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49-610: Assar Gabrielsson , Volvo's president and founder, got the idea for the car when he saw a Chevrolet Corvette in the United States and wanted to make something similar. He asked Bill Tritt of Glasspar , an American boatbuilder in Santa Ana , California , to design and tool a fibreglass/reinforced polyester body, which was later produced in Sweden. Glasspar was a pioneer in building fiberglass auto bodies from 1951 to 1957. Erik Quistgaard

98-684: A bachelor's degree in economics and worked as a sales manager with bearing manufacturer SKF in Gothenburg in the early 1900s. He was employed in 1916 by Björn Prytz at the sales department and was appointed sales manager for the entire SKF company group on 20 June 1922. He held that position until the new automobile company AB Volvo was founded as a subsidiary company within the SKF company group. In June 1924, when Assar Gabrielsson met his old friend Gustaf Larson in Stockholm, he unveiled his plans to establish

147-485: A company's business decisions, including those in operations, marketing, business development , finance, human resources , etc. The use of the CEO title is not necessarily limited to describing the head of a company. For example, the CEO of a political party is often entrusted with fundraising, particularly for election campaigns. In some countries, there is a dual board system with two separate boards, one executive board for

196-424: A corporation or company typically reports to the board of directors and is charged with maximizing the value of the business, which may include maximizing the profitability , market share , revenue , or another financial metric. In the nonprofit and government sector, CEOs typically aim at achieving outcomes related to the organization's mission, usually provided by legislation . CEOs are also frequently assigned

245-415: A drive on a holiday weekend and was dissatisfied enough that on returning to his office the following week cancelled the remaining production. "I thought it would fall apart!" is the legendary quote. The Volvo chassis design was far too flexible to accommodate a fiberglass body, and that Volvo resisted recommendations by Glasspar to alter the frame to address their concerns. The total "Volvo Sport" production

294-402: A facade of charm and eloquence. Traits such as courage and risk-taking, generally considered desirable, are often found alongside these psychopathic tendencies. Tara Swart, a neuroscientist at MIT Sloan School of Management , has suggested that individuals with psychopathic traits thrive in chaotic environments and are aware that others do not. As a result, they may intentionally create chaos in

343-462: A formal delegation of authority regarding business administration . Typically, responsibilities include being an active decision-maker on business strategy and other key policy issues, as well as leader , manager, and executor roles. The communicator role can involve speaking to the press and to the public, as well as to the organization's management and employees; the decision-making role involves high-level decisions about policy and strategy. The CEO

392-452: A large amount in automobile companies in order to secure their sales to key customers. However, Gabrielsson failed to convince the board of SKF about his ideas, as SKF's core business model was the manufacturing of bearings with no room for the incorporation of an automobile company. Assar then decided to build a test series of ten vehicles with his own financing to later present the vehicles and an entire investment plan to SKF. The idea to build

441-446: A leaseholder of Spännefalla farm near the dairy in Tibro , where he started an egg shop. Assar Gabrielsson was the first child of three. He had a brother five years younger, Börje Gabrielsson, who in parallel with Assar was the managing director of Astra for thirty years. He passed studentexamen in 1909 and graduated from Stockholm School of Economics in 1911. Assar Gabrielsson held

490-611: A lot of orders that Gustav Larsson made himself, he referred to Assar Gabrielsson as a "guarantee" that the deliveries would be paid by him personally. These details shows that the Volvo automobile project in the beginning was a true private project, not sponsored by SKF from an economic point of view. The first prototype car was ready in June 1926. Assar and Gustav took that first car and drove themselves, on bumpy roads, down to SKF in Gothenburg to show

539-422: A new manufacturing plant, with the stipulation that he would only be rewarded for his work in the event that; the project succeeds, at least 100 cars were produced in this new plant, and that this was to be achieved before 1 January 1928. This famous contract shows that Assar Gabrielsson "owned" the project and that it was a high-risk project without any guarantees. Assar took the economic risks himself and Gustav, in

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588-431: A pre-series of ten vehicles was most certainly related to the fact that no company would have given them an offer for the components (engines, gearboxes, chassis components etc.) with a lesser quantity, and because Assar was certain that SKF would approve his plans in due time. Engineering, documentation and investment planning was carried out exactly in the same way as if it had been carried out by SKF in order to prepare for

637-596: A source of criticism following a dramatic rise in pay relative to the average worker's wage . For example, the relative pay was 20-to-1 in 1965 in the US, but had risen to 376-to-1 by 2000. The relative pay differs around the world, and, in some smaller countries, is still around 20-to-1. Observers differ as to whether the rise is due to competition for talent or due to lack of control by compensation committees. In recent years, investors have demanded more say over executive pay. Lack of diversity amongst chief executives has also been

