It’s safe to say this is a pivotal week for the BMW Group’s corporate world. Milan Nedeljković will replace Oliver Zipse as Chairman and CEO in May 2026, and additional leadership changes are underway. Alexander Karajlovic has been appointed Head of Development at BMW M, succeeding Dirk Häcker.
Karajlovic is no stranger to the “world’s most powerful letter.” He previously served as project manager for the XM before moving up to Vice President for the M lineup from early 2021 to mid-2023. After a period in BMW’s broader development team, he’s now back at M.
Business has been booming for BMW M. The sub-brand posted its 13th consecutive year of growth in 2024 with 206,582 vehicles shipped. Prospects for 2025 are even stronger, as deliveries through September were up 7.9% compared to the first nine months of 2024, reaching 158,182 units. It’s worth noting that both figures include M Performance models.
As for Dirk Häcker, he’s heading into a well-deserved retirement. The veteran engineer has spent 37 years with the BMW Group, including 11 years within the M division. He has led development at M since 2015, helping shape the performance lineup across basically all segments. Under his watch, the M5 Touring returned and sits alongside the first-ever M3 Touring.
Even more interesting times lie ahead for BMW M. The division has been quietly developing its first electric model, with the M3 “ZA0” expected to debut in 2027 as the high-performance counterpart to next year’s i3 “NA0.” This electric sports sedan will pave the way for additional EVs from M, including an X3 M.
Traditionalists need not worry, as the inline-six and V8 engines are sticking around for the long term. Both the S58 and S68 are set to receive updates to meet Euro 7 standards, safeguarding their future. The next-generation M3 “G84” has already been confirmed to retain its six cylinders, so all is well. Additionally, the upcoming 3 Series M Performance model (M350) will continue with the “B58.”
BMW M will also maintain at least one plug-in hybrid, with a facelifted M760e arriving next year. Now, how about that long-awaited supercar? Purists would argue they deserve a follow-up to the legendary M1 before the M division calls time on combustion engines.
