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Continental Lowers 2025 Profit Target and Boosts U.S. Tire Output Ahead of Spin-Off

The spin-off of its auto-supplier division into Aumovio aims to attract growth-focused investors.

Das Logo der Continental AG leuchtet am Morgen vor der Unternehmenszentrale. Der Autozulieferer und Reifenhersteller Continental legt am 04.03.2025 seine Bilanz für 2024 vor.
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Overview

  • Continental cut its 2025 operating margin forecast for its remaining tire and industrial business to 10–11% as U.S. tariffs and a strong euro weigh on profits.
  • CEO Nikolai Setzer said the company will maximize output at its three existing U.S. tire plants rather than build new facilities to offset higher import costs.
  • Shareholders approved in April the plan to separate the automotive division and list it as Aumovio in September 2025 to segregate stable tire returns from growth-oriented auto technology.
  • Aumovio has set long-term targets of over €24 billion in revenue and a 6–8% adjusted operating margin while initially forgoing dividend payments.
  • Continental also plans to divest its Contitech industrial division by 2026 as part of its pivot to focus solely on tire manufacturing.