Scania Trucks

The Scania Trucks Company

Scania Trucks, also known as Scania AB or Aktiebolag, is a Swedish automaker famous for its commercial vehicle line-up. The company manufactures diesel engines for industrial applications and for the marine industry apart from heavy vehicles.

 It dates back to the year 1891 in the city of Sodertalje where its head quarters are still located. However, the company has been able to expand its operations to target a global audience with over 10 facilities situated in different parts of Europe, Russia and South America. Scania trucks assembly lines are located in African and Asian countries as well.  

The History

Scania AB was established as the result of a merger between Vabis and Scania. Vabis was the original company, which was founded in 1891 and was initially in the steel manufacturing business. It was in the year 1902 that they built the first commercial truck powered by petrol driven engine and a 2-speed gearbox.

Scania on the other hand came into existence in the year 1900 in the city of Malmo as a bicycle manufacturer and then moved on to introduce its first car models in 1903. It was in 1905 that this company built the first trucks.

The merger between the two companies took place in 1911 following the financial problems being faced at the time by Vabis. The new company became known as AB Scania-Vabis with car production taking place in Sodertalje and trucks being produced in Malmo.

During the next few years, Scania trucks became increasingly popular with high demand and sales. However, with the start of the World War I, the company again faced problems because most of their production was for the Swedish Army.

It was announced in 1919 that Scania-Vabis will focus all its efforts on building trucks and the cars and buses were discontinued. This was when the company became more popularly known as Scania Trucks rather than Scania-Vabis.

By trying to improve the financial situation and increasing the profitability, Scania managed to establish a strong reputation for itself in the global market. After World War II, the company became an agent for the Willys Jeep and the Volkswagen Beetle, which was again a good decision.

Even during the war, Scania produced a wide variety of trucks and heavy vehicles for the Swedish Army allowing it to expand and grow further.  

Another merger took place in 1969 with a well-known automaker by the name of Saab. The name was again changed from Scania-Vabis to AB Saab-Scania AB. In 1995 however, the company was split and the truck and bus division became known as Scania AB.  

The Ownership

Scania trucks became so popular in the international market that several automotive giants saw it as a great opportunity to buy the company. There was a takeover bid that included the scania truck parts division, which was made by Volvo trucks and MAN trucks, but both deals did not go through to the end. Today, Volkswagen AG, the German automaker is one of the company’s largest shareholders.