Volvo Cars’ strategy under returning CEO Håkan Samuelsson is to tailor vehicles and decision-making to regional markets, keep electrification as the long-term direction while offering plug-in hybrids during the transition, and use Geely cooperation and tighter cost controls to improve profitability. But Samuelsson is not the company’s incoming long-term chief: Volvo named Škoda CEO Klaus Zellmer as his successor, with the handover due no later than 1 October 2027.
Why did Volvo bring Håkan Samuelsson back?
Volvo Cars appointed Samuelsson CEO again in April 2025. It was a return to a role he had held from 2012 to 2022, which is why the title’s “new (old) CEO” refers to Samuelsson’s second tenure. The company’s strategy announcements since his return center on restoring stronger profitability and cash generation while continuing the shift to electrified vehicles.
That leadership chapter now has an announced endpoint. On 20 September 2026, Volvo’s board appointed Klaus Zellmer, then CEO of Škoda Auto, to take over no later than 1 October 2027. Samuelsson remains CEO during the transition, and Volvo said he and the board would work to ensure a seamless handover. Volvo’s appointment announcement does not describe Zellmer as already in office.
What is Volvo Cars’ new strategy?
In September 2026, Volvo described four connected priorities: regionalize its product offers and governance, grow through flexible electrification, capture synergies with Geely, and move beyond selling cars toward complete customer offers. Its stated financial ambition is an EBIT margin above 8% and strong cash flow. These are company goals, not results already achieved. Volvo’s strategy announcement sets out the plan.
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Regionalize the lineup rather than rely on one global offer
Volvo plans 13 new electrified cars tailored to different regions: seven intended for Western markets and six China-specific models. For Western launches, the company says it can reuse investments in its SPA2 and SPA3 platforms. Its China approach is to draw on shared platforms, a China software stack, common parts and a shared supply chain.
Volvo estimates that parts commonality could reach around 30% by 2030, up from 10% currently, and contribute approximately 5% in material-cost savings by that year. Those figures are forward-looking company estimates, not measured savings or a guarantee that every model will share the same components.
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Keep electrification as the destination, with plug-in hybrids for the transition
At Volvo’s 2026 annual general meeting, Samuelsson said, “My answer is very clear: our future is electric.” He described a complete fully electric portfolio, complemented by plug-in hybrids for customers who still cannot charge. That is Volvo’s stated rationale for retaining plug-in hybrids; it does not establish that a hybrid is the better choice for every driver or market.
Samuelsson said battery-electric vehicles plus plug-in hybrids accounted for approximately 46% of Volvo Cars’ sales. This is a company-reported figure from his 2026 shareholder remarks, not an independently verified market statistic. The AGM CEO presentation transcript also discusses the company’s electrification direction.
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Use Geely cooperation and cost discipline to support profitability
Volvo’s plan combines shared development and sourcing opportunities with a tighter approach to costs, cash and investment. At the 2026 AGM, Samuelsson described a SEK 18 billion cost-and-cash action plan covering personnel and other expenses, material costs, joint sourcing opportunities with Geely, working capital and an investment review. He said the program took full effect during 2025, ahead of the original schedule extending into 2026.
The earlier strategy statement from 6 November 2025 had already set out the ambition of an EBIT margin above 8%, strong positive cash flows and growth through electrification. It highlighted the EX60, Geely hardware-sourcing synergies, indirect-cost reductions, lower investment levels and a regionalized commercial approach. The September 2026 update elaborates on regional product tailoring and Geely cooperation rather than replacing electrification as a strategic pillar. Volvo’s November 2025 strategy statement provides that earlier context.
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How much pressure is Volvo facing?
The strategy’s targets need to be read alongside Volvo’s operating update. On 2 October 2026, the company reported 141,609 global sales in the third quarter, down 10.7% year over year. It also said a more challenging market and weaker near-term outlook meant it would not fulfill its previous full-year 2026 volume and cash-flow outlook. The Q3 sales and outlook notice establishes near-term pressure, but does not show which strategic measures caused it or whether the new plan will resolve it.
What the plan means for Volvo’s next chapter
Samuelsson’s return brought back a former CEO to lead a profitability push built around regional products, electrification flexibility, Geely cooperation and financial discipline. The company’s next test is execution: deliver the planned vehicles and estimated efficiencies while improving results in a tougher market. Zellmer is the named successor, but he is not due to take over until no later than 1 October 2027. Volvo’s strategy is forward-looking, and vehicle features and specifications can vary by country.
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