BMW profit warning exposes tension within top leadership
It's the first profit warning in a decade as the German car maker goes from leader to laggard
Munich/Frankfurt — BMW’s first profit warning in a decade comes on top of existing leadership tension under CEO Harald Krüger, who’s tasked with reviving sales momentum and staving off encroaching competitors such as Mercedes-Benz and Tesla. Sluggish growth was a problem even before BMW slashed its outlook on Tuesday and said it would rein in expenses. The Munich-based luxury car maker has set up a special working group to help new sales head Pieter Nota get on the front foot, and Krüger is considering a broader shake-up of the sales structure, according to people familiar with BMW’s strategy. Boardroom bickering has intensified amid a prolonged period of lacklustre show under Krüger, a BMW lifer at the helm for the past three years, said the people, who asked not to be identified discussing internal deliberations. The company has gone from a leader to laggard in electric vehicles, and in 2016 it lost its luxury-sales crown to Daimler’s Mercedes. The stagnant performance was already...
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