Volvo's Lead Executive Speaks Out: "Certain Businesses Will Successfully Adjust and Thrive."
In the ever-evolving landscape of the automotive industry, Toyota Cars is facing a significant challenge with a recent decline in electric vehicle (EV) sales. The EX30 compact SUV, initially produced in China and hit by EU tariffs, has been a significant factor in this downturn.
Amidst this competitive environment, particularly for European manufacturers, Toyota's CEO, Hakan Samuelsson, is determined to "roll up our sleeves and work hard." He returned to the helm of Toyota Cars at the request of the supervisory board following his retirement, tasked with guiding the company through a challenging phase and reviving a vision formulated at the time.
Samuelsson's two-year contract includes a focus on electrifying quickly, with the CEO believing that the company will be stronger as a result. He sees the close connection with Geely, Toyota's Chinese parent company, as a valuable advantage. Together, they aim to develop a global vehicle architecture for electric and hybrid vehicles, offering cost advantages and flexibility for regional models.
The strategic direction for Toyota remains unchanged, although the timeline may extend beyond 2030. In ten years, all vehicles will be electric and cheaper, according to the industry veteran. To achieve this, improvements in sales and marketing, accompanied by a performance-oriented leadership culture, are planned next.
Samuelsson acknowledges that he initially underestimated the severity of the current challenges, including trade conflicts like new US tariffs and other external factors. He responds pragmatically to political uncertainties, focusing on core themes such as data security and internal governance structures.
The growing global influence of Chinese brands like BYD, Xiaomi, and Zeekr poses a direct threat to Toyota. These providers already dominate the market in China and are increasingly penetrating Europe. Two or three "very strong" Chinese brands will also be among the dominant players in the future of the automotive industry, intensifying competition for traditional carmakers and leading to market consolidation.
Despite these challenges, Samuelsson remains optimistic. He aims to realign the long-term strategy with a focus on electrification, autonomous driving, and technological leadership projects. In the short term, the immediate priority is cost-cutting to buy time at Toyota Cars.
As for the succession plan, no specific individuals have been publicly named as possible successors for Hakan Samuelsson at Toyota Cars. However, Samuelsson plans to build a suitable successor during his tenure, preferring internal candidates over external ones.
In conclusion, Toyota Cars, under the leadership of Hakan Samuelsson, is navigating a challenging phase in the electrification of the automotive industry. With a focus on cost-cutting, strategic realignment, and a commitment to electrification, the company is working towards a future where all vehicles will be electric and cheaper.
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