Responding to sustained shareholder pressure to appoint someone in place of chief executive Olof Persson, Volvo has ousted the man in question and appointed Martin Lundstedt of rival firm Scania in a bid to boost profitability and appease shareholders. CFO Jan Gurander will take the reins as president and chief executive until the incoming Lundstedt assumes the position this coming October, by which time the Swedish truckmaker will be hoping to start fresh into 2016.

Lundstedt’s focus moving forwards will fall on improving the company’s core truck brands

“After three years of focus on product renewal, internal efficiency and restructuring, the Volvo Group is gradually entering a new phase with an intensified focus on growth and increased profitability. This will be achieved by further building on our leading brands, strong assets and engaged and skilled employees all over the world”, said Carl-Henric Svanberg, Chairman of the Board of AB Volvo in a statement.

Persson’s almost-four year restructuring programme was designed to streamline operations and ensure that the automaker’s profitability more closely aligned with its more profitable rivals. However, the world’s second largest manufacturer of commercial vehicles has ultimately failed to appease shareholders, who have grown tired of declining profits and wish to see a marked improvement in the coming year.

Speaking on Persson’s time at the company, Svanberg said: “Today the Volvo Group is considerably better positioned to compete for leadership in our industry.” Volvo’s first quarter earnings show that the streamlining is only now beginning to bear fruit, with the firm’s operating margin having climbed to 6.1 percent, from 3.9 percent previously. Close rival Scania, meanwhile, boasts an operating margin of 9.5 percent currently.

Lundstedt’s focus moving forwards will fall on improving the company’s core truck brands, as he looks to make good on a growing heavy-duty truck market in both Europe and North America.