Schaeffler's Electric Mobility Journey: Gains on the Horizon
E-Mobility Expansion Persists According to Schaeffler's Report - Electrical Mobility Progressing According to Schaeffler's Report
Get your electric engines revved up! German auto giant Schaeffler is riding the wave of electric mobility's rising tide. Klaus Rosenfeld, the big cheese at Schaeffler, chatted with the German Press Agency, revealing a whopping three-billion-euro order haul in the electric segment - a record-breaker, especially after their merger with Vitesco, the electric drive maestros.
Electric Mobility: A Rocky Road to Profitability
Despite this impressive quarter, the electric segment is still in the red. Schaeffler is still aiming to hit its annual forecast but, alas, it still predicts losses. In the first quarter, the electric division swelled by 7.8% to 1.174 billion euros, yet it logged a pretax, pre-interest, and pre-special-items loss of 268 million euros.
First-QuarterStats: Schaefflerby the Numbers
Overall, Schaeffler's first-quarter sales dipped 3.5% year-on-year to 5.9 billion euros. Pre-tax, pre-interest, and pre-special-items profit slid from 287 million euros in the previous year's quarter to 276 million euros. Rosenfeld warns that the unpredictable economic climate remains a thorn in their side.
Decreased Dependence on China
The Vitesco acquisition has shrunk Schaeffler's reliance on China, Rosenfeld emphasized. The US situation continues to be a source of worry. "We're working diligently to dodge those tariffs," he said.
Schaeffler, one of the world's largest auto suppliers, boasts an incredible workforce of over 113,000 employees worldwide.
- Schaeffler Group
- E-Mobility Segment
- Vitesco Technologies
- Klaus Rosenfeld
- German Press Agency
Insights:
Schaeffler's electric mobility division accounted for roughly 55% of the group's revenue as of early 2025[1]. In 2024, the division displayed impressive sales volumes but incurred substantial losses, with a full-year EBIT before special items (bsi) of around -1,066 million EUR[4]. However, the first quarter of 2025 showed signs of improvement, with strong sales growth in the electric segment and an improved EBIT margin compared to previous periods[3].
Despite these gains, Schaeffler still anticipates the electric division to post a negative EBIT result before special items in 2025 due to a weaker market, volume development, and conservative accounting practices, particularly regarding R&D expenses[1].
Nevertheless, Schaeffler remains optimistic, focusing on making the electric division profitable as soon as possible and keenly aware of the considerable effort required to seamlessly integrate Vitesco Technologies[1]. The company maintains its synergy potential estimate from the Vitesco acquisition at around €600 million, signaling faith in long-term cost-saving and efficiency gains[1].
Despite tariff uncertainties and geopolitical risks, Schaeffler remains adaptable and poised to take action as necessary but hasn't incorporated these factors into its current guidance[1]. The group expects overall revenues of €23 to €25 billion in 2025, with three out of its four divisions predicting a positive EBIT margin, excluding the electric mobility division, which is forecasted to remain negative for the year[2][1].
- Schaeffler Group's electric mobility segment, following the merger with Vitesco Technologies, secured an unprecedented three-billion-euro order haul in the electric segment, as revealed by Klaus Rosenfeld to the German Press Agency.
- Although Schaeffler's electric segment recorded impressive sales growth, it still incurred substantial losses in the first quarter of 2025, with a pretax, pre-interest, and pre-special-items loss of 268 million euros.
- Despite the negative EBIT result before special items that Schaeffler aims to post for the electric division in 2025, the company is optimistic about making the division profitable as soon as possible and estimates synergy potential from the Vitesco acquisition at around €600 million.
- The Vitesco acquisition helped Schaeffler decrease its reliance on China, but the US situation remains a source of concern due to potential tariffs, according to Rosenfeld.
- Schaeffler, one of the world's largest auto suppliers, boasts an incredible workforce of over 113,000 employees worldwide and is seeking to navigate the challenging terrain of the automotive industry, including the growing adoption of electric vehicles and the integration of renewable-energy technologies.
- Schaeffler's electric mobility division accounted for approximately 55% of the group's revenue as of early 2025, and the company's overall revenues for 2025 are expected to range between €23 to €25 billion, with three out of its four divisions predicting a positive EBIT margin, excluding the electric mobility division.
