Ford Motor Corp. yesterday named Stephen O’Dell president and CEO of Volvo Car Corp., replacing Frederik Arp who has said he is leaving for unspecified reasons.
O’Dell had been chief operating officer of Ford Europe, in charge of its Volvo Car unit, which, is struggling to bring back positive sales momentum, turn a steady profit, and operate more as a separate entity.
“We have a restructuring plan in place that will help to deliver a more competitive business and that enables Volvo to continue to build upon its core strengths,” Odell said in a statement. “Volvo will adopt a more stand-alone approach within Ford…while still leveraging product development and purchasing synergies with other Ford operations.”
Sales for the broader automotive industry have come under tremendous pressure this year amid record-high gas prices and prolonged U.S. housing slump. But Volvo’s woes have been even more severe of late as Ford’s lone remaining upscale European nameplate reported a 46 percent plunge to 5,124 vehicles sold in the U.S. in July.