How North Korea stole a thousand Volvos from Sweden

In the annals of international diplomacy and trade, few stories are as bizarre and enduring as the “theft” of 1,000 Volvo cars by the Democratic People’s Republic of Korea. This episode, which began in the 1970s, remains a striking example of the complexity and risks associated with international business relations, especially with a country as unpredictable as North Korea. In the early 1970s, North Korea became a focus of Sweden’s attention for several reasons. Some politicians in the Swedish parliament, the Rikstag, who held socialist views, insisted on official recognition and support for the North Korean state. At the same time, influential representatives of Swedish industry expressed interest in the country’s vast natural resources. Moreover, North Korea itself was at the time demonstrating impressive rates of economic development.

The Kingdom of Sweden generally sought to establish itself as a neutral intermediary and trading partner with countries on both sides of the Cold War. As part of these efforts, Sweden became one of the first Western countries to establish diplomatic relations with North Korea. This diplomatic breakthrough was accompanied by a significant commercial agreement: North Korean President Kim Il-sung agreed to purchase 1,000 Volvo 140-series sedans, as well as various other industrial goods, including mining equipment and paper pulp, for a total of approximately 600 million Swedish kronor (equivalent to approximately $200 million today).

In 1966, Volvo launched the 144 series. Its timeless design, safety features, and classic Volvo practicality made it a bestseller. Over the next eight years, 523,808 models were produced. Pictured is a North Korean 140. In 1974, the 140 series was replaced by the 240. The new generation of cars, represented by the 200 series, retained the recognizable features of their predecessors — the 140 and 164 models (the number 6 signifies the luxury version), as they were based on an identical body platform.

However, this series stands out for the introduction of numerous advanced developments (particularly in the area of ​​safety) and design solutions. Improved driver and passenger protection in collisions was achieved by improving the elastic deformation zones of the front and rear body. Another significant innovation was the use of overhead valve engines. New Volvo 144s in GL trim were delivered to North Korea in 1974, toward the end of the 140-series production run.

These robust, reliable, but somewhat outdated vehicles, renowned for their longevity (literally, immortality), were well suited to North Korea’s harsh terrain and limited infrastructure. They were intended for use by government employees and taxis. They were primarily painted a rich emerald green. In fact, in the early 1970s, when Volvo was actively seeking to strengthen its position in the North American market, the Swedish automaker’s advertising campaigns deliberately emphasized the unsightly tendency of American-made cars to fail prematurely. According to marketing materials, Volvo cars were distinguished by their outstanding durability and exceptional functionality.

The argument was based on the fact that cars designed for the harsh Swedish climate, with its freezing winters and often poor road conditions, are capable of withstanding much more forgiving operating conditions without issue. For example, the Volvo 144DL sedan was cited, driven on impeccable roads, which more than guaranteed its trouble-free service for many years. A natural question arose: why replace a car regularly if it’s so reliable?

The Eternal Car in North Korea

To understand exactly what kind of car Volvo delivered to North Korea…

The Volvo 140 was a family of premium compact cars produced by the Swedish car manufacturer Volvo from 1966 to 1974. This series included the two-door Volvo 142 saloon, the four-door Volvo 144 saloon, and the five-door Volvo 145 estate. The Volvo 144 GL (Grand Luxe) trim level was a premium, upscale version of the standard 140 series. Unlike the base “L” trim level or the mid-range “DL” (De Luxe) trim level, the flagship GL model offered luxury features approaching the level of the prestigious Volvo 164. While the base 144 was equipped with a carbureted engine and could produce 82–90 hp, the 144 GL was equipped with performance-oriented B20E or B20F (2.0 L) engines with electronic fuel injection (EFI). This increased power to approximately 124–126 hp compared to base models. Standard transmissions for the GL included a manual transmission with electric overdrive or an automatic transmission, providing a much smoother and more comfortable ride compared to base models.

The GL trim featured higher-quality materials, such as leather or upgraded velour seats (instead of the standard vinyl and cloth found on the L and DL trims), a tachometer, metallic paint, upgraded door panels, and additional wood trim or other luxury features. Standard features included luxury features such as a sliding steel moonroof, tinted glass, a heated driver’s seat, and often an upgraded AM/FM radio system.

Regardless of trim level, the entire 144 model line shared Volvo’s key safety and engineering advancements, including disc brakes on all four wheels, energy-absorbing crumple zones, and a unique three-circuit braking system. If you’re confused, here’s the short version: the Volvo 144 was the safest car of its time (before the 240 series), and VERY reliable.

