Sweden’s Volvo says deputy CEO to step down in management reshuffle as EV demand slows

Swedish automaker Volvo Vehicles on Wednesday introduced deputy CEO Björn Annwall will step down from his present position as a part of a administration reshuffle designed to extend simplicity and collaboration within the group.

It comes shortly after Volvo Vehicles deserted its near-term purpose of promoting solely electrical automobiles (EVs), citing a have to be “pragmatic and versatile.”

The auto business at the moment faces an ideal storm of challenges on the trail to full electrification, together with an absence of inexpensive fashions, a slower-than-anticipated rollout of charging factors and the affect of European tariffs on EVs made in China.

“In a quickly altering world, we have to guarantee our organisation is provided to navigate a tougher market,” Jim Rowan, CEO at Volvo Vehicles, mentioned in a written assertion.

“We at the moment are regrouping our business management staff with a deal with making Volvo Vehicles even stronger with elevated pace and effectivity,” he added.

Annwall, who at the moment serves because the chief business officer and deputy CEO of Volvo Vehicles, will quickly step away from his position and assist the reorganization of the agency’s construction earlier than taking his subsequent step exterior of the agency, the corporate mentioned.

A number of the different management adjustments Volvo Vehicles introduced embody plans for Arek Nowinski to grow to be the agency’s president of worldwide markets, Gretchen Saegh-Fleming to guide on buyer expertise and advertising and marketing and Oscar Bertilsson Olsborg to grow to be head of worldwide business operations.

Volvo Vehicles mentioned it was taking these steps to navigate challenges going through the automotive business, reminiscent of headwinds pushed by geopolitical and macroeconomic uncertainties, market sentiment, fast know-how shifts and provide chains.

Volvo Vehicles, which is owned by China’s Geely Holding, walked again its plan to promote solely EVs by 2030 in early September.

The agency, which had been among the many first legacy carmakers to vow a whole swap to EVs, mentioned on the time that it nonetheless intends to grow to be a totally electrical carmaker over the long run.

The transfer means Volvo Vehicles is following within the footsteps of different business gamers in scaling again its EV ambitions. Germany-based carmakers Mercedes-Benz Group and Volkswagen have each beforehand introduced a shift of their respective EV methods.

Underlining the challenges going through its electrification ambitions, Volvo Vehicles mentioned final month that there had been a slower-than-expected rollout of charging infrastructure, a withdrawal of presidency incentives in some markets and extra uncertainty prompted by current tariffs on EVs in numerous markets.

Volvo Vehicles mentioned these developments present that there continues to be a necessity “for stronger and extra steady authorities insurance policies” in an effort to assist the transition away from fossil fuels.