Who would have thought that North Korea, Switzerland, and a Volvo 144 would come together to orchestrate one of the world’s biggest car thefts? And to add to the intrigue, one party still owes the other!
Back in the 1970s, amidst North Korea’s industrialization efforts, a peculiar incident with Sweden unfolded, marking not just a diplomatic debacle but also one of history’s most intriguing car thefts.
When Sweden’s prominent car brand found its way into North Korea, no one anticipated the turn this deal would take. How did a car shipment agreement turn into a scandalous theft?
In the 1970s, North Korea was building up its industrial economy and seeking assistance from other countries. Sweden saw Korea as a lucrative market opportunity. Swedish companies like Volvo, ASEA, Kockums, Atlas Copco, and Alfa Laval sought to export their products to the country and organized an industrial fair in Pyongyang. In 1974, the Swedish government struck a deal with North Korea, sending 1000 Volvo 144 sedans, considered among the world’s safest and sturdiest cars at the time, for use as taxis, along with over $70 million worth of heavy machinery.
However, North Korea never paid for any of these vehicles.
To this day, North Korea has yet to settle the bill. According to the Swedish Export Credit Agency, the unpaid invoices, including interest and penalties, have amounted to over $322 million. Despite sending invoices twice a year, Sweden’s attempts to collect the debt have been in vain.
This unpaid bill strained diplomatic and economic relations between Sweden and North Korea. The incident earned the title of “the world’s largest car heist,” dissuading car manufacturers from ever attempting to send cars to North Korea again.
But how are these old cars preserved today?
There’s still a mystery surrounding how North Koreans maintain their old Volvo 144 cars. They are predominantly used as taxis, and theories suggest that the agreement with Sweden may have included a provision for a significant supply of spare parts. Other theories speculate that spare parts are smuggled into the country or that North Korea has its own small imitation industry to reproduce car parts. Regardless, this incident continues to be remembered as the “greatest car theft in history.”
