FRANKFURT — German auto provider and tire maker Continental named the pinnacle of its core automotive division, Nikolai Setzer, as its new CEO.

Setzer, 49, will substitute Elmar Degenhart, 61, who’s stepping down on Nov. 30 for well being causes, the company said in a statement on Thursday.

Setzer had been seen as Degenhart’s successor, having labored for Continental his total skilled life.

From 2009 he led the passenger automotive division, becoming a member of the board of administration. He beforehand led the corporate’s high-margin tire division. He joined the tire-development operations in 1997 after finding out mechanical engineering and economies in Germany and France.

In 2019, Setzer turned spokesman for the newly created Automotive Board, which is tasked with cashing in on the transformation of the automotive business because it transitions from combustion engined towards electrical and autonomous autos.

On Wednesday, Continental warned of further restructuring expenses in the fourth quarter which is able to influence internet earnings, however stated it anticipated a optimistic free cashflow for 2020 even after the COVID-19 pandemic hit demand.

Setzer could have no time to waste placing his expertise working the corporate’s two key divisions to work. Continental is within the midst of a cost-cutting drive affecting as many as 30,000 jobs.

Buyers are involved Continental hasn’t been nimble sufficient to maintain up with the business’s tectonic shift towards electrical and self-driving autos.

Continental’s inventory surged to an all-time excessive in January 2018 after the corporate confirmed a Bloomberg Information report that it was contemplating choices to streamline its construction. Administration has made little progress since then with their evaluate, contributing to the erasure of virtually two-thirds of its market worth.

Continental might spin off its Vitesco powertrain unit subsequent yr if markets proceed to recuperate, CFO Wolfgang Schaefer stated in a cellphone interview Wednesday. The producer shelved these plans in April after the pandemic decimated manufacturing. It initially pursued a partial preliminary public providing.

The corporate plans to replace traders subsequent month on its technique in areas from automated driving to high-performance computer systems for electrical automobiles, Schaefer stated. He declined to touch upon a potential sale of the turbocharger enterprise, however stated in a Bloomberg Tv interview that divestments are potential within the subsequent 12 months.

Continental ranks No. 4 on the Automotive Information checklist of the highest 100 world suppliers with worldwide gross sales to automakers of $35.3 billion throughout its 2019 fiscal yr.

Reuters and Bloomberg contributed to this report.