Stefan Jacoby has left Volvo as president and CEO after an “amicable agreement” with the board of directors.

Jacoby has been replaced by board member Hakan Samuelsson.

Li Shufu, chairman for Volvo's Chinese parent company Geely, Volvo majority shareholder and chairman of the board, said: "I see major opportunities for Volvo Cars to improve profitability, and accelerate our growth plan in China specifically.

“I am convinced that Håkan Samuelsson's thorough experience and leadership will help us increase performance.”

Shufu said Volvo would now be executing its “strong strategy and transformation plan”.

Håkan Samuelsson has 35 years of experience in the automotive industry, most recently as chairman & CEO of MAN SE between 2005 and 2009. Since 2010 he has been an independent member of the Volvo Car Group board.

According to a report in the Financial Times Jacoby had clashed with the Volvo board over the future direction of the business with aspirations to increase the brand's market share in the US, while Shufu wanted a greater focus on China.