Volvo CEO Warns EV Transition Will lead to Western Automaker Failures
STOCKHOLM – Håkan samuelsson, recently reinstated as CEO of Volvo Car AB, predicts a notable shakeout in the automotive industry as manufacturers transition to electric vehicles, warning that some Western brands will not survive the shift. Samuelsson, who returned to the helm in April following a period of declining sales and project delays for the company, outlined his vision for Volvo’s future – and the broader industry landscape – in a recent interview with Bloomberg.
Samuelsson’s return comes as Volvo aims to restore investor confidence and navigate a profitable transition to an all-electric lineup. He acknowledged the current situation is more challenging than initially anticipated, citing lost revenue due to tariffs and the delayed launch of the EX90 model, representing approximately two and a half years of lost income.
“Electrification is a great opportunity, and Volvo will be a more profitable and larger electric car company. That’s our promise,” Samuelsson stated.
To achieve this, he has identified three key priorities: cost reduction, increased sales, and a renewed focus on long-term technological strategy. A crucial element of this strategy involves identifying “lighthouse projects where we take leadership,” according to Samuelsson.
However, Samuelsson is unequivocal about the inevitability of the electric transition. “The automotive industry will be electric, there is no way back. In ten years,cars will be fully electric and cheaper,” he said. He cautioned that this shift will inevitably lead to restructuring,with some companies successfully adapting while others falter. “some companies will adapt and survive. Others will not do it,” he warned.
This article was first published in Financial Newspaper.
