Volvo gets new CEO amid rumors of sale and multi-million dollar losses
December 31st, 1969
Ford has appointed a new CEO for its Volvo subsidiary amid rumors that the Swedish carmaker could be up for sale and reports that it lost more than $151 million in the first quarter of the year alone. Stephen Odell will replace Fredrik Arp as the carmaker’s president and CEO from October 1, and will report to Ford’s European boss Lewis Booth.
Odell’s previous post was Ford of Europe’s COO, and before that he held several senior level positions at Mazda and Jaguar. He first joined Ford in 1980 as a graduate trainee at one of its London offices.
"Stephen Odell brings to Volvo a wealth of experience of strong leadership in the automotive industry," said Ford CEO Alan Mulally. "Given his strong track record at Ford, Jaguar and Mazda, the time is now right for Stephen to take up this new challenge at Volvo. I believe that Stephen is the right person - together with Lewis Booth and the Volvo Cars Management Team - to take Volvo forward and to return the business to sustainable profitability."
Fredrik Arp has held the helm at Volvo for the past three years and during that time has implemented tough cost reduction policies and introduced a number of exciting models such as the C30 hatch and upcoming XC60 crossover (pictured). Despite his best efforts, Volvo posted a $151 million lost in the first quarter of the year and a $120 million loss in the second quarter. Second-quarter sales also fell to $4.3 billion from $4.4 billion during the same period in 2007.
Negative currency effects, mainly due to the weak U.S. dollar, and increasing raw material prices have deteriorated Volvo’s financial situation, and the outlook remains bleak. Odell now plans to continue the restructuring program started by Arp in order to prepare the company for a profit once the global economy picks up again.
"Volvo is one of the great iconic automotive brands," Odell said. "The very attributes that make Volvo distinctively Swedish – its heritage of safety, environmental concern and its Scandinavian design – appeal to customers around the globe. Our strategy is to enhance the premium nature of Volvo by further strengthening these attributes."
"We have a restructuring plan in place that will help to deliver a more competitive business and that enables Volvo to continue to build upon its core strengths. Volvo will adopt a more stand-alone approach within Ford, while still leveraging product development and purchasing synergies with other Ford operations," he explained.
Ford has appointed a new CEO for its Volvo subsidiary amid rumors that the Swedish carmaker could be up for sale and reports that it lost more than $151 million in the first quarter of the year alone. Stephen Odell will replace Fredrik Arp as the carmaker’s president and CEO from October 1, and will report to Ford’s European boss Lewis Booth.
Odell’s previous post was Ford of Europe’s COO, and before that he held several senior level positions at Mazda and Jaguar. He first joined Ford in 1980 as a graduate trainee at one of its London offices.
"Stephen Odell brings to Volvo a wealth of experience of strong leadership in the automotive industry," said Ford CEO Alan Mulally. "Given his strong track record at Ford, Jaguar and Mazda, the time is now right for Stephen to take up this new challenge at Volvo. I believe that Stephen is the right person - together with Lewis Booth and the Volvo Cars Management Team - to take Volvo forward and to return the business to sustainable profitability."
Fredrik Arp has held the helm at Volvo for the past three years and during that time has implemented tough cost reduction policies and introduced a number of exciting models such as the C30 hatch and upcoming XC60 crossover (pictured). Despite his best efforts, Volvo posted a $151 million lost in the first quarter of the year and a $120 million loss in the second quarter. Second-quarter sales also fell to $4.3 billion from $4.4 billion during the same period in 2007.
Negative currency effects, mainly due to the weak U.S. dollar, and increasing raw material prices have deteriorated Volvo’s financial situation, and the outlook remains bleak. Odell now plans to continue the restructuring program started by Arp in order to prepare the company for a profit once the global economy picks up again.
"Volvo is one of the great iconic automotive brands," Odell said. "The very attributes that make Volvo distinctively Swedish – its heritage of safety, environmental concern and its Scandinavian design – appeal to customers around the globe. Our strategy is to enhance the premium nature of Volvo by further strengthening these attributes."
