ABB and Volvo Cars to form joint venture for automation equipment

Joint venture to supply automation equipment for automotive body assembly shops and press lines.

Zurich, Switzerland, December 2, 1996 - ABB, the International electrical engineering company, and Volvo Car Corporation, Sweden, today signed a preliminary agreement to form a joint venture company to supply automation equipment for automotive body assembly shops and press lines.

The new company will include Volvo Cars businesses for assembly line engineering, press automation and lightweight welding guns, located in Olofström, southern Sweden, as well as the operations of Volvo subsidiary Olofström Automation in Toronto, Canada, Detroit, U.S.A. and Sao Paulo, Brazil. These activities employ 260 people in Sweden and 250 in North America and Brazil, with revenues in 1995 of US$ 106 million.

ABB will have a majority shareholding in the new company and will be responsible for its overall management.

Through the new joint venture, Volvo Cars will achieve a further step in the streamlining of its operations, whereas ABB will increase its resources for providing automotion systems for automotive body assembly shops and press lines to around 1,000 people. This will substantially strengthen ABB's competitive position to supply more complete solutions on a truly global basis.

The deal remains subject to approval by the parties and relevant regulatory authorities concerned.

The new company will be part of ABB Flexible Automation which employs 4,200 people in 24 countries with revenues in 1995 of US$ 1.4 billion. ABB Flexible Automation is a business area within ABB's Industrial and Building Systems segment, which employs approximately 90,000 people worldwide with orders in 1995 of over US$ 16 billion.

The ABB Group employs approximately 217,000 people with orders in 1995 of over US$ 36 billion.

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    Contact us

    Page information:
    • Mr. John Fox
      ABB Corporate Communications, Zurich
      Tel. +41 1 317 7371
      Fax. +41 1 317 7958
    • Mr. Nick Rizvi
      ABB Flexible Automation, GmbH
      Tel: + 49 6031 85 108
      Fax: + 49 6031 85 381
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