Last April, Volvo Car and the China Development Bank Corporation signed a Memorandum of Understanding for a “strategic partnership,” presumably a new Chinese plant.
The Board of Directors of Volvo Car Group has appointed Håkan Samuelsson, 61, as its new President & CEO effective immediately, the Chinese owned company said today. Stefan Jacoby, CEO since 2010, will leave Volvo Car Group and the board. Jacoby had been on medical leave following a stroke in September, but was expected to return shortly. The parting was called “amicable” by Volvo, although Jacoby was not available for interviews.
Volvo Car Group posted a $38 million loss during the first half of 2012, compared with a $183 million profit in the same period in 2011 and cash flow is negative.
Global retail sales for the first half of 2012 came in at 221,309 cars, down 4.1% versus the same period in 2011 (230,746). In 2011, Volvo sold 449,000 vehicles globally, not enough to finance new platforms and or plants, both of which Volvo needs to survive in the global auto business.
“I see major opportunities for Volvo Cars to improve profitability, and accelerate our growth plan in China specifically. I am convinced that Håkan Samuelsson’s thorough experience and leadership will help us increase performance,” said Li Shufu, majority shareholder of Volvo’s owner the Chinese Zhejiang Geely Holding Group and Chairman of the Board, in a statement. The Chinese ownership now considers China as Swedish-based Volvo’s home market.
Last April, Volvo and the China Development Bank Corporation signed a Memorandum of Understanding for a “strategic partnership.” A growth plan for the Chinese market is vital to achieving Volvo’s 2020 global sales target of 800,000. (Volvo signs MoU with China Development Bank. Plant Next?)
Volvo Car will temporarily stop production in the Torslanda plant from 29 October to 2 November because of the continued decline of the European auto market. The temporary stop of production means that the plant employees will be on leave with pay through a combination of using time banks and leaves of absence. The latest cutback at Torslanda follows a trimming of the line speed from 57 cars to 50 cars per hour at the beginning of October.
