July 6, 2019
Now it will not renew the current contract for CEO Harald Krüger, when it expires next April. The company has just reported its weakest earnings in a decade, a reversal after performing some of the highest profit margins in the automotive industry for many years.
Krüger was elected to lead the company in December 2014 after his predecessor, Herbert Diess, left unexpectedly to take the reins on rival Volkswagen. In a statement to the press, he said: "After more than ten years on the board, over four as CEO of the BMW Group, I would like to continue new professional initiatives and leverage my diverse international experience for new projects and ventures."
It It is common for German companies to renew the CEO's contract one year prior to the termination. When BMW did not do this in April this year, it began to wonder that Krüger would set aside when the contract ended instead of logging in for another 5-year period.
BMW was once thought of as the leader in the far-reaching electric car field when it brought its highly innovative BMW i3 electric car to the market in 2013. But the company failed to capitalize on its early management as it struggled to find EV.
Krüger was "too careful", says Ferdinand Dudenhoeffer, director of the CAR Center for Automotive Research at the University of Duisburg-Essen The Star . "BMW couldn't use the head of a new generation of electric cars."
David Bailey, professor at Birmingham Business School, told CNN that BMW needed to accelerate the move to new technologies. "[Krüger has] has done a very good job over the last few years, but BMW faces some very big challenges ahead. They felt what it takes to bring in some new ones with the scale of the challenge."
It has not been lost in management or customers that the Tesla Model S is now the best-selling large luxury car in Germany, which is very embarrassing for BMW, Mercedes-Benz and Audi. We can never know exactly how the changes in the market that Tesla has caused have affected the wealth of these companies, but there is little question it has directed the industry and forced the companies to confront the forthcoming electric car revolution faster than they might otherwise have done.  Tesla Model S. Image Availability: Tesla
In addition to being hit with an antitrust penalty of $ 1.6 billion by EU authorities recently, BMW has been adversely affected by a rise in tariffs on vehicles being exported to China from the factory in South Carolina due to the wage war between the US and China. In March, it downgraded its profit forecasts for 2019 and announced a cost-saving plan that will trim $ 13.6 billion in costs by the end of 2022. The plan focuses on releasing some models and streamlining vehicle development.
BMW says it is rushing to bring electric cars to the market, but in truth, when the head of R&D says no one wants to buy electric cars, it is difficult to take such statements seriously. On CleanTechnica, we have said for a while that some traditional car companies may leave the business or be forced to merge with other companies as a result of the arrival of electric cars.
BMW and Mercedes have indicated that they will cooperate on the development of electric and self-driving cars, a sign that industry consolidation may already be taking place. Unless BMW can get back on track with the development of competing electric autonomous vehicles, it may even be the first traditional car manufacturer to go bankwupt – but that's probably not the last.
Tags: Bankwupt, BMW CEO, Center for Car Research, CNN, Harald Krüger, Herbert Diess, Klaus Frohlich, Tesla, Star, University of Duisburg-Essen