendi-tures authorised for 1974-75 wasan assembly plant for cars in Vir-ginia, USA. Authorised invest-ments for improvements to envi-ronment within the Group amountto almost Skr. 50 million.

Volvo Group capital expenditure inplant and facilities and acquisi-tions.Skr. millions.

Volvo - owned by many

The number of people holding Volvoshares is considerable. In fact, Volvo has117,000 shareholders. The smaller andmedium sized holdings (up to 1,000shares) account for 58% of the sharecapital. The biggest shareholder (FourthNational Pension Insurance Fund) holdsless than 5%. Volvo is therefore freefrom dominating owner interests.

Volvo shares have been listed on theStockholm Stock Exchange since 1935,on the London Stock Exchange since1972, and on the Stock Exchanges ofDusseldorf, Frankfurt/Main and Ham-burg since 1974.

The share capital, after the 1975 bonusissue, amounts to approximately Skr. 785million.

Shareholdings No. of share

% of shareholders

capitalMax. 100shares

96,600

21.7101-500 shares 17,000

26.7501-1000 shares 2,000

10.51001-10,000shares

1,100

17.8More than10,000 shares

48

23.2

More than 56,000 employees

Volvo's labour force increased by 22,700between 1969 and 1974. About 46,000 ofthe total number of employees work inSweden, 10,500 working within Volvooperations abroad.

Some interesting Volvo milestones

1924 Founders of the Company, Gustaf Larson andAssar Gabrielsson start work on the very firstVolvo.

1927 Jacob - Volvo's first series-manufactured car isready. The four-cylinder engine of 28 hp givesthe car a maximum speed of 60 km/h.

1944 The almost legendary PV 444 sees the light ofday. This very popular car remained basicallyunchanged for more than 20 years.

1956 The Volvo 121/122S Series was introduced.

1959 Production start-up of the Volvo P1800 sportscar.

1966 The first of the Volvo 140 Series leave theassembly lines.

1974 The new generation of Volvos, the 240 and 260Series are introduced.

1975 Volvo 66 - the new medium sized Volvo ent-ers the scene.

AB VolvoVolvo production compared with world production

During 1974, Volvo decided to reduce its car production to alevel slightly above that of 1972. In procent, world figures drop-ped more, falling below the 1971 level. Relatively speaking,therefore, Volvo improved its position.

Volvo Car B. V., presented on the next spread, is not included in thefigures shown here.

Car DivisionThe top ten marketsNumber of cars registered 1974

Volvo assembly plantsProduction 1974

Volvo's four major market blocksCar sales 1960 and 1974

56,90050,10017,70010,2009,1008,0007,3006,6006,4004,500

SwedenUSAGreat BritainCanadaWest GermanyNorway.BelgiumSwitzerlandAustraliaAustria

Volvo Torslanda Plant,SwedenVolvo Europa NV,Belgium

1 56 400

49 600

Volvo Canada Ltd., 10 100Canada

Volvo Kalmar Plant,Sweden (opened 9 100spring 1974)

Volvo Australia Pty. 3 800Ltd., Australia

Swedish MotorAssemblies SDN, 1 600Malaysia

Importer make-up 3 600in other markets 234 200

A background

Since 1972, Volvo has gradually in-creased its shareholding in DAF. Inearly 1975, Volvo acquired the sharemajority of DAF Car B.V. which,during he spring of that year changedits trading name to Volvo Car B.V.

Through this acquisition of 75% of theshare capital, the Volvo car pro-gramme was increased in scope. Thisimplies a more comprehensive productprogramme and a higher turnover forthe Volvo importers and dealer net-work. Volvo Car B.V. brings to theGroup a modern production apparatus;skilled personnel and a new productprogramme - the Volvo 66 Series.

The marketing organisation of VolvoCar B.V. was strengthened during1975 by integrating its sales companieswith the Volvo sales companies orwith independent importers in thevarious countries.

Volvo CarB.VFacilities

The main Volvo Car B.V. assemblyplant is situated in Born, the Nether-lands. A plant at S:t Truiden, Belgiummanufactures a number of compon-ents such as engines, transmissions,steering gears and braking systems.Certain parts of the automatic trans-mission are also made in Eindhovenin the Netherlands.

In 1974, production reached 70,000units and about 6,000 people wereemployed.

DAF Car B.V.'s net sales in 1974amounted to almost Skr. 900 million.

The biggest markets

Number of cars registered 1974.

The NetherlandsWest GermanyGreat BritainBelgiumFranceSwedenItaly

20 200119008 5008 3007 4004 0002900

Volvo organization