EZZ

EVs already taking their toll on the old order

BMW chief executive Harald Krueger is stepping down

BMW is seeking a new leader as it works to find its place in a global auto sector disrupted by the rapid rise of electric vehicles.

The luxury car company announced Friday that Harald Krueger is standing down after four years as CEO. The company's board will address the matter of succession during a meeting this month.

Krueger has worked at the German carmaker for nearly three decades. He thanked employees for their efforts in a statement but said he was leaving to "pursue new professional endeavors."

"Over the last years, the automotive industry has been shaped by enormous changes, which have brought about more transformation than in the previous 30 years," said Krueger.

The pace of change has presented huge new challenges for global carmakers, and BMW is no exception. The company's profit shrunk in the first quarter, in part because of an expected fine, and its automotive division posted a loss.

BMW last month set a goal of having 25 electrified models in 2023, two years ahead of schedule. It said it expects sales of electrified vehicles to double by 2021.

Yet the company has so far taken a cautious approach to fully electric cars, instead focusing on plug-in hybrids.

David Bailey, a professor at the Birmingham Business School, said that BMW needs to accelerate its move into new technologies.

"[Krueger has] done a very good job in recent years, but BMW faces some very big challenges going ahead," said Bailey. "They felt the needed to bring in somebody new given the scale of the challenge."

BMW (BMWYY) and Daimler (DDAIF), which compete hard in the luxury market, announced earlier this year that they would form a strategic partnership focused on highly-automated and autonomous driving.
The companies are also investing $1 billion in a new venture to develop services including ride-sharing and charging systems for electric cars.

mmarshall

.......which, in most cases (not necessarily all), unless they are forced out by the Board, is just smooth-talk for trying to make more money somewhere else. He's probably leaving a pretty well-paying job as it is.

EZZ

He was forced out by the Board. Other sources confirmed this. The big issue is that he didn't hit margin targets and sales were stagnant. Doesn't matter because they all get a parachute for being canned and it's worth millions.

RNM GS3

The failure of i Brand and lack of new EV cars did him in probably.

The only way BMW can survive longterm is with full scale partnership with Mercedes or Toyota etc. The new Emissions regulations will take out most of their profits. They don’t have the size / resources of Toyota or VW group etc.
It would be great for them to go back and be a niche manufacturer of sport oriented luxury daily drivers. But as is human nature greed for more sales / profits come in to play.

mmarshall

I think over-regulation is the problem. Many of the squeezes (and cost-pressures) that the auto companies are going through today are simply the result of governments demanding more and more each year. Auto companies are merging and posing their resources to try and meet these regulations.....some of which, IMO, should not even be there in the first place.