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The North Korea Volvo Deal<\/h2>\n\n\n\n
Part of modernizing North Korea was bringing in new cars, and the Volvo 144s was a brilliant choice. Sturdy and rectangular, these Volvos were reliable, no nonsense cars that would last for a long time\u2013exactly what North Korea was looking for. <\/p>\n\n\n\n
Better yet, Sweden was also in the position to send North Korea a plethora of heavy mining equipment as well. The deal would earn Sweden $70 million, and also serve as the first inroads into the North Korea market for the Scandinavian country. <\/p>\n\n\n\n
The first order from Sweden to North Korea was 1,000 Volvos, mostly the 140 series with a few new 240 series in the mix. The deal was so important and monumental for the two countries that talks immediately sprang up about Sweden having an embassy in North Korea, an almost unheard-of thing at the time. <\/p>\n\n\n\n
So, with that, the heavy mining machinery and boxy Volvos were on their way, with the cars quickly being distributed among the favored of Kim-Il-Sung. At the same time, the first Western embassy, the Swedish embassy, was founded in Pyongyang. <\/p>\n\n\n\n
The first diplomat to North Korea was a Swedish diplomat named Erik Cornell. He described Pyongyang as \u201cSnowy, windy, cold.\u201d and mentioned that \u201cYou couldn\u2019t go into a cafe or restaurant because there were none.\u201d <\/p>\n\n\n\n
Cornell served as the diplomat to North Korea for only two years, from 1975 to 1977.<\/p>\n\n\n\n
North Korea and the Stolen Volvos: Where Did Things Go Wrong?<\/h2>\n\n\n\n
Once the Swedish embassy was opened in Pyongyang, Cornell noticed that things weren\u2019t running as smoothly as they appeared on the outside looking in. <\/p>\n\n\n\n
Then, just as quickly as it had started, North Korea\u2019s trade with the West came to a standstill. None of the invoices were being paid, which meant that none of the traded goods had actually been purchased. They had just been given to North Korea, and the country seemed perfectly content to never pay for them. <\/p>\n\n\n\n
All of that industrial equipment that Sweden had sent over was never put to use. The Volvos, though, were definitely being driven, even if they had essentially been stolen. <\/p>\n\n\n\n
For years, the stolen Volvos could be seen in the backgrounds of the rare picture from Pyongyang, and visiting journalists and political figures were always given one of the infamous Volvos as their vehicle for the extent of their stay. <\/p>\n\n\n\n
Despite the shady business doings, Sweden still retains one of the best relationships with the North Korea government out of any other country. Sweden\u2019s embassy still exists in Pyongyang, and their presence there allows them to work as the go-between with other Western countries like America and the mysterious, often hostile North Korean government. The Swedish Embassy even steps in when American citizens are detained in North Korea<\/a>, doing what they can to help. <\/p>\n\n\n\n To this day, Sweden is still trying to acquire payment from North Korea, even if it has become a lost cause at this point. Sweden sends North Korea twice-yearly reminders about the bill for the Volvos that still remains unpaid, but North Korea never responds. Maybe the letter is just getting lost in the mail.<\/p>\n\n\n\n Even now, some of the Volvos can still be seen cruising the empty streets of Pyongyang, but they aren\u2019t quite the status symbols they once were. Instead, you\u2019re more likely to see the Volvo 144s working as taxis<\/a> and other sorts of casual transportation. There aren\u2019t many left, but they aren\u2019t extinct yet, either. <\/p>\n\n\n\n While the initial cost of the Volvos and accompanying machinery was $70 million, with interest, that debt has ballooned to an astounding $322 million. The Swedish government paid Volvo for their product, but they themselves are still left holding the bill after all these years. <\/p>\n\n\n\n It isn\u2019t all bad news, though. Sweden still has more trust from North Korea than most other countries on the planet, so that might just make the price tag of 1,000 Volvos worth it. <\/p>\n\n\n\n \u201cHow a thousand unpaid-for Volvos created a diplomatic bridge between Sweden and North Korea\u201d<\/strong><\/p>\n\n\n\nThe Legacy of the North Korean Volvos <\/h2>\n\n\n\n
References <\/h2>\n\n\n\n