E-Mobility's Growth Remains Accelerated, According to Schaeffler - E-mobility progression, according to Schaeffler's perspective
German automotive colossus, Schaeffler, is recognizing a promising spike in the e-mobility sphere. In an interview with the German Press Agency, Schaeffler's CEO, Klaus Rosenberg, expressed optimism, "There's a definite buzz in the air – it's evident something big is unfolding." In the first quarter, the company bagged orders worth a stupendous €3 billion in this electric whirlwind, a record-breaker – but with a twist. This remarkable figure comes hot on the heels of the merger with e-drive whiz, Vitesco.
E-mobility: A Profitable Unicorn or Money-Sucking Monster?
Despite the impressive figures, Schaeffler's e-mobility division is still grappling with some financial hurdles. The company is still targeting its projected full-year earnings for this sector – but it's not all sunshine and rainbows. The financial forecast for this segment still shows red. In the first quarter, the electric division expanded by a healthy 7.8% to reach €1.174 billion, though it reported a deceitful pre-tax loss of €268 million. That's a steep decline from the overall sales figure of €5.9 billion, which dipped by 3.5% year-on-year. Rosenfeld wasn't pulling any punches when he admitted, "The world we operate in is full of uncertainty and risks."
Diversification: Moving Away from China's Grip
Are the cobwebs of China finally beginning to clear? Through the acquisition of Vitesco, the company has effectively reduced its dependence on the Chinese market, a fact Rosenberg emphasized adamantly. However, the situation in the United States remains a thorny issue, prompting Schaeffler to take proactive steps to counterbalance the impact of tariffs. "We need to weather the tariff storm and we'll do so with a steady hand," Rosenfeld pledged.
A Global Titan with a Small-Town Heart
Schaeffler remains one of the world's top ten automotive suppliers, employing more than 113,000 workers worldwide. This industrial titan can trace its roots to the quaint town of Herzogenaurach, Germany.
- Schaeffler
- Vitesco Technologies
- Rosenberg
- German Press Agency
Despite ongoing financial challenges, Schaeffler's e-mobility division is on the path to transformation and growth. The company is poised to capitalize on the expanding e-mobility market, promising a more prosperous future for this once loss-making division.
Enrichment Data Snippets
In its quest for e-mobility mastery, Schaeffler's e-mobility segment is grappling with ongoing losses while simultaneously recording impressive growth. It is currently in a transition phase, investing heavily to establish itself as a key player in the burgeoning e-mobility landscape.
- Schaeffler's e-mobility division attained an impressive 10% sales growth, making it a significant growth engine for the company amid broader market storms[1].
- As part of its strategic initiatives, Schaeffler aims to unlock €600 million in annual synergies by 2029, with a keen focus on pushing the e-mobility segment towards profitability[2].
- Analysts view Schaeffler's gradual route to e-mobility profitability as a promising catalyst for the company's long-term financial health[3].
- Schaeffler, despite financial hurdles in its e-mobility division, is still optimistic about the future, with the segment showing a significant 10% sales growth.
- Aiming to capitalize on the burgeoning e-mobility market, Schaeffler plans to unlock €600 million in annual synergies by 2029, focusing on making the e-mobility segment profitable.
- The German automotive colossus, Schaeffler, recently bagged orders worth €3 billion in the electric whirlwind, a record-breaker, following the merger with e-drive whiz, Vitesco Technologies.
- In a strategic move, Schaeffler is diversifying its business, reducing its dependence on the Chinese market and taking proactive steps to counterbalance the impact of tariffs in the United States.
- Schaeffler is making investments to establish itself as a key player in the renewable-energy industry, specifically in data-and-cloud-computing, fintech, and the automotive sector, with a goal of transforming its loss-making e-mobility division into a profitable one.
