In an effort to boost profit margins, Volvo AB has expelled its CEO Olof Persson, BloombergBusiness reported. Persson led the company for almost four years, according to the report.
Martin Lundstedt, CEO of Volvo’s rival truck maker Scania AB, is set to succeed Persson in October, Bloomberg said.
The move comes after Cevian Capital, the second-largest owner of Volvo’s voting rights, lobbied Volvo to streamline operations and boost margins, Bloomberg reported. Volvo’s push for growth and increased profitability has intensified as it faces increased competition from Volkswagen AG, which recently bought Scania and Germany’s MAN SE, Bloomberg reported.
In the interim, Volvo’s chief financial officer Jan Gurander will take over Persson’s responsibilities, according to Bloomberg.