Trading in Continental’s auto parts division began on a muted note Thursday as the business, now operating under the name Aumovio, was listed on the Frankfurt Stock Exchange. The move marks the latest upheaval in Germany’s car industry, which is under mounting competitive and financial strain.
Shares in Aumovio, which produces components such as braking systems, sensors, and displays, opened at around €35 ($41), valuing the company at about €3.5 billion. The valuation fell short of analysts’ forecasts, which had placed the figure closer to €5 billion.
Aumovio CEO Philipp von Hirschheydt described the listing as a “bold new chapter” and said the smaller, independent company would be “significantly faster.” Acknowledging that “markets are tough, growth is uncertain,” he expressed confidence in Aumovio’s potential to become “the driving force behind the software-defined vehicle.”
The listing represents Frankfurt’s largest initial public offering of the year, despite subdued market conditions marked by economic uncertainty.
Continental, best known for its tires, announced plans last year to spin off its biggest division following declining sales. The move reflects broader pressures on Germany’s automotive sector, which is grappling with rising domestic manufacturing costs, weakening global demand, and aggressive competition from Chinese manufacturers.
The company has also signalled plans to separate its industrial division, which makes equipment such as hoses and fuel tanks. Under the terms of the spinoff, Continental shareholders will receive one Aumovio share for every two Continental shares held.
In 2024, the auto parts division reported sales of €19.4 billion ($23 billion), a 4.3% decline from the previous year. Continental’s ownership structure remains closely linked to the Schaeffler family, who control 46% of its shares through their automotive supplier group.
Like many of its peers, Continental has been restructuring to cut costs. The company has announced plans to eliminate 10,000 jobs worldwide, from a workforce of about 190,000, over 2023 and 2024.
NEW LAUNCH | WeRide Launches Robobus in Belgium, Expanding European Reach
