Volvo Penta was founded in 1907 in conjunction with the production of the first marine engine, B1. The Penta company soon became an established internal combustion engine manufacturer, which in 1927 delivered the engine for Volvo's first passenger car.

Volvo acquired Penta in 1935 and Volvo Penta has been part of the Volvo Group since then. It now provides internal combustion engines (ICEs) and complete power systems to the marine industry, power-generatingequipment, and similar industrial applications. The business also manufacturers sterndrive and inboard drive systems such as the Volvo Penta.