Hakan Samuelsson, the former CEO of Volvo Cars, which is primarily owned by China’s Geely, has returned to lead the company for the next two years. The players in the automobile sector, including Volvo Cars, are gearing up to deal with the fallout from global tariff pressure, which ensued from US President Donald Trump’s announcement that a 25% tax on cars not made in his country will come into effect now.
Samuelsson will begin his two-year term while the group gets ready to name a long-term replacement. Jim Rowan’s departure occurred just roughly three years after he was appointed in January 2022, the same month that Volvo went public on the Stockholm Stock Exchange. Eric Li, the chair of the Volvo Cars board, stated that the company was dealing with rapidly changing technology, escalating geopolitical issues, and heightened competition.
Volvo Cars issued a warning last month that 2025 would be a turbulent and competitive year and that it might find it difficult to match its 2024 profitability and sales results.
Meet Hakan Samuelsson
Samuelsson, who was born in Sweden in 1957, has had a long and illustrious career in the automotive industry. He grew up in a country renowned for its automotive heritage and was always drawn to the engineering and manufacturing sectors.
After completing his engineering education, Hakan Samuelsson became involved with major international auto brands, especially Volvo, where he would play a significant role in determining the company’s future.
Early in the 1990s, Samuelsson joined Volvo, one of Sweden’s most recognisable automakers. With a solid technical background, he advanced through the ranks swiftly and gained experience in a variety of roles that exposed him to the intricacies of technology, management, and car manufacturing.
By the late 2000s, Volvo was facing serious difficulties, and Samuelsson’s leadership skills were needed to help steer the business through a challenging time. His strategic vision and in-depth knowledge of the automotive industry proved to be a game-changer.
Hakan Samuelsson eventually became the CEO of Volvo Cars in 2010. He oversaw several calculated actions that brought the brand back to life. Under his direction, Volvo strengthened its reputation as one of the world’s safest automakers by putting a strong emphasis on safety innovations.
He also pushed the company to switch to electric cars and set ambitious targets for the future, such as pledging to have an all-electric lineup by 2030. As an innovative leader in the automotive industry, Hakan Samuelsson gained recognition for his efforts to guide Volvo toward a sustainable future.
After leading Volvo with success, Samuelsson focused on Polestar, a performance electric vehicle brand that was originally a performance sub-brand of Volvo. Bringing his extensive automotive industry experience to the expanding electric vehicle market, Hakan Samuelsson became the Chairperson of Polestar after it was spun off as an independent business. Under his direction, Polestar produced high-performance electric cars that meet the rising demand for environmentally friendly luxury cars, fusing performance and sustainability. Developing vehicles that embody both state-of-the-art technology and a dedication to sustainability is at the heart of his vision for Polestar.
Throughout his career, Samuelsson has been instrumental in transforming conventional automakers into industry leaders in electric vehicles. His contribution to Volvo’s transition to electric cars and his strategic leadership at Polestar demonstrate his dedication to a more environmentally friendly future for the auto sector.
The future of transportation is still being shaped by Samuelsson’s work, and he continues to play a significant role in advancing sustainable automotive solutions and electric vehicle technology.
A Challenging Path Ahead
Hakan Samuelsson, who oversaw the company’s initial public offering (IPO) in 2021 on the Stockholm Stock Exchange, also witnessed Trump’s first term, something which may help the company chart out a survival route as the tariff warfare from the Republicans gets uglier.
During Trump 1.0 (2017-2021), the company built a car assembly plant in South Carolina, a move that could prove crucial right now in avoiding the dreaded 25% import tariffs.
In contrast to Hakan Samuelsson, Rowan was an unconventional choice with a three-decade career in the consumer and technology sectors. However, he is known for his solid knowledge in fields such as digitalisation, disruption, innovation, engineering, and supply chains.
Sverre Linton, the chief legal officer of the Swedish Shareholder’s Association, which represents small shareholders in Volvo, told Reuters, “Samuelsson is not a wizard; he also needs the help of a solid strategy in which the board plays a central role in creating.”
A similar sentiment was echoed by investors and analysts, who said in their research notes and interviews that they were surprised by the news but noted that Volvo is returning to its roots.
Talking about Volvo, the Swedish automaker’s owner, China’s Geely, which owns 78.7% of Volvo’s stock, is also facing hard times, as the venture has been restructuring its sprawling holdings, including replacing the CEO of troubled EV maker Polestar in August 2024.
Volvo Cars board Chair Eric Li, also known as Li Shufu, has come under pressure from investors. Shareholder advisory groups ISS and Glass Lewis have both advised against his re-election due to his failure to attend the vast majority of the Swedish automaker’s board meetings over the last fiscal year.
European Union (EU) tariffs on Chinese-made electric vehicles forced Volvo to move production of its SUV EX30 to Belgium from China. Trump’s re-election has produced more tariff headaches.
Rowan, before relinquishing his chair, talked about shifting more production to its US plant.
Volvo is one of the most exposed automakers to Trump’s tariffs because, even though it produces its SUV EX90 in its South Carolina plant, it imports most of its hybrid and electric models from Europe at the moment.
In September 2024, the slower-than-expected uptake of EVs also forced the Swedish automaker to abandon its target of going all-electric by 2030. Even though Volvo has impressed analysts with sales growth from previous years, delays to key electric models, a price war on electric cars, and weak EV demand have put pressure on its shares, which have underperformed the European car market.
Volvo, however, has received a new boost as the Swedish sodium-ion battery developer Altris has announced that Volvo Cars Tech Fund has become one of the startup’s strategic investors. In connection with this investment, Altris has agreed with Volvo Cars to collaborate on product development to identify new potential battery energy storage systems.
Since its formation in 2017, Altris has been developing its patented cathode material, “Altris Prussian White,” alongside electrolytes, battery cells, and production blueprints for market-leading sodium-ion batteries.
Volvo Cars will now explore the potential of Altris’ sodium-ion technology for battery energy storage systems (BESS) as well as other solutions within Volvo Cars’ product portfolio. With this move, the venture will become the first automotive manufacturer to collaborate with the startup.
By providing an alternative to lithium, this investment has the potential to support a more diverse supply chain for Volvo Cars. Sodium-ion batteries are still an emerging technology and are not currently planned for use in Volvo Cars’ electric vehicles.
Image Credit: Volvo Cars