Elektromekaniska is established in Stockholm.
Collaboration between Lux and Axel Wenner-Gren begins. Their first vacuum cleaner, the Lux 1, is produced at Lilla Essingen. Axel Wenner-Gren becomes the agent for Lux in Germany, United Kingdom and France.
Home sales begin in Sweden. The salesmen, who pull the heavy machines through the streets on hand-carts, must arrange a demonstration time when the housewife can promise that her husband/breadwinner will be home to approve the investment.
Axel Wenner-Gren sets up the sales company Svenska Elektron (later Finans AB Svetro). The method of home demonstration and hire purchase becomes increasingly well-established and proves a great success.
On October 30, 1917, Elektron (In which Axel Wenner.Gren owns a large interest) purchases all the shares of Elektromekaniska. Wenner-Gren is elected member of the board of Elektromekaniska and likewise, Sven Carlstedt joins the board of Elektron.
Elektron and Lux sign a cooperative agreement for the following:
- Lux is to take over operations of Svenska Elektron, increasing its share capital from
SEK 3 million to SEK 4 million.
- Svenska Elektron, which had previously bought Elektromekaniska, is to buy 49% of the shares of AB Lux. Wenner-Gren and Carlstedt are elected to the board of Lux. Wenner-Gren is appointed CEO and Carlstedt is appointed technical director.
On August 1, an agreement is reached between AB Lux and Svenska Elektron AB (in which Wenner-Gren is the dominating owner) giving Elektron the sole sales rights to AB Lux vacuum cleaners. The agreement, which is valid through 1929, obligates Elektron to buy its vacuum cleaners from Lux and show Lux the manufacturer on all the vacuum cleaners.
At the Annual General Meeting on August 29, Elektromekaniska AB (wholly owned by Wenner-Gren-dominated Elektron) changes its name to AB Electrolux. The new name is a combination of Elektromekaniska and Lux.