Dive Brief:
- German luxury carmaker Mercedes-Benz Group AG said Wednesday that it has appointed Continental AG executive Olaf Schick to serve on its board of directors starting next year.
- Schick is currently executive board member for finance, integrity and law at Continental, a German automotive parts manufacturer and technology company. His planned move to Mercedes-Benz is part of a series of changes within the company’s board as three of its sitting members, Sabine Kohleisen, Renata Jungo Brüngger, and Hubertus Troska, prepare to retire, according to a press release. The departing executives have contracts that are set to expire.
- With the appointment of three new members, “a rejuvenation of the Board of Management is initiated and, at the same time, the consistent transformation of the company is continued,” the release said.
Dive Insight:
The leadership changes come after Mercedes-Benz’s profits took a major hit in the third quarter. This was partly attributed by the company to challenging macro-economic conditions and the fact that its cars division has seen “fierce competition,” particularly in Asia.
The company’s earnings before interest and taxes fell to 2.5 billion euros in the third quarter, a decline of about 48% year over year, according to results released on Oct. 25.
“We are taking a prudent view about market evolution going forward and we will step up all efforts on further efficiency increases and cost improvements across the business,” Mercedes-Benz CFO Harald Wilhelm said in a press release at the time.
Schick will replace Mercedes-Benz board member Renata Jungo Brüngger starting on Oct. 1 of next year, according to the Wednesday release.
Schick became Continental’s executive board member for finance, integrity and law in July after serving as executive board member for integrity and law beginning in May 2023, according to his LinkedIn profile.
Before joining Continental, his roles included CFO of Mercedes-Benz Group China and chief compliance officer of Daimler AG.
