Volvo Cars has announced that Klaus Zellmer will take over as its president and CEO within the next year. Zellmer, an industry veteran with over 30 years of experience, previously served as CEO of Volkswagen's Skoda brand. His appointment comes as the Sweden-based carmaker, majority-owned by China's Geely Holding, seeks to revive sales in an increasingly competitive market. Zellmer will succeed Hakan Samuelsson, who has led the company since 2012 and was reappointed in 2025 to improve the company's fortunes.
Volvo Cars has faced significant challenges, including tariffs, weaker electric vehicle demand, and high development costs, which have impacted its profitability. The company's shares have traded near record lows and are down over 45% so far this year. Despite these challenges, cost savings have helped cushion pressure on earnings. The carmaker has been working to shift production to better shield itself from tariffs, such as moving production of its hybrid XC60 to South Carolina and ramping up EX30 output at its Belgium plant.
Zellmer's appointment has been welcomed by Volvo Car chair Li Shufu, who highlighted Zellmer's strong record of guiding organizations through transformation and changing market conditions. Li Shufu noted that Zellmer's experience in both the high-end premium segment and high-volume brands is an excellent fit for Volvo Cars. Zellmer will start in his new role no later than October 1, 2027, and will be tasked with implementing the company's ambitious strategy to launch 13 new models between now and 2030.
The new strategy, laid out by Samuelsson at a recent strategy day, aims to double the company's market share. However, Volvo Cars faces a delicate balancing act, separating its Western and Chinese technologies to continue selling in the US, where its sister brand Polestar faces a sales ban. The company is also grappling with the fallout of US tariffs and slumping sales in China. Despite these challenges, demand for the new flagship EX60 electric SUV has exceeded initial expectations.
Samuelsson, who has led Volvo Cars since 2012, previously announced that he had no plans to work full-time after his contract runs out in April. His departure marks the end of an era for the company, and Zellmer will be tasked with building on the foundations laid by Samuelsson. Zellmer's experience in the automotive industry, including his time at Skoda, will be crucial in helping Volvo Cars navigate the challenges it faces.
Volvo Cars is not the only company facing challenges in the automotive industry. The industry is undergoing significant transformation, driven by changing consumer preferences, technological advancements, and shifting regulatory requirements. Zellmer's appointment is seen as a strategic move to help Volvo Cars adapt to these changes and remain competitive. His experience in guiding organizations through transformation will be essential in helping the company navigate this complex landscape.
As Zellmer prepares to take the reins at Volvo Cars, the company is focused on launching new models and expanding its market share. The company's strategy day provided a glimpse into its plans for the future, including the launch of 13 new models between now and 2030. With Zellmer at the helm, Volvo Cars will aim to improve its profitability and competitiveness in an increasingly challenging market.
Key points
- Klaus Zellmer to succeed Hakan Samuelsson as Volvo Cars CEO.
- Volvo Cars aims to launch 13 new models between now and 2030.
- The company's shares have traded near record lows and are down over 45% so far this year.
