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By Marie Mannes and Nick Carey
STOCKHOLM/LONDON (Reuters) -Volvo Car's abrupt decision to tap Hakan Samuelsson as its CEO puts the car industry veteran back in charge of steering the automaker through U.S. President Donald Trump's tariff turbulence and a wobbly transition to electric cars, analysts and investors said.
Samuelsson, who led the Swedish automaker for a decade from 2012 to 2022, helped to revitalise the Volvo brand and oversaw the company's initial public offering in 2021 on the Stockholm Stock Exchange.
He was also running Volvo during Trump's first term, during which the company built a car assembly plant in South Carolina, a move that could prove crucial if Trump goes ahead and slaps 25% tariffs on U.S. car imports on Wednesday.
His car industry background contrasts with outgoing CEO Jim Rowan, who joined in 2022 from Dyson without any car industry experience.
Rowan was an unconventional choice with a three-decade career in the consumer and technology sectors. But at the time, the automaker said Rowan's experience of digitalisation, disruption, innovation, engineering and supply chains would be valuable.
Volvo Cars board Chair Eric Li, also known as Li Shufu, said Samuelsson's experience was exactly what was needed as the car industry was entering a more complex phase.
"We know Håkan Samuelsson as a very knowledgeable and experienced leader in the industry," Carina Silberg, head of Governance and ESG at Alecta, the fifth largest shareholder in Volvo Cars, said.
Sverre Linton, chief legal officer of the Swedish Shareholder's Association, which represents small shareholders in Volvo, said: "But ... Samuelsson is not a wizard, he also needs the help of a solid strategy in which the board plays a central role creating."
Other investors and analysts said in research notes and interviews with Reuters that they were surprised by the news, but echoed the view that it was Volvo going back to its roots.
Samuelsson, 74, has been appointed for a two-year stint while the company searches for a long-term replacement.
Volvo's shares, which are down almost 70% since the group's 2021 listing, fell slightly on Monday, hitting a new all-time low although the move was in line with the wider market in Stockholm, which was down nearly 2%.
"For me it was kind of unexpected, the share price has clearly underperformed the automotive industry, but on the other side operationally, the company has done better," said Handelsbanken analyst Hampus Engellau.
The return of Samuelsson to the helm of Volvo also comes at a challenging time for the Swedish automaker's owner, China's Geely, which owns 78.7% of Volvo's stock.