SCANIA: FROM BANKRUPTCY TO A STORY OF CONTINUOUS SUCCESS

The initial company was established by a few industrialists who got together and created the Vagnfabriks Aktie Bolaget I Södertälje (Vabis) for the production of railway wagons. The company introduced the first Swedish-built car in 1897. It was designed by Gustaf Erikson who had signed a contract with Vabis.

Three years later a brand new company called Maskinfabriksaktiebolaget Scania acquired a bicycle manufacturer in Malmö, thus establishing a subsidiary there. Meanwhile, Erikson was able to improve his mechanical design and by 1902 the company showed its first truck. The first factory-produced car left the factory a year later. In 1905 the company delivered its first industrial engine to the Stockholm fire brigade.

The Vabis trademark was registered in 1906.Just five years later the first Swedish-built bus was introduced and delivered to the client. That same year the Scania-Vabis company was established after the merge between Maskinfabriksaktiebolaget Scania, loacted in Malmö where the trucks and heavy vehicles were produced, and Vagnfabriksaktiebolaget in Södertelge where engines and cars were assembled. Per Alfred Nordeman was the head of the management.

THE ROUGH PERIOD

A newly built foundry for the productions of cylinder heads and blocks was fully operational by 1914. Scania-Vabis was able to export a good number of vehicles to the Baltic states, other Nordic countries and to Russia, but during WWI they operated mostly on their domestic market. The post-war period was a tough one for the company and eventually bankruptcy was declared in 1921. The company was supported by Sweden’s leading industrialists – the Wallenberg family.

The company set their focus on building trucks and buses, and three years later they introduced a radically new model range. The marine engines were first introduced in 1929 and the first diesel engine was produced seven years later. By 1940 the production facilities were doubled. After WWII the demand for new trucks and buses was on the rise, and the company became VW’s general agent in Sweden.

THE MOMENTUM

In the first half of the 50s export grew from a third of the production to more than 50% of it. The demand for heavier trucks grew bigger, and the company began production in Brazil and the Netherlands by the mid-60s. By the end of the decade the signature V8 engine was introduced and vehicle production was nearly tripled.

During the 70s the manufacturer improved the working environment for its employees and was happy to report that Brazil became the largest single market for their machines. A proposed merger with Volvo almost happened in 1977, but it failed for good. Sales skyrocket to nearly 23,000 units sold worldwide in 1979, compared to 12,545 in 1970.

A completely new truck and bus model range is introduced in the early 80s, leading to another increase in sales. In 1987 a new tech-center is opened. By that time the company sold more than 30,000 vehicles in a single year. In the year of the company’s 100th birthday it became the property of a single investor – the AB corporation. Within a couple of years, the company was able to set up new production facilities in France and Poland. The Griffin logo reappears and is used by SAAB AB and Scania AB in 1996 and the company was listed on the New York and Stockholm stock exchange.

THE IMPRESSIVE NUMBERS

The millionth vehicle of the company was produced in year 2000. In that same year a new plant in St. Petersburg in Russia was opened and Volkswagen became the largest shareholder. The 100th anniversary of the first industrial engine produced by the company was marked by the introduction of the high-pressure common-rail fuel-injected system, which enabled the company to become the first to introduce an engine compatible with the Euro 4 emissions standard. Two years later the Euro 5 standard was covered as well. Meanwhile, the company introduced a new range of next generation buses, as well as a new factory in the Netherlands.

By 2011 the engines produced by the company were compatible with the Euro 6 emissions standard which was expected to be set in 2013. In 2014 Volkswagen obtained full control over the company. Around the company’s 125th anniversary, the first hybrid-powered truck was introduced, as well as the most powerful marine engine to date. Within a couple of years, new technology took over, such as side airbag curtains, electric buses and autonomous trucks. The company proved to be ahead of the competition when it comes to implementing technology in their products. The full Scania model range includes construction, distribution and long-haulage trucks, buses and coaches and industrial and marine engines.

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