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Volvo Cars has announced the step down of CEO Jim Rowan, with former chief executive Håkan Samuelsson stepping back into the role as the Swedish automaker faces mounting industry challenges. Samuelsson, who previously led Volvo from 2012 to 2022, will serve a two-year term while the company searches for a long-term successor.
The decision to replace Rowan, who took the helm in 2022, comes despite Volvo reporting record-breaking sales, revenue, and profits last year. However, the automaker has struggled with weaker-than-expected demand for electric vehicles (EVs) in key markets, including the United States. At the same time, new trade tariffs and geopolitical uncertainty have put pressure on Volvo’s global operations.
In a statement, Volvo’s board of directors emphasized the need for seasoned leadership during this critical period. “The industry is evolving rapidly, and Volvo Cars will be best served by leadership with deep industrial experience and a proven ability to execute in challenging environments,” the company said.
Here’s why Samuelsson returns
Samuelsson, 74, is no stranger to Volvo’s transformation. During his decade-long tenure as CEO, he led the company through one of its most significant growth periods, overseeing the development of the SPA platform that underpins its modern lineup, the successful expansion into electric mobility, and Volvo’s 2021 IPO on the Stockholm Stock Exchange.
His return comes at a time of significant uncertainty. Volvo’s decision to delay its goal of becoming an all-electric brand by 2030 reflected broader challenges in the EV market. While sales of plug-in hybrids have surged, fully electric Volvo models have struggled, particularly in the U.S.
Eric Li, Chairperson of Volvo Cars’ board, praised Samuelsson leadership capabilities. “Håkan led Volvo Cars through one of its most transformative and value-creating decades,” Li said. “His experience and steady hand are exactly what is needed to strengthen Volvo’s global position and unlock its next wave of potential.”
Tariffs and Trade
Samuelsson’s return also coincides with escalating trade tensions. U.S. President Donald Trump is set to impose new 25% tariffs on imported cars this week, a move that could significantly impact Volvo, which still imports most of its EVs and hybrids from Europe.
Volvo had already taken steps to mitigate potential trade risks, including shifting production of its EX30 SUV from China to Belgium. Rowan had also discussed increasing production at Volvo’s South Carolina plant, where the company manufactures the EX90. However, the full impact of Trump’s tariffs remains unclear.
Volvo’s stock, which has declined nearly 70% since its IPO, fell slightly on Monday following the announcement of the leadership change. Analysts, however, view Samuelsson’s return as a stabilizing move. “This is a very good temporary solution because Håkan knows the company well and has a deep understanding of the industry,” said Hampus Engellau, an analyst at Handelsbanken.
A Critical Two-Year Period
Samuelsson’s appointment is seen as a way for Volvo to buy time while it searches for a long-term leader to navigate the next phase of its evolution. With growing competition in the EV market, ongoing supply chain challenges, and potential regulatory shifts, Volvo’s next steps will be closely watched.
As he steps back into the CEO role, Samuelsson acknowledged the tough road ahead. “The car industry is under pressure from many directions,” he said in a statement. “I am committed to guiding Volvo through this period and ensuring we remain a leader in safety, sustainability, and innovation.”
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