Aumovio's auto manufacturing venture initiates profitable trading on the stock exchange
In a significant move, Continental, the German automotive manufacturing giant, has completed the spin-off of its subsidiary, Aumovio. Aumovio, based in Frankfurt, offers a wide range of products including brakes, chassis, vehicle electronics, infotainment solutions, sensors, and components for assisted and automated driving.
The restructuring of Continental includes the divestment of its plastics technology division, Contitech, and the spin-off of Aumovio. The first trading price of Conti was 35 euros, and it closed at 38.62 euros, marking a 4.5 percent gain for Conti shares.
Investors holding Conti shares automatically received half a share of Aumovio. The combined price of Conti and Aumovio stocks at the end of trading was 76.25 euros. Aumovio, temporarily, had 41 members in the Dax, but will be removed from the index at the close of trading.
The automotive supply business of Continental has recently made profits despite previous losses. This success is attributed to cost savings and price increases, even though sales decreased by 5 percent in the second quarter due to sluggish car production.
The new CEO of AUMOVIO, the spin-off from Continental, is Philipp von Hirschheydt, who currently holds the role on an interim basis and was formerly a member of Continental’s Executive Board since May 2023. The division currently employs around 92,000 people.
Continental's CEO, Nikolai Setzer, describes the restructuring as the "most profound" in the company's history, aiming to "release new forces." In addition to the spin-off of Aumovio, Continental has already spun off the powertrain division, Vitesco, in 2021.
As part of the restructuring, Continental has intensified its austerity measures, resulting in the cut of more than 10,000 jobs, with roughly equal numbers in administration and research and development. Ultimately, only the tire business will remain in Continental.
Last year, Aumovio reported sales of 19.4 billion euros. As Aumovio continues its journey as an independent company, it will be interesting to see how it navigates the complex world of automotive supply and continues to innovate in the field of assisted and automated driving.
Read also:
- Catastrophe at a U.S. Steel facility in Pennsylvania results in the loss of two lives. crucial details unveiled
- Auto Industry Updates: Geotab, C2A, Deloitte, NOVOSENSE, Soracom, and Panasonic in Focus
- North Carolina's food bank receives a solar energy upgrade as Republican legislators contemplate budget reductions
- Impact of COVID-19 on Poland's Ability to Achieve its 2020 Renewable Energy Target
