Volvo welcomes new CEO

Four elements of the Volvo business appear to be of paramount importance. The Chinese market is one and the other three are "product, product, product" -- in that order.

That was the effective message from newly installed Volvo CEO, Stefan Jacoby, during his maiden address to the global media last night, AEST. Formerly CEO of Volkswagen in the USA, Jacoby has stepped into the role of big cheese at Volvo on a mission to ensure that the Swedish marque has a "better understanding where the business [is headed] and where the resources are needed."

Immediately putting the locals at ease, he stressed that the company's head office will remain in its present location of Gothenburg in Sweden's south. There are no plans to relocate the company's head office, now or in the future.

Having allayed those fears, the new CEO then spoke of the growing opportunities in the Chinese market. Now owned by Chinese company Geely, Volvo has a parent based in the fastest growing automotive market in the world. While Jacoby didn't spell it out, the message was clear: Geely can help Volvo consolidate its bridgehead and expand its market share in China.

But it doesn't stop with flogging cars to the Chinese, which would plainly help Geely's bottom line; Jacoby also wants to source parts from China. He spoke of "synergies with our sister company Geely", but he openly left room for the company to source parts from Chinese suppliers. Jacoby also foretold of Volvo working with competitors, presumably in platform and drivetrain-sharing programs.

What is bound to be most important in any component sourcing decision will be any effect it may have on the product -- and Jacoby couldn't stress enough how important product will be for the company's future success.

"Our main focus in the next month and in the next years will be product, product and product," he said.

"Only through our products can we make our future happen and make it actually bright. This is very important for us. We need to have a solid product strategy, which actually delivers our vehicles on a global scale, including China of course."

Jacoby ensured during his address that he paid the proper obeisance to the "hand-selected board" of experts with whom he'll be working and explained broadly to the gathered press that Volvo has "advantages, and we have to look for smart solutions".

"I'm very committed to bring Volvo where it belongs in the top league of the premium manufacturers on this globe," he concluded before being ushered away for photos.

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