BMW Friday announced the retirement of chief executive officer Harald Krueger amid speculations about his future in the company after the current term ends. Krueger’s decision to step down comes at a time when the German carmaker is on a mission to transform the business model, with focus on alternative fuel technology.
The automotive division of BMW, which is going through one of the worst phases, recorded a loss in the most recent quarter. Only the motorcycle and financial services segments were profitable. In the current scenario, Krueger’s retirement is likely to add to the company’s troubles. It will be a challenging task for the management to find a fitting successor to Krueger, considering the changing market dynamics marked by the growing shift to electric vehicles.
The board of directors of BMW is expected to devise the succession plan at the meeting to be held later this month. The board was planning to seek the renewal of Krueger’s contract at the upcoming meeting. After serving the company for about three decades, holding the post of chief executive in the last four years, Krueger will be stepping down next year.
The board of directors of BMW is expected device the succession plan at the meeting to be held later this month
Krueger, who expressed his unwillingness to seek another term, will continue in the current position until a successor is found. Earlier, he had come under fire for the company’s dismal earnings performance in the recent quarters, the weakest in several years. Making matters worse, the carmaker was recently hit by a penalty of about EUR 1.4 billion in an anti-trust lawsuit.
As the industry is undergoing a rapid transformation, it is essential for automakers around the world to keep pace with the new trend and BMW is no exception. It is expected that the company’s growth initiatives, with long-term goals, will take some time to yield the desired results.
In a sign that the company is taking the threat from electric vehicles seriously, BMW last month unveiled the Vision M Next electric car and electric motorcycle concepts. It is believed to be a strategy to effectively compete with Volkswagen, which is aggressively pushing its EV initiative, and Tesla (TSLA).
Most Popular
Intensity Therapeutics is establishing a new field of localized cancer reduction: CEO
Intensity Therapeutics, Inc. (NASDAQ: INTS) is a clinical biotechnology company engaged in the discovery development, and commercialization of first-in-class cancer drugs that attenuate tumors with minimal side effects while training
INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues
Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came
Riding the AI wave, Nvidia looks set to stay on the high-growth path
After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on
Comments
Comments are closed.