Swedish Volvo, the world number two for heavy goods vehicles, has appointed Olof Persson as the new President and Chief Executive Officer. Persson is currently President of Volvo Construction Equipment.

"During his time at Volvo Construction Equipment in the midst of the financial crisis, [Persson] succeeded in restructuring the company and making it one of the most successful in its industry, in terms of both profitability and size," Volvo chairman Louis Schweitzer said.

Olof Persson had been seen as the front-runner to succeed long-time CEO Leif Johansson, who is set to become chairman of telecom gear maker Ericsson, Reuters said.

Volvo sells trucks under the Renault, Mack, UD Trucks and Eicher brands as well as its own name.