How Swedish Luxury Car 'Volvo' Became a Symbol of Safety [Hidden Eop Story]

'Volvo = Safety' Brand Image Established
Imported Car Brand Ranks 3rd After BMW and Benz
Famous for Celebrity Cars Like Lee Hyori and Hwasa

Volvo Cars logo. Photo by Volvo

[Asia Economy Reporter Kim Suwan] There is a brand that has been recognized as the leader in the global automotive industry for over 100 years solely based on 'safety.' That brand is the Swedish automobile brand Volvo. Even during times when safety was not a major consideration in car purchases, Volvo continuously developed safety technologies. As a result, it built the brand image of 'Volvo = Safety' and grew into a global automobile company. In Korea, Volvo is famously known as the 'celebrity car,' driven by famous celebrities such as singers Lee Hyori and Hwasa. In today's global car market, where new cars equipped with various features are flooding in, what is the secret behind Volvo capturing consumers' hearts?

◆ 'Volvo' Originated from Sweden's Harsh Climate and Natural Environment

Volvo's emphasis on safety as a competitive edge is related to Sweden's severe natural environment. Volvo was founded in 1927 in Gothenburg, Sweden, by Assar Gabrielsson, an employee of SKF (Svenska Kullager-Fabriken), the world's largest ball bearing company at the time, and engineer Gustaf Larson.

At that time, Assar was dispatched to SKF's Paris branch to secure a sales network for ball bearings and encountered numerous automobiles. He came up with the idea that it would be better to have a car more suitable for Scandinavia's harsh climate and environment than the widely distributed American imported cars in Sweden.

Assar put his idea into action. He proposed this plan to SKF, where he worked, and started a business partnership with his colleague Gustaf.

After starting the business, they developed Volvo's first model, the V4 (Open Vehicle 4, also known as Jacob), and with investment support from SKF, established Sweden's first modern automobile factory. Along with this, they named the company 'Volvo,' which means "I roll" in Latin.

Assar and Gustaf created an emblem featuring an arrow symbolizing a rotating bearing to commemorate their special relationship with SKF, the ball bearing manufacturer, and attached it to the cars. This emblem has become Volvo's symbol to this day.

Volvo's 3-point seatbelt and its developer Nils Bohlin. Photo by Volvo Official Website Capture

◆ Building a Safety-Oriented Brand Image

From its early days, Volvo paid the most attention to 'safety' when making cars, keeping in mind Sweden's long, harsh winters and poor road conditions for driving. Notably, even when safety was not a primary consideration in car purchases, Volvo continuously developed automotive safety technologies.

In the 1940s, Volvo's small car PV444, which was the first in the industry to apply laminated glass to car windows, was released and became known as 'Sweden's national car.' From the 1950s, Volvo grew by introducing pioneering safety technologies, including the development of the three-point safety belt.

This reflects Volvo's effort and dedication. The three-point seatbelt, now adopted by most cars worldwide, was first introduced by Volvo engineer Nils Bohlin in 1959.

What is particularly noteworthy is that Volvo made the patent for this technology public so that everyone could benefit from it. Since then, this safety belt has saved over one million lives.

Alongside developing safety technologies, Volvo also sought overseas expansion. In the passenger car sector, Volvo's popular model PV444 surpassed 100,000 units produced in 1955, and that year, Volvo officially entered the U.S. market.

The success of the Volvo Amazon (Volvo 121/122S), launched in 1956, greatly contributed to establishing Volvo's position as a global brand. The Volvo Amazon was exported worldwide, including to the U.S., and gained popularity as a car that could be driven for over ten years without breakdowns.

Volvo Cars Korea Ambassador and S90 Advertising Model Son Heung-min. Photo by Yonhap News

◆ Competing with the Unchanging Brand Value of 'Safe Cars'

Entering the 1990s, Volvo underwent many changes in its management system. Notably, in 1999, the Volvo Group sold its passenger car brand, Volvo Cars, to Ford. Through this, the 'Volvo Cars' brand as an automobile manufacturer and the 'Volvo Group,' which includes trucks, heavy equipment, and construction machinery, shared the same brand name 'Volvo' but operated separately in terms of business areas and ownership.

However, due to cash flow difficulties caused by the economic downturn starting in 2007, Ford sold Volvo Cars to the Chinese automobile manufacturer Geely Group in 2010. Following Geely's acquisition, rapid expansion into the Chinese market began.

Volvo Cars is also sold through approximately 2,300 local dealerships and local marketing companies in over 100 countries, including the UK and Japan. In Korea, since entering in 1990, Volvo Cars Korea continues to provide services and produce parts, maintaining steady progress. According to industry sources, Volvo Cars Korea sold 10,570 units last year, a 24.0% increase compared to the previous year.

Despite various changes, Volvo Cars has continuously conducted research on-site and in laboratories to maintain safety. Following the world's first development of the three-point seatbelt and City Safety system, Volvo has developed pedestrian collision avoidance systems, pedestrian airbags, and bicycle collision avoidance systems, expanding its safety philosophy from occupants to pedestrians and steadily establishing standards for automotive safety technology.

Volvo XC90 vehicle. The Volvo XC90 is a large SUV that caught attention when the couple Lee Hyori and Lee Sangsoon appeared driving it on the popular TV program "Hyori's Homestay." /Photo by Volvo Cars

◆ Also Famous as a 'Celebrity Car'... Developing Technologies to Prevent Traffic Accidents

Currently, Volvo has established 'Vision 2020,' aiming to eliminate serious injuries and fatalities from traffic accidents, and is dedicating itself to developing various safety technologies for accident prevention and protection.

In Korea, Volvo attracted attention when the couple Lee Hyori and Lee Sangsoon appeared driving it on the popular TV program 'Hyori's Homestay.' Recently, a family including announcers Choi Dongseok and Park Jiyoon, driving a Volvo, was involved in a head-on collision with a 2.5-ton truck driving the wrong way but sustained only minor injuries, drawing attention once again.

Meanwhile, Volvo's popularity is clearly reflected in consumer brand evaluations. According to a recent analysis of big data on imported car brand reputation in September by the Korea Corporate Reputation Research Institute, the ranking was BMW first, Mercedes-Benz second, and Volvo third.