BMW M has a new head of engineering: Alexander Karajlovic

It’s safe to say that this is a pivotal week for the BMW Group corporate world. Milan Nedeljković will replace Oliver Zipse as Chairman and CEO in May 2026, and further leadership changes are underway. Alexander Karajlovic is appointed Head of Development at BMW M, succeeding Dirk Häcker.

Karajlovic is no stranger to dealing with the “most powerful letter in the world.” He previously served as project manager for the XM before moving up to vice president for the M series from early 2021 to mid-2023. After a time in the broader BMW development team, he is now back at M.

BMW M’s business is booming. With 206,582 vehicles delivered, the sub-brand recorded its 13th consecutive year of growth in 2024. The outlook for 2025 is even brighter, with deliveries through September increasing 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.

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Dirk Häcker is going into his well-deserved retirement. The experienced engineer worked for the BMW Group for 37 years, including 11 years in the M department. He has been leading development at M since 2015 and is helping to shape the range of services in almost all segments. Under his watch, the M5 Touring returned and sits alongside the first-ever M3 Touring.

There are even more interesting times ahead for BMW M. The division has been quietly developing its first electric model, with the M3 “ZA0” expected to launch in 2027 as a powerful counterpart to next year’s i3 “NA0”. This electric sports sedan will pave the way for other M electric vehicles, including an X3 M.

Traditionalists need not worry, as the inline-six and V8 engines are here to stay for the long haul. Both the S58 and S68 are expected to receive updates to meet the Euro 7 standard and thus secure their future. It’s already been confirmed that the next-gen M3 “G84” will retain its six cylinders, so all is well. In addition, the upcoming 3 Series M Performance model (M350) will be continued with the “B58”.

BMW M will also retain at least one plug-in hybrid, with a revised M760e launching next year. Now how about the long-awaited super sports car? Purists would argue that they deserve a successor to the legendary M1 before the M division kills off internal combustion engines.