686-499: A source of criticism. In 2018, 5% of Fortune 500 CEOs were women. In 2023 the number rose to 10.4% of for Women CEO's of Fortune 500 companies . The reasons for this are explained or justified in various ways, and may include biological sex differences, male and female differences in Big Five personality traits and temperament, sex differences in psychology and interests, maternity and career breaks, hypergamy , phallogocentrism ,

735-588: Is interred at Kvastekulla griftegård in Partille . Managing director A chief executive officer ( CEO ), also known as a chief executive or managing director , is the top-ranking corporate executive charged with the management of an organization , usually a company or a nonprofit organization . CEOs find roles in various organizations, including public and private corporations , nonprofit organizations , and even some government organizations (notably state-owned enterprises ). The governor and CEO of

784-402: Is often used in lieu of chief executive officer. Business publicists since the days of Edward Bernays (1891–1995) and his client John D. Rockefeller (1839–1937) and even more successfully the corporate publicists for Henry Ford , promoted the concept of the " celebrity CEO". Business journalists have often adopted this approach, which assumes that the corporate achievements, especially in

833-418: Is sometimes included as one such subordinate executive officer, but, as suggested by Anthony Johndrow, CEO of Reputation Economy Advisors, it can also be seen as "simply another way to add emphasis to the role of a modern-day CEO – where they are both the external face of, and the driving force behind, an organization culture". In the US, the term "chief executive officer" is used primarily in business, whereas

882-427: Is tasked with implementing the goals, targets and strategic objectives as determined by the board of directors. As an executive officer of the company, the CEO reports the status of the business to the board of directors, motivates employees, and drives change within the organization. As a manager, the CEO presides over the organization's day-to-day operations. The CEO is the person who is ultimately accountable for

931-532: Is to prevent a conflict of interest and too much power being concentrated in the hands of one person. In the United States, the board of directors (elected by the shareholders ) is often equivalent to the supervisory board, while the executive board may often be known as the executive committee (the division/subsidiary heads and C-level officers that report directly to the CEO). In the United States, and in business,

980-541: The Dictionary says that the use of "CEO" as an acronym for a chief executive officer originated in Australia , with the first attestation being in 1914. The first American usage cited is from 1972. The responsibilities of an organization's CEO are set by the organization's board of directors or other authority, depending on the organization's structure. They can be far-reaching or quite limited, and are typically enshrined in

1029-512: The chairman of the board ( CEO ) of the Volvo group, a position he held until his death in 1962. Gabrielsson married on 4 March 1916 to Anna Theresia ("Tessan"), née Andreasson (1889–1964) in Skövde , the daughter of lineman Johan Peter Andreasson (1849–) and his first wife Augusta Mathilda Nyberg (1862–). The Gabrielsson couple lived for many years at Kungsportsavenyen 34 in Gothenburg. and had four children: Lars, Barbro, Jan and Bo. Gabrielsson

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1078-571: The 50,000th Volvo car was delivered. It took ten years to produce the first 25,000 cars but only four years for the next 25,000 cars. In 1944–45, just after the end of the Second World War , the 'modern' family car PV444 was introduced with a completely new design. The PV444 was an immediate sales success. The company now stood on solid ground and the production of both cars and trucks was increasing fast. Assar Gabrielsson held his position as managing director for AB Volvo until 1956 when he became

1127-535: The CEO is also the president, is the vice president (VP). An organization may have more than one vice president, each tasked with a different area of responsibility (e.g., VP of finance, VP of human resources). Examples of subordinate executive officers who typically report to the CEO include the chief operating officer (COO), chief financial officer (CFO), chief strategy officer (CSO), chief marketing officer (CMO) and chief business officer (CBO). The public relations -focused position of chief reputation officer

1176-627: The SKF-board and now present the final investment plan. At a board meeting held in Hofors , Sweden on 10 August 1926, SKF decided to use the old subsidiary company Volvo AB, for the automobile project. AB Volvo, that was first registered in 1915 on the initiative of Björn Prytz, was originally set up to be used for a special series of ball bearings for the American market but it was never really used for this purpose. A small series of ball bearings stamped with Volvo

1225-525: The UK, chief executive and chief executive officer are used in local government , where their position in law is described as the "head of paid service", and in business and in the charitable sector . As of 2013 , the use of the term director for senior charity staff is deprecated to avoid confusion with the legal duties and responsibilities associated with being a charity director or trustee, which are normally non-executive (unpaid) roles. The term managing director

