Volvo Group Appoints Martin Lundstedt To CEO Role
In a surprise move by Swedish truck builder Volvo Group AB, the company has replaced president and CEO Olof Persson with Scania AB boss Martin Lundstedt.
Group chairman Carl-Henric Svanberg told The Wall Street Journal the board came to the conclusion the company would be “better served by someone with longer experience in the truck industry” than Persson, who had been its CEO for four years prior to Wednesday’s announcement. Svanberg added that one couldn’t reach world leadership via cost-cutting – such as the kr10-billion ($1.15 billion USD) program from 2012 through 2015 that cut 4,000 jobs – but through “clear vision” of what the company seeks to accomplish.
The move comes after Swedish business newspaper Dagens Industri reported claims of Svanberg seeking to replace Persson amid frustrations with Volvo Group’s performance despite the overhaul program meant to improve profit margins. The company’s shareholders held similar criticisms of Persson’s restructuring program and the pace at which it was implemented.
As for what Lundstedt will bring to the table, Svanberg praised his 25 years of experience in the commercial truck industry as well as his “winning leadership style.” Lundstedt shares some of the credit in maintaining Scania’s margins in the market, which had stood at 9.2 percent throughout 2014.
Lundstedt will take over as Volvo Group’s CEO in October. Chief Financial Officer Jan Gurander – who worked under Lundstedt as Scania’s CFO in the early 2000s – will be the company’s interim leader effective immediately.
[Photo credit: Scania]
No doubt Volvo wants to overtake Mercedes as the biggest Truck maker on the planet. VW, thinks it's owning of Scania and MAN can eventually do the same thing