Volvo Cars taps new finance chief amid market, tariff uncertainty
Automaker Volvo Cars appointed Fredrik Hansson, its head of global controlling and performance steering and deputy finance chief, to the role of CFO effective Thursday, according to a company press release. In the role, Hansson will succeed Johan Ekdahl, a 10-year alum of the company who has served as CFO since 2022, according to the Thursday release.
The move comes just about a month after Volvo brought back company alum Håkan Samuelsson as CEO and President, according to a March 30 press release. Samuelsson, who previously served on Volvo's board of directors and as CEO for a ten-year period from 2012 to 2022, will serve a two-year term as top executive that began April 1, a move which 'ensures stability while preparing to appoint a long-term successor,' the company said.
'We are currently navigating challenging and fast-moving market conditions, where efficiency and financial performance are key,' Samuelsson said in a statement included in the Thursday release. 'Fredrik's deep knowledge of the company, combined with his strategic understanding of the industry's complexities, will be a valuable addition to the company's Executive Management Team.'
Hansson joined the Gothenburg, Sweden-based automaker in 2021, and was appointed to the role of deputy CFO and to the company's Group Management Team in 2023, according to the Thursday press release. Prior to Volvo, he served as a partner at consulting firm McKinsey & Company, according to his LinkedIn profile.
The company's executive leadership shifts come as Volvo, like other automakers, is weathering ongoing macroeconomic headwinds, such as continuing uncertainty regarding potential tariffs that are set to be levied on the automotive space. In March, President Donald Trump issued an executive order imposing a 25% tariff on imported automobiles — which took effect at the top of April — as well as a 25% tariff on imports of auto parts, the latter of which is set to go into effect next month.
Volvo recently announced it would be laying off between 550 to 800 employees at various sites across the U.S., in the face of continued market turmoil that is likely to lead to slumping demand for its vehicles, according to a report by CNBC.
The automaker reported a 10% drop in global sales for the month of March compared to the prior year period, according to a sales update published on April 2. Sales in the U.S. declined by 8% year-over-year to 14,052 cars, though sales of Volvo's electrified models rose by 5% compared to the prior year period, the company said.
Other automakers have also reported dips in sales amid rapid shifts in tariff and trade policy by the Trump administration. On Tuesday, electric vehicle maker Tesla reported lukewarm results for its most recent quarter, including dropping profit, that followed slumping sales, with CFO Vaibhav Taneja noting expected tariffs on the auto space will have an impact on the company's profitability.
Automotive industry groups, meanwhile, have expressed concern on the imposition of tariffs on automotive parts, set to go into effect on May 3. In an April 21 letter to Treasury Secretary Scott Bessent, various automotive trade groups warned the 25% tariff on auto parts will 'will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable.
Most auto suppliers are not capitalized for an abrupt tariff induced disruption,' the letter, signed by various associations including the Alliance for Automotive Innovation, American Automotive Policy Council and American International Automobile Dealers Association, reads. 'Many are already in distress and will face production stoppages, layoffs and bankruptcy.'
The Trump administration is reportedly considering reducing certain tariffs on the auto industry, including potentially exempting auto parts in compliance with the US-Mexico-Canada trade agreement, Bloomberg reported citing people familiar with the matter.
Volvo is set to reports its Q1 2025 earnings on April 29. The company declined to comment beyond the press release.
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