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Volvo ousts CEO, turns to Scania for new boss

Volvo’s CEO Olof Persson speaking during a news conference in Stockholm. Photo: Fredrik Sandberg/ReutersVolvo’s CEO Olof Persson speaking during a news conference in Stockholm. Photo: Fredrik Sandberg/Reuters

Sweden’s Volvo named Martin Lundstedt, the head of Volkswagen-owned Scania, as its chief executive yesterday, replacing embattled Olof Persson who for nearly four years led a sweeping efficiency drive at the global truck maker.

Persson had led a restructuring programme aimed at cutting 10 billion Swedish crowns (€1,126.84 million) in costs and boosting pro-fitability to the level of more nimble rivals such as Scania.

But with the scheme having less than a year left to run and margins still below their level before it was launched, pressure on Persson from top owners such as activist fund Cevian Capital had been building.

Lundstedt will assume his role as CEO in October.

CFO Jan Gurander will be serving as acting chief executive in the interim.

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