Volvo's Deputy CEO to Step Down in Management Reshuffle Amid Slowing EV Demand

• On Wednesday, Volvo Cars announced that Björn Annwall, the company's deputy CEO, would be stepping down from his current position as part of a management restructuring.
• After abandoning its goal of selling only electric vehicles, Volvo Cars has become more "pragmatic and flexible."
• To remain competitive in a fast-paced world, it is crucial for our organization to adapt to a more demanding market, as stated by Jim Rowan, CEO of Volvo Cars.

On Wednesday, Volvo Cars announced that Björn Annwall, the company's deputy CEO, would be stepping down from his current position as part of a management restructuring aimed at enhancing simplicity and cooperation within the organization.

After abandoning its goal of selling only electric vehicles, Volvo Cars has become more "pragmatic and flexible."

The auto industry is currently facing a perfect storm of challenges on the path to full electrification, including a lack of affordable models, a slower-than-anticipated rollout of charging points, and the impact of European tariffs on EVs made in China.

To remain competitive in a fast-paced world, it is crucial for our organization to adapt to a more demanding market, as stated by Jim Rowan, CEO of Volvo Cars.

He stated that the commercial leadership team is being regrouped with a focus on enhancing Volvo Cars' strength by improving speed and efficiency.

The chief commercial officer and deputy CEO of Volvo Cars, Annwall, will soon leave his position to support the restructuring of the company before pursuing his next opportunity outside of the firm, the company announced.

Volvo Cars announced leadership changes, including Arek Nowinski as president of international markets, Gretchen Saegh-Fleming as head of customer experience and marketing, and Oscar Bertilsson Olsborg as head of global commercial operations.

To tackle challenges in the automotive industry, including geopolitical and macroeconomic uncertainties, market sentiment, rapid technology shifts, and supply chain disruptions, Volvo Cars is taking steps.

Electrification ambitions

In early September, Volvo Cars, owned by Geely Holding, abandoned its plan to solely sell electric vehicles by 2030.

The car company, which was one of the first traditional automakers to pledge a total transition to electric vehicles, stated at the time that it remains committed to becoming a fully electric car manufacturer in the future.

Volvo Cars is following the lead of other industry players in reducing its EV ambitions, as Mercedes-Benz Group and Volkswagen have previously announced changes in their EV strategies.

Volvo Cars acknowledged last month that its electrification plans are facing challenges due to a slower-than-expected rollout of charging infrastructure, the withdrawal of government incentives in some markets, and additional uncertainty caused by recent tariffs on EVs in various markets.

The transition away from fossil fuels requires "stronger and more stable government policies," according to Volvo Cars.