Latest news with #JimRowan
Al Etihad
26-05-2025
- Automotive
- Al Etihad
Volvo plans to cut around 3,000 office jobs
26 May 2025 18:33 FRANKFURT (dpa)Swedish car manufacturer Volvo Cars plans to cut thousands of administrative jobs as part of cost-cutting measures, the firm announced on Monday.A total of 3,000 jobs will be lost worldwide, according to the Gothenburg-based company, which is controlled by the Chinese Geely figure represents around 15% of all office-based jobs, with the majority of these in a statement, in which he announced talks with unions, Volvo chief executive Hakan Samuelsson said some tough decisions had to be made."The automotive industry is in the midst of a difficult phase," he said. In order to overcome this, costs must be reduced announced at the end of April, when it reported weak first-quarter figures, that jobs would be cut and that a total of 18 billion Swedish kronor (just under $1.9 billion) would be saved through other package will initially involve special costs of around 1.5 billion kronor, which will be booked in the second focused early on pure battery electric vehicles (BEVs) and has suffered from high costs for battery materials in recent who had previously led Volvo for many years, took over the helm again at the beginning of April after former boss Jim Rowan was suddenly forced to the sales environment has become tougher and the company is currently unable to provide a detailed financial forecast due to uncertainty over US company will also focus more strongly on plug-in hybrids in the future because its ramp-up of pure electric cars has stalled. In the first quarter, the share of pure electric cars at Volvo was 19%, two percentage points lower than a year earlier.
TimesLIVE
29-04-2025
- Automotive
- TimesLIVE
Volvo to cut costs by $1.9bn as earnings drop
Sweden-based Volvo Cars launched cost cuts of 18-billion Swedish crowns ($1.87bn or R34,701,964,000) on Tuesday as its operating profit fell heavily amid difficult market conditions for the automotive industry. Operating profit at the company, majority-owned by China's Geely, was 1.9bn Swedish crowns (R3,661,982,100) for the January-March period against a year earlier 4.7bn crowns (R9,060,580,100). The cost cuts, part of a new "cost and cash action plan", will include layoffs and a larger decrease in investment than earlier expected, the company said, adding it had withdrawn its financial guidance for the next two years. The company's share price fell to record low levels in recent months as it grappled with mounting tariff pressures, the continued slowdown in electric vehicle demand and global uncertainty. In a first sign Volvo was taking steps to address the situation, the carmaker made an unexpected management shake-up this month by axing CEO Jim Rowan and bringing back former CEO Hakan Samuelsson, and weeks later also replacing its CFO. "Given the turbulence in the market, we need to further improve our cash flow generation and lower our costs," Samuelsson said on Tuesday. "While we l have a lot to do, our direction going forward is focused on three areas: profitability, electrification and regionalisation," he said.
Business Times
29-04-2025
- Automotive
- Business Times
Volvo Cars to cut costs by 18 billion Swedish crowns as earnings drop
[STOCKHOLM] Sweden-based Volvo Cars launched cost cuts of 18 billion Swedish crowns (S$2.4 billion) on Tuesday (Apr 29) as its operating profit fell heavily amid difficult market conditions for the automotive industry. Operating profit at the company, which is majority-owned by China's Geely, was 1.9 billion Swedish crowns for the January to March period against a year-earlier 4.7 billion crowns. The cost cuts, part of a new 'cost and cash action plan', will include layoffs and a larger decrease in investment than earlier expected, the company said, adding that it had withdrawn its financial guidance for the next two years. The company's share price fell to record-low levels in recent months as it grappled with mounting tariff pressures, the continued slowdown in electric vehicle demand and global uncertainty. In a first sign that Volvo was taking steps to address the situation, the automaker made an unexpected management shake-up this month by axing CEO Jim Rowan and bringing back former CEO Hakan Samuelsson, and a few weeks later also replacing its CFO. 'Given the turbulence in the market, we need to further improve our cash flow generation and lower our costs,' Samuelsson said on Tuesday. 'While we still have a lot to do, our direction going forward is focused on three areas: profitability, electrification and regionalisation,' he added. REUTERS
Yahoo
02-04-2025
- Automotive
- Yahoo
Volvo Pushes Out CEO in Surprise Move
