Gustaf Larson

Erik Gustaf Larson (8 July 1887 – 4 July 1968) was a Swedish automotive engineer and the co-founder of Volvo. He held a Master of Science (M.Sc.) degree in mechanical engineering from the Royal Institute of Technology in Stockholm. Larson was responsible for the technical design of the first Volvo model ÖV 4, introduced on 14 April 1927. He and Assar Gabrielsson founded Volvo. He was appointed vice president and technical manager for AB Volvo in Gothenburg, from the time the company was founded 1927. He worked for Volvo until his death in 1968. In June 1924, when Gustav Larson met his old friend Assar Gabrielsson in Skåne, Gabrielsson unveiled his plans to try to establish the manufacturing of a new Swedish automobile. Gustav Larson had worked for SKF between 1917 and 1919 but now worked for the company AB Galco in Stockholm. They made a verbal agreement in August 1924 at the Sturehof restaurant in Stockholm, then signed a written contract more than one year later, on 16 December 1925. In this contract Gustav was to carry out the engineering work for a new car, as well as an investment plan for a complete new manufacturing plant, but would only be rewarded for that work in case the project would turn out well. Well meant after at least 100 produced cars and in the case this was 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. Gabrielsson took the economic risks himself and Gustav, in the worst case, would have worked on the project without being rewarded, but still would have had his salary from AB Galco in Stockholm. Most of the capital that Gabrielsson intended to use for the project initially was actually extra sales commissions that he had saved from the time he was the managing director for the SKF subsidiary in Paris in 1921–22. Gabrielsson had decided to build a test series of ten vehicles with his own financing and later present the car and an entire investment plan to SKF.