By on October 19, 2012

Further on the news that Stefan Jacoby is out at Volvo and that Hakan Samuelsson is in, the parties decided to forgo the face-saving explanation that the change was due to medical reasons. They confirmed that is was a boardroom brawl which Jacoby lost. In a press conference today, Volvo Vice-Chairman Hans-Olov Olsson said “that Jacoby’s illness had nothing to do with the decision to remove Jacoby,” Reuters says. Olsson also claimed that it wasn’t personal animosity between him and Jacoby. Which leaves only that Jacoby was sacked for underperforming.

The 70 year old Olssson is a Volvo veteran. He was reactivated by Geely Chairman Li Shufu as his  representative on the board in Sweden. Li Shufu does not speak English, Olsson is his mouth and ears. Olsson and Jacoby quickly clashed.

“It’s just been a mess,” an ex-Volvo executive told Reuters. “Jacoby has not been able to run Volvo the way he wants to.” Volvo insiders suspect vis-a-vis Reuters that “friction with Olsson may have added to an unhealthy level of stress” for Jacoby, and indirectly blame Olsson for Jacoby’s mild stroke that left an arm and a leg impaired.  With Li Shufu’s approval, Olsson ditched Jacoby and put fellow Swede Samuelson in charge.

Hakan Samuelson has been on the Volvo board since 2010, after he left MAN in 2009 in disgrace. MAN was involved in a large bribery scandal. German prosecutors last month said that Samuelsson is being investigated for aiding and abetting bribery. MAN is seeking millions of euros in damages from Samuelsson because of the scandal. Maybe he should move to China.

Volvo  finds itself in troubled waters, both in Europe and in China. The EU market is a tough place for any automaker. Volvo’s EU sales are down  12.3 percent for the year and 17.4 percent in August. China suffers from overcapacity and is no longer desperately waiting  for new car brands. In the U.S., Volvo’s sales are down slightly, a bad sign in an otherwise strong market.

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4 Comments on “New Volvo Boss Comes Highly Qualified: Under Investigation For Bribery...”


  • avatar
    Nostrathomas

    Yeesh, what’s with all the drama in Scandinavian motoring these days?

    Personally, I don’t care who’s in charge, as long Volvo can at least partly re-focus on building things its core existing audience has always liked. Practicality, quality and wagons. The bread and butter Volvo buyer doesn’t even have a true wagon option to choose from anymore (at least not in NA) and that’s a shame. When it’s time to upgrade our V50, I sure as hell won’t be wanting an XC.

    My feeling is with all the emphasis on China these days though, understated boxy wagons are not really what sells over there.

    • 0 avatar
      oldfatandrich

      I never knew that there were “bread and butter” Volvo owners—bread and butter are far too pedestrian and lack the “ton” demanded by those sophisticates. But not to worry: Volvo will soon join Saab in the Scandinavian automobile valhalla.

  • avatar
    th009

    Nothing like kicking your CEO while he’s down. I suspect that he’ll be getting a nice severance package, though.

  • avatar
    MrWhopee

    So the new CEO’s well acquainted with bribery eh? Then he’s well equipped as far as improving sales in China go…


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