Escalating tensions between Volvo CEO Stefan Jacoby and Volvo Vice Chairman Hans-Olov Olsson may be working against the Swedish brand's stated goals of regaining lost European market share, as well as remaining relevant as a luxury brand on the world stage.

Reports indicate that Jacoby and Olsson have clashed on statements made about Volvo group strategies, as well as butted heads on a "key executive appointment" in recent weeks.

Some of the conflict is by design, oddly enough, as new Chinese owner Geely intentionally brought Olsson back into the fold – the Swede is a former CEO of Volvo himself and has served some four decades with the company, all told – to keep Jacoby sharp. However, the Geely-devised system of "checks and balances" may be off the rails at this point, as the battle has become increasingly intense and is said to have held up some day-to-day decisions.

To make matters worse, Jacoby has been out of the picture for a bit after suffering a small stroke last month and taking medical leave.

Despite these insider reports of troubled times, Geely chairman Li Shufu (who also serves as chairman of Volvo) seems to believe that the arrangement is working as planned. It was Li that tasked Olsson with with closely watching Volvo management, as it tries desperately to turn around its lately flagging fortunes.

On the record, the company has stated that all is well in the house of Volvo. Spokesman Per-Åke Fröberg responded to the agllegations flatly, "There is no conflict between Stefan Jacoby and Hans-Olov Olsson."

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 2 Years Ago
      Want to stay relevent on the world stage then release the dame V40 and V40XC in the US.
      • 2 Years Ago
      The 'checks and balances' arent' working so swell in my opinion.. if they're really thinking of not adding the V40, there is imprudent insanity within the ranks.
      Dr Strange
      • 2 Years Ago
      I"m not sure I'd really miss Volvo if they disappeared... much in the same way I don't even notice SAAB is no longer around.
      • 2 Years Ago
      I'm a volvo owner for almost 5 years now. With over 80k on the clock it has been the most comfortable, well made, and dependable car I've ever owned. I do get concerned though reading things like this. Although I think Volvo is healthier than Saab was, I still see it as a niche player that could easily go away. Here's hoping that doesn't happen.
      • 2 Years Ago
      I've never seen Volvo as a luxury brand. They've always been quirky but not luxurious. Best of luck trying to change people's perception.
      • 2 Years Ago
      Volvo has some good cars in its portfolio now, sharper styling and engines etc. I wish them well, and hope management trouble doesn't kill the brand.
    Share This Photo X