Remembering Pehr G. Gyllenhammar, The Consequential, Controversial CEO Of Volvo

Photos are courtesy of Volvo Cars Media and the Volvo Historical Archives

He was the face of Volvo from 1971 through 1993, and the man who made a small Nordic automaker a notable player on the automotive world stage. Pehr Gustaf Gyllenhammar, popularly called “PG” and famous in Sweden and beyond, died on November 21 at the age of 89.

Born in Gothenburg on April 28, 1935 and educated as a lawyer, Gyllenhammar could have been said to have married into Volvo AB; indeed, he wed Christina Engellau, daughter of Volvo CEO Gunnar Engellau and his wife, Margit, in 1959. Gyllenhammar started at Volvo in 1970 and took over his father-in-law’s position in 1971. He encouraged the company’s focus on safety and environmental responsibility in its products, and promoted new ways of building cars that were considered more humane than the sometimes grueling assembly line. His job shifted to chairman of the board in 1983, a role he would hold for a decade. This outspoken, high-profile businessman would repeatedly be voted Sweden’s most admired person.

Acquisitions and Mergers

Aside from the P1800 sports coupe, Volvo never built a small car, and its products were never economy-priced; recognizing the need for smaller and cheaper offerings, Gyllenhammar oversaw the purchase of 33-percent of shares in the Dutch vehicle producer DAF’s car division in late 1972; after numerous improvements, its 66 -famous for DAF’s Variomatic CVT transmission- would be badged as a Volvo. This model and its successor 343 used four-cylinder engines sourced from Renault. By 1975, Volvo assumed control of DAF and renamed it Volvo Car B.V.

Just two years later, he led Volvo to propose a Swedish-government-approved merger with fellow car and truck builder Saab-Scania, but Saab executives ultimately didn’t agree and this idea was dropped in late August 1977.

Volvo had been working closely with French automakers Renault and Peugeot since the trio established PRV in 1971 to build the B27 V-6 initially used in the Volvo 260 variants, among many other vehicles; the B28 and B280 would power later 260s, the 760, and the 780. Renault would acquire a 10-percent stake in Volvo in 1978.

And in the proposed deal that came to end his tenure at Volvo, Gyllenhammar was at the helm of a proposed merger with Renault in the early 1990s that would see Renault run the combined company’s car division and Volvo handling both firms’ trucks. This was ultimately voted down by the Volvo board and shareholders. He resigned in protest, and Volvo and Renault would dissolve their ties in 1994. Just five years later, Volvo Cars became part of the Ford Motor Company.

Turbo-Power Hungry

There was no doubt that Gyllenhammar was an enthusiast driver, having green-lighting Volvo’s popular turbocharged model variants. Since he preferred to drive himself to work, rather than be chauffeured, he enjoyed numerous specially built company cars that performed notably better than regular-production models.

1980 244 Turbo

The Volvo CEO’s favorite color for cars was bright red, a shade he would request at least four times in his company cars. The first all-red one was a 244 built in 1980 with the 155-hp B21ET/M46 four-speed-manual-with-overdrive pairing, one year before the 240 Turbo model was officially launched. This car actually incorporated a Saab 99 Turbo‘s VDO boost gauge into the center of the dashboard, and like all his cars, it contained a wired-in mobile telephone.

1981 262C Coupé Turbo

Volvo’s 262C, built by Carrozzeria Bertone in Italy between 1978 and 1981, was a luxury model powered by a 2.7- or 2.8-liter Peugeot-Renault-Volvo V-6. This somnambulant engine wasn’t peppy enough for the company CEO, who commissioned a special example of the final-year Coupé, trimmed entirely in red with Turbo-style black accents and fitted with Volvo’s B21ET and a M46- a driveline never sold to the public in this model.

1985 780 Turbo

On the occasion of his 50th birthday in 1985, PG Gyllenhammar was presented with the 31st Volvo 780 to be built. This unique coupe, dripping in his trademark red, followed the lead of his 1981 Bertone Coupé and swapped the standard 2.8-liter PRV V-6 for a 156-hp B230ET turbocharged four-cylinder mated to the M46 manual transmission; Volvo wouldn’t offer a version of this engine in the 780 until 1989. It contained a prototype trip computer in the instrument cluster and even the shift knob was color-matched.

More Special Wheels

Gyllenhammar later ran a pair of manual-transmission, turbocharged 240 sedans (turbos were no longer offered in this model), one painted silver-gray metallic over matching plush upholstery that was specially powered by a 16-valve engine making 245 hp, and the other painted forest green over matching green leather.

The final red Volvo built for the chairman of the board was a 1993 850 GLT with a lurid, all-red (including the dashboard!) interior; this turbocharged five-cylinder car, which he had before that engine’s 1994 public release, differed from the rest by having an automatic transmission.

Many of these cars remain in Volvo Cars’ heritage collection and all have been displayed at the now-closed Volvo Museum, so there’s a chance they may reappear at the World of Volvo.

Volvo Cars remembered Gyllenhammar with this statement:

“It is with deep sorrow we have learned that Pehr Gustaf Gyllenhammar, known to most of us as “PG”, has passed away at the age of 89. PG served as CEO of AB Volvo 1971-1983 and Chairman of the Board 1983-1993 and was instrumental in shaping Volvo Cars into what it is today. Among his many significant and pioneering contributions to our company, he championed a steadfast commitment to safety, enhancing our focus even further on building safe family cars.

For more than two decades, PG Gyllenhammar was an immensely important person for Volvo Cars, both as a leader and as a person. With his unwavering dedication and charismatic leadership, he often sparked spirited discussions and debates about the things he was passionate about, and his strong personality made him one of the most popular people in all of Sweden.

PG will be fondly remembered within our company. Our thoughts and condolences go out to his family and loved ones during this difficult time.”

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