With the arrival of the Trump administration’s global tariffs, many of which will deeply affect the auto industry, all carmakers are readying up for a whole new trading reality. To tackle this complicated challenge, Volvo just re-appointed Hakan Samuelsson as CEO of the company as Jim Rowan steps down.
Samuelsson is no stranger to turbulent times. He was at the head of the company between 2012 and 2022, an era when Volvo Cars liberated itself from the malaise Ford years and embarked on a new journey alongside Chinese juggernaut Geely. In the process, Samuelsson helped Volvo Cars overhaul its entire product portfolio with flagship models such as the XC90 SUV and S90 full-size sedan. But he was also the man who spearheaded Volvo’s electrified future, helping the company implement plug-in-hybrid technology as early as 2015. A decade later, his electrification ambitions haven’t changed, but he’s now going about it with a three-point plan designed to strengthen Volvo’s global stance.
Still An Electric Future, But With More Hybrids
The first part of Samuelsson’s plan is basically what Volvo has already commenced as of fall of last year: a continued emphasis on the release of new electric vehicles (EVs), but with an increase in the availability of hybrids and plug-in hybrids (PHEVs). Volvo, like other carmakers, has admitted that EV market share isn’t growing as fast as anticipated. For reference, global sales of Volvo’s fully-electric models were down 15-percent during the first quarter, while its plug-in hybrid sales rose 14 percent.
PHEVs will therefore act as a bridge between the automaker’s internal combustion engine (ICE) past and electric future. This is why Volvo has recently overhauled the XC90 and, more recently, the smaller XC60 compact SUV, both of which offer PHEV technology. All of Volvo’s current ICE models offer some form of electrification, whether it be in the form of PHEV or 48-volt mild hybrid.
Meanwhile, the Swedish automaker continues expanding its EV offering. The EX30 subcompact crossover is finally available in the U.S. as Volvo reshuffles its assembly from China to Belgium to avoid tariffs, although Trump’s new tariff threat just ruined these plans. The EX30 recently got its own Cross Country version, marking the first-ever Volvo EV to get the trail-conquering treatment, while the recently revealed ES90 full-size electric sedan aims at taking the fight directly to the Tesla Model S.
More Synergy With Geely And Cost Cutting
The second part of Volvo’s plan is to work more intimately with Geely in order to help it rebalance its declining gross margins, which fell to 17.1 percent from 20.9 percent during the same period last year. Samuelsson wants to integrate more of Volvo’s manufacturing operations and suppliers within Geely in order to better take on a consistently aggressive Chinese auto industry.
Which brings us to Samuelsson’s third part of his plan: cost-cutting across all of Volvo Cars. This is something all automakers will be focusing on in the coming years due to tariffs, increasing manufacturing costs and, again, fierce Chinese competition. This will mean streamlining the way all vehicles will be built, integrating simpler, more efficient electrical architectures and relying more intensively on Chinese suppliers, hence the importance of working closer with Geely.
- Volvo still wants an electric future.
- Hybrids remain part of the automaker’s roadmap.
- A closer relationship with Geely.
- Cost cutting to face tariffs and the Chinese auto industry.
But most of this is no different from where Volvo was already heading. Samuelsson will build on what Rowan had jump-started. It’s important to mention that under Jim Rowan’s command, Volvo set six global sales records, with 2023 and 2024 being among Volvo Cars’ healthiest years. Volvo’s worldwide sales rose eight percent to 763,389 last year, most of which had to do with the EX30 electric crossover. It’ll be interesting to see how Volvo’s new CEO will help navigate the company through what lies ahead.
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