The Volvo Cars CEO doesn't want to talk about Donald Trump and tariffs. It's boring, he says at the company's annual general meeting in Gothenburg.
I think our problem is not to complain about him. Our problem in Europe, which we should focus on, is how to improve Europe's competitiveness. What are we doing to face competition from China?
What Håkan Samuelsson calls "hyper-competition" from new Chinese car manufacturers is one of three major challenges he sees ahead for the automotive industry.
Polestar production to the US
One way to meet the competition is more cooperation with Chinese owner Geely, emphasize both Samuelsson and board chairman Li Shufu.
Through synergies and collaboration, Volvo Cars can strengthen its competitiveness while maintaining its distinct brand identity and values, says Li Shufu in a speech at the AGM.
The second challenge mentioned is globalization, which Samuelsson says will be replaced by three more separate regional markets: the US, China and Europe. As part of this, Volvo Cars plans to consolidate production of Polestar 3 cars at the company's factory in South Carolina, US.
Volvo's EX90 model is also manufactured there, and the XC60 will be produced there as well. The announcement comes at the same time as Volvo Cars increases its ownership stake in Polestar from 9.8 to 19.9 percent by converting part of its outstanding convertible loan to Polestar.
“Not just an electric car for the environment”
And the third challenge, the shift to electric vehicles, could, according to Håkan Samuelsson, get an unexpected boost from the war in Iran.
A direct impact is that gasoline becomes more expensive, he says, adding that this may cause customers to consider electric cars instead.
It will be a reminder that electric cars are not only something you choose for the environment, but also something you choose for your own wallet, says Håkan Samuelsson.
