Volvo’s chief executive Hakan Samuelsson has returned to lead the Swedish automaker on a two-year contract, warning that the rapid shift to electrification will leave some Western car brands unable to survive.
Samuelsson, who previously ran Volvo from 2012 to 2022 and guided it through a successful public offering, told Bloomberg this week that the company remains committed to electrification despite broader industry pullbacks.
See also: Volvo Begins Production of Fully Electric ES90 Sedan in Europe
“The industry will be electric — there’s no turning back. It may take a bit longer in some regions, but the direction is clear. In (about) 10 years, cars will all be electric and they will be lower cost,” Samuelsson said. “There will be new dominant players, exactly as Ford, GM, Toyota and Volkswagen were in the old world. In the new world, there will be two or three very strong Chinese brands. That makes the room for the old ones tougher. So this will trigger a (wave of) restructuring. Some companies will adapt to new circumstances and survive. Others will not.”
While he did not name specific brands at risk, Samuelsson expressed confidence that Volvo — majority-owned by China’s Geely — would endure the transition. He also noted the strategic value of Geely’s progress in electrification, though the relationship has drawn scrutiny in the United States, where Volvo has faced threats of sales restrictions due to Chinese ownership.
See also: Volvo to Debut AI-Enhanced Adaptive Seat Belt in Upcoming EX60 EV
Volvo’s stock has declined since Samuelsson’s 2022 departure, prompting the board to bring him back while it searches for a long-term successor.