Aumovio brings memory and PCB cost pressure into vehicle design talks

Aumovio is working with vehicle manufacturers on reducing product content as memory and printed circuit board costs rise, with its management expecting continued pressure in 2027. The company is also seeking to recover higher costs from customers through commercial agreements. ^[1]

Chief executive Philipp von Hirschheydt distinguished the company's purchasing position from movements in spot memory prices, explaining that its established supplier relationships and supply agreements determine what it pays. A short-term easing in spot prices can therefore coexist with an expectation of higher costs when contracts are reset. ^[1]

Management also described rising PCB prices associated with competition from AI and data centre construction, bringing the discussion into the boards and assemblies around the processors. Von Hirschheydt said the company was working with customers on “de-contenting”, including changes to product design intended to lower overall cost. The call did not identify particular vehicle functions or component substitutions. ^[1]

Sourceability reported in October that suppliers were prioritising HBM and server memory, alongside tighter conditions in selected power devices and passives with demanding specifications. Its assessment was uneven across technologies and specifications, with input materials and manufacturing costs also contributing to price increases. ^[3]

Higher copper, packaging or logistics costs can increase the price of a component even when it is not competing directly with AI hardware for manufacturing capacity. Reducing the amount of one component in a design can help its material cost, although a redesigned assembly brings engineering work and qualification of its own. The changes Aumovio described are being discussed alongside customer pricing, rather than offered as a completed solution to the cost increase. ^[1][3]

Aumovio reported adjusted sales of €4.0 billion in the third quarter, down 12% from a year earlier, with adjusted EBIT of €137 million. Its results release names higher costs for raw materials and memory components among the challenges affecting the year, while confirming annual sales guidance of €17.0 billion to €17.5 billion and an adjusted EBIT margin of 3% to 4%. ^[2]