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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The long-awaited rule requiring automakers selling in the US to significantly increase the number of battery-powered vehicles sold this decade was finalised by the US Environmental Protection Agency. This will significantly reduce the nation’s carbon emissions. More than half of newly sold automobiles must be electric by 2032.

Changes made since the regulations were first proposed in draft form about a year ago would provide automakers more flexibility in determining how to meet the government’s new tailpipe emissions targets. One significant change: plug-in hybrids are now an option.

Automakers could only reach the progressively stricter zero-emission targets under the proposed rule by increasing the sales of battery-electric vehicles. However, manufacturers will now be permitted to employ plug-in hybrids to achieve the standards, thanks to pressure from automakers and unions, both of whom claimed that the EPA’s suggestions were unachievable.

Accordingly, automakers can now comply with federal regulations by making sure that, by 2032, battery-electric vehicles will account for two-thirds of their sales, or slightly more than half, while plug-in hybrids would make up the remaining 13 per cent.

As automakers rush to fulfil the country’s most aggressive climate objectives to date, expect them to make use of these hybrid vehicles, which are largely powered by electric batteries and then supported by a gas-powered engine once the batteries run low.

These things are going to be abundant on the route. The device does, however, have a climate catch: its drivers can pick how emission-free they want it to be.

Gateway To EV

Executives from several automakers, including Audi, BMW, General Motors, Mercedes, Volvo, and the Chinese EV producer BYD, have expressed optimism in recent months that the “compromise” cars will catalyse the mass adoption of electric vehicles. Furthermore, Toyota may feel vindicated by the policy change since it has wagered that consumers will gravitate toward plug-in and gas-electric hybrids instead of following Tesla’s lead and purchasing all-electric vehicles.

Plug-in hybrid sales are increasing more quickly than those of battery-electric vehicles worldwide, albeit in part because the hybrids still have a ways to go. Data from market research firm BloombergNEF shows that between 2022 and 2023, sales of plug-in hybrids increased by 43% to over 4.2 million units. During the same time frame, sales of battery-electric vehicles rose by 28% to close to 9.6 million.

The technology has a few strong advantages. Since most American drivers only go 30 miles a day on average, most could get by on the electric battery of a plug-in hybrid and only use gas for longer excursions.

Additionally, plug-in hybrids ease the manufacturing anxieties of several automakers: Although they cost more to construct than pure battery electrics (the two-motor setup), the technology can occasionally be added to already-owned gas-powered vehicles. Short-term, this means less work—an exciting prospect for an industry that, as it transitions to electric vehicles, will need to rethink how it acquires the resources needed to make its cars run on batteries over the next few decades.

Automakers now have a few more years to complete their electric vehicle portfolio, according to Gil Tal, the director of UC Davis’ Plug-In Hybrid and Electric Vehicle Research Centre.

Furthermore, some view plug-in hybrids as a method for those who are apprehensive about switching to a new drivetrain to become acclimated to the concept of driving a fully electric car.

“We observe a lot of customers who start with a plug-in hybrid and move to a fully electric vehicle for their next vehicle,” Volvo’s deputy CEO and chief commercial officer, Bjorn Annwall, said in a call with investors last month.

He went on, to say that Volvo “will get further love and care with smart investments” for the cars.

However, data from Europe, where plug-in hybrids have been around for a while, indicates that things are a little more nuanced there. Occasionally, plug-in hybrid owners use their time with the cars to get used to charging them before deciding to switch entirely to battery power, according to Patrick Plötz, a transport electrification policy researcher at the Fraunhofer Institute for Systems and Innovation Research ISI in Germany.

But occasionally the opposite is true, according to him: drivers, particularly those who drive plug-in hybrids with shorter-range batteries, feel that “it’s the worst of both sides.” A portion of these motorists retreat to their familiar gas-powered vehicles.

Unsatisfactory Plug-In Conduct

Plug-in hybrids’ emissions production and environmental friendliness are dependent on how their drivers utilise them. Most of them can be powered by electricity. However, data indicates that some drivers may not be charging their cars sufficiently, which causes their batteries to run low and forces them to run mostly on gasoline. Their travels cause an increase in greenhouse gas emissions. It would be like if those drivers were operating internal combustion engines.

According to Tal, a researcher from UC Davis, anyone looking to cut their carbon emissions quickly should consider fully battery-electric vehicles based on his studies of plug-in hybrid drivers’ behaviour. That “gateway electric” notion has grown on him.

He said, “I view plug-in hybrids as an addition, not a means of transitioning to fully electric vehicles.”

The US EPA acknowledged that plug-in hybrid driving is far from emissions-free in the real world to appease environmentalists and auto lobbyists when it released the new tailpipe emissions guideline.

According to David Reichmuth, a senior engineer at the Union of Concerned Scientists, a research and advocacy group, the government’s regulations, however, are predicated on the idea that real-world drivers will eventually become more conscientious about plugging in their cars.

Could a reliance on plug-in hybrids by automakers hinder the transition? Reichmuth says maybe. “Yet ultimately, the [new emissions regulations] represent a significant advancement.”

The post IF Insights: Plug-in hybrid momentum propels automakers toward EV flexibility appeared first on International Finance.

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.

The post IF Insights: Zeekr, ‘Gigapress’ method and China’s electric vehicle revolution appeared first on International Finance.

