Volvo wants to become 100% electric, but even by changing its CEO it fails to stop its sales decline.

03/10/2026 09:00

Updated to

03/10/2026 09:00

It is well known that Volvo aims to become one of the leading players in the electric vehicle market, a goal the Swedish brand has repeatedly emphasized: “We want to be a 100% electric brand.” They have worked toward this by launching plug-in hybrids like the XC70 for China, electric models such as the S90, and especially the EX60, which is expected to be their best-selling electric vehicle.

However, the Swedish brand, which is already successful with its efficient driverless trucks, is facing one of its worst crises in recent years, with a sharp decline in sales in China and the United States. The only exception is Europe, where sales are growing slowly but steadily. Their solution? Changing CEOs.

Plummeting sales… except in Europe and for electric vehicles

First, the hard numbers: in the latest quarter, Volvo sold 141,609 vehicles worldwide, representing a 10.7% decline compared to the same period last year. Its hybrid vehicles saw sales drop by 23.6% compared to the same period last year, while its plug-in hybrids saw a 18% decline versus the third quarter of 2025. Only its focus on electric vehicles is performing well, with sales rising by 28.6% to reach a total of 45,060 units worldwide in this quarter.

Sales in Europe did grow this quarter: by 2%, with a 51% increase in electric cars. But the sharp decline refers to Volvo’s severe drop in sales in the world’s largest market, China, where registrations fell by 40.6% compared to the same period last year. Things didn’t improve much in the United States either, where sales dropped by “only” 8.7%.

Volvo’s solution is a change in CEO

Volvo was already aware of this decline in sales and, in fact, announced what it hopes will be its solution about 10 days ago: changing CEOs; that is, firing Hakan Samuelsson and replacing him with Klaus Zeller, the former CEO of Skoda — we’ve already tested its cheap electric car: the Epiq — who has turned the Czech brand into the most profitable in the Volkswagen Group.

But despite this change in leadership, and after its continued sales slump — which has persisted through this third quarter and caused its stock to lose nearly 50% of its value — Volvo was forced to issue a difficult-to-swallow statement acknowledging “sales below expectations and weaker prospects for the full fiscal year of Volvo Cars.”

Therefore, “Volvo Cars will not meet the previous forecasts for 2026 regarding sales volume and cash flow.”