Volvo says this is only temporary until they can find a new long term successor
Volvo has always had a reputation for being the safest manufacturer in the world, however the brand is still not doing as well as it had hoped apparently. This is because with mounting pressure from all corners of the automotive world, the brand seems to think its current CEO, Jim Rowan, isn’t up to the task and is replacing him.
Yes, for the time being, Volvo has appointed former CEO Hakan Samuelsson to return as company CEO for the next two years. Samuelsson’s return is mostly a result of increasing tariff pressures among other challenges. Jim Rowan had served as CEO to Volvo only since January 2022, so now after 3 years and 3 months, he steps down.
Moreover, Samuelsson, aged 74, will resume leadership amid escalating tensions between the U.S. and foreign automakers. Just last week, U.S. President Donald Trump fulfilled his earlier threats to impose new tariffs on imported vehicles and the 25 percent duty on cars built outside the U.S. is set to take effect this week as well.
Samuelsson, offering his 2 cents on the current state of the automotive industry, stated, “The car industry is under pressure from many directions.” The company has also seen significant challenges recently, with Volvo Cars’ stock dropping by nearly 70 percent since its listing on the Stockholm Stock Exchange in 2021.
On Monday, Volvo’s shares fell another 1.2 percent, hitting a new all-time low. In contrast, the broader market in Stockholm experienced a 1.6 percent decline. Samuelsson’s appointment is part of a strategic move to navigate the fast-evolving automotive industry landscape, which faces rapid technological advancements, geopolitical uncertainties and rising competition.
On top of that, Volvo’s Board Chair, Eric Li, emphasized Samuelsson’s extensive experience and leadership abilities. Whether or not this will actually help the brand overcome these challenges remains to be seen but I for one, hope the brand stops focusing so much on electric vehicles (EVs), who knows, it may actually help them.
Samuelsson originally served as Volvo’s CEO from 2012 to 2022 and is well-versed in the challenges facing the company. While Volvo navigates these challenges, President Trump is expected to announce further tariffs very soon, which he has dubbed “Liberation Day,” which could mark even more uncertainty ahead for car manufacturers.
We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.
