The Soviet Union took over the lead in the race to be first in space, with the launch of Sputnik I with the dog Laika as the crew.
- Volvo introduced the world's first, small, purpose-built forest machine, "Bamse".
- The Company now had 13, 000 employees and an annual production of over 50,000 cars.
- 1957 saw the introduction of the Volvo Championships for Mechanics, which was later to be an annual event for the whole Volvo Group. Today the competition is known as VISTA.