Volvo has reported lower-than-expected fourth-quarter profit and says it will break off its stake in rival Scania into a new company if it fails to sell it.
Volvo reported pre-tax profit of 1.6 billion crowns (£119 million sterling), against a consensus forecast of 1.8 billion crowns and 737 million crowns reported for the same period of 2002.
The company, which counts the United States as its second-biggest market after Europe, said its results were negatively affected by a weak dollar and one-off charges.
The world's number-two truck maker also said today that Chairman Mr Lars Ramqvist would step down with immediate effect and that he would be replaced by Mr Finn Johnsson, the current head of Swedish firm Molnlycke Health Care.
Investors have expected the resignation of Mr Ramqvist, who has been under a cloud since insurance group Skandia was criticised for handing out excessive bonuses to managers.
Mr Ramqvist was chairman of Skandia at the time and has since stepped down.