Leif Johansson, president & CEO of Volvo Trucks Global, a key unit of AB Volvo since 1997, has informed the Swedish-based truck maker’s board of directors that he will resign next summer. Johansson, who will turn 60 next August, told the board now to help ensure an efficient transition.
“I made this announcement today because I wanted to give the Board ample time to arrange with an orderly replacement process,” he said, adding that he has no plans to move to a different company.
“My years at Volvo have been a fantastic period in my life and this is by no means a light-hearted decision, but at some point it’s time to leave,” said Johansson. “The timing is good both with respect to my personal situation and with respect to the more stable situation for the company.”
Johansson will also then step down as a member of the board of directors.
“Leif Johansson has done an impressive job during his years at Volvo and although I regret his decision, I have full respect for it given his many years of hard work,” said Louis Schweitzer, chairman of the board of Volvo. “The board will now focus on finding his successor.
Volvo reported a third-quarter sales increase of 32% to $9.2 billion. The company said third-quarter operating income rose to $711 million from a loss of $478 million in third quarter 2009.
“All of the Group’s business segments reported a significant improvement in profitability compared with last year and the group reached an operating margin of 7.7%,” Johansson said in the earnings report. “The operating income as well as the operating margin is the highest to date for a third quarter.”
