The “Scaniafication” of Volvo rolls on

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Dagens Industri  /  July 4, 2017

Melker Jernberg leaves the metallic powder giant Höganäs after only three years to become CEO of Volvo Construction Machinery (VCE).

Thus, the Scaniafication of Volvo Group is strengthening while the Wallenberg sphere loses another top director to the sphere around Industrivärden.

Melker Jernberg, 48, Martin Weissburg succeeds as CEO of Volvo's VCE business area at the turn of the year. Thus, Melker Jernberg Höganäs, which has annual sales of approximately SEK 7.5 billion, leaves a significantly larger VCE, which has a turnover of around SEK 55 billion.

The departure of American Martin Weissburg from VCE does not come unexpectedly. At Volvo's report for the first quarter, Di asked CEO Martin Lundstedt asked how sustainable it is for Martin Weissburg's family living in the United States while VCE has its headquarters in Gothenburg. Martin Lundstedt gave a somewhat evasive answer.

Following VCE's very convincing result for the first quarter, Martin Weissburg is now looking forward to leaving the flag at the top. The streamlining measures that he has taken in recent years seem to yield the best possible results.

The fact that Melker Jernberg is recruited to Volvo is also not surprisingly taken into consideration by Martin Lundstedt's predecessor for recruiting directors with a background of arch competitor Scania. Di wrote at the beginning of 2016 that the former Scania director was the most likely candidate to become Volvo's global truck production. For many years, he has worked with Martin Lundstedt at Scania. Now, Melker Jernberg gained a much more prestigious Volvo assignment, which also presents an interesting development potential if the group chooses to sell VCE after a few years.

Melker Jernberg started working at Scania in 1989. Before joining 2011, in order to become Business Area Manager at SSAB Steel Company, he joined the Group Management as Chief Executive Officer and reported to Martin Lundstedt, who was then Sales Director at Södertäljebolaget.

According to consistent data, Melker Jernberg and Martin Lundstedt have a similar leadership based on openness and delegation of responsibility and trust. Both are also adept at creating a lightweight and positive atmosphere in their surroundings.

The recruitment of Melker Jernberg further enhances the Scaniafication of Volvo. Since Martin Lundstedt himself was recruited from the Södertälje-based truckmaker in 2015, Scania has also recruited Andrea Fuder as Purchasing Director and Lars Stenqvist as new technology director. Before becoming CFO at Volvo, Jan Gurander held the same position at Scania. In addition, former Scania director Håkan Samuelsson sits on the Volvo Group Board.

Since Scania historically has been a significantly more profitable and more value-creating company than Volvo, it is interesting and promising that Volvo's top management is now dominated by former Scania directors who contribute new knowledge and change the culture of the Gothenburg Group.

At the same time, it is not entirely unproblematic if Volvo Group Management appears like Martin Lundstedt's Compass Club from Södertälje. Normally, it is preferable that in a group there are people with many different experiences. However, as long as earnings performance is favorable, no one complains about Martin Lundstedt's building.

Höganäs is owned by Wallenberg Foundation's FAM and Lindéngruppen. This means that the Wallenberg sphere now that Melker Jernberg leaves for Volvo again loses a heavy name to the sphere around Industrivärden. Less than two years ago, Björn Rosengren left Wärtsilä, where Investor is the main owner, to become Sandvik CEO.

Whoever takes over as CEO of Höganäs is hard-judged. A possible candidate is Kerstin Konradsson, who is the business area manager for Boliden's smelter and is also part of Höganäs Board.

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Melker Jernberg has been appointed President of Volvo Construction Equipment and member of the Volvo Group Executive Board.

OEM Off-Highway  /  July 3, 2017

Melker Jernberg was born in 1968 and is currently President and CEO of the Sweden-based powder metallurgy company Höganäs AB. Prior to this he held the position of Executive Vice President and Head of Business Area EMEA at Swedish-based steel manufacturer SSAB. Melker Jernberg will assume his new position on January 1, 2018.

Melker Jernberg replaces Martin Weissburg who, due to family reasons, has decided to move back to the U.S. and will take up a position as Senior Advisor to Volvo’s President and CEO Martin Lundstedt. Martin Weissburg will be stationed in Greensboro, USA.

“Martin Weissburg has, through his strong leadership, been key to the considerable improvement in the performance of Volvo Construction Equipment and he will continue to have senior positions within the Volvo Group. Martin Weissburg will remain in his position until year end 2017 and take up his new position as Senior Advisor to me during the course of Q1 2018,” comments Martin Lundstedt, President and CEO of the Volvo Group.