New BMW CEO has enough challenges ahead image

Even though the German automaker is the largest luxury car producer in the world, it doesn’t mean the underlying business can’t be improved and by the looks of it, Harald Krueger, the upcoming CEO has the work cut out for him.

Soon to be former chief executive Norbert Reithofer made BMW spend billions of dollars to develop from scratch an environmentally friendly “i” subbrand, coupled with plants that would produce both the cars and the expensive carbon fiber used in them. Most likely, this would be his legacy for the company, but so far the green yield has been slim. In 2014 sales of the i3 model – released first – only grew to 13,849 through November; while the flagship hybrid i8 only managed to be delivered in 1,129 units until last month.

Though highly profitable and the leader of the worldwide premium market since 2005, BMW could be challenged by the slow development of the electrical auto market. Although the maker has commended the luxury compact segment with the 3 series and leads the game when it comes to manufacturing flexibility, the competitors have been hard at work during that period. They have developed aggressive new products and strategies designed to allow them to overcome BMW before the next decade begins.

Via Automotive News Europe