Company Announcements

• As an independent company, AUMOVIO will strive for profitable growth and focus on technologies that increase value
• Targeted long-term increase in sales to over €24 billion and adjusted EBIT margin of 6.0 to 8.0 percent
• Ratio of research and development expenses to sales to be reduced to below 9 percent in the long term
• Solid financial and liquidity position and planned continuous increase in cash flow should pave the way for dividend distributions of 10 to 30 percent of net income in the medium term
• CEO Philipp von Hirschheydt: “AUMOVIO will start from a strong position in the growth segments for the mobility of the future, backed by an excellent customer base and already significantly improved profitability. We have a clear strategy for increasing value and are well equipped to take on the market challenges that lie ahead”

Frankfurt am Main, Germany, June 24, 2025. Continental’s Automotive group sector, which is due to begin operating as the independent listed company AUMOVIO in September, today announced its objectives and strategy as part of its Capital Market Day. Specifically, AUMOVIO plans to boost its sales to over €24 billion in the long term (2024: €19.6 billion). To do this, the company will build on its global positioning in development and production, established customer relationships worldwide as well as its clear focus on high-growth and value-accretive technologies for the software-defined vehicle and safe, exciting, connected and autonomous mobility solutions. The transformation programs that were initiated in recent years and continue to be pursued today have already gone a long way to improving earnings. As well as focusing its portfolio, for example by selling the fleet management solutions provider Zonar and the drum brake plant in Italy, the electronics and technology company is creating a solid foundation for increasing future value and profitability – despite the challenging market environment. In the long term, AUMOVIO aims to achieve an adjusted EBIT margin of 6.0 to 8.0 percent (2024: 2.5 percent).

“We are ready for our stock market debut in September,” said AUMOVIO CEO Philipp von Hirschheydt in Frankfurt on Tuesday. AUMOVIO will start from a strong position in the growth segments for the mobility of the future, backed by an excellent customer base and already significantly improved profitability. We have a clear strategy for increasing value and are well equipped to take on the market challenges that lie ahead.”

Promising growth potential for AUMOVIO

Based on a market analysis by Berylls, AUMOVIO expects the value of its solutions per vehicle in the company’s product segments to grow by an average of 4 to 5 percent until 2029 – and thus much faster than the number of passenger cars and light commercial vehicles produced globally in this period (based on the market outlook from S&P Global Mobility). Building on established customer relationships with almost all leading vehicle manufacturers worldwide, the future AUMOVIO already recorded an order intake of €19.3 billion in 2024.

AUMOVIO has implemented a comprehensive strategy program to support its value and growth trajectory as an independent company. The program has three strategic objectives:
1. AUMOVIO is to lead the market with pioneering, future-proof products. Products with a top three market position worldwide already account for more than 80 percent of global sales. AUMOVIO intends to expand this share with the help of its strong technologies in all profitable product segments.
2. AUMOVIO is to transform into a high-performance organization. This is underpinned by measures to further optimize the portfolio, improve processes, reinforce operational excellence and lower costs.
3. AUMOVIO is to deliver on its financial targets. This strategic pillar is driven by the long-term ambition of creating sustainable value for AUMOVIO’s future shareholders.

Strong balance sheet and solid liquidity will help increase value

AUMOVIO is set to start its independence with a strong balance sheet and no financial debt. As of June 30, 2025, the company has cash funds of €1.5 billion and a credit facility of €2.5 billion and remains committed to maintaining solid capital resources and improving cash flow. In the medium term, AUMOVIO aims to generate sales of €20 billion to €22 billion, an adjusted EBIT margin of around 4.0 to 6.0 percent and a return on capital employed (ROCE) of around 12 to 15 percent. In the long term, the company is targeting sales of more than €24 billion, an adjusted EBIT margin of 6.0 to 8.0 percent and ROCE of over 16 percent. As its earnings situation improves, AUMOVIO plans to distribute 10 to 30 percent of net income attributable to the shareholders as dividends in the medium term.

 

Leading global technology company positioned for the mobility of the future

In its innovation processes, AUMOVIO will combine strong customer focus with the synergies offered by a centralized technology organization (TO) that supports the entire product life cycle – from the initial idea through to volume production – with innovations, technologies and operational excellence. The TO will ensure a holistic, collaborative approach to innovation and foster operational excellence in the business areas’ research and development activities. By leveraging synergies in development work, standardization and process optimization, centralizing purchasing and improving supply chains, the goal is to improve research and development, make it more efficient and harness business areas’ full potential. In turn, the aim is to reduce the R&D ratio (the ratio of research and development expenditure to sales) to below 10 percent by 2027 and to less than 9 percent in the long term.

About the future company AUMOVIO

AUMOVIO is shaping the mobility of tomorrow with cutting-edge electronics solutions and innovative technologies for software-defined and autonomous vehicles. The technology company combines decades of experience and a strong market position with pioneering innovations and a global presence. AUMOVIO offers a broad portfolio of sensor solutions, displays and brake and comfort systems backed by extensive expertise in architecture platforms and assistance systems for connected and autonomous mobility. In fiscal 2024, AUMOVIO generated sales of around €19.6 billion and employed around 93,000 people in more than 50 countries around the globe. With a clear focus on growth markets and local value creation – especially in China – AUMOVIO’s four business areas are driving the development of safe, exciting, connected and autonomous mobility.

The Autonomous Mobility (AM) business area offers a comprehensive range of products for automated and autonomous driving, holding a leading position in the global market for commercial vehicles and key autonomous driving components and systems (sensors, radars, LiDAR). With its “as a service” approach, the business area is also tapping into new business models.

The Architecture and Network Solutions (ANS) business area is geared to the key requirements of the software-defined vehicle, with a product portfolio encompassing high-performance computers, telematics, drive systems, sensors and actuators. Today, ANS already occupies a leading market position with around 90 percent of its core product portfolio.

With more than 100 years of experience in vehicle safety, the Safety and Motion (SAM) business area is one of the global market leaders in brake systems, integrated safety systems and sensor systems. The business area is a pioneer in developing dry brake systems and was one of the first suppliers to receive a high-volume order for a semi-dry brake system. AUMOVIO sees tremendous potential for the future in these brake systems due to their improved product characteristics.

In the User Experience (UX) business area, AUMOVIO is a leading provider of display solutions and head-up displays. UX has a broad and diversified portfolio ranging from modern high-tech displays to competitive products for the high-volume market. UX expects the value of components installed per vehicle to increase in the future, driven by larger displays and new products such as scenic view head-up displays that extend across the full length of the dashboard. Furthermore, UX intends to consolidate its competitive strength by leveraging economies of scale in production in its megafactories.

Continental develops pioneering technologies and services for sustainable and connected mobility of people and their goods. Founded in 1871, the technology company offers safe, efficient, intelligent and affordable solutions for vehicles, machines, traffic and transportation. In 2024, Continental generated sales of €39.7 billion and currently employs around 190,000 people in 55 countries and markets.

 

Press contacts

Sebastian Fillenberg
Head of External Communications
Continental

Automotive Group Sector
Phone: +49 (0) 69 7603 72234
E-mail: sebastian.fillenberg@continental.com

 

Eva Appold

Head of Communications

Continental

Automotive Group Sector

Phone: +49 (0) 173 3275272
E-mail: eva.appold@continental.com

 

 

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