Sweden's Volvo says deputy CEO to step down in management reshuffle as EV demand slows

Swedish automaker Volvo Cars on Wednesday announced deputy CEO Björn Annwall will step down from his current role as part of a management reshuffle designed to increase simplicity and collaboration in the organization.

It comes shortly after Volvo Cars abandoned its near-term goal of selling only electric vehicles (EVs), citing a need to be "pragmatic and flexible."

The auto industry currently faces a perfect storm of challenges on the path to full electrification, including a lack of affordable models, a slower-than-anticipated rollout of charging points and the impact of European tariffs on EVs made in China.

"In a rapidly changing world, we need to ensure our organisation is equipped to navigate a more challenging market," Jim Rowan, CEO at Volvo Cars, said in a written statement.

"We are now regrouping our commercial leadership team with a focus on making Volvo Cars even stronger with increased speed and efficiency," he added.

Annwall, who currently serves as the chief commercial officer and deputy CEO of Volvo Cars, will soon step away from his role and support the reorganization of the firm's structure before taking his next step outside of the firm, the company said.

Some of the other leadership changes Volvo Cars announced include plans for Arek Nowinski to become the firm's president of international markets, Gretchen Saegh-Fleming to lead on customer experience and marketing and Oscar Bertilsson Olsborg to become head of global commercial operations.

Volvo Cars said it was taking these steps to navigate challenges facing the automotive industry, such as headwinds driven by geopolitical and macroeconomic uncertainties, market sentiment, rapid technology shifts and supply chains.

Volvo Cars, which is owned by China's Geely Holding, walked back its plan to sell only EVs by 2030 in early September.

The firm, which had been among the first legacy carmakers to promise a complete switch to EVs, said at the time that it still intends to become a fully electric carmaker over the long term.

The move means Volvo Cars is following in the footsteps of other industry players in scaling back its EV ambitions. Germany-based carmakers Mercedes-Benz Group and Volkswagen have both previously announced a shift in their respective EV strategies.

Underlining the challenges facing its electrification ambitions, Volvo Cars said last month that there had been a slower-than-expected rollout of charging infrastructure, a withdrawal of government incentives in some markets and additional uncertainty prompted by recent tariffs on EVs in various markets.

Volvo Cars said these developments show that there continues to be a need "for stronger and more stable government policies" in order to support the transition away from fossil fuels.