The change of leadership at Volvo has been costly. Not only has the now former CEO received money to leave his position, the stock has plummeted.
Volvo shares fell on Monday morning, approaching a record low.
This happened after the announcement of a change in the position of CEO of the Swedish-Chinese brand.
The decline came unexpectedly for some observers, as several analysts had otherwise predicted a positive market reaction to the change in the CEO's chair.
The expectation was that a change of director would give Volvo shares a ceiling. But no. On the contrary, the price took a dive to its lowest level ever.
The decision to change directors was announced Sunday afternoon. Jim Rowan stepped down as CEO with immediate effect after three years in the position.
Rowan's successor is also his predecessor – namely Håkan Samuelsson, now 74. He previously led Volvo Cars, but retired three years ago.
The reinstatement of the former director was a central element in the weekend's announcement from the car brand.
Leading up to the stock market opening on Monday, several analysts and market commentators had even stated that the change of director would have a positive impact on the already crisis-stricken Volvo stock. But no.
The argument for the expected increase was mainly the development the share price had undergone under Jim Rowan.
During his three-year term as director, the value of Volvo shares fell by 75 percent. Some hoped that a change of leadership could turn the tide and restore investor confidence in the stock.
It was hoped that the appointment of Håkan Samuelsson would be received positively, but this has not created optimism outside of Volvo.
Samuelsson has probably also spent his time away from Volvo licking his wounds after a period as chairman of the sister brand Polestar, something on which the 74-year-old Swede personally lost over 100 million kroner.
At around 10 a.m. on Monday, the share price had fallen by about two percent. This meant that the price of the Volvo share was around 18.60 Swedish kronor.
This level is very close to the lowest level recorded for the share since its IPO. The negative price development occurred despite the change in the directorship and previous analyses that pointed in a different direction for the Volvo share.