"We have a restructuring plan in place that will help to deliver a more competitive business and that enables Volvo to continue to build upon its core strengths. Volvo will adopt a more stand-alone approach within Ford, while still leveraging product development and purchasing synergies with other Ford operations," he explained.
Volvo gets new CEO amid rumors of sale and multi-million dollar losses
September 2nd, 2008
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September 2nd, 2008
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September 2nd, 2008
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Odell’s previous post was Ford of Europe’s COO, and before that he held several senior level positions at Mazda and Jaguar. He first joined Ford in 1980 as a graduate trainee at one of its London offices.
"Stephen Odell brings to Volvo a wealth of experience of strong leadership in the automotive industry," said Ford CEO Alan Mulally. "Given his strong track record at Ford, Jaguar and Mazda, the time is now right for Stephen to take up this new challenge at Volvo. I believe that Stephen is the right person - together with Lewis Booth and the Volvo Cars Management Team - to take Volvo forward and to return the business to sustainable profitability."
Fredrik Arp has held the helm at Volvo for the past three years and during that time has implemented tough cost reduction policies and introduced a number of exciting models such as the C30 hatch and upcoming XC60 crossover (pictured). Despite his best efforts, Volvo posted a $151 million lost in the first quarter of the year and a $120 million loss in the second quarter. Second-quarter sales also fell to $4.3 billion from $4.4 billion during the same period in 2007.
Negative currency effects, mainly due to the weak U.S. dollar, and increasing raw material prices have deteriorated Volvo’s financial situation, and the outlook remains bleak. Odell now plans to continue the restructuring program started by Arp in order to prepare the company for a profit once the global economy picks up again.
"Volvo is one of the great iconic automotive brands," Odell said. "The very attributes that make Volvo distinctively Swedish – its heritage of safety, environmental concern and its Scandinavian design – appeal to customers around the globe. Our strategy is to enhance the premium nature of Volvo by further strengthening these attributes."
"We have a restructuring plan in place that will help to deliver a more competitive business and that enables Volvo to continue to build upon its core strengths. Volvo will adopt a more stand-alone approach within Ford, while still leveraging product development and purchasing synergies with other Ford operations," he explained.
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Comments (7 total)
Meet the top commenters on the LeaderboardBy www.mywheelsonwalls.com #1, Posted: 9/2/2008
If there is anyone who can save volvo it will be him. What Mazda is today as a brand is beacause of the foundation this guy laid in the nineties.
By Laz #2, Posted: 9/2/2008
DON'T SELL VOLVO TO THE CHINESE...
By NoNameDenton #3, Posted: 9/2/2008
I feel sorry for how Volvo has been managed by Ford, namely, badly.
By craigs #4, Posted: 9/3/2008
I like the brand but the two Volvo's I've owned in the last 5 years both had terrible build quality and after only months there were rattles all over, especially with the newer waterfall central console. Good idea but bad execution.
Volvo's also depreciate much faster than it's competion and as a result I'll not be buying any more Volvo's.
By Jim #5, Posted: 9/3/2008
Saab has taken a lot of abuse for abandoning its essential Saab-ness in search of increased sales, but Volvo has whored themselves it a greater extent. In moving upscale and trying to ape BMW they abandoned much of the market who purchased Volvos. Those buyers moved over to Subaru and Honda.
Of course Volvo's marketing moves were lauded by the know one thing, primadonnas of the automotive press. But the market place is seldom fooled for long and exchange rates have exposed Volvo's problems. Too bad it once was a solid brand.
By Don #6, Posted: 9/7/2008
Doesn't sound like Arp should be held accountable for poor Ford management, the weak US dollar, and the fact they're trying to move luxury automobiles to Americans who can't afford them due to a crap economy.
I hope BMW buys Volvo. BMW should approach the Swedish Government for incentives to purchase the brand in exchange for the promise not to remove the company from Sweden. BMW should also consider buying Saab and again seek incentives to keep the brand in Sweden. BMW, Volvo and Saab would compliment and not compete with each other.
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