BMW picks production head Oliver Zipse to serve as CEO

Zipse will face pressure to accelerate BMW's electrification strategy and regain the company's lead in the luxury segment.

Confirming recent rumors, BMW has promoted production head Oliver Zipse to succeed Harald Krueger as chief executive.

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

Krueger was reportedly ousted after losing confidence from the board as BMW lost its luxury sales crown to rival Mercedes-Benz. The company also proved slow to embrace electric vehicles despite making a relatively early foray into the segment with the i3.

Zipse began his BMW career in 1991 as a trainee and has since moved through various management positions, including Oxford plant director and VP of corporate planning and product strategy.