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Volvo Cars has returned former chief Håkan Samuelson to provide the Swedish manufacturer owned by Geely with a “steady hand” needed to navigate geopolitical turbulence and cut competition.
Samuelson, who returned 74 this month, served as the chief executive of the group for a decade by 2022. The company’s stock priority has fallen 66 percent in the last three years under Jim Rowan while fighting the slowest displacement of the industry industry in electric vehicles.
“The car industry is under pressure from many directions,” said Samuelson, who will start a two-year term on Monday in a statement on Sunday. “I am honored to return to such a determinant moment for Volvo cars.”
Rowan’s unexpected resignation came after he recently announced the lowest benefit and a “very challenging year” ahead of the company, in part because of the uncertainty caused by US President Donald Trump trade policies. Rowan cannot be reached immediately for comment.
“The industry is probably under the highest pressure ever. They are not only internal problems for Volvo. At the time, you only have one chance. You have to play a safe card,” said a person near Gothenburg -based cars.
Analysts have said that the car manufacturer will be hit hard at a 25 per cent fee of the USSE plans to impose foreign car imports from April 2, as it is based on exports from Europe for sale at the US
Depending on the tariff level, Volvo Cars has said he wants to increase production in South Carolina. But this may not completely protect it from tariffs because even locally produced cars use a high amount of non-American content. The company is also exposed to a government ban on Chinese software in electric vehicles in the US
To address the highest EU tariffs for imports of electric vehicles made in China, Volvo Cars will also produce its ex30 EV model at its Ghent factory in Belgium, as well as in China from this year.
Geely founder Eric Li, who is the chairman of the Board of Volvo Car, mentioned Samuelson’s “Industrial Depth” and the “proven leadership” as a reason to restore it.
“As the industry enters an even more complex phase, we believe that its experience and lasting hand are exactly what is needed to strengthen the Global Volvo Cars position,” Li added.
A person known for the board’s opinion said Volvo Cars had to prepare for a “much tougher future” that would require lower costs and Samuelson try to unlock more advantages from Chinese ownership, including access to cheaper suppliers.
A person close to the company said Geely was frustrated with Volvo Car’s assessment from the time of his initial public offer in Stockholm in 2021, which was overseen by Samuelson.
In addition to his sustainable record, the person said Samuelson was also familiar with both employees and car dealers.
Swedish machinery last year abandoned plans to sell only electric cars by the end of the decade.
Volvo cars will also be hit by EU relaxation for EU emissions targets as it may lose some of the income it earned from the sale of loans to rivals left behind in reducing carbon emissions.
