Dusseldorf Outsiders have a hard time in the auto industry. Only those who have diligently worked their way up through the various departments of a car manufacturer over decades can make a career. It’s completely different with Jim Rowan. The Briton was CEO of the home appliance manufacturer Dyson and also worked as Chief Operating Officer for the mobile phone company Blackberry.
But now, of all things, the 56-year-old has made the leap to the executive chair of an automaker. Rowan has been CEO of the Swedish company Volvo Cars for a few weeks. The first training period is over. That’s why the new Volvo boss is now coming out of cover and leaving the first traces in public.
On Wednesday, Rowan presented the half-year figures of the Swedish car manufacturer for the first time, most of which belongs to the Geely group from the People’s Republic of China. Volvo does not have to hide: Despite falling sales figures due to a lack of semiconductors and Covid lockdowns in China, the Volvo boss was able to shine with an increased half-year profit. Like most other manufacturers, the Swedish company also benefits from rising prices because too few cars are produced all over the world.
Chips, Corona, and the Ukraine war are the current problems that make life difficult enough for the new Volvo boss. But actually Rowan has a completely different, much larger strategic issue that he has to take care of – the transformation of the Swedish company.
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No more combustion engines at Volvo from 2030
Rowan aims to transform Volvo into a modern, future-oriented automaker. The electrification of the model portfolio is an important prerequisite for this. By 2025, half of the Volvo range will consist of purely electrically powered vehicles, and by 2030 the Swedish company will no longer produce any combustion engines at all. In just two to three years, Volvo wants to make as much money with an electric car as with a combustion engine.
But the transformation cannot be achieved with e-cars alone. “Electric mobility is just the tip of the iceberg,” says Rowan in an interview with Handelsblatt. The true and profound change of a car manufacturer only takes place through digitization and the ever more extensive use of software in the car. “Everything really revolves around software and IT,” adds the new Volvo boss.
This is also the reason why Geely founder Li Shufu lured the former Blackberry and Dyson manager to the Volvo headquarters as the new CEO. Li believes that a manager like Rowan, with his diverse industry experience, is exactly what an automaker needs today. “Jim is the right person to lead Volvo into the future – making the company the fastest transformer in its field and an all-electric company with millions of direct customer relationships,” Li said in explaining Rowan’s appointment.
>>Read herewhy the subject of software is so important for the entire automotive industry.
In his first few weeks, the new boss has already brought Volvo to more speed. The entire automotive industry is known for a certain sluggishness, while Rowan undoubtedly stands for clear structures and quick decisions. That’s why he first reduced the size of the Volvo board – from eleven to seven members, which should speed up the decision-making process.
Rowan also has no problem cutting off old braids without much hesitation. A few days ago, Volvo announced that it was withdrawing from the European automaker association Acea. For Rowan, this is a logical consequence of the development of the past few weeks.
Volvo booth in Shanghai: The Swedish car manufacturer wants to say goodbye to the world of combustion engines in 2030.
(Photo: Reuters)
The EU wants to decide the end of the combustion engine for the year 2035, Volvo will even be five years faster. However, even 2035 is too early for the Acea leadership and they are pushing for another postponement. For the Volvo boss, it is irrevocably certain “that there is a clear contrast in strategy”. Rowan therefore prefers to do without the Acea and pursue his own strategic goals.
At the Acea in Brussels, Rowan should not have made any great friends with it. In contrast, he collects the first plus points with investors and on the financial markets. Volvo is the first and only car manufacturer to date to publish the returns of its electric models when presenting its half-year figures. This additional transparency is expressly welcomed on the stock exchange. Daniel Röska, analyst at the US investment company Bernstein, speaks of a “positive signal”. Other car manufacturers will probably soon have to follow – Jim Rowan, as an outsider to the industry, is setting the first standards.
More: Volvo is building a new electric car plant in Slovakia