Bo Andersson (businessman)

Bo Inge Andersson (born in Falkenberg, Sweden, 16 October 1955) is a former Swedish officer,^[1] businessman and diplomat. He was the first non-Russian Chief Executive Officer at AVTOVAZ, where he worked from December 2013 till 3 April 2016.^[2] Starting from April 2016 Bo Andersson works as the CEO of Bo Group Enterprises.^[3]

Biography

Bo Inge Andersson grew up on the South of Sweden. He graduated from Swedish Army Academy and then served in the army. He left the military in the rank of Major.^[4] Bo Andersson received a bachelor's degree of Business Administration from Stockholm University and completed Top Management program at Harvard University.^[4]

General Motors

Bo Andersson began his business career in 1987 as a purchasing manager in SAAB Automotive AB where in 1990 he was promoted to the Vice-President of SAAB Purchasing. In 1993 he moved to Detroit to work at the position of Executive Director of Electrical Purchasing Group at General Motors. A year later he was appointed Executive Director of Chemicals Purchasing Group for General Motors and worked in this position for 3 years. In 1997 he moved to Germany to hold position of Vice-President for Purchasing in Europe.^[5] In 2001 Bo Andersson became part of GM top management working as Vice-President for Purchasing worldwide till 2007 and as Vice-President of Global Purchasing and Supply Chain to 2009.^[5]

Bo Andersson left General Motors in 2009 and became an advisor to Oleg Deripaska (a Russian industrial tycoon) and a head of Board of Directors of GAZ Group - the oldest car plant in the country and the largest manufacturer of Light Commercial Vehicles, Buses and off-road Heavy Trucks.^[6]

GAZ Group

Bo Andersson became the president of GAZ Group on August 7, 2009 with objective to combine development of company's strategy with running current operations. Main goal was to return the company to profitability.

During 5 years at GAZ, he managed to turn-around the business from losses of $1 Billion to consistent EBIT profits: 7,6% (2010), 8,8% (2011), 10,3% (2012).^{[7][8][9][10][11][12]} In the Russian currency net profit changed from 30,5 bln RUR loss in 2008 to 8,8 bln RUR net profit for 2012.^[13]

These results were achieved due to consistent reforms at GAZ Group conducted by Bo Andersson:

- The company reduced headcount by 50,000

- Eliminated underperforming product lines, including classing GAZ Volga passenger car and specialty vehicles focusing on three primary product areas vs. seven in 2009

- Began profit-sharing program for all employees and established zero-tolerance policy for corruption

- Launched new models covering majority of product range, including first new LCV platform in 20 years

- Localized production of Volkswagen/Skoda, GM and Daimler on the GAZ plant

JSC AVTOVAZ

On November 5, 2013 Bo Andersson was appointed the President of JSC AVTOVAZ the largest Russian car manufacturer which produced old fashioned LADA branded vehicles and was losing market share.^[14] The Swedish top-manager has become the first foreign president of the company. His objective in the new role was to regenerate the LADA brand.^[15]

Among the key challenges for Bo Andersson at the role of the president of AVTOVAZ was to improve company's product portfolio and increase brand attraction. Overall during first two years at his role as a president of AVTOVAZ the company launched 14 new vehicles: 6 new LADA branded vehicles and 8 cars for Alliance Renault Nissan.^[12] As at GAZ Group, Bo Andersson was reforming company's business. It included:^[16][17]

Vladimir Putin with Bo Andersson and Sergey Ivanov after test drive of LADA Vesta - October 2015

- Optimization of business processes, by reducing of levels of management from 9 to 5

- Standardized working places of employees to increase efficiency

- Optimization of headcount by 37% from 77,000 to 44,400 including reduction of white collars by 44% (16,000 to 8,900) and blue collars by 35% (from 54,100 to 35,400)

- Restructuring of business including selling or liquidation of ineffective subsidiaries and restructuring of supply base

- Changing company's corporate style including introduction of new LADA brand logo^[18]

By manufacturing Alliance products on the same plant as traditional LADA cars AVTOVAZ could prove to the customers that the quality of the products suits high standards of international brands.^[19]

In 2015 AVTOVAZ launched 2 brand new vehicles in 2 different plants - LADA Vesta (Izhevsk) and LADA XRAY (Togliatti) - first truly new models of the company in many years. New models were of a big success. In January 2016 only 2 month after start of sales LADA Vesta has become one of the top 10 best-selling cars in Russia, surpussing many of its competitors including Skoda Rapid.^[20] First time in LADA history its car received a maximum crush test rating from "Avtoview" (4 stars ARCAP) marking LADA Vesta one of the safest vehicles in its class in the Russian market.^[21]

In 2015 Bo Andersson was nominated for "Person of the year 2015" by Russian business newspaper Vedomosti for achievements in transferring "a giant governmentally owned enterprise" into a regular plant producing decent cars.^[22]

Bo Andersson announced his resignation on the 17th of February. He agreed to remain in his role until April 3 to support the transition to new leadership. From April 2016 Bo Andersson is the CEO of Bo Group Enterprises.^[3][23]

Nominations

Bo Andersson with King Carl XVI of Sweden

• Namnes "TOP-5 AUTO" in the category "Auto person of the Year" for his outstanding achievements in the field of car business in Russia in the year 2015^[24]
• Awardered Medal from President Kadyrov for important contribution to Republic of Chechnya 2015
• Nominee for “Professional of the Year 2015” by Vedomosti in 2015^[25]

• “Contribution into integration of Russian car industry to World car industry” by the Russian International car Industry Forum in 2013^[26]
• Honorary Citizen of Nizhny Novgorod by Duma of Nizhny Novgorod in 2013^[27]
• Distinguished Service Citation by Automotive Hall of Fame (Detroit) in 2013^[28]
• Former Honorary Consul of the Kingdom of Sweden for Nizhny Novgorod in 2012^[29]
• “Automotive Supply Chain Outstanding Achievements” by Automotive Supply Chain in 2012^[30]
• “Automotive Executive of the Year” for Russia by Adam Smith Institute in 2011^[31]
• “Emerging Market Executive Eurostar” by Automotive News Europe in 2011^[32]
• “Best Executive leader of 2010” by Adam Smith Institute in 2010^[33]
• “Best Market Newcomer” by Adam Smith Institute in 2009^[34]

References

External links

Wikimedia Commons has media related to Bo Andersson.

• Fact sheet authorized by Bo Andersson