Volvo Cars has announced the return of former CEO Håkan Samuelsson to lead the company, replacing Jim Rowan, who stepped down after just three years.
Samuelsson will serve a two-year term as the company faces mounting challenges, including new 25% tariffs on imported vehicles imposed by U.S. President Trump. The tariffs, set to take effect this week, add pressure to an already tumultuous period for Volvo.
Likewise, Samuelsson’s return comes as Volvo grapples with major stock losses, having seen its value drop nearly 70% since its 2021 public listing. In addition to the financial difficulties, the company faces geopolitical uncertainties, rapid technological changes, and fierce competition in the global automotive market. The decision to bring Samuelsson back is seen as a move to stabilize the company and guide it through these complex challenges.
On Monday, Volvo’s stock dropped by 1.2%, hitting a new all-time low, while the broader market also saw declines.
Moreover, Samuelsson, who previously led Volvo from 2012 to 2022, brings a wealth of experience to the role. Volvo’s board chair, Eric Li, praised his leadership, highlighting Samuelsson’s strategic clarity and deep understanding of the company’s operations. Volvo has also warned that 2025 could be a challenging year, with the possibility of struggling to maintain the sales and profitability levels achieved in 2024.
Ultimately, Volvo faces increasing competition in the EV market, particularly as global automotive trends shift toward electrification. The company’s plans to appoint a long-term successor for Samuelsson remain in progress.
As part of the broader geopolitical and trade pressures, U.S. tariffs on imported vehicles and parts will affect companies like Volvo, which relies on international production. Trump’s trade policies, including the new tariffs, are expected to impact pricing and profitability for carmakers across the globe.
