Infighting Hampers Volvo Cars Turnaround

Friction between CEO Stefan Jacoby and Vice Chairman Hans-Olov Olsson threatens to impede their efforts to restructure Volvo Car Corp., Reuters reports.

The news service cites anonymous sources who assert that the pair's relationship has soured. The sources say the two executives disagree about how closely the board should oversee management. Jacoby and Olsson also have made conflicting statements about company strategy, such as whether Volvo will remain in Sweden.

The duo reportedly clashed last year over the appointment of a new global sales and marketing chief. Olsson pushed for the promotion of his son-in-law Thomas Andersson, according to Reuters. But Jacoby gave the job to one of the company's executives in North America.

A former Volvo executive tells the news service the situation is a "mess." The source says Jacoby has not been able to run the Swedish carmaker the way he wants to.

Volvo denies there is any conflict between Jacoby and Olsson. Jacoby is on a one-month medical leave after a mild stroke last month.

Zhejiang Geely Holding Group Co. recruited Jacoby from Volkswagen AG when the Chinese carmaker acquired Volvo in August 2010.

Geely-Volvo Chairman Li Shufu also brought back former Volvo CEO Olsson, partly to act as a counterweight to Jacoby, according to the news service. Reuters says Li who does not speak English, the company's main working language has delegated most of the chairman's duties to Olsson.