Volvo CEO to resign

Swedish truck maker Volvo AB said Wednesday that President and Chief Executive Leif Johansson will resign in August 2011.

Mr. Johansson has served as CEO and president of Volvo, the world's second-biggest truck maker by sales behind Germany's Daimler AG, since 1997 and will resign as he turns 60 years old.

"My 14 years at Volvo have been a fantastic period of my life and this is not a decision I have taken with a light heart, but one has to resign at some time," he said in a statement, adding that the timing is right both as regards his own life and the company's stable situation.

Mr. Johansson also will leave the Volvo board, adding that he isn't resigning in order to become the CEO of another company, although he could consider more board work at other companies. "I announced my decision today since I wanted to give the board plenty of time to arrange a well-functioning successor," Mr. Johansson said.

Chairman Louis Schweitzer said in a statement that the board now would focus on finding a successor.

"Considering the fantastic job that Leif Johansson has done to develop the Volvo group to a truly global and leading player in commercial vehicles, I had liked to see him stay for a while longer, but I naturally respect his decision," Mr. Schweitzer said.

The announcement that Mr. Johansson will resign isn't surprising, according to a Stockholm-based analyst, as his departure has been discussed for a while. "But, the fact that he is also stepping down from the board is a little surprising," he said.

The Gothenburg-based company, which sells trucks under the Mack, Renault and UD Trucks brands as well as its own name, had seen demand dwindle as customers delayed or canceled orders, leading to six quarters of losses between 2008 and 2009.

However, it reported a net order intake of 50,869 trucks in the third quarter, up from 48,418 the previous quarter.

The analyst added that the departure itself won't affect the share price much, but the naming of a new chief executive could have an effect when it happens.

Volvo shares have gained 83% in value since the start of 2010.