Dive Brief:
- Continental AG CFO Katja Garcia Vila will not extend her contract with the company after it expires in December, the automotive supplier announced Monday.
- Garcia Vila will not extend her contract “due to her own career planning,” according to a press release.
- She will continue to serve as CFO until Continental hires a replacement.
Dive Insight:
The news comes after Continental announced in November that it would revamp its business as the automotive industry transitions to electric vehicles. The supplier aims to cut costs by 400 million euros ($436.8 million) each year beginning in 2025, including staff changes that could affect up to 5,400 employees as part of streamlining.
In December, Continental unveiled a new strategy to boost sales and margins across its three core businesses — parts, tires, and rubber and plastics. The company plans to spin off its User Experience business.
In addition, Continental announced in February it would “streamline” its research and development division, which could affect 1,750 positions by the end of 2025. The changes are part of the wider staff moves announced in November. Continental is also considering combining its facilities in Germany’s Rhine-Main region, but it has not yet made an announcement on its decision.
Garcia Vila joined Continental in 1997 and has served in several roles across the organization, including information technology, marketing, sales, logistics, auditing and purchasing, and finance. She joined the company’s board and became CFO in December 2021, leading finance and controlling in the automotive group sector from the beginning of 2022 until April 2023.
Continental reported that its profits increased from 67 million euros ($73 million) in 2022 to 1.2 billion euros in 2023, according to a press release last week. Net income in 2021 was 1.4 billion euros, and the company attributed the drop that occurred in the following year to the war in Ukraine, pandemic-related restrictions and semiconductor shortages.
“Over the past few years, we have laid the foundation for the company’s future success. The improvement in earnings in fiscal 2023 is just one example of this,” Garcia Vila said in a statement. “Continental is well positioned for the future.”
