Volvo group president & CEO Olof Persson has stepped down from the company. He will be succeeded by Martin Lundstedt, the current president & CEO of Swedish truck and engine maker Scania, which is controlled by Volkswagen. Mr Lundstedt will take up the position in October, with Volvo CFO Jan Gurander appointed acting CEO until then.
Mr Persson had been under pressure at Volvo following a string of disappointing financial results. Despite cutting costs by some SEK 10 billion (US$ 1.15 billion) and selling non-core businesses work SEK 20 billion (US$ 2.3 billion), profitability at the company remained disappointing.
Carl-Henric Svanberg, chairman Volvo’s board said, “Olof Persson has with energy and determination carried out an extensive change of the Volvo Group. He has focused Volvo on commercial vehicles and sold unrelated businesses and assets.”
Mr Persson had been president & CEO of the Volvo group for four years. Prior to that, he was president of Volvo Construction Equipment from November 2008 to May 2011
Mr Svanberg said, “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. 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.”
Mr Lundstedt has spent his career at Scania. He joined in 1992 as a trainee after obtaining an MSc in industrial management and technology. He has held a number of executive positions at the company, and has been president & CEO since 2012.