Volvo turns to Chinese owner Geely

CEO: Geely offers a 'unique opportunity'

- MARIE MANNES NICK CAREY ALESSANDRO PARODI

Under pressure from US President Donald Trump's tariffs, Volvo Cars’ new CEO Hakan Samuelsson is juggling the task of working with Chinese majority owner Geely to cut costs with attempting to keep selling cars to US consumers.

European carmakers in general are increasingly struggling to balance the demands of divergent markets.

Despite tariffs, they are seeking to sell imported cars to US consumers, who favour hybrids and petrol-engine models. They also want to win over Chinese customers in the face of stiff competition from local auto makers who offer slick, more affordable EVs.

After Volvo Cars sacked former top executive Jim Rowan, Mr Samuelsson, who headed the company for a decade until 2022, was unexpectedly again made CEO earlier this month, with the task of navigating today’s difficult times.

He told Reuters Volvo's ability to work with Geely set it apart from others and was necessary to cut costs.

“Our work with Geely is a really unique opportunity that very few carmakers can do,’ Mr Samuelsson said.

Since taking the top job, Mr Samuelsson has worked fast, replacing the company’s CFO last month, and last Tuesday, he launched a cost-cutting action plan and a restructuring of the Swedish automaker's US operations.

His willingness to work with Geely is a marked change from Mr Rowan’s tenure when Volvo was the most independent brand within the Geely group.