Conti-Spin-off Aumovio to Receive Nexperia Chips from China - Aumovio’s Q3 losses deepen as automotive slowdown and costs bite
Aumovio, the newly independent automotive supplier, has reported a significant downturn in its financial performance for the third quarter. The company, which spun off from Continental last year, posted a net loss of €19 million, a stark contrast to the €73 million profit recorded in the same period last year. Revenue also took a hit, dropping by 6.9% to €4.5 billion.
Aumovio's operating margin shrank from 4.5% to 3.3% during the quarter, while earnings before interest, taxes, and special items (EBIT) decreased by 30% to €150 million. The company attributed these declines to a slowdown in the automotive market and increased raw material costs.
Despite these challenges, Aumovio has secured a crucial license from the Chinese government to source critical chips from the country. This move allows the company to compete in the Chinese market and secure contracts with local automakers, a trend that has been on the rise. The company's chips, manufactured in China, will be delivered to its site in Budapest before being distributed further.
As an independent entity, Aumovio is now better positioned to tailor its processes to the automotive sector and operate with greater efficiency. However, the company faces significant financial headwinds, which it will need to navigate in the coming quarters. The securing of the Chinese license, though, offers a promising opportunity for growth in the world's largest automotive market.
