Volvo Cars is undergoing a management overhaul as Bjorn Annwall, the Chief Commercial Officer and Deputy CEO, plans to exit the company. After nine years with Volvo, Annwall will temporarily remain to assist with the transition. The Deputy CEO position will be eliminated as part of the restructuring.
CEO Jim Rowan emphasized the need for a dynamic organization capable of tackling challenging markets. Last month, Volvo reduced its profit forecasts, citing uncertain global economic conditions and increased tariffs on Chinese-made electric vehicles. Some of Volvo's models are manufactured in China.
Additionally, the Geely-owned automaker has revised its strategy regarding electric vehicles. Initially committed to selling only electric cars by 2030, Volvo will now continue producing hybrid vehicles amid weak consumer demand for more expensive electric models.
Volvo's struggles are evident in its stock performance, which has seen a 40% decline over the past 12 months.
