"During his time at Volvo Aero and Volvo Construction Equipment, Olof Persson has gained the right experience and demonstrated the characteristics that make him highly suited to take over as President of AB Volvo and CEO of the Volvo Group," Volvo board chair Louis Schweitzer said in a statement.
Persson will take over the reins at Volvo on September 1st when Johansson, who has headed Volvo Group since 1997, retired.
However, the two will work in parallel starting on May 1st, when Persson is promoted to Executive Vice President and deputy CEO.
"Naturally, it is both an honor and a challenge to be provided with the opportunity to lead Sweden’s largest company," Persson said in a statement.
"Volvo is a company with tremendously knowledgeable and committed employees, with a unique culture and with many strong and exciting brands and I am truly looking forward to the task."
Persson's appointment was welcomed by Mikael Sällström, chair of the Volvo chapter of the IF Metall union.
"We support this. We've known him for some time and think it's going to be good," he told the TT news agency.
Persson has long been mentioned in speculation about who would succeed Johansson.
He's been a member of Volvo's executive team since 2006, first as CEO of Volvo Aero, before taking over as CEO of Volvo CE in 2008.
Prior to coming to Volvo, Persson also served as the head of a division of Canadian aircraft manufacturer Bombardier.
Volvo Group is Sweden's largest company measured by turnover, which reached 265 billion kronor ($41.3 billion) in 2010.