Schaeffler Group KG (Germany, privately held parent of INA and FAG Bearings) has appointed Wolfgang Reitzle as Chairman of the Supervisory Board of Continental AG, in a signal that Schaeffler is winding up the executive reshufflings following its takeover and is settling down as the world economy regains some strength.

Following an often-vicious takeover battle running through 2008, Schaeffler went $16 billion into debt to acquire a too-expensive $18 billion, 49.9% stake in Continental, but going so deeply into debt in the process that world markets wondered if Schaeffler would be able to survive -- particularly after the company's key manufacturing and automotive markets crashed.

However, both Schaeffler and Continental worked through their debt issues and the two organizations are set to peacefully co-exist. Schaeffler's holdings have been diluted by a July 2009 capital increase initiated by then-CEO Karl-Thomas Neumann. Under fire for months but supported by German trade unions, Neumann later stepped down in favor of Dr. Elmar Degenhart. The situation roiled Germany's manufacturing sector to such a degree that German Chancellor Gerhard Schroeder and Martin Blessing, CEO of Schaeffler creditor Commerzbank, both weighed in to influence the companies to reach an agreement.

Marie-Elisabeth Schaeffler said: "With this strong team of managers, we are in an excellent position to meet the challenges Continental AG now faces. The great potential that lies in the merger of Continental and Schaeffler can now be made a reality with the experience and reputation of Dr. Wolfgang Reitzle as Chairman of the Supervisory Board and the operational know-how of the Executive Management Board under the leadership of Dr. Elmar Degenhart."

Mr. Reitzle is a high-profile and respected European businessman, steeped in the auto industry. His time at BMW is celebrated, as was his subsequent move to Ford after being passed over for the top job there. At Ford, he was head of the Premier Auto Group -- Jaguar, Volvo and Land Rover. His departure from Ford caused a stir in the auto industry after complaints Ford would not invest enough in PAG to compete with BMW, Audi, Mercedes and similar marques. After Ford, Mr. Reitzle joined the Linde Group as CEO. In addition to his position at Continental, he is also on the boards of Deutsche Telekom 5251R9N7 and KION Group.

Mr. Reitzle's appointment came after Rolf Korfer stepped down from that position. During and following the takeover battle, Mr. Korfer had been accused by Continental of being a too-staunch supporter of Schaeffler. Mr. Reitzle is more centrist in his approach, and proved to be an acceptable candidate by both Schaeffler and Continental.