Volvo Truck to Replace CEO Persson

AB Volvo is replacing Olof Persson, its president and CEO for four years, with Martin Lundstedt, who currently holds those jobs with rival commercial truckmaker Scania Group.

Lundstedt, 47, will move to Volvo in October. Until then, Volvo Chief Financial Officer Jan Gurander will serve as the company's acting president and CEO.

Volvo praises Persson's efforts to restructure operations, cut costs and overhaul the company's product lineup. But now it says Volvo is shifting focus to growth and profitability. It cites Lundstedt's experience in development, production and sales and touts his "winning leadership style."

Volvo Truck reports its net sales in the first quarter of 2015 climbed 14% to 75 billion kronor (€8 billion). Truck orders grew 3%, but demand for Volvo construction equipment plunged 24%. Operating income jumped 78% to 4.6 billion kronor (€491 million), excluding a capital gain of 4.6 billion kronor from its sale of shares in Eicher Motors Ltd.