Continental CEO resigns due to health problems

Elmar Degenhart, Chief Executive Officer of Continental AG, plans to step down on November 30. As the reason for this decision, he cites the need to "immediately receive preventive medical care."

“It was a great pleasure and honor for me to be at the helm of Continental and to lead the growth of the company,” reads Elmar Degenhart's October 29, 2020 statement. "After many efforts to benefit our company, I recently realized the need to take immediate health precautions as a top priority in planning my personal life."

Elmar Degenhart, who has run Continental AG for over a decade, has asked for the termination of his contract, which is valid until August 11, 2024.

In the near future, Wolfgang Reitzle, head of the Continental Supervisory Board, will convene the council to appoint Degenhart's successor. In selecting the candidate, the main objective of the board, according to Reitzle, is to ensure the continuity of leadership for Continental AG.

“Degenghart took over as CEO of Continental in August 2009 and helped the company emerge from a threat to its very existence, brought it back to the DAX 30 Index and helped establish itself as the industry leader,” said Wolfgang Reizle. "Under his leadership, Continental's debt has been significantly reduced to normal levels, the company's equity has increased and the previous high investment level has been fully restored."

Degenhart's retirement comes in the midst of implementation of plans to restructure the company aimed at increasing profitability and growing performance amid the growing popularity of electric and autonomous vehicles. With the new plan, Continental expects to save €1 billion a year by 2023 - mainly through staff reductions, business consolidation and the closure or sale of less profitable branches and businesses.