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The same year, the Volvo Group joined Renault and Peugeot in a far-reaching engine development venture, forming a joint company known as PRV for the purpose. The aim was to produce six-cylinder engines at a plant in Douvrin in the north of France. Production at the facility, which was owned jointly by Renault and Peugeot, continued until 1990.

Volvo commenced car production in Melbourne, Australia in 1971.

1972 - Belt-Driven Volvo

The Volvo Group has acquired a large number of other companies throughout its history. However, this includes only one carmaker - DAF. To meet the wishes of dealers anxious to complement their ranges with a small car,
Volvo agreed to acquire a 30% shareholding in the Dutch company's car operation and its plant at Born in the southern Netherlands, as of 1
January 1973. In 1975, Volvo increased its shareholding to 75% and the company was renamed Volvo Car B.V.

Although not an attractive model, the Volvo Experimental Safety Car (VESC) provided a powerful answer to existing and future traffic safety problems, not only in Europe, but especially in the USA.

Volvo's first environmental policy was articulated by P.G. Gyllenhammar at the UN Environmental Conference in Stockholm.

A seat belt reminder was the biggest safety innovation introduced in production models.

Inertia reel belts also made their appearance in the rear seats.

The company's biggest investment in 1972 was the new Volvo Technical Centre
(VTC), which was built to house all new car development activities.

1973 - Fantastic Test Track

The original test track at Stora Holm had become far too small and too difficult to shield from the prying eyes and lenses of a press anxious to uncover secret projects. As a result, the company decided to build an enormous test facility at Hдllered, deep in the forest between Gцteborg and
Borеs. The principal feature was the main track, a six-kilometre oval with four lanes and banked bends, which enabled a driver to drive at 200 km/h without touching the wheel.

Volvo was to start car production in Chesapeake, Virginia in 1973. However, economic conditions, combined with the first oil crisis, dictated otherwise and it was decided to build buses instead. In the event, this was not a success and the plant was finally used to produce Volvo Penta engines and drives. Volvo Penta's American headquarters are still located in Chesapeake today.

The USA became Volvo's biggest car market.

1974 - 'Human' Plant Opened in Kalmar

Volvo inaugurated what was to become known as the 'human car plant' in
Kalmar. In the new facility, the conventional production line was replaced by a system of manually controlled carriers, with automatic loop-controlled carriers supplying the assembly materials. The workforce was organised in autonomous groups, each with a high degree of responsibility for its own work. In its 20 years of operation, the plant attracted international attention as a model working environment.

The biggest car news of the year was the appearance of the successor to the
140/160 series, the Volvo 240/260, which bore a strong resemblance to the
1972 VESC, not only in terms of appearance but also as regards safety features. The Volvo 240 was subsequently designated as the standard for car safety in the USA. The Volvo 260 was powered by a newly developed V6 engine produced at the PRV plant in Douvrin.

1975 - The Smallest Volvo Ever

DAF cars continued to be sold under their original name for some years following the Volvo takeover. By 1975, however, the DAF 66 had improved to the extent that it was renamed the Volvo 66.

Volvo was already working in collaboration with Yngve Nilsson, a bodybuilding firm located in Laholm, south of Gothenburg. In 1975, the company introduced no less than three specially built, 'stretched' models bodied by Nilsson - the Volvo 245 T (a 'stretched' 245 intended as a taxi), the 265 Ambulance and the 245 Hearse.

1976 - A Rugged New Arrival

The most important reason for Volvo's acquisition of DAF - the Volvo 343 - was introduced in February 1976. A medium-class car with rugged styling, the model was equipped with DAF's unique Variomatic continuously variable transmission. Extremely easy to drive, the car boasted exceptional handling thanks to its advanced design of rear axle, combined with the ideal weight distribution afforded by the rear-. mounted transmission Although the 343 suffered from a number of teething troubles, these were soon corrected and the car became extremely popular, especially in Britain, Sweden and the
Netherlands.

In Britain, Volvo was awarded the prestigious Don Safety Trophy for its achievements in automotive safety.

The NHTSA, the US traffic safety administration, bought a number of Volvo
240s, which it used to specify the safety standards against which all new cars on the American market were tested.

The three-way catalytic converter and oxygen sensor (Lambdasond) was a world first from Volvo in 1976. Introduced primarily to meet the strict emission control standards in force in California, the system reduced hazardous emissions by about 90%.

Volvo had now produced three million cars.

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