BMW's CEO, Harald Krueger, To Step Down — What Has FAILED That's Caused His Early Exit?

#1 Soft sales
#2 Mediocre styling
#3 Having to incentivize product to sell it
#4 Having no convincing EV strategy to replace the ridiculous i3/i8 nonsense
#5 Mini continuing to slide

BMW is in deep caca and is heading for implosion if it does not get some competent management.

Agreed not to mention Benz leapfrogging BMW and Audi in the global sales race earlier than expected after explosive China sales and strong US sales allowing the head of Mercedes Dieter to retire on a high note.

This after Benz gave up their half a century global dominance on luxury sales to BMW for a decade but Benz found their way back improved quality and most importantly stopped listening to Auto Magazines and started listening to the consumer instead

I agree Matt. BMW has had so many poor strategic decisions that Harald Kruege's resignation was inevitable.

Exterior design stagnation from one generation to the next, no mainstream EV sedan or SUV, no more driving dynamic advantage for its non-M models, questionable materials quality for its interiors.

BMW has clearly lost its way as evidences by its poor sales growth vs. Mercedes-Benz and even poorer stock price performance under Krueger's tenure.

BMW needs a change now and the next CEO better be able to deliver it otherwise I'd look for BMW to be very vulnerable to a takeover.

Look at the car that douchbag is standing next to. I think that answers the question.

Can't he afford a better toupee?

Sounds right.
But OTOH, sales are holding up.
BMW’s core problem is that it started as a niche product, performance over all. Not great if one wants to be any sort of mass marque. So they expanded becoming ever more of a luxury marque with all attendant compromises. Too, performance 20 or 30 or 40 years ago was relatively easy; just add too much power and a compliant suspension set up to a lightweight vehicle. These days, vehicles are heavy, and adapting for performance requires fighting physics by starting with tweaks to make the vehicle handle as if lighter. I mean, reasonably priced performance used to be relatively easy, now it’s a bitch.

What is BMW's identity? Ultimate driving machine? No, they gave that up chasing luxury.
Technological leadership, not really.
MB embraced their heritage, stuck to it and consumers are not confused.

AMEN

Instead of a 1 Series or the stupid 2 Series, I'd do a 2002 sedan--yes sedan--with a $24K base price that is ninble. I'd then do a turbo version for $27.5K called the 2002tii.

I'd do a Z2 with nimble handling and a powerful engine--but not a lot of optioned crap--for $30K.

I'd move the 3 Series down in price and rededicate it to being the ultimate driving machine.

I'd consolidate the 5 and 7 series sedans and the garbage that is 8 series into one model priced advantageously.

Except that you can get superior styling and equal or better performance at Mercedes, so why put up with mediocre styling?

The M5 might prove BMW can build a great handling sedan, except it costs well over $100,000 and mainstream buyers in the $35K-$85K range (which represents the majority of BMW's buyers globally) don't get that brilliant handling in their non-M cars.

I agree electric cars aren't taking over anytime soon but still it begs the questions what the hell has BMW been doing all these years in terms of electric-vehicles? The answer is nothing. Audi has the eTron, Porsche the Taycan, Jaguar the iPace, Mercedes-Benz the EQC and what does BMW have? Nothing. That is a MASSIVE oversight by Krueger.

The exterior designs can change to be more aggressive but they haven't changed much from one generation to the next? Why buy a BMW today when it looks just like the same car from 10 years ago? At least Mercedes-Benz changes its models from one generation to the next.

It is not the electricity cars or lack thereof. It is the stale design and ID. In every class save for the X7 I would prefer the Mercedes. Hell, sorry MD, heck, I'd take the CT6 Blackwing over the 7 Series.

What in hell are you talking about? The 7 Series is vile for its boring look.

I just said I'd take the Caddy (or G90) over the 7 Series. I do like the X7, that's it.

Their majority of their lineup has lost its lustre and is moving due to subvented leases; the designs are stale and they don't have the driving dynamics advantage they used to. The M cars are wonderful, but unfortunately that is not what keeps the doors open. BMW was top of the mound when this guy took over...they were the top selling lux make for many years, and they had an early lead in EVs. His lack of direction has hurt BMW significantly.

I would not surprise me if Toyota grabbed BMW. With Geely grabbing at Mercedes, someone is bound to grab at BMW.

That vulnerability is probably why he got fired.

The German unions, local and federal governments would never approve or allow of BMW or Mercedes falling into foreign hands, particularly China or Japan. Collectively they would if necessary force a merger of the two companies.

Wrong again mdarringer Geely took the same stake in Mercedes as Mercedes had in Tesla, Geely is a fanboy of Mercedes, their first attempt at building a car was literally based on a Mercedes which they stripped down and could not rebuild being obsessed with the brand ever since.

Geely has always longed for a piece of Mercedes engineering and Mercedes, now the global luxury sales king, longed for a stronger foothold in the biggest market in the world, CHINA, the 10 percent stake gives Geely access to Benz tech/engineering, while Benz gets even more access, connections, and deals in China through Geely

Think son, Benz plays Chess not checkers

wrong again scar4life. Geely wanted to buy a chunk of Mercedes. Mercedes refused. Geely took it anyway. The unions were powerless to prevent it. NOTHING prevents Geely from taking more.

Mdarringer when you are ready to speak #FACTS we can talk, that “chunk” you speak of was a 9.7% Benz gave them for 9 BILLION dollars and has been killing the game ever since LOL

Earlier this year Geely had to fight off rumors they were selling they’re stale because in fact the streets have been talking and Geely may be looking to sell it back to Benz or another buyer soon as Benz continues to dominate China with Maybach sales alone in the ultra luxury space, while Geely has yet to reap that precious Benz tech in their car brands ...

Sit back and watch the master work

God you're stupid. You believe your opinion is fact. No reasoning with you.

I really can’t belkeve how dumb you are, throwing everything out there hoping something sticks

Clearly it worked because you responded like the puppet you are.

Now that you’ve admitted you’re a #Triggered Idiot we can move on

When BMW did not design the 7-Series after the VFL concept, bad choice. Why not start with a electric sedan and midsize SUV, we get the i3 and i8. BMW design has become boring. The new 3-series is the best they could do?

Actually BMW "electrified" their core models before everyone else with PHEV variants of their sedans, X5, and 225xe, mediocre and expensive PHEVs, but plugins nevertheless. The i3/i8 work was important after the EV trials almost a decade ago with the Mini E and Active E, lest not forget, even Clarkson praised the i8. But after their release BMW just killed the i program and dropped the ball. Now they have to play catch-up, even to VW.

Actually - I believe is was bound to happen anyway.

Over time - it has been shown that the leader is a target for all others. Hell - even Bill Mitchell admitted to using BMW styling tricks. But the problem with being the leader is that eventually everyone has one - and when they want something new - they really do want something new -something that is different and not in every driveway on the street. But when the car become so popular that every elementary school teacher has one - it is no longer as "desired" as it was.

Mercedes did the right thing at the right time -= they went to their CUSTOMERS - and their customers told them that they wanted more LUXURY - and for performance they wanted something that could easily be identified for that.. Mercedes made their basic cars far more Luxurious - and brough AMG into the fold for obvious performance vehicles - just when BMW had started to become Passe'.

And eventually the same thing will happen to Mercedes again.

The resignation of BMW CEO Harald Kreuger has been driven by many factors that have combined to create a period of very poor performance by BMW. I'd say his resignation is due primarily to the reasons below:

1) Poor Global Sales vs. Competition - BMW overtook Mercedes-Benz as the global sales leader but then was leapfrogged by Mercedes-Benz has not come come close to catching Mercedes-Benz on a global level in at least 6 years.

2) Stagnant Exterior Design - BMW's exterior designs have not changed much from one generation to the next. This has caused buyers to purchase a Mercedes-Benz, which actually looks different from one generation to the next.

3) Lack of Electric-Vehicle Strategy - BMW's i3 and i8 are absolutely pathetic attempts at all-EV vehicles especially considering Audi has the eTron, Jaguar the iPace, Mercedes-Benz the EQC and Tesla its entire model lineup. What does BMW have for an all-EV mainstream SUV or sedan? Nothing.

4) Straying From Ultimate Driving Machine Ethos - BMW's are no longer the ultimate driving machines and haven't been the ultimate driving machines they once were for at least the past 5-7 years. The brand has focused on technology and luxury at the expense of driving dynamics but yet continues to go by its irrelevant tagline leaving consumers confused.

To all the Spies in southern California, I hope you are okay after the earthquake.

Sorry, earthquakes.

It's all under control. Kern County Fire Department mobilized its emergency response protocol and things went smoothly. Damage exists but it's not cataclysmic. Injuries are thankfully few. We are fortunate that it happened "in the middle of nowhere" so to speak.

Im glad that people here are so petty that they vote down that people are safe after a potential disaster, but that just shows you have immoral they are.

In it's pursuit to be all things to all people (greed) BMW deviated from it's core identity and betrayed it's customer base of real gear heads (and some poseurs) that bought the Ultimate Driving Machine for the experience. Now BMW is so homogenized its neither a top tier lux or sporting brand and other marques have caught up and surpassed BMW at it's own game.

After owning over 11 Bimmers I am done with the brand and find no compelling reason to buy another. As I mature my needs are also changing and I value reliability and the depreciation of my capital and assets and hence another area where BMW falls short and precludes itself from my considerations

bmw was rolling when bangle was in charge of design. all the slave labor chinese restaurant owners wanted a 5 series and their kids a 3 series. then bangle left and bmw fell in love with car mag 'editors' and their cars turned to shit. couldnt keep up with the official dream car of bougie and ratchet women: the RX series from lexus. someone has to pay. its him.

And the public was disgusted by the ugly atrocities that Bangle created so much so that they fired him.

BMW has had a styling problem for quite some time. There really isn't a modern BMW that you could call truly attractive. The 850 is a step in the right direction. Perhaps an M2. I don't care for the 3 series or 5 series or 7 series. Their SUV's are atrocious in styling. They have truly butchered the kidney grill design by making it like it suffers from elephantitus. Further BMW has been too slow developing a dedicated EV platform like VAG.

Bangle did not force his designs on BMW, senior management had to sign off on the designs. At the time they needed to stand out. His Z4 was his best work.
However, that design language was challenging to evolve. So, now their design language us, meh.
Bangle is a fellow buckeye, so have to defend him a bit.

The Z4 was ugly as a floating turd.

BMW's traditional design language is simple to evolve. They just aren't doing it. Bangle needed to horse whipped for the atrocities he put out.

Moreover, the only design element they had in common was the ugly, stuck-on trunk look.

Perhaps it was because he did not want to move more toward EVs.especially after the i3 and i8 efforts have placed them ahead of the industry in 2013. Then BMW just stopped.

The eras before and leading up to Bangle rocked! I had a 3 series in the 90's in Germany and drove it like a bat out of hell... The Ultimate Driving Machine! The Bangle Era! What is that!? Risk! Edgy! Wow! I hate it! I love it! The BMW logo on it makes sense - pushing boundaries! What's possible!? Now....BMW is like a slice of white bread...too predictable, too planned, too developed, too synthetic, too ordinary. BMW identity today is not Ultimate Driving Machine. Success = revisit core values...people are CRAVING it.