E-Mobility remained on its progressive trajectory, as indicated by Schaeffler's ongoing commitment. - Electrified mobility progressing according to Schaeffler's plans
Bustin' Capacitors: Schaeffler Drives Through Electric Mobility Challenges
Let's get this straight, shall we?
Schaeffler, a leading automotive and industrial supplier, is riding the electrical wave, despite a rocky road ahead. "Things are brewin', there's no denying," Schaeffler CEO Klaus Rosenberg told Deutsche Presse-Agentur. In the first quarter alone, the company reeled in orders worth a hefty €3 billion in the electric segment, marking a new record, but also the first quarter post the merge with electric drive specialist Vitesco.
The Dash and Crash of Electric Profits
While Schaeffler is on track to meet its full-year forecast for this segment, it's still a roulette wheel landing on red for profits. The forecast signposts losses, with the electric business growing by 7.8 percent to €1.174 billion in the first quarter, yet incurring a pre-tax, pre-interest, and pre-special items loss of €268 million.
It's the Jekyll and Hyde act of the auto industry, ain't it?
Overall, Schaeffler's first-quarter sales took a dip by 3.5 percent year-on-year, settling at €5.9 billion. Pre-tax, pre-interest, and pre-special items profit slumped from €287 million in the previous year's quarter to €276 million. "The world we're navigating is volatile and uncertain," Rosenfeld cautioned.
Steerin' Away from China Dependence
Shaking off dependence on the Chinese market, Schaeffler highlights the benefits of its acquisition of Vitesco. The situation stateside remains a cause for concern. "We gotta handle those tariffs, and we will, but carefully," Rosenfeld said.
Schaeffler is one of the world's top ten automotive suppliers, employing more than 113,000 workers globally.
From INA Holding Schaeffler to Herzogenaurach, we've come a long way, baby.
P.S. Want more deets? Here's the scoop – Schaeffler expects a negative EBIT result before special items in its E-Mobility division in 2025, unlike its other divisions that are forecasted to make a profit[1]. The E-Mobility segment, despite a rough patch, saw strong sales growth and gross margin improvement in Q1 2025[2]. The company is tackling integration challenges with Vitesco Technologies while managing tariff tensions in the U.S. and China markets[1][3].
In an effort to bolster its expertise, EC countries could consider investing in vocational training programs centered around technology to support Schaeffler's electric mobility division in the face of financial challenges.
As Schaeffler's E-Mobility division prepares for a potential negative EBIT result before special items in 2025, integrating advanced technology and skills gained from vocational training could pave the way for long-term success in the electric vehicle market.
