AUMOVIO Spinoff- The Cars Coming Off The Tires
Best known as a tire manufacturer, Continental Aktiengesellschaft(CTTAY) is a broader conglomerate, consisting of three divisions: Automotive, Tires, and ContiTech. On September 18, 2025, , Continental AG is executing a pure spinoff of its automotive segment into a standalone company named AUMOVIO. Existing Continental shareholders will receive one AUMOVIO share for every two Continental shares they hold. No new shares are issued, and no capital is raised in this process. AUMOVIO will be listed on the Frankfurt Stock Exchange. It’s worth noting for our largely American readership that in the United States, Continental’s ADRs(American Depository Receipts) trade on the Pink Sheets and that 10 ADRs make up one share of Continental. Presumably the AUMOVIO ADRs will likewise trade on the Pink Sheets, but there may be some delay there and American shareholders should watch carefully.
As an aside, it appears that we briefly mentioned Continental AG in 2017 when it was in discussions with Delphi Automotive(later Aptiv) about buying the powertrain business that was subsequently spun off as Delphi Technologies and later spun off again by BorgWarner(BWA) as PHINIA(PHIN) in 2023.
(Continental press release)
Aumovio: Commercial Details and Strategic Outlook
- Scope: The business includes Continental’s mobility offerings—electronic systems, braking, sensors, software-defined vehicle platforms, and autonomous technologies.
- Financials: 2024 revenues estimated at €19.4 billion, with a capacity plan aiming for €24 billion. Targeted adjusted EBIT margins are 6–8%; R&D spend expected below 9% of sales.
- Balance Sheet: Aumovio will start with approximately €1.5 billion in cash and access to a €2.5 billion credit facility. Its order backlog is valued at about €19.3 billion.
- Geographic Structure: Over 92% of Aumovio’s production will be in the U.S. or Mexico, minimizing exposure to potential tariffs and reinforcing North American supply chain security.
- Leadership: Appointed CFO, Jutta Dönges, will assume the role by March 2026, bringing capital markets and financial leadership experience to the spin-off.
(Continental Capital Markets Day presentation, Reuters overview)
Continental Post-Spin: Focus on Tires and Capital Deployment
- Business Focus: Post separation, Continental will concentrate on its tire division—encompassing passenger vehicle, truck, and specialty tires.
- Financial Outlook: Projected Company-wide revenues of €19.5–€22 billion, and group EBIT margins between 12%–14.5%. Tire segment itself is expected to generate €14.5–€16 billion in sales with 13%–16% margins.
- Capital Strategy: Continues review of strategic alternatives for its ContiTech division, with proceeds potentially funding shareholder distributions. Dividend payout is expected to increase to 40%–60% of net income.
(Continental Capital Markets Day presentation)
Summary Comparison
| Feature | Aumovio (Spin-Off) | Continental (RemainCo) |
|---|---|---|
| Business Focus | Mobility tech & systems | Tires |
| Shareholder Stake | 50% distributed to shareholders, 50% remains | Existing Conti shareholders retain all shares plus 50% of Aumovio |
| Target Margins | 6–8% (adjusted EBIT) | 12–14.5% (group); 13–16% (tires) |
| Funding | €1.5B cash + €2.5B facility | Dividends/buybacks likely funded via ContiTech proceeds |
| Leadership Setup | New CFO: Jutta Dönges | Existing management |
Final Notes
This spin-off creates two more focused organizations:
- Aumovio, positioned for growth in automotive electronics and services with high R&D intensity and global production aligned with mobility trends.
- Continental, a shelter for the tire business, seeking consistent margins and disciplined capital returns.
The effectiveness of this structure will rely on clear execution of independent strategies, separation of operations, and achievement of target financial performance.
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