BP heads call for Svanberg resignation

Several senior managers at oil firm BP have argued that Carl-Henric Svanberg, the firm's Swedish chairperson, has mismanaged the ongoing oil spill in the Gulf of Mexico and should resign, according to the UK Independent on Sunday.

BP heads call for Svanberg resignation

“The oil spill is a disaster both for BP and the wider world. But it has been exacerbated by the collapse within BP, its public relations and communication with the outside world that has been terrible, really terrible,” a BP source told the newspaper.

“Svanberg should have been there, along with chief executive Tony Hayward, and shown the world that BP is doing everything in its power to clean up this mess, offering to pay the necessary compensation and be BP’s public face. He has failed them.”

The former Ericsson president has also come under fire for keeping a low profile, making only one appearance since the oil spill began a month ago.

“He should have been on the Louisiana coast together with President Obama, shown that BP takes its full responsibility for the leak. But he doesn’t appear anywhere. It is a fiasco for us,” the high-ranking BP employee said.

The source argues that BP’s future is in the national British interest and Svanberg has a responsibility to explain the situation.

“He should move around, talk to U.S. senators, British ministers, the media, and explain the situation to them. BP’s future is of British interest.”

Pressure on BP CEO Tony Hayward has begun to mount in the wake of the spill and the subsequent management of the environmental disaster. The firm announced on Saturday that the responsibility for cleaning up the spill has been handed to an American, Bob Dudley, in an attempt to offset some of the anti-British sentiment.

But according to the Independent source within the firm it is not Hayward that is the main focus of the anger over the ongoing catastrophe that several analysts argue could threaten the company itself.

“It is not Hayward, but Svanberg, who should go,” the senior source said.

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Svanberg chosen to head Volvo board: report

BP's criticised chairman Carl-Henric Svanberg will soon be appointed head of the board of the world's second-largest truck maker Volvo, Swedish daily Svenska Dagbladet (SvD) reported on Thursday.

Svanberg chosen to head Volvo board: report

“Carl-Henric Svanberg will take over as the new chairman of the board for Volvo … The announcement is expected to be made in a few weeks,” the newspaper wrote.

SvD said the appointment had been approved by Volvo’s two biggest owners, Renault and Industrivärden.

If the move is confirmed, Svanberg would replace Louis Schweitzer of France.

Svanberg is one of Sweden’s top business executives, and has formerly served as the chief executive of telecom networks giant Ericsson and locks and security company Assa Abloy.

He has however been heavily criticised in his position at BP.

He had only been chairman of the British energy giant for a few months when a massive explosion on April 20, 2010 rocked the Gulf of Mexico Deepwater Horizon rig leased by BP.

Svanberg was lambasted for his low profile in the crucial weeks after the spill and Britain’s Independent newspaper called him “the invisible man” while a Swedish daily referred to his “ostrich tactics.”

Criticism also raged after a meeting with US President Barack Obama on the White House lawn when the Swede said BP “cared about the small people.”

Should Svanberg move to Volvo, a Swedish switcheroo would be complete: Volvo’s former chief executive Leif Johansson was recently appointed chairman of Ericsson.

The two men have long been considered Sweden’s most successful business


Reflecting on the news, car industry expert Mikael Wickelgren at the University of Gothenburg said Svanberg’s appointment makes a lot of sense.

”It wasn’t really a surprise. Svanberg has been what you could call a management star in Sweden for a decade now and considering that Volvo had made the announcement of his predecessor’s departure long ago it was quite a logical step to take for both sides,” he told The Local.

”What Svanberg can bring to the table is the benefit of his recent experience of working with a large international organisation. Even though it is too early to say if it is the right move or not, it can be seen a positive step for the company to have him at the helm.”

Despite inevitable protests, not least in the wake of Svanberg’s handling of the BP oil spill crisis, Wickelgren doesn’t believe his appointment will cause much of an upset.

”You could say it was a controversial appointment, but any candidate for such a position would have something that could be held against them” he added.

Volvo has so far refused to comment on the report.

“The company never comments on these kinds of questions,” spokesman Mårten Wikforss told AFP.

When The Local contacted Volvo on Friday, the company confirmed they would not comment on shareholder issues.