[Jason]

Per Bloomberg

May 21, 2019

BMW AG Chief Executive Officer Harald Krueger’s job is hanging in the balance as the luxury carmaker steers through a fundamental shift toward electric and autonomous vehicles as well as weakening markets, people familiar with the discussions said.

Some supervisory board members are raising questions over whether he’s the right choice to lead the company and will discuss the CEO’s second-term prospects in the coming weeks, the people said, asking not to be identified discussing confidential deliberations. Krueger’s current tenure ends next May, with an announcement on his future due in June or July.

BMW, like other carmakers, is navigating a costly transition not only to electric cars but also new business models and deep-pocketed tech competitors encroaching via new mobility options like ride hailing. After leading the luxury competition for a decade, BMW’s momentum petered out in 2016 and the carmaker has since struggled to regain the top spot with cautious model redesigns. Since last year, weaker global markets and trade tensions have shrunk profits.

Any new CEO will be chosen from inside the Munich-based carmaker, and production head Oliver Zipse, 55, is considered a possible successor, one of the people said. A BMW spokesman declined to comment on CEO succession plans.

“There are doubts about Kreuger’s perspectives as CEO of BMW -- internally and externally,” Juergen Pieper, an analyst at Metzler Bank, said in an email. “Results of the past four years are mixed, profitability is turning down quite substantially” and “there are no clear strategic signals.”

Board Tension

Krueger, 53, has been at the helm since 2015, when he became the youngest leader of a major automaker with a brief to tackle the industry’s transition. He is struggling to stamp his authority on a divided management board that’s failing to unite on plans for partnerships and spending on new technology, said the people.

While merging its car-sharing business with Daimler AG last year, BMW hasn’t so far aligned itself with new competitors. Daimler, Toyota Motor Corp. and Volvo Cars, meanwhile, have forged deals with Uber Technologies Inc., and Jaguar Land Rover will develop self-driving electric cars with Alphabet Inc.’s autonomous unit Waymo.

Efforts to deepen ties with Daimler have met resistance from some board members who are wary of new partnerships, the people said.

The last BMW CEO to leave after just a single term was Helmut Panke, who vacated the top position at BMW in 2006, a day before turning 60, at the time the proclaimed age limit for executives at the company. BMW’s largest shareholder are the Klatten-Quandt siblings, which together hold about 45% of the shares.

Krueger has struggled to emancipate himself from predecessor and now Chairman Norbert Reithofer, who is credited with taking some bold steps, like adding a range of sport utility vehicles at a time when other luxury carmakers skipped the segment.

Reithofer also moved early with BMW’s first electric car and a push into mass-producing lightweight carbon fiber. Krueger’s early tenure was overshadowed by him fainting on stage during his first major presentation as CEO at the 2015 Frankfurt motor show and obvious discomfort speaking publicly in the weeks and months that followed.

BMW squandered its early lead in electric cars after pausing new battery models since unveiling the slow-selling i3 in 2013. It now trails the electric SUVs of Jaguar, Audi and Mercedes already on sale.

[ShawnPaul]

So partnering with Benz, strengthening manufacturing in places like Mexico, and having embarrassing recalls like the cracked engine blocks in the M5 and the fuse panel fires in a number of other models didn't keep his job safe? lol

[Drj161]

It's for those new buck teeth grills that BMW is making.

[WWM3]

None of the BOD want to be seen in the new 7 series LCI?

[phantom7835]

Maybe this can mean a return to exciting cars.

[TheBingoBalls]

Originally Posted by phantom7835

Maybe this can mean a return to exciting cars.

Perhaps, but they will be the electric variety.

His future as CEO of BMW is not based on past performance, but whether or not he is the right CEO to lead BMW into a significant shift in the automobile segment with electric vehicles.

[phefner]

Originally Posted by phantom7835

Maybe this can mean a return to exciting cars.

^EXACTLY. Too many models...dilution of the 'M'. There are so many 'M' badges is like WTF is an 'M'. TOO many models. These stupid 1 off marketing gimmicks. There are many others but that's the general point.

[Wheel man]

Updating my resume now

[clee1982]

Originally Posted by phantom7835

Maybe this can mean a return to exciting cars.

Probably not, all the worries is about ride sharing, autonomous driving, electric vehicles transition, not about getting back to old school bmw.

The saving grace for BMW was earlier mover to SUV and invented SAV, neither were about old school BMW.

Unless BMW dramatically downsize it can't be a niche player in the new world

[rjd598]

Originally Posted by phantom7835

Maybe this can mean a return to exciting cars.

lol did you read the article? this isn't going in the enthusiasts' favor

[GuidoK]

This little sentence stood out to me:

Daimler, Toyota Motor Corp. and Volvo Cars, meanwhile, have forged deals with Uber Technologies Inc.,

As most people know, the Uber incident where a woman was fatally hit by a self driving car, was a Volvo. Volvo of course has set its vision to have 0 fatalities in 2020.
So that Uber partnership didnt do Volvo much good imho in that departmen (but the core of the deal was that Uber would buy 24.000 volvo cars in the next years....which is a lot ).
But it has to be said that Uber dismantled/switched off all the volvo safety gear and volvo self driving gismo's.

[yco]

Originally Posted by phefner

^EXACTLY. Too many models...dilution of the 'M'. There are so many 'M' badges is like WTF is an 'M'. TOO many models. These stupid 1 off marketing gimmicks.

but it seems you re driving one..

