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

  • GOMACO’s new sales representative covering the India market
    March 7, 2018
    GOMACO has appointed Sandeep Nirmal as its new sales representative for India. The appointment was made by Kent Godbersen, GOMACO’s vice president of Worldwide Sales and Marketing. Nirmal has more than 23 years of sales and marketing experience in the construction equipment industry. He gained experience with GOMACO’s complete line of concrete paving equipment through his previous position as head of corporate sales with a GOMACO distributor. “Sandeep has the knowledge and experience to start immediately
    Read More
  • Investment in new excavator plant
    May 10, 2012
    A silver spade ceremony was held in June to mark the official start of construction at the new Wacker Neuson plant in Hörsching, Upper Austria. Light and compact equipment manufacturer Wacker Neuson is investing around e65 million (including purchasing and developing the site) in what will be “one of the largest, most modern plants for compact equipment in the world.” The first compact equipment should be rolling off the production line as early as the beginning of May 2012.
    Read More
  • GOMACO cofounder Gary Godbersen passes away
    January 20, 2023
    GOMACO cofounder Gary Godbersen has passed away.
    Read More
  • Astec president J. Don Brock steps down
    August 23, 2012
    Astec Industries Inc. founder J. Don Brock has stepped down as president of the Chattanooga, US-based company, and Norman Smith, who co-founded the company with Brock, will replace the 73-year-old CEO as president and chief operating officer. The new "decentralised company structure facilitates the development of a strong internal management team," Brock said. Smith, 72, has served as head of the company's asphalt division since 1998. He was president of both Astec Inc. and Heattec Inc, and has been a direc
    Read More

Highlighted Content