Volvo Cars picks Skoda chief Klaus Zellmer as new CEO

Volvo Cars has appointed Klaus Zellmer, chief executive of Volkswagen’s Skoda Auto, as its new president and CEO as the Swedish automaker seeks to revive sales amid mounting pressure from tariffs, weaker electric vehicle demand and falling sales in China.

Zellmer will take over from current CEO Håkan Samuelsson no later than 1 October, 2027, the company said on Sunday. Samuelsson, who returned to lead Volvo Cars in April 2025 after previously heading the company from 2012 to 2022, will work with the board to ensure a smooth transition.

Zellmer, 59, has more than 30 years of experience in the automotive industry. He currently serves as CEO of Škoda Auto and previously held senior positions at Volkswagen Passenger Cars and Porsche, including CEO of Porsche Deutschland and Porsche North America.

“Klaus Zellmer combines deep automotive expertise with broad international leadership experience and a strong record of guiding organisations through transformation and changing market conditions,” Volvo Cars Chairman Eric Li said.

Zellmer said he was delighted to join Volvo Cars at an important moment in the company’s development, highlighting the brand’s long-standing reputation for safety.

His appointment comes as Volvo Cars faces growing challenges in key markets. The company has struggled to meet previous profitability targets amid US tariffs, weaker EV demand and high development costs. Its shares have fallen more than 45% so far this year and remain near record lows.

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The company is also facing declining sales in China. According to figures cited by Swedish media, Volvo Cars’ revenue fell to SEK 77.7 billion in the second quarter from SEK 93.5 billion a year earlier. Samuelsson has attributed the negative development partly to the sharp decline in the Chinese market.

At a strategy day last week, Samuelsson outlined plans to launch 13 new models between now and 2030, with the aim of doubling Volvo Cars’ market share.

The company is also working to reduce the impact of US tariffs by shifting production. It plans to move production of its hybrid XC60 to South Carolina and increase production of the EX30 at its plant in Belgium.

Despite the pressure, demand for Volvo’s new flagship EX60 electric SUV has exceeded the company’s initial expectations, while cost savings have helped cushion pressure on earnings.

Samuelsson has said he expects to remain in his position until his contract expires in April 2027 and has no plans to work full time afterwards.

The leadership change comes as Volvo Cars seeks to navigate a difficult period in the global automotive market while implementing its new product and market strategy.