Key personnel changes are taking place within the BMW M division against the backdrop of preparations for a new phase of development, the main vector of which will be electrification. Key points:
New Head of Development
After the company confirmed that next year Milan Nedeljković will be replaced by Oliver Zipse as CEO, the BMW M division has also appointed a new Head of Development. Alexander Karailovic has been appointed to this role, who is best known for overseeing one of M’s most polarizing recent projects—the BMW XM SUV.
Karailovic’s experience at BMW spans a number of positions directly related to high-performance models and SUVs. From November 2017 to 2020, he headed the development of X Series derivative models and was the project manager for the XM. This model became the first standalone product of the M division since the 1978 M1 and is undoubtedly one of the most debated today.

End of a Veteran’s Era
Karailovic replaces Dirk Hacker, a veteran who worked for the BMW Group for 37 years, the last 11 of which were at BMW M. Hacker had been leading development since 2015. Under his leadership, many models were launched, the latest of which is the new M5 Touring. In addition to technical oversight, he was actively involved as a driving instructor in the BMW Driving Experience program.
Franciscus van Meel, CEO of BMW M, noted: “With the departure of Dirk Hacker, a long-standing head of development at BMW M GmbH is leaving to begin a well-deserved rest. His name is inextricably linked to an unprecedented product offensive, unsurpassed product quality, and annual sales records at BMW M.”

The Future of BMW M
Karailovic takes on his duties during a period of transformation, as the M brand begins to lay the groundwork for its next-generation model range. Among the most anticipated projects is the future M3, which is being developed simultaneously as a fully electric version and a version with a bi-turbo six-cylinder engine.
The fully electric model, which is a significant technical shift for this iconic badge, is expected to feature four electric motors and power exceeding 700 hp. Such a configuration is likely to spark lively discussions among the brand’s supporters and skeptics.

The arrival of a new head of development, whose experience was shaped even by controversial projects, may indicate the brand’s readiness for bold experiments in a new era. The electric M3 will be not just a new model, but a symbol of change in the approach to performance. The success of this and other future projects will now largely depend on the ability of Karailovic’s team to combine legendary “M” dynamics with the demands of modern technology and environmental standards, while preserving the brand’s spirit.

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