1274-471: The US market. Assar Gabrielsson Assar Thorvald Nathanael Gabrielsson (13 August 1891 – 28 May 1962) was a Swedish industrialist and co-founder of Volvo . Gabrielsson was born on 13 August 1891 in Korsberga , Skaraborg County , Sweden, the son of Gabriel Nathanael Gabrielsson and Anna Helmina Larsson, who married on 14 April 1889. The father was a manager at Korsberga brickworks and later became

1323-422: The arena of manufacturing, are produced by uniquely talented individuals, especially the "heroic CEO". In effect, journalists celebrate a CEO who takes distinctive strategic actions. The model is the celebrity in entertainment, sports, and politics – compare the " great man theory ". Guthey et al. argues that "...these individuals are not self-made, but rather are created by a process of widespread media exposure to

1372-518: The automobile business. By the end of 1930 AB Volvo showed a small profit for the first time. In 1935 SKF came to the conclusion that AB Volvo was ready to stand on its own feet as a public company, introducing Volvo to the Stockholm stock exchange . With this move, SKF relieved themselves of a majority of their shares and could now concentrate on their core business, development and manufacturing of bearings. When Assar celebrated his 50th birthday in 1941,

1421-617: The case of a partnership , an executive officer is a managing partner, senior partner, or administrative partner. In the case of a limited liability company , an executive officer is any member, manager, or officer. Depending on the organization, a CEO may have several subordinate executives to help run the day-to-day administration of the company, each of whom has specific functional responsibilities referred to as senior executives, executive officers or corporate officers. Subordinate executives are given different titles in different organizations, but one common category of subordinate executive, if

1470-595: The central idea was to start an automobile manufacturing business within SKF to gain advantages over competitors when developing new bearings for the automobile industry, which would also lead to increased sales of bearings and in turn lead to positive effects on Swedish industry as a whole. He developed these ideas during the time he worked as managing director for the SKF subsidiary company in Paris 1921-22 when he discovered that competing bearing companies in Europe had started to invest

1519-450: The day-to-day business and one supervisory board for control purposes (selected by the shareholders). In these countries, the CEO presides over the executive board and the chairperson presides over the supervisory board, and these two roles will always be held by different people. This ensures a distinction between management by the executive board and governance by the supervisory board. This allows for clear lines of authority. The aim

Volvo P1900 - Misplaced Pages Continue

1568-492: The executive officers are usually the top officers of a corporation, the chief executive officer (CEO) being the best-known type. The definition varies; for instance, the California Corporate Disclosure Act defines "executive officers" as the five most highly compensated officers not also sitting on the board of directors. In the case of a sole proprietorship , an executive officer is the sole proprietor. In

1617-562: The existence of old boy networks , tradition, and the lack of female role models in that regard. Some countries have passed laws mandating boardroom gender quotas. In 2023 Rockefeller Foundation awarded a grant to Korn Ferry to research strategies and then action a plan to help more women to become CEO's. There are contentious claims that a significant number of CEO's have psychopathic tendencies, often characterized by power-seeking behavior and dominance. These individuals can often conceal their ruthlessness and antisocial behavior behind

1666-530: The manufacturing of a new Swedish automobile. Gustaf Larson had worked for SKF between 1917 and 1919 but now worked for the company AB Galco in Stockholm. They made an agreement in August 1924 at the Sturehof restaurant in Stockholm, signed in a written contract more than one year later, on 16 December 1925. In this contract Gustav was supposed to carry out the engineering work for a new car as well as an investment plan for

1715-409: The point that their actions, personalities, and even private lives function symbolically to represent significant dynamics and tensions prevalent in the contemporary business atmosphere". Journalism thereby exaggerates the importance of the CEO and tends to neglect harder-to-describe broader corporate factors. There is little attention to the intricately organized technical bureaucracy that actually does

1764-662: The production of trucks began with the basic chassis components from ÖV4. The production of trucks was small-scale in the beginning, but the concept was successful from start. Regardless, in late 1929 SKF nearly sold the company to Charles Nash , president of Nash Motors in the United States . Björn Prytz and Assar Gabrielsson managed to convince the SKF board to call the deal off, just one day before Charles Nash arrived by boat to Gothenburg . Charles Nash and Assar Gabrielsson became good friends during his visit in Sweden, and Assar later visited Nash in America on several occasions to discuss

1813-738: The role of the main manager of the organization and the highest-ranking officer in the C-suite . The term "chief executive officer" is attested as early as 1782, when an ordinance of the Congress of the Confederation of the United States of America used the term to refer to governors and other leaders of the executive branches of each of the Thirteen Colonies . In draft additions to the Oxford English Dictionary published online in 2011,

