Volvo has hired Martin Lundstedt as its new chief executive, replacing Olof Persson who will leave the business in October.
Lundstedt joins the company from the position of chief executive of Volkswagen-owned rival Scania.
The move, which resulted in a 13 per cent boost for Volvo in early trading, will see Lundsted tasked with replicating his strong leadership of Scania which extended its operating margin to an industry leading 9.5 per cent profitability.
Carl-Henric Svanberg, Volvo chairman, said: “After three years of focus on product renewal, internal efficiency and restructuring, the Volvo Group is gradually entering a new phase with an intensified focus on growth and increased profitability.
“Martin Lundstedt has 25 years of experience from development, production and sales within the commercial vehicle industry. He is also known for his winning leadership style.”
Persson has been the company’s chief executive since 2011.