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Electric cars are problems for Volvo

Head of transition to electric vehicles leaves Volvo

Oct 10, 2024 16:15 440

Electric cars are problems for Volvo  - 1

Deputy CEO of Swedish passenger car manufacturer Volvo Car Björn Anvall to leave the company after nine years of work. This will happen as part of a large-scale management change, the company announced in an official statement.

"In a rapidly changing world, we need to ensure that our organization is ready to navigate this fundamentally more complex market in recent times," said Volvo Cars CEO Jim Rowan.

Rowan said Anwal played a “key role” in the company's listing on the stock market, the transition to electrification and the entry into new markets, but now they will apparently move forward without him.

Bloomderg notes that the announcement comes after Volvo cut its profit forecast last month. The company cited uncertainty in the global economy and rising tariffs on electric cars made in China, where Volvo makes some of its models.

The automaker, controlled by China's Geely, has also joined its rivals in abandoning its all-electric car ambitions. Volvo Cars has said it no longer plans to switch to all-electric cars before the end of the decade.

Instead, the company will continue to produce hybrid models amid weak consumer demand for more expensive battery-powered cars. Volvo Cars' problems have had an impact on its share price, which has fallen 40% in the past 12 months.