“Chairs in the morning, money in the evening”

Expected payments from North Korea have not arrived in any form. Despite numerous reminders and diplomatic efforts, the North Korean government has been unable to repay its debt. The reasons for this are numerous, including North Korea’s dire economic situation, its isolationist policies, and, perhaps, the strategic calculation that Sweden, a neutral country with limited enforcement power, would be unable to compel North Korea to repay. For decades, Sweden has regularly sent reminders to North Korea about the unpaid debt, which has now ballooned due to accrued interest. According to the latest estimates, the total debt exceeds 2.8 billion Swedish kronor. Despite these efforts, North Korea continues to stubbornly ignore the demands. This debt has become something of a running joke in Sweden, symbolizing the futility of fighting an opaque and stubborn regime. It also serves as a cautionary tale about the risks of international trade with unstable and unpredictable partners. In North Korea, private cars have always been a rarity, especially in the 1970s and 1980s.

Towards the end of the 1980s, when the country began to admit a limited number of tourists, foreign visitors on closely monitored tours noticed something unusual captured by their cameras: everything they were shown looked perfectly clean and well-maintained, like an illustration of an ideal state. And what about those old Volvos? They, too, were captured on camera. American marketers weren’t exaggerating when they touted the reliability and durability of Swedish-made cars. Interestingly, many of these Volvos are still in use in North Korea; they can sometimes be seen in photographs and videos from Pyongyang, often used by government officials. This surprising, spontaneous test of Volvos clearly demonstrated the superior quality of Swedish cars, even under extreme conditions. The reason for this is that a significant portion of the cars are used as taxis, which in itself requires intensive use.

Added to this are the harsh climate and poor condition of public roads in smaller cities. Remarkably, all of this occurred without specialized dealership service and even with very limited access to the necessary spare parts. But now that Volvo Cars has been owned by the Chinese auto giant Zhejiang Geely (since 2010), spare parts are readily available even for 50-year-old cars, as even these are manufactured in China. And trade relations between North Korea and China are very strong. Their quality is noticeably lower than that of the parts Volvo made in the 1970s, but for the Koreans, it’s clearly better than nothing.

The Volvo affair has had a lasting impact on relations between Sweden and North Korea. The Swedish government has fully repaid Volvo’s debt to North Korea from public funds, but is still waiting for North Korea to return the money to the Swedish treasury. Although Sweden continues to maintain an embassy in Pyongyang and serves as one of the few Western embassies, economic relations between the two countries have never fully recovered.

In conclusion

Companies, seeking to save face, spent years trying to negotiate debt repayments. Meanwhile, Swedish media outlets, with obvious irony, examined the causes and consequences of this protracted affair. For example, in 1976, the newspaper Expressen ran the catchy headline “Kim Il Sung — A Broke Communist,” listing North Korea’s other financial liabilities. Among them was a hefty debt to the Swiss company Rolex for an alleged order of 2,000 wristwatches with a commemorative engraving, worth $5,000,000. Expensive cars, expensive watches… That same year, Dagens Hyheter reported on North Korea’s hopes of repaying its foreign debts with deliveries of unmined copper and zinc ore, the prices of which subsequently collapsed. Some economists believe that North Korean authorities never intended to pay for imports, and that their true goal was industrial espionage, which likely flourished at the 1975 International Fair.

The era of the 140-series sedan’s dominance on the streets of Pyongyang is coming to an end. Even the legendary Volvo can’t withstand the passage of time, as these cars are over 50 years old. Their former status has been virtually erased, and today they serve as taxis and sometimes as personal vehicles for ordinary citizens. One would like to believe that the North Koreans will preserve at least one of these 140-series cars for a museum display. After all, these cars aren’t just stolen Volvos, but valuable evidence of the history of automotive diplomacy.

Now, despite the initial financial costs, Sweden has established an unprecedented level of trust with North Korea, a level that remains elusive for other Western powers. Although Sweden did not receive payment for the cars, North Korea continues to view the Swedes as reliable intermediaries capable of establishing dialogue, ensuring Pyongyang’s interests are protected in countries such as the United States, Canada, and Australia, and successfully resolving problems their citizens face in North Korea. The value of such close cooperation between an isolated nuclear power and those it considers adversaries is difficult to overstate.

In this context, even the cost of a thousand Volvo cars seems insignificant. Therefore, the Swedish investment likely proved quite profitable. Periodic invoices sent to North Korea serve more as an international tradition than as a genuine demand for repayment.