There was a Swedish steam car built in 1891, but it was 1898 before an internal combustion engine was put into an automobile for Vabis. Scania diversified from making bicycles to automobiles and trucks from 1902. In 1911 Scania and Vabis merged, but car production did not prove profitable and in 1921 they were bankrupt. However, Scania-Vabis then received a large order to make postal buses and after that they concentrated on bus and truck manufacture. Volvo set up in 1927, mainly producing trucks and few cars, but car production took off during the 1950s. Saab AB diversified into car production in 1949 needing new products to fill the declining military aircraft market. Saab and Scania-Vabis merged together in 1969. DAF started in Holland as Doorne's Aanhangwagen Fabriek repairing trailers and started making lorries in 1949 and in 1959 started production of the 590cc DAF 600 car with belt drive transmission. DAF Cars was sold to Volvo in 1975, and DAF trucks merged with Leyland Trucks in 1987