Volvo truck maker picks rival Scania boss as new CEO, posts big first-quarter profit increase

Swedish truck maker AB Volvo has tapped Martin Lundstedt, the top boss at rival Scania AB, to become the new chief executive and group president later this year.

Group chairman Carl-Henric Svanberg says the Goteborg-based company "is gradually" entering a new phase with "an intensified focus on growth and increased profitability."

The managerial change comes after shareholders have been pushing the truck maker to streamline operations and boost margins.

Until Lundstedt takes over in October, Chief Finance Officer Jan Gurander will hold the top jobs. Lundstedt, 47, is replacing Olof Persson.

The group on Wednesday also posted first-quarter net income of 4.2 billion kronor ($483 million), up from of 1.1 billion kronor a year earlier. Revenue grew to 75 billion kronor ($8.62 billion) from 65.6 billion kronor a year earlier.