HANOVER, Germany (Jan. 10, 2002)—Continental A.G. will have a more direct say in the affairs of Continental Tire North America Inc. following a board decision to give the heads of Conti's passenger and commercial tire divisions global responsibility.
The change coincides with the retirement of Bernd Frangenberg, president and CEO of the U.S. unit since 1995.
The new organization—which sees Conti Chairman Manfred Wennemer assume control of the passenger tire business worldwide and Hans-Joachim Nikolin add global duties to his job as head of the commercial vehicle tire division—will create additional synergies within the company and allow management to implement more effective management structures, Conti said.
The changes also coincide with a string of quarterly losses posted by Conti North America. After posting operating earnings of $78.5 million in 1999, the company's quarterly performance has slumped steadily, resulting in four consecutive quarters of losses through the third quarter of 2001. The cumulative operating loss for 2001 was $68.9 million through the end of September.