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Aumovio SE announced on July 30, 2026 that it and Bayerische Motoren Werke Aktiengesellschaft had reached a settlement resolving legal disputes over a past warranty case involving an integrated brake system that Aumovio, formerly Continental AG’s automotive group sector, produced for the BMW Group. Under the terms detailed in the announcement, Aumovio Germany GmbH will pay BMW a settlement amount of 350 million euros in two installments during the third and fourth quarters of 2026. The payment concludes all pending proceedings, with the parties agreeing that all related claims involving BMW, Continental Aktiengesellschaft and Aumovio Germany GmbH are fully and finally settled. In tandem with the financial resolution, the companies entered a far-reaching long-term supply and development agreement focused on braking technologies and electronic solutions for future vehicle platforms.
The new partnership carries a planned order volume of more than one billion euros, Aumovio’s statement showed. The dispute originated from a 2024 BMW recall affecting over 1.5 million vehicles equipped with the MK C2 integrated braking system supplied by Continental, according to a Continental debt issuance programme supplement dated September 1, 2025. Continental had formed provisions based on its assessment that liability applied only to systems actually needing replacement rather than full recall costs, yet BMW alleged broader responsibility that exceeded those provisions and initiated legal proceedings.
Aumovio emerged from the spin-off of Continental AG’s automotive business, with the subsidiary assuming the role in the warranty matter, the July 30 announcement noted. The supplier had previously recognised a risk provision of 56 million euros for the case. As a direct result of the settlement payment, Aumovio adjusted its 2026 guidance, reporting expected adjusted sales of 4.244 billion euros and an EBIT margin of 1.2 percent while keeping normalised free cash flow at negative 34 million euros.
Baker McKenzie advised and represented BMW in several court proceedings that led to the settlement, the firm stated in a newsroom release on August 7, 2026. The Baker McKenzie team was led by Prof. Dr. Jörg Risse and Dr. Tobias Höfling, both partners in Frankfurt. Supporting members included Dr. Annette Keilmann as counsel in Frankfurt, Dr. Nicolas Gremminger and Julia Watson as associates in Frankfurt, Dr. Katharina Spenner as partner in Munich, Dr. Florian Kotman as counsel in Düsseldorf and Dr. Valentina Hirsiger as partner in Zurich.
Gleiss Lutz advised Aumovio on the 350 million euro settlement and the technology partnership with BMW, according to the law firm’s mandate disclosure. The resolution allows the companies to strengthen their business relationship in the automotive components sector. Aumovio’s announcement indicated the agreement would enable closer collaboration on advanced braking and electronics amid evolving vehicle platform requirements.
