BMW AG and Mercedes-Benz Group AG are reorganising leadership as they face declining electric vehicle (EV) demand in Europe and rising competition in China. The changes come as European automakers grapple with shifting global market dynamics, Azernews reports.
Mercedes-Benz announced that Hubertus Troska, its China division head, will retire in July 2024. His role will be filled by Oliver Tene, currently head of Strategic Planning. This transition occurs as Mercedes contends with a challenging Asian market, where consumer preferences are increasingly favouring local brands like BYD, the market leader.
At BMW, Nicholas Peter, former chief financial officer, will become chairman of the supervisory board next year, succeeding Norbert Reithofer. This move aims to ensure leadership continuity during a time of industry upheaval.
Despite strong sales, BMW faces challenges including large-scale vehicle recalls and rising labour and energy costs. Mercedes and BMW shares have reflected these pressures, with declines of 10% and 21%, respectively, since the start of the year.
The leadership reshuffles highlight the broader difficulties European automakers face as Chinese manufacturers strengthen their dominance and global EV competition intensifies. To maintain their market positions, BMW and Mercedes are prioritising innovation, cost optimisation, and supply chain improvements in an increasingly competitive landscape.
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