BMW tackles 'fundamental' shift with car industry's youngest CEO

BMW chose production head Harald Krueger to take over as chief executive officer next year as the world's biggest maker of luxury cars opts for youth amid far- reaching changes in the auto industry.

Krueger, 49, will become the youngest CEO of a major carmaker when he succeeds Norbert Reithofer after BMW's annual meeting in May. Reithofer, 58, whose term was set to end in 2016, will become supervisory board chairman following the meeting, Munich-based BMW said on Tuesday.

"The automotive industry is undergoing a fundamental shift," Chairman Joachim Milberg said in the statement. To continue as the No. 1 luxury-vehicle maker and help shape the future of the car, "we have to hand over responsibility to the next generation at an appropriate time".

Krueger will be directing BMW's response to challenges by Volkswagen AG's Audi and Daimler AG's Mercedes-Benz for the top spot in luxury-auto sales as well as broader industry changes such as self-driving cars.

"I'm delighted BMW deals with this issue at an early stage," said Arndt Ellinghorst, a London-based analyst at Evercore ISI.