Industry sources have told just-auto that Stefan Jacoby, Volkswagen’s US operations’ chief executive, is to become CEO of Volvo Cars.

Jacoby will replace Stephen Odell as Volvo Cars CEO from August, the sources say. Steve Armstrong is to remain as COO. Stephen Odell and CFO Stuart Rowley will  return to Ford, which still owns the Swedish premium maker ahead of the planned completion of sale to Geely.

Other media reports have suggested that Volkswagen has been in contract negotiations with Jacoby, but that Michael Lohscheller will take charge of US operations ‘on an interim basis’ and until the position with Jacoby is resolved.

Industry sources have told just-auto that Jacoby’s appointment was to be made official next week, but that the news has now been leaked in advance.

Jacoby was once CEO of Mitsubishi Motors Europe (MME), resigning early in 2004 to move to VW. In just over two years he turned Mitsubishi’s European operation from a loss maker to break-even and he beat his target of selling more than 205,000 units in Europe in January 2004.

He is credited with, in just over two years, turning MME’s operation from a loss maker to break-even and he beat his target of selling more than 205,000 units in Europe in 2003.