Olof Persson Out at Volvo AB, Scania Exec Tapped as Replacement
Lundstedt will take Volvo’s top executive job in October, but Persson, CEO since 2011, is out immediately, the company said. Volvo Chief Financial Officer Jan Gurander, will serve as interim CEO until Lundstedt comes aboard.
“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,” said Carl-Henric Svanberg, chairman of the 13-member Volvo board of directors.
“This will be achieved by further building on our leading brands, strong assets and engaged and skilled employees all over the world,” Svanberg added in the company statement.
Volvo has four manufacturing divisions and truck-making is the largest one. The global corporation also produces construction equipment, buses, and marine and specialty engines.
The company’s North American truck brands are Volvo and Mack.
Persson gave a high-profile speech in March at the Mid-America Trucking Show and the week before reports from the Swedish business press said Persson’s job was in jeopardy.
Lundstedt started his career with Scania in 1992. Once an independent Swedish manufacturer, Scania is now controlled by Volkswagen Group.
Bloomberg News said the change was sparked by Sweden-based investment fund Cevian Capital, the second-largest owner of Volvo shares.
Eckhard Cordes is a Cevian partner and a member of Volvo’s board. Earlier in his career he ran the truck business of Volvo rival Daimler AG.
Bloomberg said Cevian executives want Volvo management to streamline operations so as to generate higher profit margins.
