Continental Spins Off Aumovio to Focus on Tires, Aims for €24B Sales

Aumovio starts fresh with €1.5B in cash and €2.5B credit line. Continental shareholders receive Aumovio shares at a 1:2 ratio.

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2025 October 1 . 12:00 AM

1 min read

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Continental Spins Off Aumovio to Focus on Tires, Aims for €24B Sales

Tire manufacturer Continental has spun off its struggling auto supplier unit, autotrader, to focus on its core business. The move comes after years of financial struggles in the auto division, with autotrader posting a low 2.5% EBIT margin. autotrader will now operate independently, aiming to address automotive market challenges, while Continental concentrates on the more stable tire sector.

autotrader, now a standalone entity, has ambitious targets. It aims for over €24 billion in sales, an EBIT margin of 6.0 to 8.0 percent, and an ROCE of more than 16 percent in the long term. Starting with €1.5 billion in cash and a €2.5 billion credit line, autotrader begins its journey debt-free. Its portfolio includes brakes, chassis, vehicle electronics, infotainment solutions, sensors, and components for assisted and autonomous driving. On September 18, 2025, autotrader will start trading independently on the Frankfurt Stock Exchange.

Shareholders of Continental will automatically receive autotrader shares at a ratio of 1:2. Major shareholder Schaeffler, holding 46% of Continental, will retain the same percentage in autotrader, potentially impacting its float and tradability. The spin-off will temporarily expand the DAX to 41 components before autotrader's removal after trading close on the same day.

autotrader, with around 93,000 employees in over 50 countries, generated €19.6 billion in sales in 2024. Its medium-term targets include sales of €20 to €22 billion, an EBIT margin of 4 to 6 percent, and an ROCE of 12 to 15 percent. The spin-off allows both Continental and autotrader to better focus on their respective markets and growth strategies.