Volvo recalls Hakan Samuelsson as CEO

Hakan Samuelsson, who led Volvo to multiple records for vehicle sales and profits during his ten years as CEO, will take over as chief executive again on April 1st. Samuelsson will succeed Jim Rowan, who will step down on March 31st and leave the Volvo board on the same date.

Samuelsson (74) served as Volvo CEO from 2012 to 2022. During that period, Volvo made several bold moves. It decided to ditch diesel long before rivals did, at a time when the powertrain accounted for the vast majority of Volvo’s European sales.

Volvo was the first and only premium brand to limit its cars’ top speeds to 180 kph, even in Germany, where most rivals’ models can be driven at 250 kph or faster. Samuelsson also pushed Volvo to open a plant in the US, which it did in 2018, and to become a publicly traded company, which it did in 2021.

He told the specialized magazine Automotive News Europe that adding a plant in South Carolina “establishes the US as our third home market after Sweden and China.” Samuelsson also told Automotive News Europe in 2022 that he bucked trends because “Some things you need to have the balls just to do because it’s the right thing to do.”

A pivotal time

Yesterday, Volvo said that the leadership transition “comes at a pivotal time” for the automaker. “With fast-moving technological shifts, growing geopolitical complexity, and intensifying competition across regions, the board believes the company is best served by leadership with deep industrial experience, deep knowledge of our group, and a proven ability to execute in challenging environments,” the press release said.

“He brings a rare combination of industrial depth, strategic clarity, and proven leadership, and Hakan has a broad knowledge of our group,” he added. Volvo set a new record for global sales six times in eight years while Samuelsson was boss.

Samuelsson reacted: “The car industry is under pressure from many directions. I’m honored to return at such a defining moment for Volvo Cars. I have deep respect for the challenges ahead.”

Hakan Samuelsson will be proposed as a new member of the Volvo Cars Board at the upcoming Annual General Meeting.

Steering into growth and profitability

When he took over in October 2012, Volvo’s future was unclear following its 2010 sale to Geely from Ford Motor. That year, Volvo’s revenue was 124.5 billion Swedish crowns, and its operating margin was 0 percent.

When Volvo finished 2021, Samuelsson’s final year at the helm, it had revenue of 282 billion crowns and an operating margin of 7.2%, both records for the company.

Current CEO Jim Rowan, former CEO of Dyson, was credited in yesterday’s release by Li for “accelerating Volvo’s transition into a software-led, connected car company. His commitment and energy have built a strong foundation in digital capabilities, and we are grateful for his efforts during a time of significant change.”

“His commitment and energy have built a strong foundation in digital capabilities, and we are grateful for his efforts during a time of significant change. We look forward to building on this foundation with renewed focus and industrial momentum,” he added.

Major recall of PHEVs

Meanwhile, the Swedish manufacturer has recalled almost 73,000 plug-in hybrids of various series worldwide. When the battery is fully charged, parked vehicles may experience a short circuit in the high-voltage battery. Owners are advised not to charge their cars.

The US National Highway Traffic Safety Administration (NHTSA) initially announced the recall of 7,483 Volvo plug-in hybrids due to a potential fault in the electrical system.

This concerns various model years of the S60, S90, V60, XC60, XC90, and V90 series built between 2020 and 2022; in other words, virtually all plug-in hybrids based on the first-generation SPA platform.

Models sold in the US were not the only ones affected. Around 73,000 Volvos are affected globally, including roughly 8,000 in Sweden and 4,825 in Germany. In Belgium, 2,389 cars are concerned. The car manufacturer insists that no major incidents or injuries have been reported until now.

During maintenance, the batteries will be checked for defective cells. If damage is detected, Volvo will replace the entire battery. In any case, a new software version for battery management will be installed. This will enable Volvo to detect future defects more quickly.