Continental’s spin-off of automotive supplier division moves forward

German tyre and parts maker Continental is parting with its ailing automotive supply division, it was confirmed at the annual general meeting in Hanover on Friday.

The independent company is to be called Aumovio. The brake and automotive electronics supplier is to be floated on the Frankfurt Stock Exchange via a so-called pure spin-off.

Conti’s Executive Board and Supervisory Board had already approved the move, which is to be completed by October 2025.

In a pure spin-off, shareholders simply receive new shares of the part to be separated on their securities account and can then decide whether to stay with the company or sell their shares.

Aumovio aims to offer electronics and state-of-the-art mobility solutions for software-based vehicles as well as “safe, exciting, connected and autonomous mobility to a wide range of global customers,” the company said earlier in the week.

Conti shrinks back into a tyre manufacturer

Continental’s automotive supply business has long been a problem child and has repeatedly landed in the red in recent years, with a cost-cutting course recently tightened once again. More than 10,000 jobs have been cut, around half in administration and half in research and development.

The Hanover-based group also intends to divest its plastics technology division ContiTech. Subject to the necessary resolutions, it could be spun off in the course of 2026.

After a sale, only the traditional tyre business would remain.