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

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Over the past ten years, Michael Lohscheller has served as CEO of multiple other automakers. He oversaw Opel from 2017 until 2021 before taking a job as VinFast’s global CEO.

In just seven months, he left to join Nikola, a manufacturer of big rigs powered by hydrogen and batteries. According to his LinkedIn profile, he served as CEO and president of the company until September 2023.

Polestar, which offers three models at the moment, the Polestar 2, Polestar 3, and Polestar 4, had difficult sales first half of 2024. Around 20,200 cars were sold worldwide by the Geely subsidiary, a 27% decrease from the previous year.

Since import tariffs have increased, the aspiring automaker’s plans to expand into the United States have been almost hampered by the fact that all three models are currently being assembled in China.

At least domestically, its prospects are centred around the Polestar 3, which just started producing locally in South Carolina, avoiding expensive import taxes and minimising losses.

Polestar is aiming to compete against brands like Mercedes-Benz, BMW, and Porsche. Put differently, the company is placing its bets on expensive vehicles in a market that seems to prefer less expensive vehicles, so it will be interesting to see what the new CEO can do.

Challenges Faced By Polestar

Polestar’s first product, the Polestar 1, was only available in limited quantities and has been discontinued. The Polestar 2, which began deliveries in mid-2020, is considered the brand’s first truly mass-produced model on sale, and is only built at a plant in China’s Zhejiang province.

On October 12, 2022, the Polestar 3 made its global debut. On February 27, 2024, Polestar said that production of the Polestar 3 had begun in Chengdu, Sichuan, in southwest China. With the manufacturing line now extending to the United States, the Polestar 3 has become the first Polestar model to be produced in both China and outside of the world’s second-largest economy, supporting the company’s growth ambitions in North America, Europe and Asia.

By producing vehicles in the United States and China, Polestar will be able to serve North America, Europe and Asia markets more efficiently, reducing lead times and costs, the venture informed the media.

Polestar vehicles produced at the United States plant will not only be supplied to the American market, but will also be shipped to Europe. The company also plans to begin production of the Polestar 4 in South Korea by 2025.

Outgoing CEO Thomas Ingenlath said in August 2024 that the US plant is expected to reach full capacity in two months and will begin supplying the local customers in September 2024, followed by deliveries to Europe. Polestar sold 3,555 Polestar 2 sedans in the United States in the first half of 2024, Reuters said, citing Kelley Blue Book estimates.

Polestar’s production line expansion in the American mainland comes at a time when Europe and the US have imposed tariffs on EVs from China. The US Trade Representative’s Office (USTR) has already announced that in 2024, the tax on Chinese electric vehicles will rise from 25% to 100%.

However, Polestar has been undergoing a rough patch. The first quarter of 2024 saw a sharp decline in the venture’s EV sales. In the initial quarter of the year, the automaker delivered approximately 7,200 cars, which is approximately 40% fewer than in Q1/2023.

The sales at Polestar are a reflection of the current model change. With the arrival of the Polestar 4 and the impending launch of the Polestar 3, whose production has now commenced, the company is transitioning from a manufacturer of just one model, the Polestar 2, to a more varied portfolio.

Even though the Polestar 2 has been greatly improved for the 2024 model year, some prospective customers might be undecided right now about whether to go with the slightly larger Polestar 4 or the updated but out-of-date Polestar 2, or they might decide to wait for an electric saloon from a competitor.

Some 1,200 of the 7,200 cars delivered in Q1 were Polestar 4s. They were all delivered in China because the model won’t be available in Europe until later in the year. Nonetheless, Polestar is probably going to break the run of four straight quarters of declining sales. Since Q3/2022, the 7,200 units represented the lowest quarterly result.

Since its IPO, Polestar’s only reporting requirement has been to release quarterly data. Before that, the business only occasionally released its numbers. In contrast, Polestar delivered 12,076 cars in Q1-2023, all of which were Polestar 2s at the time. Nevertheless, the manufacturer missed its yearly goal of 60,000 units with roughly 54,600 deliveries, failing to match the performance from the record quarter of Q4-2022 with 21,000 units throughout 2023.

The year 2024 will be a “transitional year,” according to Polestar, since two new models will go on sale. The company plans to deliver between 155,000 and 165,000 units by 2025, so expectations are high.

Polestar had a very significant first quarter from a corporate standpoint in addition to the change in the model portfolio. In order to fund the next phase of development, the company first obtained new external financing in February, totalling USD 950 million from a group of international banks.

Clarification was also provided regarding Polestar’s ownership structure, with Volvo Cars holding an 18% strategic stake and Geely Holdings emerging as a new significant shareholder with approximately 24% of the company.

Company Stages A Comeback

In January 2024, Polestar announced its plans to cut around 450 jobs globally, or about 15% of its workforce, amid “challenging market conditions.” Just like any other automaker, the venture was feeling the heat of headwinds like poor EV demand, heavy price cuts, high interest rate regimes, lower subsidies, and supply chain issues.

Polestar in November 2023 trimmed delivery forecasts and outlined a revised business plan, aiming for its cash flow to break even in 2025 and to reduce its reliance on external funding from key owners Volvo Cars and Geely. It also announced plans to double down on cutting costs to boost profit margins.

As 2024 kicked in, Polestar was struggling in its goal of turning profitable, as it missed the revised 2023 delivery target due to factors like high inflation, low demand and a price war ignited by Tesla.

In the coming months, Polestar had to receive a notice of noncompliance with Nasdaq’s USD 1 minimum bid price requirement. The venture has time till January 2, 2025, to regain compliance by having a closing bid price that meets or exceeds the USD 1 minimum for at least 10 consecutive business days.

However, the venture has now shown signs of overcoming the odds, as it plans to expand its commercial footprint and retail operations across existing and seven new markets. France has emerged as the largest volume market for electric cars in the European Union after Germany, thereby representing a significant opportunity for the company. In addition, Polestar will launch in the Czech Republic, Slovakia, Hungary, Poland, Thailand and Brazil via local distribution partnerships.

Polestar 4 SUV coupés deliveries in Europe have already started. The European car line-up has expanded from one to three electric vehicles (EVs) with the addition of the Polestar 4 SUV. The company also offers the Polestar 2 and the Polestar 3 in Europe.

The venture has also appointed Philipp Romers as the Head of Design. With 25 years of experience in the automotive design industry, Romers joined the automaker from Audi, where his most recent position was Head of Exterior Design. He designed the current Audi A6, among other vehicles. Before his stint at Audi, Romers was a designer at Volkswagen, where he was involved in the design of the Volkswagen Golf 7 and Passat B8.

The Road Ahead

Polestar’s immediate challenges are delayed model launches, missed delivery targets, and a gradual separation from its co-founder, Volvo Cars. Michael Lohscheller will officially take over as CEO on October 1, stepping into a tough role, which will require him to initiate a major cost-cutting strategy aimed at achieving profitability and cash flow breakeven by 2025.

Additionally, the company needs to tread a cautious path amid the punitive tariffs from the European Union, the United States, and Canada on China-made EVs. Polestar may require reducing its dependence on Chinese manufacturing.

“Michael Lohscheller’s extensive leadership background contrasts with Ingenlath’s design-focused career, who was Volvo Cars’ senior vice-president of design before taking the helm at Polestar in 2017. The leadership change also underscores Polestar’s shift away from its Volvo roots. This year, Polestar appointed a new chair, Winfried Vahland, replacing Hakan Samuelsson, a former Volvo CEO. The company also recently changed its head of design to another executive with Volvo ties,” reported CEOWorld Magazine.

“Polestar’s evolving relationship with Volvo is evident in its production strategy. While the Polestar 2 and 3 models are manufactured in Volvo facilities, the Polestar 4 is produced in a Geely-run factory and does not rely on Volvo’s platform, a trend expected to continue with future models. Volvo Cars has reduced its stake in Polestar from 48% to 18%, signalling a strategic withdrawal. Meanwhile, Geely, now Polestar’s majority shareholder, remains committed to supporting the EV maker, including providing further financial assistance,” it added.

