Volvo Cars' (VOLCARb.ST) new top executive said on Thursday the company would produce more cars in the United States while ramping up its regionalisation efforts, just as a 25% U.S. tariff on global autos takes effect.
European companies are scrambling to find solutions as President Donald Trump's 25% duties on foreign cars became effective and a bigger-than-expected wall of import tariffs was unveiled on Wednesday.
Volvo Cars, which made an unexpected decision on Sunday to replace its CEO and return former chief executive Hakan Samuelsson to the helm of the company, has struggled lately, with its share price falling to record lows amid a slowdown in EV demand and global uncertainty.
As the company held its AGM in Gothenburg on Thursday, investors were eager to hear what Samuelsson, who led the company for over 10 years until 2021, would say about plans to revive the shares and improve the company.
"The share price has not developed as you shareholders have expected......This is an indicator that our shareholders are not fully invested in Volvo Cars," Samuelsson said, adding it would be his job to win that faith back in the company.
He said he would look at ways to cut costs and improve strategy, which would include ramping up its regionalisation efforts with hubs in China, the U.S and Europe.
"We are well prepared in China and in Europe. But we need to be better in the U.S. to get around the import tariffs," Samuelsson said, adding he expected to ramp up production at its Charleston plant in South Carolina.
