Assar Gabrielsson works at the SKF-Kugellagerfabrik and, together with Gustaf Larson, the idea of an automobile production. He persuaded his employer to leave him a dormant company called Volvo, together with the equally unused factory on the island Hisingen. The first product is a Öppen Vagn (open car) with 4 cylinders with the name 'Jacob'. Quite unusual for that time much colder Sweden, but that the cars are just at the time. It is clever, when inexperienced constructing engineers start with a thoroughly proven construction.

For the broad masses in the then relatively poor Sweden, the expensive car is prohibitive. But it is a local product, and has also already the typical Volvo-qualities, reliable and robust. Already three months later, a closed car (PV 4) offered with the same car's snout provided and, however with a leather instead of steel disguised rear build. Very quickly, there are several types, including something like a station wagon. A little the car's high price is justified by solidity on many unpaved roads in Sweden at that time. Nevertheless, the company comes financially very difficult over the years. The more prosperous truck sales must help.