Schaeffler's Electric Mobility is Rolling Ahead
E-Mobility continues to gain momentum, according to Schaeffler. - Electrification on the Horizon: Schaeffler's Emphasis on Electric Mobility Solutions
Grab your chargers, folks—Schaeffler's electric vehicle game is heating up! Klaus Rosenberg, CEO of Germany's renowned automotive and industrial supplier, recently shared some optimistic insights with the German Press Agency. In the first quarter, Schaeffler snatchedorders worth a whopping 3 billion euros in the electric sector, breaking records since the merger with electric drive specialist, Vitesco.
The electric sector might still be burning some cash, but it's not all bad news. The company expects to meet its full-year forecast for this lucrative field, forecasting losses. In Q1, the electric business escalated by 7.8 percent to 1.174 billion euros, though it still posted a hefty pre-tax loss of 268 million euros. Schaeffler's total sales for Q1 hit 5.9 billion euros, dipping 3.5 percent year-on-year. Pre-tax earnings before interest and special items slid from 287 million euros in the previous year's quarter to 276 million euros. Rosenfeld admitted that the current business landscape is volatile and unpredictable.
With the acquisition of Vitesco, Schaeffler's dependency on the Chinese market has declined, Rosenberg emphasized. However, there's still a niggling concern about the US situation. "We're bracing for the tariffs," he said, assuring us they'll tackle this issue without going overboard. Schaeffler ranks amongst the top ten global automotive suppliers and employs over 113,000 people worldwide.
Digging Deeper
Schaeffler's electric vehicle division isn't just sizzling; it's scorching! The division experienced a near 10% revenue growth in Q1 2025, showcasing impressive performance among mixed regional results. There was also a significant improvement in gross margin, with an increase of 6.5 percentage points.
Despite challenges faced by some of Schaeffler's other divisions, such as Powertrain & Chassis, the electric vehicle sector's growth supports the company's strategic focus on EV components. Schaeffler is wagering on this promising field, likely to invest even further, given its strong performance and market potential.
Collaborations with other companies in the electric vehicle sector, like Vitesco Technologies, could be in the cards. Although specifics about the partnership aren't mentioned in recent financial reports, Schaeffler's emphasis on E-Mobility and commitment to innovation hint at possible collaborations that could help Schaeffler remain at the forefront of the EV market.
All in all, Schaeffler's electric vehicle sector is firing on all cylinders—apt metaphor, considering they're all electronic now, ain't they? Stay charged, folks!
- Schaeffler's electric vehicle division, following the merger with Vitesco Technologies, has seen a significant growth in revenue within the European Countries, with a nearly 10% increase in Q1 2025.
- Despite the pre-tax losses in the electric sector, Schaeffler remains optimistic about its full-year forecast, attributing this confidence to the division's strong performance and market potential.
- Schaeffler, a major automotive supplier, is considering further investments in the electric vehicle sector, with potential collaborations with other companies, such as Vitesco Technologies, hinted at in their strategic focus on E-Mobility and commitment to innovation.
