Continental is planning a significant restructuring by spinning off its automotive division into an independent publicly traded company under the name Aumovio. The IPO is scheduled for September 2025. This measure is part of Continental’s strategy to focus more on its core businesses and create value for shareholders.
Key Data on Aumovio and the IPO
- Name and Timing: The automotive division will be renamed Aumovio before the spin-off, with the IPO planned for September 2025.
- Financial Goals: Aumovio aims for significant long-term growth, targeting a revenue of over 24 billion euros, up from 19.6 billion euros the previous year. An adjusted EBIT margin between 6% and 8% is also targeted.
- Strategic Focus: The new company will focus on technologies that enhance its spun-off business strategy and strongly position itself in the automotive technology markets.
- Operational Philosophy: To mitigate risks such as tariffs (particularly U.S. import tariffs), approximately 92% of Aumovio’s products will be manufactured in North America, exempting them from certain trade barriers.
- Corporate Development: In addition to this spin-off, Continental is also planning to sell the ContiTech division next year to reposition itself as a pure tire manufacturer.
- Investor Relations: Ahead of the IPO, Continental has strengthened its Investor Relations by appointing Lutz Ackermann as the head of Investor Relations for Aumovio.
Implications for Investors in German-speaking Regions
The IPO of Aumovio could have significant implications because of:
- Its size and market potential with target revenues of over 24 billion euros.
- The strategic separation that allows for clearer valuation and investment focus on automotive technologies, separate from Continental’s tire business.
- Potentially increased investor interest given the strong presence of the automotive industry in Germany.
In summary, Continental’s plan to bring its automotive division to the stock market as Aumovio by September 2025 represents a significant corporate restructuring aimed at enhancing shareholder value through focused growth strategies in the automotive technology markets and mitigating geopolitical risks through a localized production strategy.