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July 6, 2019 by Steve Hanley
Only a few days ago, Klaus Fröhlich, head of research and development at BMW, complained to the press that no one would buy an electric car. In fact, in fact, no one wants to buy BMW if the latest financial results of the company indicate it. According to the Toronto Star, BMW has lost its position as the leader in luxury cars in Germany in recent years and faces strong financial pressure related to the development of electric and autonomous cars that can compete with Tesla and other automakers.
The BMW Group has delivered more than 100,000 electrified vehicles to customers worldwide in 2017, as promised early in the year. An eye-catching light fixture turned the BMW Group headquarters, the famous "four-cylinder" north of Munich, on the evening of 18 December 2017 into a battery. (Ralph Larmann, 12/2017)
Now, he will not renew the current contract of his CEO, Harald Krüger, when he expires next April. The company has just announced its lowest earnings of the past decade, after a reversal of its profit margins among the highest in the automotive industry for many years.
Krüger was chosen to lead the company in December 2014 after the unexpected departure of his predecessor, Herbert Diess, to take the reins of his rival Volkswagen. In a statement to the press, he said: "After more than 10 years on the board of directors, including more than four years as CEO of the BMW Group, I would like to pursue new professional activities and take advantage of my great international experience for new projects and companies. "
German companies are in the habit of renewing the CEO's contract one year before termination. When BMW did not do so in April this year, it began to speculate that Krüger would withdraw at the expiry of his contract instead of signing for another 5-year term.
BMW was once considered a leader in the emerging electric car business when it launched its highly innovative car, the BMW i3, in 2013. However, the company failed to capitalize on her lead as she strove to find a solution for electric vehicles. .
The BMW i3 at the National Drive Electric Week Event in Oxnard, California. Image credit: Kyle Field | CleanTechnica
Krüger was "too cautious," says Ferdinand Dudenhoeffer, director of the CAR Research Center at the University of Duisburg-Essen L & # 39; star. "BMW has not been able to use it in advance for a new generation of electric vehicles.
David Bailey, a professor at Birmingham Business School, said CNN BMW needed to accelerate its transition to new technologies. "[Krüger has] has done a very good job in recent years, but BMW has to face very big challenges. They felt the need to bring in someone again considering the magnitude of the challenge. "
The Tesla effect
Management and customers have not lost sight of the fact that the Tesla Model S is now the largest luxury car sold in Germany, which greatly embarrbades BMW, Mercedes-Benz and Audi. We may never know how the changes in the market caused by Tesla have affected the fate of these companies, but there is no doubt that it shook the sector and forced companies to face the revolution of electric vehicles. faster than they would otherwise.
The Tesla Model S. Image courtesy of: Tesla
European authorities recently imposed $ 1.6 billion in antitrust penalties in the United States. BMW also suffered from higher tariffs on vehicles exported to China from its South Carolina plant due to the US tariff war with the European Union. China. In March, it lowered its earnings guidance for 2019 and announced a cost reduction plan that will reduce costs by $ 13.6 billion by the end of 2022. This plan aims to abandon some models and to streamline vehicle development.
Bankwupt?
BMW says it's rushing to put electric cars on the market, but in reality, when your R & D manager states that nobody wants to buy electric cars, it's hard to take such statements seriously . AT CleanTechnica, We have said for some time that some traditional car companies might close their doors or be forced to merge with other companies due to the arrival of electric vehicles.
BMW and Mercedes have announced their intention to collaborate on the development of electric cars and autonomous cars, sign that a consolidation of the sector may already be underway. Unless BMW can get back on track with the development of competitive autonomous electric vehicles, it could even be the first traditional manufacturer to go bankrupt, but it will probably not be the last.
Keywords: Bankwupt, BMW CEO, Car Research Center, CNN, Harald Krüger, Herbert Diess, Klaus Frohlich, Tesla, The Star, University of Duisburg-Essen
About the author
Steve Hanley Steve writes about the interface between technology and sustainability from his home in Rhode Island and wherever the singularity could lead him. His motto is: "Life is not measured by how many breaths we take, but the number of moments that take our breath away!" You can follow him on Google + and on Twitter.
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