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Geely’s Zeekr is now valued at USD 13 billion. One such innovation that has put Zeekr at the forefront of the electric vehicle race is its adoption of “Gigapress” die-casting technology. This revolutionary technology allows the production of larger, stronger, and more complex vehicle parts in a single process, drastically reducing manufacturing costs and increasing efficiency.

Jiang Kehong, the head of manufacturing technologies at Zeekr, revealed that the Chinese automaker had begun employing enormous aluminium die casts to manufacture a sizable rear underbody piece of its Zeekr 009 six-seat multipurpose van (MPV).

The official has also claimed that the method had assisted Zeekr in removing around 800 welding sites, reducing flaws, making the vehicle lighter, and increasing its structural stiffness, all of which impacted the ride quality of the MPV that went on sale in China in 2023.

Jiang predicted that Zeekr would employ giga-casting technology on additional models in the future.

This technological development is significant because it could impact the electric vehicle landscape in China and worldwide. The technology, which has been used by industry leaders such as Tesla and Volkswagen, has already been embraced by many Chinese automakers, including NIO, WM Motor, and XPeng. With the addition of Zeekr to this list, experts predict that the mass adoption of Gigapress technology would accelerate further, thereby helping to make EVs more affordable to consumers worldwide.

Elon Musk-led Tesla is facing tough competition from competitors like BYD, GAC, Chery, and SGMW, companies which are driving China’s USD 124 billion EV market. Even rising automakers like NIO, Li Auto, and Xpeng have made their presence felt in the global EV space.

Chinese brands like NIO and Ora have entered the market as serious contenders. As Chinese EV sales continue to grow and evolve, it will be interesting to see how these competitors stack up against each other and Tesla.

GigaPress technology, as the name suggests, is a series of high-pressure aluminium die-casting machines revolutionizing how the automotive industry manufactures car parts. Manufactured by Idra Group in Italy, the GigaPress program is changing the game for companies such as Tesla, Volvo, and Toyota.

With a clamping force of 55,000, Tesla’s first Giga Press installed in 2020 gave it the ultimate advantage in the industry. Now, Geely adopting this production method means other automakers too will have to follow the trend, in order to challenge Tesla’s monopoly.

The injection system used in the new GigaPress has resulted from amazing R&D efforts and two years of hot tests in collaboration with Italy’s Idra Group. The machines can handle molten aluminium weighing over 100 kg, which is then injected into high-precision cold moulds, resulting in stronger, stiffer, and significantly lighter parts than those made using traditional manufacturing methods.

IDRA’s newest and biggest GigaPress, the 9,000, which is the size of a small house, can produce even larger parts making automotive manufacturing more efficient and cost-effective.

With GigaPress technology, Tesla and other automakers can manufacture high-quality car parts faster, more sustainably, and at a lower cost, paving the way for a more efficient and eco-friendly automotive industry.

The widespread use of Gigapress technology can shift the industry’s focus from fossil fuel-powered vehicles to EVs, creating a more sustainable, longer-lasting, and cleaner future. Experts predict that by 2035, almost one-third of all cars sold worldwide will be electric, with China playing a significant role in this growth.

China’s share of the EV market is already substantial; in 2021, China accounted for more than half of all new EV sales globally.

Furthermore, with its foray into the European market planned for the later half of 2023, Zeekr is well-positioned to capture a significant share of the growing European EV market.

According to a recent report, Europe’s EV market is predicted to grow by 50% in 2023, with over 2 million EVs sold, making it the most dynamic global market for this type of car. Therefore, this represents a significant opportunity for Zeekr to expand its brand and solidify its position as a worldwide leader in the EV space.

Conclusion

Through its adoption of Gigapress technology and its bold expansion plans, Zeekr is poised to become a significant player in the global EV market, thus disrupting the traditional automotive industry.

The growth and transformation of the Chinese EV market are not just limited to its domestic stakeholders but will have a lasting impact on global industry dynamics.

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