On Friday, German luxury carmaker announced that its chief executive Harald Krueger would ‘not seek second term of office’ and step down as CEO in April 2020, after heading the brand for four years.
Krueger served the company for nearly three decades. He released a statement, claiming that he was stepping down 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.
Due to the fast emerging trends and changing market demand, the premium car manufacturer was facing major challenges. It can be seen in the company’s first quarter report, in which its automotive division projected a loss.
Some believe that one of the reasons for Krueger to resign was that company lost its leading position in the luxury market to its competitor Daimler’s Mercedes-Benz, under his leadership.
Krueger’s exit did not shake investors trust in the company, as its share price slipped slightly by 0.5 percent on Friday afternoon local time.
Norbert Reithofer, chairman of BMW’s Supervisory Board, said he completely respects and understands Krueger’s decision.
The company hasn’t appointed any successor yet but it is speculated that either Klaus Froehlich, currently head of BMW’s development department, or production chief Oliver Zipse might takeover Krueger’s position as CEO of the Bavarian automaker. The company said that its Supervisory Board would address “the matter of a successor” in its next board meeting, scheduled on July 18.