Volvo Cars has announced the return of former chief executive Håkan Samuelsson to steer the company through increasing geopolitical and market pressures. The decision, reported by the Financial Times, follows a period of financial difficulty for the Geely-owned Swedish automaker, with its share price plummeting 66% over the past three years.
Samuelsson, who previously led Volvo for a decade until 2022, will take on a two-year term starting Monday. His reinstatement comes as the company faces an uncertain industry landscape, exacerbated by slowing electric vehicle (EV) adoption, rising trade tensions, and evolving regulatory policies.
“The car industry is under pressure from many directions,” Samuelsson said in a statement on Sunday. “I’m honored to return at such a defining moment for Volvo Cars.”
His predecessor, Jim Rowan, resigned abruptly after cautioning about lower profitability and a “very challenging year” ahead, partially due to uncertainty surrounding U.S. trade policies under President Donald Trump. Volvo Cars, which relies on European exports for its U.S. sales, is expected to be significantly affected by a 25% tariff on foreign car imports set to take effect on April 2. While the company plans to expand production in South Carolina, it may still face financial strain due to its dependence on non-U.S. components. Additionally, Volvo Cars must navigate a U.S. government ban on Chinese software in EVs, further complicating its market strategy.
To mitigate risks associated with the European Union’s higher tariffs on Chinese-manufactured electric vehicles, Volvo Cars will begin producing its EX30 EV model in Belgium alongside its existing production in China. Analysts have suggested that Samuelsson’s leadership could help the company navigate these regulatory hurdles while optimizing its Chinese ownership for cost efficiencies.
Geely’s founder and Volvo Cars board chair, Eric Li, praised Samuelsson’s “industrial depth” and “proven leadership,” citing them as key factors in his reinstatement.
“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,” Li stated.
People familiar with the company’s strategy suggest that Volvo Cars must prepare for a tougher financial future, requiring potential cost-cutting measures and a closer alignment with Geely’s supply chain advantages. Geely has reportedly been frustrated with Volvo’s valuation since its initial public offering in Stockholm in 2021, a process overseen by Samuelsson.
Samuelsson, widely regarded as a steady leader and well-liked by employees and dealers, returns at a time when Volvo Cars is reevaluating its EV strategy. The company abandoned its goal of selling only electric vehicles by the end of the decade, reflecting the industry’s slower-than-anticipated transition. Additionally, the relaxation of EU emissions targets could result in Volvo losing revenue from selling carbon credits to rivals.
