SINGAPORE (July 22): BMW CEO Harald Krueger will bequeath a well-oiled machine when he steps down next year. The €44 billion ($67.2 billion) carmaker’s boss said on July 5 that he would not seek a second term after his current one runs out in May 2020. The big challenge for his successor — possibly production chief Oliver Zipse, according to Reuters — will be to tune up the company’s electric-vehicle strategy.

(Main image: The big challenge for Krueger’s successor will be to tune up the company’s electric-vehicle strategy)

Heading up the Munich-based company is one of the more desirable jobs in the struggling automotive industry. True, the company has had problems. First-quarter operating profit fell almost 80% from 2018, largely because of a provision for a possible European antitrust fine over alleged technology collusion with German peers. That followed a September profit warning, which Krueger blamed on intense price competition, following new emissions standards. Yet, BMW shares are trading at eight times 2019 earnings, using Refinitiv Smart Estimates, compared with 7.4 times for premium peer Daimler and 5.9 times for Volkswagen Group.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook