BMW names new CEO 'to catch up with rivals'

BMW has named Oliver Zipse as its new CEO, hoping the “decisive” company lifer will help the automaker regain its edge in electric cars and win back the premium market lead lost to Mercedes-Benz under his consensus-seeking predecessor, Reuters reports.

Zipse, 55, joined BMW as a trainee in 1991 and served as head of brand and product strategies and boss of BMW’s Oxford plant in England before becoming board member for production.

The German company said he would become chief executive on Aug. 16, taking the helm during a major industry shift towards electric and self-driving cars and amid new competition from technology giants.

BMW shares were up 1.4 percent at 0717 GMT.

“With Oliver Zipse, a decisive strategic and analytical leader will assume the Chair of the Board of Management of BMW AG. He will provide the BMW Group with fresh momentum in shaping the mobility of the future,” said Nobert Reithofer, chairman of BMW’s supervisory board.

Under current CEO Harald Krueger’s leadership BMW was overtaken in 2016 by Mercedes-Benz (DAIGn.DE) as the best-selling luxury car brand and ceded ground to startup rival Tesla (TSLA.O) in premium electric cars.

BMW had an early lead in premium electric vehicles but throttled back its ambitions after the i3, an expensive city car, failed to sell in large numbers, allowing Tesla to overtake BMW in electric car sales.

At VW, Diess has since pushed through a radical 80 billion euro ($90 billion) electric car mass production strategy and a sweeping alliance with Ford (F.N).

BMW’s supervisory board discussed succession at its U.S. plant in Spartanburg, South Carolina, after Krueger said he would not be available for a second term.

Krueger, 53, will resign as CEO and will leave the management board by mutual agreement on Aug. 15, BMW said.