BMW and Mercedes-Benz are overhauling their leadership teams to tackle growing challenges in China and sluggish electric vehicle (EV) sales in Europe.
Mercedes announced on Wednesday that Hubertus Troska, its head of China operations, will retire in July. He will be succeeded by Oliver Thöne, the automaker’s current product strategy chief. The shakeup comes as Mercedes grapples with a weaker Chinese economy and rising competition from local EV brands like BYD.
BMW also moved to stabilize its leadership. On Tuesday, the company confirmed that former Chief Financial Officer Nicolas Peter will replace Norbert Reithofer as supervisory board chairman next year. This continuity move comes as BMW faces similar headwinds in the Chinese market.
The changes highlight the deep challenges confronting Germany’s auto giants. China, once their most lucrative market, is cooling. BYD and other domestic manufacturers are luring buyers away with cheaper, high-quality electric models. Meanwhile, Europe’s automotive recovery remains sluggish, and German automakers face rising production costs.
Mercedes has been particularly hard-hit. Poor demand for its premium electric models has stalled CEO Ola Källenius’ push to move the brand further upmarket. Mercedes shares have dropped 21% this year. BMW, while performing slightly better, has also been squeezed by a costly recall and pressure to cut expenses. Its shares have fallen 10%.
“Chinese customers are opting for homegrown brands that offer great value,” said an industry analyst. “German automakers must adapt or risk losing their edge.”
The European industry as a whole is trimming operations to stay competitive. Ford plans to cut 4,000 jobs in the region, and Volkswagen is weighing potential plant closures in Germany. Mercedes personnel chief Sabine Kohleisen will step down earlier than expected in April. Britta Seeger, current head of sales and marketing, will take her place.
In another key appointment, Mercedes will bring Olaf Schick, Continental’s CFO, onto its board in October. Schick, who previously worked at Mercedes, will oversee integrity, governance, and sustainability. He replaces Renata Jungo Brüngger, who is leaving at her own request.
As leadership changes unfold, BMW and Mercedes face a tough road ahead. The pressure is mounting to regain lost ground in China and streamline operations in Europe.
Read more on China’s BYD eyes record-breaking 2024 with 4 million sales goal in sight, outshines rivals
