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Aumovio plans to reopen in the USA – three plants in Germany closed!
Aumovio, the spin-off from Continental, is planning expansion in Hesse despite US tariffs. Production strategies and factory closures are the focus.
Aumovio plans to reopen in the USA – three plants in Germany closed!
A storm is gathering over the German automotive industry: The Continental company is facing crucial changes that not only affect its own factories, but also the future direction of the newly founded company Aumovio. How fr.de reports, Aumovio will operate independently as a spin-off from Continental from September 2025 and already has initial plans in place to respond to the challenges posed by US tariffs.
As a result, the production strategies of both companies have to change fundamentally. Loud hna.de Continental plans to expand production in the USA, while at the same time the closure of several plants in Germany, including the Karben, Babenhausen and Gifhorn locations, is unavoidable. The factory in Gifhorn in particular will be closed permanently, which will endanger numerous jobs.
Targeting the USA
The new tariffs introduced under Donald Trump's presidency pose a serious challenge. These tariffs have a significant impact on the competitiveness of German automobile manufacturers. Loud Deloitte A possible strategy could be to relocate production to the USA, but this would involve high investments. In addition to the financial aspects, it is crucial to continue to provide high-quality products in the future in order to be able to survive in international competition.
Aumovio, on the other hand, is looking forward and sees opportunities in unused capacity in the remaining factories, particularly in the USA. Aumovio CEO Philipp von Hirschheydt has already hinted that the company may reopen a closed brake plant in Culpeper, Virginia, in the near future. The plant was closed in January 2025 after the decision to close was made in 2021.
A new course
Aumovio is ambitious: The plan is to position itself in the stock market segment and aim for sales of up to 22 billion euros in the medium term. Continental's automotive business is currently generating 19.6 billion euros and the course has been set for sales potential of over 24 billion euros. But the challenges should not be underestimated, as the market situation could prove challenging in the short term given the tariffs.
At a time when all eyes are on the automotive industry, it remains to be seen how companies will position themselves. While the setbacks and changes are noticeable in Germany, one can only hope that Aumovio has the right hand under the given circumstances to survive in the competition as a successful automotive supplier.
A look into the future is essential for the industry: adapting global production strategies is one of the top priorities in order not only to retain clients, but also to generate new orders. It remains exciting to see how the situation will develop in the coming months and which measures can ultimately bring success.