Volvo appoints new CEO to boost sales in China
STOCKHOLM: Carmaker Volvo has ditched its chief executive in favour of a former trucks boss who now faces the daunting task of turning around flagging sales and leading a big push into the home market of its Chinese owner.
Former MAN SE boss Hakan Samuelsson replaces Stefan Jacoby, who suffered a mild stroke last month and whom sources say was at loggerheads with the effective head of the board over key appointments and strategy.
The carmaker, bought from Ford Motor Co by China’s Zhejiang Geely Holding Group in 2010, has cut production this year amid a market slump in Europe, leaving it a long way from its ambitious long-term sales targets.
The expansion in China, a key ambition underpinning Geely’s acquisition, has also been fraught with difficulty. Last month Jacoby complained of underperformance and said that Volvo was likely to miss its 2015 sales goal for the country.
In a statement announcing Samuelsson’s appointment, Geely chairman Li Shufu said: “I see big possibilities for Volvo Cars to improve profitability and increase the pace of growth, not least in China.”
Samuelsson made waves in his home country Sweden in 2006, when he led truck and machinery manufacturer MAN SE in a deeply acrimonious attempted takeover of rival Scania, where he had also served as an executive.
Jacoby suffered his stroke in midSeptember, limiting mobility in his right arm and leg. He has been on medical leave since then, though Volvo had said he was making progress towards a swift return to work.
Chief financial officer Jan Gurander has been serving as acting top executive in the interim.
Sources close to the company have told Reuters that Jacoby had been at odds with Hans-Olov Olsson, the vice-chairman who effectively heads the Volvo board, clashing over issues such as key appointments and strategy.
At a press conference to present Samuelsson, Olsson denied that any conflict lay behind Jacoby’s ousting and said that the change was necessary to put the strategy back on track to boost profitability and bolster sales in China.
“We want to succeed with Volvo. The board’s responsibility is to take action. The competition does not do us any favours,” Olsson said. – Reuters