Hanover, Germany – Continental AG’s supervisory boards has extended the tenure of chief executive officer (CEO) Elmar Degenhart for another five years to 11 Aug 2024.
The decision is a show of confidence in Degenhart, who has led Continental since August 2009 and whose tenure was due to end in the same month next year.
In a speech during a Conti supervisory board meeting 27 Sept, Degenhart vowed to continue with the transformation of the German group in preparation for future growth.
“Continental is now tackling one of the largest organisational changes in our company’s history, which will help us to continue our rapid, profitable growth and to exploit new business potential,” said the CEO.
Degenhart noted a “profound transformation” in the automotive industry with growing trends such as digitalisation of all processes and products and electrification of vehicles.
Continental, he added, is “at the forefront of shaping the transformation”.
Degenhart also pointed to Conti’s the programmes for long-term, “lasting value creation”, which was intensified in August.
“We have already initiated the first steps and will be keeping you informed about our progress as part of our financial reporting,” said Degenhart, without further elaborating.
In August, Continental revised down its financial outlook for the year due mainly to lower sales, higher costs and warranty claims.
At the time the company said it had responded to the issue by “initiating measures to cut production costs”, while adapting its planned investments to lower sale expectation.