“This is a very important reinforcement of our electromobility product range, giving our customers maximum flexibility in their daily operations. During peak hours the buses can operate continuously without stopping to recharge. Instead, the batteries can be charged once traffic is at off-peak levels. On shorter routes, they can even run throughout the day and be charged at night,” says Håkan Agnevall, President of Volvo Buses.

“As the demand for electric buses has grown very rapidly both in Europe and the rest of the world, it feels really good that we can offer cities an electric-bus system that provides better preconditions than ever to switch to sustainable, quiet and emission-free public transport.”

Volvo Buses has also expanded the range of options regarding the way the batteries are charged. Just like before the batteries in the new Volvo 7900 Electric can be fast-charged at the route’s end stops, via the open and competition-neutral OppCharge interface. However, they can now also be charged via cable, CCS, which is the European standard for charging of electric vehicles from the mains grid.

“Operators can choose the charge interface that best suits each particular occasion. For instance, CCS is suitable for high-power charging when the bus is parked in the depot,” says Johnny Lidman, Product Manager City Buses Europe at Volvo Buses.

The new Volvo 7900 Electric is being launched on the market and has its premiere showing at the Busworld international bus fair in Kortrijk, Belgium, on 20 to 25 October. The first models of Volvo’s new generation of electric buses are expected to become operational at the end of 2018.

The electric buses are sold in the form of a complete, turnkey solution, with Volvo taking care of all maintenance of both vehicles and batteries at a fixed monthly cost.

The new Volvo 7900 Electric

•  All-electric propulsion, two-axle 12-metre city bus with low floor and three doors.
•  Quiet and emission-free operation.
•  80 % lower energy consumption than corresponding diesel bus.
•  Battery capacity 150, 200 or 250 kWh.
•  Can be charged via OppCharge or CCS (250 kWh charge only via CCS)
•  Operating range up to 200 km depending on topography and driving conditions.
•  Volvo’s advanced steering system Volvo Dynamic Steering (VDS) and the safety-enhancing Pedestrian and Cyclist Detection Warning are available as options.

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At the same time as it introduces the XC40, Volvo Cars also reinvents the traditional model of car ownership with its new ‘Care by Volvo’ subscription service. Care by Volvo, first available on the XC40 from launch, makes having a car as transparent, easy and hassle free as having a phone.

XC40 drivers will also be the first Volvo customers who can share their car with friends and family via Volvo on Call with a new digital key technology. Car sharing comes as standard for Care by Volvo customers.

The arrival of the XC40 means that for the first time in its history, Volvo Cars has three new, globally available SUVs in what is the fastest growing segment of the automotive market, paving the way for further growth in terms of sales and profitability.

The new XC40 is the first model on Volvo Cars’ new modular vehicle architecture (CMA), which will underpin all other upcoming cars in the 40 Series including fully electrified vehicles. Co-developed within Geely, CMA provides the company with the necessary economies of scale for this segment.

“The XC40 is our first entry in the small SUV segment, broadening the appeal of the Volvo brand and moving it in a new direction,” said Håkan Samuelsson, president and chief executive. “It represents a fresh, creative and distinctive new member of the Volvo line-up. So it only feels natural to reveal the XC40 here in Milan, a buzzing European hotspot for fashion, art, design and lifestyle.”

In terms of technology, the XC40 brings the award-winning safety, connectivity and infotainment technologies known from the new 90- and 60 Series cars to the small SUV segment. Like its larger siblings, the XC40 highlights the transformational effect of these new technologies on brand and profitability.

These technologies make the XC40 one of the best-equipped small premium SUVs on the market. Safety and driver assistance features on the XC40 include Volvo Cars’ Pilot Assist system, City Safety, Run-off Road protection and mitigation, Cross Traffic alert with brake support and the 360° Camera that helps drivers manoeuvre their car into tight parking spaces.

The XC40 also offers a radically new approach to storage inside the car. Ingenious interior design provides XC40 drivers with, among other things, more functional storage space in the doors and under the seats and a special space for phones including inductive charging.

From start of production, the XC40 will be available with a D4 diesel or a T5 petrol four-cylinder Drive-E powertrain. Further powertrain options, including a hybridised and a pure electric version, will be added later. The XC40 will also be the first Volvo model to be available with its new 3-cylinder engine.

Production of the new XC40 starts in Ghent, Belgium in November.

The post New XC40 completes global Volvo line-up for fast-growing premium SUV segment appeared first on International Finance.

China is the world’s largest auto market, with 28 million vehicles sold in 2016, a boost in demand of 13.7 percent vs. 2015 sales numbers. The nation has already done a lot to incentivize manufacturers to develop and sell new EVs, including allowing foreign automakers to create a third joint venture with local automakers so long as it’s dedicated to the creation of EVs exclusively.

Several other countries have announced similar intentions to ban fossil fuel-powered vehicles: France and the United Kingdom are both aiming to ban sales by 2040. Automakers are also increasingly looking towards electric vehicles: Volvo announced its intentions to produce only electric or electric-hybrids by 2019. Jaguar Land Rover plans to go all electric by 2020, while Aston Martin announced its plans to go completely hybrid by 2025.

The government has also created a number of incentive programs for OEMs, including subsidies. This will add to its positive efforts to drive more EV sales in China with the ultimate negative condition on the other side – at some point, automakers just won’t be able to do business at all in the country if they’re still selling a mix of fossil fuel and electrified vehicles.

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