Volvo swings axe after years of declining profit, appoints Swedish CEO
Vehicle manufacturer Volvo Group has elected former Scania CEO and president Martin Lundstedt as its new president and CEO.
He will replace Olof Persson, who served as the company’s CEO from 2011 until this week when his four-year term came to an end.
Lundstedt will begin his role in October, with Volvo chief financial officer Jan Gurander assuming the role in the meantime.
Volvo chairman Carl-Henric Svanberg says the focus for the company is being profitable following ongoing restructure under Persson’s reign.
“After three years of focus on product renewal, internal efficiency and restructuring, the Volvo Group is gradually entering a new phase with an intensified focus on growth and increased profitability,” Svanberg says.
“This will be achieved by further building on our leading brands, strong assets and engaged and skilled employees all over the world.”
Persson’s time in charge oversaw a company-wide overhaul that focused on a number of cost-cutting measures, including sizeable job cuts, to stem declining profit margins and streamline the company’s Volvo, Mack, Renault and UD brands.
However, financial figures from Volvo continued to show a shrinking operating margin from 8.7 per cent in 2011 to 3 per cent in 2014.
However, results so far in 2015 have been positive. Truck orders have increased 3 per cent and Volvo’s margins have climbed to 9.1 per cent.