In his new job, Armstrong will be in charge of the daily operations of Volvo's research and development, manufacturing, purchasing and quality departments.
The heads of those departments will report to Armstrong but will also remain members of Volvo's management team, the carmaker said in a statement to the press today at the Geneva Motor Show.
Armstrong is being replaced as senior vice president of purchasing by Albie van Buel, who has been director of purchasing for body exterior and interior.
Volvo also announced that Hans Folkesson, senior vice president of research and development, will take early retirement at the end of this year. He will stay in his current job until May 1, and then take a special assignment as senior project leader for environmental technologies at Ford of Europe.
Magnus Jonsson will replace Folkesson as head of research and development. He is currently executive director of International Operations at Ford of Europe, coordinating projects with the Premier Automotive Group.