BMW CEO Harald Krueger is stepping down amidst weakened profits

07/09/2019

Posted by: Jane Osuagwu

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Harald Krueger is stepping down as BMW CEO following the huge losses the German manufacturing company experienced during his tenure. Read the details!

The Chief Executive Officer of BMW, Harald Krueger, will be vacating his position as the CEO after serving for four years. The main reason for the decision is reduced revenues for the company. During his tenure, Naijauto gathered that BMW lost its place as top luxury car seller, coupled with the early head start it had in electric vehicle segment, which also evaporated.

Munich-based BMW stated that 53-year-old Krueger won't be pursuing a contract extension when his agreement with the company expires April ending, 2020. To that effect, the BMW Board of Directors will have a meeting to talk about a successor, come July 18. Krueger will maintain his position until they come up with a decision.

BMW-CEO-Harald

Harald Krueger will keep his job until the BOD comes up with a decision

BMW has been facing some challenges that have been spreading across the car industry, which have to do with the high cost of producing electric vehicles, in a bid to meet up with China and Europe's strict emissions regulations. And also, investing in self-driving vehicles to slug it out with techy companies like Uber and Waymo.

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The German automaker was a foremost automobile company to tilt towards electric vehicles, following the introduction of its battery-powered car called the i3 in 2013. Other competitors like Volkswagen and Mercedes were just coming behind but BMW didn't continue with cogent successors. Rather, its electric-efforts was focused on plug-in hybrid vehicles which use electric power and internal combustion engine. And Tesla came on board and took the lead in the selling of luxury electric cars.

According to the Center for Automotive Research (CAR) director at University of Duisburg-Essen, Ferdinand Dudenhoeffer,

"Krueger was too cautious 

BMW was not able to use the head start for a new generation of electric vehicles."

bmw-and-mercedes-on-road

BMW has lost its top position to Mercedes in luxury car segment

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And not only losing its lead in the luxury market to Mercedes Benz, BMW recorded some loss in the first quarter of the year, following a $1.6 billion (€1.4 billion ) fine for an antitrust case and higher cost of new technologies paid in advance. The German automaker was sustained by proceeds from its motorcycle divisions and financial services.

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Jane Osuagwu

Jane Osuagwu

Car prices

Jane Osuagwu is an automotive writer at Naijauto.com. She's a car enthusiast who loves creating educative and informative topics on cars, ranging from maintenance tips to updates on the latest trend in the auto industry in concise and friendly writing. 

Jane is also a blogger and loves reading, inspiring people and getting involved in personal development projects.

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