Automotive supplier Aumovio, formerly Continental, plans to withdraw from Lithuania and shut down its operations in the Kaunas Free Economic Zone by the end of 2028, according to reports citing Reuters and sources.
The company, which operates through Aumovio Autonomous Mobility Lithuania and Aumovio Global Holding, is implementing a cost-cutting program that includes closing several facilities globally.
In its annual report published Wednesday, Aumovio said the closures are expected to be completed by the end of 2028 at a cost of about 50 million euros.
Chief Executive Philipp von Hirschheydt said the company plans to shut down additional sites beyond those already announced in Germany, including two production units in China and Lithuania.
Aumovio operates a manufacturing plant in the Kaunas Free Economic Zone, where Germany’s Continental had previously invested around 190 million euros.
The company was formed after Continental spun off its automotive components division last year and rebranded it as Aumovio, with corresponding name changes for its Lithuanian subsidiaries.
Elijus Čivilis, head of the investment promotion agency Invest Lithuania, said the decision reflects broader structural changes in Europe’s automotive industry and intensifying global competition.
“Structural changes in the European automotive sector and growing global competition have prompted Aumovio to strategically review its operations across countries,” Čivilis said in a statement. “After assessing the situation, the company decided to gradually wind down operations at its Kaunas facility by mid-2028.”
He described the move as significant for Lithuania but said it should be viewed pragmatically, as a necessary step for the company to improve efficiency on a global scale.
Čivilis added that cooperation between the investor and Lithuania had been close and constructive, noting that the company continued expanding its investments in the country as recently as 2022 despite the war in Ukraine, before recent shifts in the automotive industry and supply chains.
Falling demand, logistics challenges behind Lithuania exit
Automotive supplier Aumovio said its decision to withdraw from Lithuania was driven by declining orders, underutilised production capacity and increasingly complex logistics.
In comments to BNS, the company said it had analysed production capacity and future demand trends in recent months and considered all alternatives before concluding that operations at its Kaunas plant would have to be discontinued.
“The gradual shutdown of the Kaunas plant has become unavoidable. The supervisory board of Aumovio SE has approved the decision to begin an information and consultation process with local employee representatives,” Aumovio Autonomous Mobility Lithuania said Wednesday.
The company said the Kaunas facility has been particularly affected in recent years by shrinking demand across Europe, prolonged underuse of capacity and growing logistical challenges.
“We are seeing a consistent decline in incoming orders across Europe, forcing the plant to operate well below planned capacity,” Aumovio said.
The company added that it is cooperating with the governments of Lithuania and Germany regarding the withdrawal.
“We are committed to ensuring a predictable and socially responsible transition process, mitigating the impact on employees as much as possible and complying with all Lithuanian labour laws,” the company said. “We will make every effort to find solutions that help affected employees transition directly into new jobs.”
According to data held by Lithuania’s social insurance fund Sodra, Aumovio Autonomous Mobility Lithuania currently employs 306 people, while Aumovio Lithuania has a workforce of 488.
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