Volvo Faces Troubling Parallels to Saab’s Demise, Swedish Press Warns
Stockholm, Sweden – Volvo is undergoing a period of notable upheaval, sparking concerns among industry observers that the Swedish automaker may be repeating the mistakes that led to Saab’s collapse, according to reports from Swedish media outlet CarUp and journalist Alrik Soderlind.
The current turmoil began earlier this year with the European Commission’s relaxation of CO2 emission restrictions. This change resulted in a loss of several hundred million euros for Volvo, which had previously benefited from selling excess emissions quotas generated by exceeding minimum electric vehicle sales targets.
further complicating matters, the declaration of US tariffs and the resulting uncertainty prompted a confrontational approach from then-CEO Jim Rowan towards authorities in both Europe and North America. Critically, Rowan failed to develop a swift adaptation plan for the company, leading to his abrupt resignation in March.
Geely founder Li Shufu, owner of the Volvo brand, quickly responded by reinstating hakan Samuelsson – who successfully led Volvo from 2012 to 2022 - as CEO. as Samuelsson’s return, Volvo has implemented a series of drastic changes described as “shock therapy.”
these developments have fueled anxieties, with the Swedish press now drawing parallels between Volvo’s current situation and the factors that ultimately led to saab’s bankruptcy. The CarUp report highlights a growing fear that Volvo may be heading down a similar path.