The Volvo Group is appointing a new CEO

The Volvo Group has removed Olof Persson from the role of president and CEO of the company. This move came following pressure from certain shareholders due to the group’s weak financial performance in recent years. Instead the Volvo group plans to appoint Scania’s head Martin Lundstedt to the role. Lundstedt will take the post in October 2015, with the Volvo Group’s chief financial officer, Jan Gurander, standing in as temporary president and CEO.
January 6, 2017 Read time: 3 mins

The 3970 Volvo Group has removed Olof Persson from the role of president and CEO of the company. This move came following pressure from certain shareholders due to the group’s weak financial performance in recent years. Instead the Volvo group plans to appoint Scania’s head Martin Lundstedt to the role. Lundstedt will take the post in October 2015, with the Volvo Group’s chief financial officer, Jan Gurander, standing in as temporary president and CEO. Lundstedt and Gurander previously worked together at 759 Scania.

Starting in 2012, Volvo Group has cut jobs and realigned production, with products ranges being cut from the Volvo Construction Equipment line-up for example. Truck brands have also been streamlined following a string of acquisitions some years ago. The US$1.15 cost-cutting programme has delivered savings but has failed to deliver the necessary improvement in financial performance, with the result that Persson is now being replaced.

Lundstedt has headed Scania since 2012 and is considered to have a greater experience of the automotive sector, an industry crucial to the Volvo Group’s overall operations.

“After three years of focus on product renewal, internal efficiency and restructuring, the Volvo Group is gradually entering a new phase with an intensified focus on growth and increased profitability. This will be achieved by further building on our leading brands, strong assets and engaged and skilled employees all over the world“, said Carl-Henric Svanberg, chairman of the board of AB Volvo. “Martin Lundstedt has 25 years of experience from development, production and sales within the commercial vehicle industry. He is also known for his winning leadership style.”

“Olof Persson has with energy and determination carried out an extensive change of the Volvo Group,” said Svanberg. “He has focused Volvo on commercial vehicles and sold unrelated businesses and assets to a value of over SEK 20 billion. He introduced a functional organisation and paved the way for cost savings of SEK 10 billion. He also concluded the agreement with one of China’s largest truck manufacturers, Dongfeng and led the company during the largest product renewal in the Group’s history. Today the Volvo Group is considerably better positioned to compete for leadership in our industry.”

Persson previously worked at ABB, AdTranz, Daimler-Chrysler and Bombardier. His first role within the Volvo Group was as president of Volvo Aero in 2006, followed by a move to head Volvo Construction Equipment in 2008. He became president and CEO of the whole Volvo Group in 2011.

For more information on companies in this article

Related Content

  • Well-educated personnel are the best investment for the future says the Ammann international training centre
    May 20, 2014
    Far too often, managers will view training as a luxury and not as a competitive and strategic necessity. Lazy team leaders regularly argue that it is a waste of time and money training their people, not least because these same trainees might subsequently leave the organisation. Courses are seen as an interruption, and a good way to delay things. There is always something much more pressing and important on the to-do list and staff can end up feeling forced into the training department. But these are weak a
    Read More
  • Astec Industries CEO and president Ben Brock says stay focused and true to win
    July 8, 2016
    Core values, constant innovation and looking after the customer are the key drivers for Ben Brock, chief executive officer and president of Astec Industries. How does he keep his company ahead of the pack and what does he think that the future holds? if you ask Ben Brock to explain how his Astec Industries group has managed to do so well for so long, he doesn’t even pause for breath. “That’s easy, I thank the good doctor. He always told me: do good work and take care of the customer ... which is exactl
    Read More
  • Liebherr’s strong results hit record high
    April 4, 2019
    Liebherr has achieved a record turnover of €10.55 billion for 2018. This broke through the €10 billion barrier for the first time in the company’s history and represents an increase of €739 million, or 7.5 %, compared with the previous year’s turnover. This came despite a slight decline in overall economic growth. Both the construction machinery and mining equipment divisions recorded overall increases in sales revenues, as did the other product areas overall. Revenues from construction machinery and mini
    Read More
  • Golden opportunities in the MINT - Mexico, Indonesia, Nigeria, Turkey
    May 21, 2015
    Mexico, Indonesia, Nigeria, Turkey – Global Report offers up some food for thought about where smart money might be headed within the next several years – David Arminas writes China’s rate of growth may be slowing down, but other South East Asian companies are being quick to offer alternate investment opportunities, notably Indonesia. Nigeria, too, has had issues with security of investment. But there are signs that the government may be getting serious at last about tightening up rules and regulation
    Read More

Highlighted Content