Volvo, one of the world’s largest truck manufacturing companies as well as construction equipment makers, has ousted CEO Olof Persson and named Martin Lundstedt, chief executive of competitor Scania, owned by Volkswagen, its new CEO. Persson presided over a nearly four-year restructuring program and the company’s first quarter results were an improvement over recent quarters, however shareholders have considered the group’s performance as below expectations.
Lundstedt will assume his new position in October. Jan Gurander, Volvo AB’s chief financial officer, will serve as acting president and CEO in the interim. Lundstedt is considered one of the most respected executives in the trucking industry, according to sources close to the situation. He is a 25-year veteran with Scania and is likely to focus more on the trucking side of the business, sources 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,” said Carl-Henric Svanberg, chairman of the board of Volvo AB. “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 with 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. 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 organization and paved the way for cost savings of SEK 10 billion. He also concluded the agreement with one of China’s largest product renewal in the Group’s history. Today the Volvo Group is considerably better positioned to compete for leadership in our industry.”
Lundstedt spent his entire career at Scania.
