Gustafson resigns as CEO of Volvo Trucks North America

GREENSBORO, N.C. (Feb. 5, 2001) — Volvo Trucks North America president and CEO Marc Gustafson resigned Friday and was replaced by Karl-Erling Trogen, senior vice-president at Volvo AB, the division’s Swedish parent company.

Trogen, named interim CEO, was president of Volvo Trucks North America from 1991 to 1994.

There was no explanation given for Gustafson’s resignation. It comes amid reports that poor performance in the United States and Canada will continue well into this year.

Volvo’s full-year earnings, released last Thursday, showed a sharp downturn in the North American truck market during 2000. Speaking to reporters and industry analysts last week, Tryggve Sthen, president of Volvo Global Truck Corp., said the North American truck market is “going to get worse before it turns round and gets better.”

Improvement could come in the second half of 2001, once truck makers move excess inventory, he added.

Volvo Global Truck is comprised of the Volvo, Renault and Mack truck brands.

Since joining Volvo Trucks North America in 1996, Gustafson led the introduction of the Volvo VN and VHD models. He championed services such as a guaranteed cost-per-mile program, and secured equity positions in the Petro Stopping Centers truck stop chain and Arrow Truck Sales, a used truck outlet.

He also acted early to cut costs when a sales downturn seemed apparent, cutting 1000 workers and scaling back production starting in late 1999.

Gustafson is the second American senior executive to leave after the combination of Volvo and Renault’s truck group. Paul Vikner, vice-president of sales at Mack Trucks, left on Jan. 5.