1862-484: The set up of a new automobile company. Assar had the full support from the managing director of SKF, Mr. Björn Prytz , as long as his 'private' project did not interfere with his work as sales manager at SKF. The first ten pre-series vehicles, model ÖV 4 , were designed and assembled in Stockholm at AB Galco under the supervision of Gustav Larson, at that time still having his other work at AB Galco to attend to. A "design-office", often called "Volvo's first design-office",

1911-409: The term "executive director" is used primarily in the not-for-profit sector. These terms are generally mutually exclusive and refer to distinct legal duties and responsibilities. The CEO is the highest-ranking executive in a company, making corporate decisions, managing operations, allocating resources, and serving as the main point of communication between the board of directors and the company. In

1960-457: The work. Hubris sets in when the CEO internalizes the celebrity and becomes excessively self-confident in making complex decisions. There may be an emphasis on the sort of decisions that attract the celebrity journalists . Research published in 2009 by Ulrike Malmendier and Geoffrey Tate indicates that "firms with award-winning CEOs subsequently underperform, in terms both of stock and of operating performance". Executive compensation has been

2009-790: The workplace. This perspective is explored in the book Snakes in Suits , co-authored by Robert D. Hare . However, Scott Lilienfeld has argued that the attention given to psychopathy in the workplace by both the media and scholars has far exceeded the available scientific evidence. Emilia Bunea, writing in Psychology Today , has linked psychopathic traits in managers to workplace bullying , employee dissatisfaction, and turnover intentions. Despite this, Bunea cautions that excessive worry about supposed psychopathic managers could discourage individuals from pursuing careers in corporations and deter employees from addressing issues with difficult bosses. In

Volvo P1900 - Misplaced Pages Continue

2058-461: The worst case, would have worked on the project without being rewarded, but would still have his salary from AB Galco in Stockholm. Most of the startup capital Assar intended to use for the project was extra sales commissions that he had saved from his time as managing director for the SKF subsidiary in Paris from 1921 to 1922. The original idea, presented by Assar to SKF, consisted of a few main points;

2107-644: Was appointed as development team leader. The car was built on a tubular-steel chassis and used the Volvo PV444's 1414 cc engine producing 70 hp (52 kW). The engines (B14A and B16B ) were fitted with twin SU carburetors , driving through a three-speed manual gearbox . Many other parts were taken also from the Volvo PV444. Demand was low, and the build quality was not up to Volvo standards. Gunnar Engellau , who replaced Gabrielsson as president in 1956, took one for

2156-452: Was appointed president and managing director for the 'new' Volvo AB on 1 January 1927. Gustav Larson was at the same time appointed vice president and technical manager and left his employment at AB Galco in Stockholm. On 14 April 1927 at about 10 p.m., the first series produced ÖV 4 left the new established factory on Hisingen in Gothenburg . The ten prototype cars that had been assembled in Stockholm were never sold, except for one that

2205-418: Was established in one room of Gustav Larson's private apartment at Rådmansgatan 59 in Stockholm. The design work started in the autumn of 1924 and a number of engineers were involved, among them engineer Jan G. Smith , that had returned from America in 1924, and later engineer Henry Westerberg . All the invoices related to the project was sent to Assar's private address at Kungsportsavenyn 32 in Gothenburg. In

2254-413: Was manufactured but it was never introduced on a larger scale. A contract was signed on 12 August 1926 between SKF and Assar, stipulating that all ten prototype cars, engineering drawings, calculations etc. should be handed over to Volvo AB and Assar in return would be refunded most of his private investments for the prototype cars. In other words, Assar Gabrielsson sold his project to AB Volvo. The contract

2303-517: Was signed by Björn Prytz , managing director of SKF and Assar Gabrielsson. In the original contract from 16 December 1925 Assar stated that he might sell the automobile project to any company that would be interested, but of course hoped that SKF would be the company to stand first in line. Larsson also finally got paid for the initial engineering work with the ÖV4 according to the 'private' contract he and Assar had signed on 16 December 1925. Assar Gabrielsson left his position as sales manager for SKF and

2352-596: Was sixty-eight cars, plus four or five prototypes . Forty-four were built in 1956, mostly for the Swedish market, and most still survive. The bulk of 1957's production went to the U.S. and elsewhere, and fewer of these are still in existence. The development of the P1900 led to the tuning of the B-16 engine however, which was later put into the PV 444 series, making this car powerful enough to enter

2401-494: Was sold to Volvo's photographer Sven Sjöstedt and was later donated to the Volvo Industrial Museum around 1930, but was used as transportation vehicles within the manufacturing plant and as 'test benches' for new developed components during the first years. Volvo did not show any profit for the first couple years and SKF invested a large amount of capital to keep the company running. Seeing the need to diversify, in 1928

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