Volvo appoints Skoda's chief Klaus Zellmer as its new CEO

Volvo Cars has appointed Klaus Zellmer as its next president and chief executive officer, with the German executive set to succeed Hakan Samuelsson by October 2027 as the automaker prepares for a major product and manufacturing overhaul.

Volvo Cars announced the appointment on Sunday, with Zellmer expected to assume the top job no later than October 1, 2027. Samuelsson, who returned to lead the company for a second stint, is due to leave next spring.

Zellmer's Experience

Zellmer has more than three decades of automotive experience and most recently served as CEO of Skoda Auto, Volkswagen Group's Czech brand. Volvo Cars said Samuelsson and the board will work with Zellmer to ensure a “seamless" transition.

Volvo Cars Chairman Li Shufu cited Zellmer's experience across different parts of the automotive market as a key reason for the appointment.

“His experience from both the high-end premium segment and high-volume brands is an excellent fit."

Li also highlighted Zellmer's record of managing organisations through periods of transformation and changing market conditions.

Volvo reshapes its business

The leadership change comes shortly after Volvo Cars announced a wide-ranging restructuring of its operations. The company plans to reorganise its manufacturing footprint around five factories dedicated to Volvo and another two shared with partners.

The move is intended to help the company respond to intensifying competition while supporting what Volvo Cars described as its biggest product offensive.

Volvo plans to launch seven new vehicles in Western markets and six models in China before the end of the decade. The company is targeting a larger share of global electric vehicle and plug-in hybrid sales, aiming to double its current share of around 1.7 per cent.

Shift towards hybrids

The transition comes as Volvo Cars adjusts its electrification strategy. The company has increased its focus on hybrids after the shift towards fully electric vehicles proved slower than expected.

Samuelsson has also overseen a move towards more region-specific vehicle strategies, reflecting differences in customer demand across Europe, China and the US.

The automaker is majority-owned by Chinese manufacturer Geely and has been increasing cooperation with its parent as part of the broader restructuring.

Samuelsson's second tenure has coincided with several challenges, including US trade tariffs, an ageing product range, underused manufacturing capacity and higher raw-material costs. The 75-year-old executive was brought back last year with the task of helping Volvo restore growth.

Zellmer will therefore take over as Volvo Cars enters a period of significant changes to its products, manufacturing operations and approach to different global markets.

(With inputs from Bloomberg)

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