Following a few years of enormous success with J.V. Svensons Fotogenköksfabrik and it's production of paraffin stoves, J.V. Svenson started a new business outside of Stockholm in Nacka. The business was named J.V. Svensons Automobilfabrik and the goal was to produce Sweden's first automobiles. He travelled to other countries where the automobile was already established, but came back downhearted. His conclusion was that with the increadible pace at which the industry was evolving, under his cicumstances it would be very hard to create a viable product which wouldn't be hopelessly obsolete by the time it came of the production line.
His solution was that instead of making Automobiles, he would concentrate solely on engines. A few years before, an Englishman had patented a new type of engine called the hot bulb engine. Svenson bought the rights to produce and sell his own version, the Avance engine, and the business soon took off. The engines were for stationary use at first, but soon came engines for maritime usage. By 1904 The Avance-engines had won prizes and the company made an enormous, 200 hp (Swedish hp = hk) engine for the Swedish navy's very first submarine called Hajen ("the shark").
By 1907 Svenson decided on changing the name of the company since not one car had left the premies nor were there now any plans to ever make any Automobiles. The company was renamed J.V. Svensons Motorfabrik.