The name Vabis is derived from the name Vagnfabriksaktiebolaget i Södertelge or Södertälje Coachbuilding Company which was founded in 1891. The name Scania is derived from Scåne a competitor truck company from the south of Sweden. The two companies merged in Spring 1911 and became known as Aktiebolaget Scania-Vabis until 1969.