BMW's Reithofer New CEO Will Replace Panke - VIDEO ENHANCED STORY

FRANKFURT, July 20, 2006; Reuters reported that BMW, the world's biggest premium car maker, has appointed Norbert Reithofer, 50, as its chief executive, with effect from Sept. 1, the company's supervisory board said on Thursday.

Reithofer will succeed Helmut Panke, whose contract expires in May 2007. Panke turns 60 in August -- an age at which BMW's board traditionally does not extend contracts for management board members.

CLICK HERE to watch the press conference (in German with English translation).

Reithofer, who currently is a management board member for BMW with responsibility for production, joined the company in 1987. He has held various positions at BMW, including the head of the Rosslyn plant in South Africa and head of the Spartanburg operation in the United States.

Panke has been with BMW for 24 years and joined the management board in 1996. BMW said he would not have an offical role with the company from September but would remain with the firm.

In addition, it is not known yet what Panke plans to do after his contract expires in 2007, a BMW spokesman said. Currently there are no positions seen coming up on BMW's supervisory board that Panke could take, the spokesman added. The supervisory board said that Frank-Peter Arndt, 50, will succeed Reithofer with responsibility for production. Arndt is currently head of BMW's Dingolfing plant.

In addition, the supervisory board has appointed Klaus Draeger, 49, to the company's management board effective Nov. 1, with responsibility for research, development and purchasing.

Currently Draeger is director of the development department with responsibility for the BMW 5, 6 and 7 series.