Scania motors

First World War and 1920s[edit]

Because there were many inexpensive, imported cars in Sweden at the time, Scania-Vabis decided to build high-class, luxury cars, for instance the type III limousine from 1920 that had a top hat holder in the roof. Prince Carl of Sweden owned a 1913 Scania-Vabis 3S, a type which was fitted with in-car buttons so the passenger could communicate with the driver. Scania-Vabis also built two-seat sports cars (or "sportautomobil").^[9]

For the next few years the company's profits stagnated, with around a third of their orders coming from abroad.^[7] The outbreak of the First World War, however, changed the company, with almost all output being diverted to the Swedish Army. By 1916, Scania-Vabis was making enough profit to invest in redeveloping both of their production facilities.^[7]

Following the war, in 1919, Scania decided to focus completely on building trucks, abandoning other outputs including cars and buses.^[7] However, they were hurt by the swamping of the market with decommissioned military vehicles from the war, and by 1921 the company was bankrupt.^[6]

After some economic difficulties in 1921, new capital came from Stockholms Enskilda Bank owned by the Wallenberg family, and Scania-Vabis became a solid and technically, high standing,