Volvo has announced a surprising leadership shake-up, with Jim Rowan stepping down as CEO after three years at the helm. His successor, however, is no stranger to the role. Håkan Samuelsson, who previously led Volvo from 2012 to 2022, will return for a two-year term while the company searches for a long-term leader. The decision to replace Rowan comes despite Volvo reporting record sales, profits, and revenue in 2024, even if the company has faced difficulties in achieving its ambitious electric vehicle (EV) goals. Sales of all-electric Volvo models in the U.S. have been underwhelming, leading the automaker to postpone its plan to go fully electric by 2030. In contrast, sales of Volvo's plug-in hybrid models surged by nearly 70%, indicating that consumer demand for EVs remains uncertain. Volvo's board emphasized the need for experienced leadership to navigate these challenges. "Håkan led Volvo Cars through one of its most transformative and value-creating decades — revitalizing the brand, expanding into new markets, and successfully executing its IPO," said Eric Li, Chairperson of the Board. "As the industry enters an even more complex phase, we believe his experience and steady hand are exactly what is needed to strengthen Volvo Cars' global position and unlock its next wave of potential." Samuelsson's previous tenure as CEO was marked by major shifts in Volvo's business strategy. Under his leadership, the company transitioned from five- and six-cylinder engines to a lineup dominated by turbocharged four-cylinder and hybrid powertrains. He also oversaw Volvo's 2021 IPO, the expansion of its global manufacturing footprint — including the establishment of its first U.S. factory in South Carolina — and the release of successful models such as the redesigned XC90 SUV. His return comes at a pivotal moment for both Volvo and the broader automotive industry. Automakers are grappling with declining demand for EVs, rising material costs, and disruptive trade policies, including tariffs on imported vehicles. Volvo must navigate these challenges while staying committed to its electrification strategy and maintaining its competitive edge in key markets. Samuelsson, now 74, acknowledged the difficulties ahead. "The car industry is under pressure from many directions. I'm honored to return at such a defining moment for Volvo Cars," he said in a statement. "I have deep respect for the challenges ahead and look forward to working with our talented team to sharpen our competitiveness, meet the demands of key markets, accelerate strategic execution, and focus on leadership development." While his leadership stint is temporary, Samuelsson's impact on Volvo's future direction will be significant. In the next two years, he will need to guide the company through shifting market dynamics, reinforce Volvo's brand identity, and help identify a long-term CEO capable of continuing the automaker's transition toward an electrified future. The coming years will be crucial for Volvo. Balancing ambitious EV targets with evolving consumer preferences, adapting to regulatory changes, and ensuring financial stability will require strategic agility. Whether Samuelsson's return will be enough to steer the company through these turbulent times remains to be seen, but his deep industry experience positions him as a steady hand in uncertain waters.
Yahoo
31-03-2025
- Automotive
- Yahoo
Samuelsson back as CEO at Volvo Cars
Geely-owned Volvo Cars is bringing back former chief Hakan Samuelsson as CEO after the surprise departure of current CEO Jim Rowan. Volvo said that Semuelsson will serve a two-year term, starting April 1, 2025 while it searches for a long-term successor. We are very pleased to welcome Hakan Samuelsson back as CEO,' said Eric Li, Chairperson of the Board. 'Hakan led Volvo Cars through one of its most transformative and value-creating decades — revitalising the brand, expanding into new markets, and successfully executing its IPO. He brings a rare combination of industrial depth, strategic clarity, and proven leadership and Hakan has a broad knowledge of our group. As the industry enters an even more complex phase, we believe his experience and steady hand are exactly what is needed to strengthen Volvo Cars' global position and unlock its next wave of potential.' Jim Rowan, who has served as CEO since 2022, will step down on March 31, 2025, and leave the Volvo Cars Board on the same date. Rowan's appointment followed Volvo Cars listing on the Stockholm stock market in 2021. Industry analysts note that Volvo Cars faces a number of major challenges, including the imposition of import tariffs on shipments to the US, a major market for the company. "Samuelsson back as CEO at Volvo Cars" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
