Azernews.Az

By Alimat Aliyeva

BMW AG and Mercedes-Benz Group AG are reshuffling personnel to address declining demand for electric vehicles in Europe and increasing competition in China, Azernews reports.

Hubertus Troska, head of Mercedes' China division, will retire in July 2024. His position will be filled by Oliver Tene, currently head of the Strategic Planning Department.

Mercedes' challenges in the Asian market are primarily due to shifting consumer preferences, with local brands, particularly the market leader BYD Co Ltd, gaining popularity among buyers.

BMW has announced a change in the chairman of its supervisory board. Nicholas Peter, the company's former chief financial officer, will assume the role next year, replacing Norbert Reithofer. The move aims to ensure continuity in leadership.

Despite its strong sales, BMW faces significant challenges, including major vehicle recalls and the need to optimize costs amid rising labor and energy expenses.

Since the beginning of the year, BMW shares have fallen by 21%, while Mercedes shares have dropped by 10%.

The reshuffling reflects the broader struggle of European automakers as they navigate the shifting dynamics of global automotive markets. The increasing dominance of local Chinese manufacturers, as well as growing competition in the electric vehicle space, has forced traditional companies to adapt their strategies. Both BMW and Mercedes are now placing a greater emphasis on innovation, cost control, and addressing supply chain challenges to maintain their positions in an increasingly competitive global marketplace.