Lennart Lihnell and his brother K E Lihnell started a carpentry shop for the manufacture of a drive chassis for tractors in Ringstorp, Östergötland, Sweden. The design was so revolutionary that they applied for a patent and formed a joint stock company. The vehicles were produced in large numbers for customers such as the Swedish defence forces. After ten years, the company ran out of space and started looking for somewhere to build new facilities.
They chose Braås as the site for a completely new factory. At the same time, they began to develop the vehicle as a tractor dumper, which was manufactured in partnership with AB Bolinder-Munktell.
The world's first articulated hauler, the DR 631, was introduced.
The DR 860, an articulated hauler with driven bogie, was launched.
The company merged with Volvo BM AB.