Schaeffler's Electric Mobility Segment Struggling but Looking Forward
Electric propulsion advancements remain on an upswing, according to Schaeffler. - Electric Mobility Progress Approaching: Schaeffler Update
Things aren't all rosy in the electric mobility realm for Schaeffler, the German automotive and industrial supplier. As per the boss man, Klaus Rosenberg, there's a strong whiff of life in the sector, but it's still a money pit. In the first quarter, Schaeffler banked a hefty three billion Euros worth of orders from this electrifying segment - a record, mind you, especially since it's the first quarter post the merger with electric drive specialist Vitesco.
Losing Money Still, But Gaining Ground
So, yeah, that's a big number, but the books still show red. The electric business grew by 7.8% to 1.174 billion Euros in Q1, with a pre-tax, pre-interest, and pre-special-items loss of 268 million Euros. But fear not, they are on track to hit their full-year forecast for this segment.
First-quarter sales dropped by 3.5% year-on-year to a cool 5.9 billion Euros. Pre-tax, pre-interest, and pre-special-items profit shrank from 287 million Euros in the previous year's quarter to 276 million Euros. The economic landscape remains a bumpy ride, as Rosenfeld aptly put it.
A Wobble in the Orient, but a Seat in the West
Rosenberg ain't shy about articulating that the Vitesco acquisition has lessened their dependency on the Chinese market. However, there's still a tangible level of discomfort stemming from the US. They're going to take a mindful and measured approach to offset the tariffs, he said.
Schaeffler - Ten Gigantic Fingers in the Automotive Pie
With around 113,000 employees worldwide, Schaeffler represents one of the top dawgs among automotive suppliers across the globe.
- INA Holding Schaeffler
- Electric Mobility
- Vitesco Technologies
- Herzogenaurach
- Rosenberg
- German Press Agency
Insights:
- The current fiscal situation of Schaeffler's E-Mobility division is precarious, with a projected negative result before special items for 2025 due to market conditions and R&D expenditures.
- Schaeffler targets leveraging synergy potential, estimated at €600 million, to boost profitability across its segments, including E-Mobility.
- While the E-Mobility division's growth rate is not specified, other divisions such as Vehicle Lifetime Solutions demonstrated robust growth in Q1 2025. Despite the losses in E-Mobility, Schaeffler is strategically resolved to achieve profitability in this segment.
- Despite the financial losses in the electric mobility segment, Schaeffler continues to invest in renewable-energy solutions, aiming to capitalize on the growing demand for sustainable technology in industries like finance and business.
- As Schaeffler expands its operations beyond the traditional automotive market, it has been pursuing vocational training programs for its employees, emphasizing the development of skills required for the production of electric vehicles and renewable energy technology.
- Schaeffler's E-Mobility division plans to prioritize partnerships and collaborations with EC countries that have strong renewable energy infrastructure, allowing the company to gain access to government subsidies and reduce financial risks in the process.
