Volvo Cars appoints Skoda chief Klaus Zellmer as new CEO

Sept 20 (Reuters) - Volvo Cars said on Sunday that Klaus Zellmer would become its president and chief executive officer within a year as it seeks to revive sales in an increasingly competitive market.

The Sweden-based automaker, which is majority-owned by China's Geely Holding, has struggled to meet previous profitability targets due to tariffs, weaker EV demand and high development costs.

Zellmer, an industry veteran with over 30 years of experience, most recently served as CEO of Volkswagen's Skoda brand. He will start in his role no later than October 1, 2027, the company said. 

He will succeed Hakan Samuelsson, who was reappointed in 2025 with the aim of reviving the Swedish automaker's fortunes, having previously led the company from 2012 to 2022. Samuelsson said last week he had no plans to work full time after his contract runs out in April.  

Last week Volvo Cars held a strategy day where Samuelsson laid out an ambitious strategy to launch 13 new models between now and 2030 to double the company's market share as the automaker grapples with the fallout of U.S. tariffs and slumping sales in China. 

It faces an increasingly delicate balancing act separating its Western and Chinese ​technologies in order to continue selling in the United States, where its sister brand Polestar ⁠faces a sales ban. 

Zellmer has "a strong record of guiding organisations 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 for Volvo Cars." 

The automaker's shares have continued to trade near record lows and are down more than 45% so far this year.  

Cost savings have helped cushion pressure on earnings. Demand for the new flagship EX60 electric SUV has exceeded Volvo’s initial expectations but sales remain under pressure in the United States and China.  

The automaker has been working to shift production to better shield itself from tariffs, such as moving production of its hybrid XC60 to South Carolina and ramping up EX30 output at its Belgium plant.

(Reporting by Anusha Shah in Bengaluru; Marie MannesEditing by David Goodman, Kirsten Donovan and Christina Fincher)