Start-up companies are proving invaluable technology contributors for automotive incumbents in the transition to new mobility. Whether it’s collaborative research or outright acquisition, an injection of new know-how can make the difference between survival and irrelevance. But innovation inevitably brings risk, and statistically more than 90% of start-ups will fail.

For many incumbents, dedicated in-house organisations have been tasked with spotting the next industry disruptor. At Aumovio, formerly Continental’s Automotive business, that takes the form of Co-pace. Launched in 2017 by Jürgen Bilo, it was designed to act as technology scout, venture capital arm and partnership vehicle. Over the past nine years it has done just that, establishing itself as a key pillar of the supplier’s wider technology strategy. But a lot can happen in nine years, particularly within emerging technology, and it’s now entering a new stage of development under new leadership. Bilo has retired, and the Co-pace reins passed to Aumovio veteran Otmar Schreiner in February 2026.

“The start-up scene is growing and becoming increasingly relevant not just in automotive but across all deep tech,” he tells Automotive World. “For Aumovio, it offers pivotal insights into new technologies and business models, as well as new ways of developing and producing products. The aim is to use this knowledge to be faster and more efficient and create new business opportunities.”

Synergies and opportunities

Aumovio specialises in systems for software-defined and electric vehicles, and as such plays at the heart of the industry’s transformation. Its spinoff from Continental in 2025 is a testament to the sort of fundamental restructuring and disruption underway in the wake of these trends. Remaining ahead of the game has never been more challenging, and that’s all the more reason to partner. For Schreiner it’s a clear business win: “Doing everything on your own involves more risk and more effort than investing in start-ups.”

Co-pace pursues partnerships as well as minority investment opportunities, always with an eye on how it could support Aumovio’s business areas. “Anything we invest in has to offer synergies or opportunities for our business,” he emphasises.

Deep tech and new business models are key focus areas. He highlights the DeepDrive investment as an example of the former. DeepDrive is a Munich-based developer of in-wheel electric motors, a potential complement for Aumovio’s braking and electronics offering. “The changing architecture of vehicles paves the way for larger modules, such as one that combines in-wheel motors with our components and electronics,” he notes. “This sort of module could be the future.”

Co-pace’s investment in location-based solutions specialist 4screen highlights the importance of service-based business models. Targeting both local shops and global brands, 4screen helps businesses increase visibility and customer engagement through integration with the in-car navigation or infotainment screen. Businesses that sign up to the platform are highlighted on the screen map view at their specific location with an icon.

“This is a start-up which created a completely new business model,” says Schreiner. “We are investing in companies like this to learn how such business models are evolving and consider how to transition our own business to participate. Traditionally, we deliver components or systems; this service model is emerging, and we are keen to explore it.”

Other hot topics under investigation are vehicle sensors and AI, as well as solutions that improve process and production.

Metrics for success

In evaluating potential partners, it boils down to three key areas: technology, team, and financials. For technology, it needs to be truly innovative. “If the basic technology is not future-oriented, then it’s not something that we want to follow up.” And no matter how promising the technology, there needs to be a solid financial foundation. The Co-pace team wants to know about projected revenue and earnings, customer base, cost base, etc. “If you have a bright future in ten years but high costs today, how are you going to survive for the next ten years? We perform financial due diligence alongside technology due diligence, then we talk to the people and get a feeling about the team involved.”

There are also cultural elements to consider, such as the leadership’s willingness to adapt their mindset around speed and agility. “Big corporations are more process-oriented because the consequences for them are much more severe, especially in the automotive industry. As a brake supplier, signing off on a product means delivering a key component for a vehicle’s on-road performance. The start-up is more focussed on bringing its fancy technology to market, but the motor industry has strict rules and guidelines. The key is to find a good compromise around speed, openness and decision power.”

Not all partnerships and investments are successful, but KPIs can be tricky to pin down, and there’s not always a clear-cut measure of success. Sometimes an investment is not just about a single complete product but rather an innovation that contributes to a product, part of the function. The question then becomes, how much of this product is based on the start-up technology?

“Sometimes it’s a success simply to gain knowledge or avoid a big mistake,” says Schreiner. “A fast fail could also be beneficial because we learn something and didn’t have to bear all the expense ourselves.”

Aumovio’s future-proofing strategy exemplifies the sort of upheaval in traditional automotive playbooks, and it’s certainly not alone in its approach. Provided the cultural bridges can be crossed, collaborative relationships like these should serve to foster a more innovative, profitable global industry overall.