Volvo picks Skoda CEO Klaus Zellmer as Samuelsson prepares to step down

Volvo Car AB’s board of directors appointed Klaus Zellmer as president and chief executive officer to replace Håkan Samuelsson, who’s set to step down next year.

Zellmer, most recently CEO of Volkswagen AG unit Skoda Auto AS, will assume the position no later than Oct. 1, 2027, the Swedish manufacturer said in a statement on Sunday. Samuelsson, together with the board, will ensure a “seamless” transition with Zellmer, a global automotive executive with more than 30 years in the industry, it said.

The German has “a strong record of guiding organizations through transformation and changing market conditions,” Volvo Car Chairman Li Shufu said in the statement. “His experience from both the high-end premium segment and high-volume brands is an excellent fit.”

Volvo Car, majority-owned by Chinese carmaker Geely, Thursday unveiled a broad revamp that includes reshaping its manufacturing network around five plants dedicated to its namesake brand and two shared with partners. The overhaul, designed to help it navigate increasingly fierce competition, includes its biggest-ever product push.

Read More: Volvo to Streamline Manufacturing as ‘Hypercompetition’ Looms

Volvo Car plans to introduce seven new vehicles for Western markets and six for China by the end of the decade in a bid to double its slice of global sales of electric vehicles and plug-in hybrids from around 1.7% currently.

Samuelsson, 75, brought back last year for a second stint at the helm of one of Europe’s most recognizable auto brands, has been battling to revive growth after a troubled period beset by challenges including US trade tariffs, an ageing product portfolio, low capacity utilization, and elevated raw-material costs.

Under the Swede, who’s set to step down next spring, Volvo Car is giving hybrids a bigger role due to a slower-than-expected shift to full EVs. The company is also adopting a more regional approach to its lineup and deepening its cooperation with its Chinese parent.

Samuelsson has said Volvo Car is abandoning the idea that broadly identical global models can satisfy customers in Europe, China and the US with increasingly divergent demands.