Dive Brief:
- Volvo Cars announced the return of Håkan Samuelsson as CEO and president for a two-year term effective April 1, according to a press release.
- The appointment to his former role is intended to ensure stability at the company amid a “pivotal time” for Volvo Cars. According to the release, the industry is facing “fast-moving technological shifts, growing geopolitical complexity, and intensifying competition across regions.”
- “The car industry is under pressure from many directions. I’m honored to return at such a defining moment for Volvo Cars,” said Samuelsson in the release. “I have deep respect for the challenges ahead and look forward to working with our talented team to sharpen our competitiveness, meet the demands of key markets, and accelerate strategic execution and focus on leadership development.”
Dive Insight:
Samuelsson served on the Volvo Cars board from 2010 and in the CEO role from 2012 to 2022. Volvo Cars’ outgoing CEO Jim Rowan, who has served in the role for two years, stepped down on March 31 and departed the automaker’s board on the same date.
“We want to thank Jim Rowan for his important contributions,” said Eric Li, chairperson of the Volvo Cars board. “His leadership over the past three years has accelerated Volvo Cars’ transition into a software-led, connected car company.”
The return of Samuelsson as CEO follows a number of executive appointments at the automaker last year, and rising geopolitical and macroeconomic uncertainties, including tariffs.
On a call with analysts on Feb. 6., outgoing CEO Rowan said that Volvo Cars could increase U.S. production and seek out more domestic suppliers to offset higher import duties, especially on batteries for electric vehicles. Now executing these initiatives will fall on Samuelsson.
Volvo Cars is also facing rapid technology shifts and other factors which have led the automaker to push back its previous goal of becoming a fully electric car company by 2030.
As a result of current market conditions, the automaker’s board believes that Volvo Cars is best served by leaders with deep industrial experience and a proven ability to execute in challenging environments, according to the release.
“We are very pleased to welcome Håkan Samuelsson back as CEO,” said Li, noting later that his “experience and steady hand are exactly what is needed to strengthen Volvo Cars’ global position and unlock its next wave of potential.”
During the company’s Q2 earnings call with analysts in July 2024, Volvo Group CEO Martin Lundstedt warned that the automaker’s transition to electrification would not be “a linear development.” He highlighted the importance of launching new hybrid models as a bridge to broader EV adoption. Volvo Cars now aims for a mix of battery electric and plug-in hybrid vehicles to account for 90% to 100% of its sales by the end of the decade.
The uncertainties in the EV market also led Volvo Cars to stop funding EV brand Polestar. Last May, The automaker divested a majority of its stake in Polestar, handing its majority ownership and day-to-day operations back to parent company Geely Holding.
Samuelsson will be proposed as a new member of the Volvo Cars board at the company’s upcoming annual general meeting on April 3.
