The top premium car manufacturer, Bayerische Motoren Werke AG, announced that its Chief Executive Officer Norbert Reithofer is to leave the company in May 2015. The Germany-based BMW appointed Harald Krueger as a successor of Mr. Reithofer at a time when the auto industry is shaken by some far-reaching changes.
Mr. Reithofer, whose contract as a Chief Executive Officer officially ends in 2016, has been nominated as a successor to Joachim Milberg at the position of a Chairman of the supervisory board of the company after the annual meeting of BMW, that is to take place in May next year.
BMWs Chairman, Joachim Milberg, said in an official statement, cited by Bloomberg: “The automotive industry is undergoing a fundamental shift.” As reported by the Financial Times, Mr. Milberg also commented: “The BMW group plans to maintain its leading role in the premium segment. To achieve this, we have to hand over responsibility to the next generation at an appropriate time.”
Harald Krueger has been occupying the position of Chief of the Germany-based auto makers production businesses. He is to become the youngest Chief Executive Officer in the history of the major car makers in the world.
The controlling family of the premium vehicles giant explained that the management shift comes as a part of a “generational change”, which is considered as beneficial for BMW, as it would help the company deal with challenges related to technology and customer changes.
Mr. Reithofer, who took over the company eight years ago, has had a successful run ever since. Under his lead BMW has managed to outrun its major rival Mercedes and expand its reach in China. In addition, the Chief Executive Officer Reithofer has managed to increase the companys profitability and also pushed BMW in launching its first battery-powered vehicles on the market.
Bayerische Motoren Werke AG added 0.64% to trade at €89.47 per share as of 8:17 GMT, marking a one-year gain of 10.39%. The company is valued at €58.85 billion. According to the Financial Times, the 29 analysts offering 12-month price targets for Bayerische Motoren Werke AG have a median target of €99.40, with a high estimate of €120.00 and a low estimate of €70.00. The median estimate represents a +8.52% increase from the last price of €91.60.
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