Nikolai Setzer, 49, will succeed Elmar Degenhart at Europe’s second-largest car-parts maker effective Dec 1, the Hanover, Germany-based manufacturer said in a statement. Degenhart, 61, announced his resignation last month, citing health issues.
Setzer headed Continental’s auto business after previously leading its high-margin tyre division. He joined the tyre-development operations in 1997 after studying mechanical engineering and economies in Germany and France.
Setzer (left) will take over from Degenhart starting Dec 1.
He’ll have no time to waste putting his experience running the company’s two key divisions to work. Continental is in the midst of a cost-cutting drive affecting as many as 30,000 jobs after the Covid-19 pandemic triggered the most dramatic industry slump in decades.
The manufacturer has widened cutbacks this year and on Wednesday provided a muted outlook for 2020, forecasting profitability to shrink for the fourth time in five years. Investors are concerned Continental hasn’t been nimble enough to keep up with the industry’s tectonic shift towards electric and self-driving vehicles.
“Setzer needs to show that he can drive change despite being part of the management team that is criticised for the current problems,” Jefferies analyst Sascha Gommel said. “Investors are asking themselves what Conti will look like in 5 or 10 years and the company has not been successful in sharing their vision.”
