German auto giant BMW CEO Harald Krueger has decided to step down from the top position after remaining at the helm of affairs for 4 years. During his tenure, BMW lost its leadership position in the luxury car segment and even more disappointing was the failure to get a head start in the Electric Vehicle segment.
The contract of CEO is expiring at the end of Apr-20 and as per company officials, the CEO would not seek an extension of his contract. The board of directors would meet to discuss his replacement and till that time Krueger would stay in the company. The company has been facing pressure on account of the high cost of developing EV and high investment required in developing an autonomous vehicle to compete with tech companies like Waymo and Uber.
BMW took an early lead in EV space over its competitors Daimler and Volkswagen by launching i3 in 2013 lost the steam and failed to follow up with compelling successors. While BMW focussed on hybrid vehicles, the new entrant Tesla took a sales leadership position in the premium-priced electric cars. The reason for the failure of the company to read the future of electric mobility and a head start a new generation of electric vehicles has been attributed to “too cautious” approach from its CEO.
Image Source: Toronto Star
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