[nbennettksu]

Funny how they didn't mention paying Sixt $375 mil for buying them out of their autonomous partnership with the automaker. Probably small potatoes.

[Pyrat 2]

Originally Posted by phefner

^EXACTLY. Too many models...dilution of the 'M'. There are so many 'M' badges is like WTF is an 'M'. TOO many models. These stupid 1 off marketing gimmicks. There are many others but that's the general point.

Agree. It took years for the full impact of this to hit. And here we are. I've been exclusive BMW since 2000 and as time progressed it's been harder and harder to find a model that hits their old roots of the ultimate driving machine. I used to wander the dealer parking lots regularly on Sunday to scope out what would be my next acquisition. Never do it now despite being less than 2 miles and literally right next to my health club.

In 2018 I veered away from BMW and sold one of my 4 BMWs and bought a Porsche. My wife's E84 will go in a couple years and now that they ditched the rear drive configuration I'm open to look at anybody and likely won't end up with another BMW as a replacement. The rear drive in that X1 was differentiating and is a blast to drive. Now there is no equivalent in that size. My M2 is also about to drop out of warranty in 12 months. When it does I'll likely be shopping again within another year. Maybe another M2 but hard to buy a new car that is fundamentally identical to the old one. So will hope that they don't drop the line or make the next gen bigger.

It took years to create this problem and it'll take years to correct once they start to transform their lineup. I haven't seen signs of them even recognizing that their problem is their product. They moved themselves from a differentiated product line to one that has much less differentiation and therefore competes with more vendors. I'm hoping that they sort through it quickly as my remaining BMWs are all do for replacement in the next few years. A garage with zero BMWs in it in 5 years is a very real possibility. Crazy, considering 20 years of exclusive loyalty to the brand.

[Eau_Rouge111]

They have to hire an ex Porsche guy...lets just put aside the whole 10 yr IMS bearing issue but lately Porsche are good at listening to their clientele...ppl said...give us a manual GT3 and they did and the take rate is 85%...let's get a Porsche guy in so we can finally get an i8 with a proper engine to compete with Ferrari and Lambo and M cars offered light weight (relatively speaking) with manual gear boxes and no more rod bearing/crank bearing b/s

[nachob]

Kay Segler for BMW CEO!

[IB M]

Let's see, electronic handbrakes, no naturally aspirated M motors, 3 series the size of or bigger than the original 7 series, grills with more vertical drop than K2 ... how is it this guy is being criticized?

I say maintain BMW as the ultimate driving machine and create a new co-brand called DMW - the ultimate Driverless machine, and then hire TWO CEOs. I know where I'll spend my money.

[domino_z]

is he the bloke responsible for the reverse sweep rev counter

[roastbeef]

Nice. Cars have been sucking. Hit the road.

[clee1982]

Originally Posted by Eau_Rouge111

They have to hire an ex Porsche guy...lets just put aside the whole 10 yr IMS bearing issue but lately Porsche are good at listening to their clientele...ppl said...give us a manual GT3 and they did and the take rate is 85%...let's get a Porsche guy in so we can finally get an i8 with a proper engine to compete with Ferrari and Lambo and M cars offered light weight (relatively speaking) with manual gear boxes and no more rod bearing/crank bearing b/s

They can hire a Porsche guy for steering feedback, pretty sure the average BMW customer will not want Porsche ride, and manual is a "specific" Porsche thing, everyone else is dropping it.

the last few BMW offered with manual didn't have a high take up rate. I suppose if BMW go hardcore and make a GT3 equivalents AND out perform Porsche while under price Porsche it will sell, though in the end of day will never be enough number to really matter for BMW

[///M TOWN]

Bloomberg's typical writing style...

"...Said the people familiar with the situation"

[GMe90]

Originally Posted by Pyrat 2

Agree. It took years for the full impact of this to hit. And here we are. I've been exclusive BMW since 2000 and as time progressed it's been harder and harder to find a model that hits their old roots of the ultimate driving machine. I used to wander the dealer parking lots regularly on Sunday to scope out what would be my next acquisition. Never do it now despite being less than 2 miles and literally right next to my health club.

In 2018 I veered away from BMW and sold one of my 4 BMWs and bought a Porsche. My wife's E84 will go in a couple years and now that they ditched the rear drive configuration I'm open to look at anybody and likely won't end up with another BMW as a replacement. The rear drive in that X1 was differentiating and is a blast to drive. Now there is no equivalent in that size. My M2 is also about to drop out of warranty in 12 months. When it does I'll likely be shopping again within another year. Maybe another M2 but hard to buy a new car that is fundamentally identical to the old one. So will hope that they don't drop the line or make the next gen bigger.

It took years to create this problem and it'll take years to correct once they start to transform their lineup. I haven't seen signs of them even recognizing that their problem is their product. They moved themselves from a differentiated product line to one that has much less differentiation and therefore competes with more vendors. I'm hoping that they sort through it quickly as my remaining BMWs are all do for replacement in the next few years. A garage with zero BMWs in it in 5 years is a very real possibility. Crazy, considering 20 years of exclusive loyalty to the brand.

Agree 100 percent. Forum members have been saying this for years. By going more mainstream and turning into a German Toyota, BMW abandoned the very competitive edge that made BMW successful in the first place. Modern BMWs are soft, disconnected, and overpriced. That's a recipe for failure. Charging $55k for a four cylinder 3 series, with no manual transmission, dead steering, and questionable reliability is ludicrous. I would rather buy a Mustang GT for that money.