Struggling car brand forced to make major change over two years as it fights ‘pressures from every direction’
A MAJOR carmaker has brought back a familiar face to help steer it through a stormy road.
Volvo Cars has reappointed Håkan Samuelsson as CEO, the same man who led the company for a decade until 2022.
He replaces Jim Rowan, who has stepped down and will also leave the company’s board.
No reason was given for the sudden exit.
Samuelsson will serve in the role for two years only, while the company hunts for a permanent successor.
The leadership shake-up comes as the global auto industry battles soaring costs, falling EV demand, and new tariffs across key markets.
Volvo warned that 2025 will be “turbulent and competitive”, and may not match the company’s 2024 performance.
It’s share price plunged more than 9 per cent after the announcement.
Samuelsson, 74, is seen as a steady hand in uncertain times.
“The car industry is under pressure from many directions,” he said.
“I’m honoured to return at such a defining moment for Volco Cars.”
“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.”
The board said Samuelsson brings “deep industrial experience” and a proven track record of leading through tough conditions.
During his previous tenure, he oversaw Volvo’s move to hybrid engines, opened its first U.S. factory, and helped take the company public in 2021.
Volvo, now majority-owned by China’s Geely, is feeling the squeeze from multiple angles.
EV sales are weaker than expected in Europe and the U.S.,while China’s price war has slashed margins across the board.
At the same time, new tariffs on Chinese-made vehicles are making exports more expensive, a major concern for Volvo, which has relied on Chinese production for global sales.
To adapt, Volvo has started shifting production to its Charleston, South Carolina plant in the U.S.
Still, outgoing CEO Rowan didn’t sugarcoat the road ahead.
“We’re going to see more turbulence,” he told Reuters.
“China will remain very,very competitive and we’ll start to see more competition in Europe.”
Volvo’s Q4 operating profit dropped to 3.9 billion Swedish crowns (£395 million), down from 5.4 billion the year before.
That figure included a 1.7 billion crown write down tied to battery joint venture Novo Energy.
Excluding joint ventures, profit was 6.3 billion crowns, slightly beating expectations — but still down from last year.
Retail sales for 2024 grew by 8%, after Volvo revised its earlier forecast of 12–15% growth.
In a further blow, the company admitted it would now sell hybrids for longer than planned, after scaling back its electrification targets.
Its 2026 goal of a 7–8% profit margin remains in place, but analysts are sceptical.
One analyst called the Q4 performance “soft”, while others said the 2025 outlook suggests a full-year result well below market expectations.
Despite the challenges, Volvo says it’s committed to long-term goals and improving flexibility across global production.
Samuelsson’s return is seen as a stabilising move, aimed at keeping the company competitive while the market shifts.