Harald Krüger is apparently worried about his future at the helm of Bavarian automaker BMW. His contract, which expires in May 2020, may not be renewed, according to the daily “Handelsblatt”. “An extension is no longer considered within the group as the most likely variant,” writes Friday the German business newspaper, while the supervisory board can theoretically decide since early June to renew its contract. Information that BMW did not want to comment.
Loss of speed
Originally questions about the future of the leader: the loss of speed of the group of 130,000 employees, long accustomed to success: after a very good year 2017, BMW saw its profit fall in 2018 and even wiped in the first quarter 2019 its first operational loss in ten years. A performance partially sealed by a provision made to deal with a possible Brussels fine in the case of the German automobile cartel, against the backdrop of a slowdown in the global automotive market and a trade conflict between the United States and China.
Sign that the wind has turned, BMW also announced in March a savings plan, like its competitors Mercedes and Audi, while the automotive industry is facing massive investments to develop the electric and autonomous car. BMW intends to save 12 billion euros by 2022. The group denies, however, want to freeze hiring.
“What is probably the most blamed for Harald Krüger is to have lost BMW as an innovative company,” decrypts Jürgen Pieper, analyst at Metzler. The expert recalls that BMW has lost today its lead in the electrical while he was the first German manufacturer to in 2013, launch an electric vehicle on the market with its i3. Under pressure, Harald Krüger comes from to advance two years the launch of 25 electrified models, now planned for 2023.
Decision in July
The fate of the 53-year-old German leader could be decided at a meeting of the group’s supervisory board scheduled for 18-19 July in Spartanburg, his factory in South Carolina, USA, according to the “Handelsblatt”. The latter distinguishes two potential internal candidates, currently members of the Executive Board, to take his seat: Klaus Fröhlich (Head of Development) and Oliver Zipse (in charge of production).
Joined the group in the 1990s as an engineer, Harald Krüger was appointed in 2015 to replace Norbert Reithofer , to the detriment of Herbert Diess, gone from the blow to the competitor Volkswagen, which he finally took the lead in the spring of 2018.