Struggling BMW Seeks New CEO to Turn Around Fortunes
The management change comes as BMW grapples with a slowing global economy and flattening demand in its core markets
BERLIN—The chief executive of BMW AG BMW -0.31% , Harald Krüger, won’t seek a second term, the company said Friday, forcing the German auto maker to seek new leadership as it contends with shrinking profits and fierce competition in the fast-growing market for electric cars.
The Munich-based company said its supervisory board intends to discuss a possible successor at its next meeting on July 18, adding that Mr. Krüger will continue to hold his post until a decision is made.
The management change comes as the luxury car maker grapples with a slowing global economy, flattening demand in its core markets and a volatile trade environment. Tougher emissions regulations are also driving huge investment at BMW and across the industry to develop electric vehicles, improve existing engines and phase out diesel.
Those factors were behind BMW issuing a profit warning in March, at which point it also flagged a large cost-cutting drive and an effective hiring freeze this year.
It also swung to a loss in its core auto business in the most recent quarter, weighed down by an accounting charge relating to potential fines from a European antitrust investigation.
After nearly three decades at the auto maker and more than four years as chief executive, Mr. Krüger said, “I now want to reorient myself professionally and improve my diverse international experience into new tasks and projects.”
Shares of BMW fell roughly 0.64% to €66.78 in midday trading on Friday.