Stock market debut brings profit for automobile supplier Aumovio
Continental Announces Comprehensive Restructuring: Aumovio IPO and Divestment of Plastics Technology Division
In a significant move, German automotive supplier Continental has announced a comprehensive restructuring plan, with the aim of focusing on its tire business and streamlining its operations. According to the company's CEO, Nikolai Setzer, this restructuring marks the "most comprehensive in the company's history," releasing "new forces."
At the heart of this restructuring is the Initial Public Offering (IPO) of Aumovio, a Frankfurt-based company that offers a wide range of products for brakes, chassis, vehicle electronics, infotainment solutions, sensors, and components for assisted and automated driving. Aumovio, which currently employs around 92,000 people, represents almost half of Continental's workforce.
The IPO of Aumovio is part of Continental's broader strategy to focus on its core business and improve its competitiveness. Last year, Aumovio generated a revenue of 19.4 billion euros, a significant contribution to Continental's overall revenue.
Continental has been on an austerity course, with more than 10,000 jobs being cut, roughly equally in administration and research and development. This move follows the spin-off of the powertrain division, Vitesco, in 2021, and the company also plans to divest its plastics technology division, Contitech.
The new CEO of Continental’s automotive business Aumovio is Philipp von Hirschheydt, who currently also holds the interim CFO role following Karin Dohm's withdrawal. The company is undergoing a restructuring with significant job cuts announced since 2023, aimed at cost reduction and competitiveness, including thousands of layoffs worldwide and a planned spin-off of Aumovio by September 2025.
Despite the recent losses in its auto supply business, Continental's previously largest business unit by revenue has recently made more profits. The company's tire business, which will remain, has shown signs of resilience and is expected to continue to be a key contributor to Continental's success.
This restructuring comes at a time when the automotive industry is undergoing significant changes, with the shift towards electric and autonomous vehicles. Continental is positioning itself to be at the forefront of these changes, focusing on its core businesses and leveraging its expertise in areas such as brakes, chassis, vehicle electronics, and sensors.
In conclusion, Continental's comprehensive restructuring plan is a bold move aimed at focusing on its core businesses, improving competitiveness, and positioning itself for success in the rapidly changing automotive industry. The IPO of Aumovio and the divestment of Contitech are key components of this plan, and the company is confident that these moves will set it on a path to long-term growth and success.
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