Electric Mobility Advancement on the Horizon (as per Schaeffler)

Schaeffler's Electric Vehicle Quest: A Bumpy Road Towards Profitability

Here's the Scoop on Schaeffler's Q1 2025 Performance

E-Mobility Continues to Gain Momentum According to Schaeffler - Electric Mobility Advancement on the Horizon (as per Schaeffler)

German automotive titan, Schaeffler, strides ahead in the electric vehicle (EV) arena, displaying encouraging signs of progress. In a candid chat with the German Press Agency, Schaeffler CEO Klaus Rosenberg exuded optimism: "It's safe to say that something is brewing in the ev sector." The company secured the captain's sleeve-section worth €3 billion in EV-related orders during the first quarter - a historic feat, although it's worth mentioning that this is their initial post-merger quarter with electric drive specialist Vitesco.

Profitably, We Aren't There Yet

The company is gunning for its full-year prediction for the ev sector, but the forecast still spells losses. In Q1, Schaeffler's ev business surged by 7.8%, hitting €1.174 billion, yet it racked up a pre-tax, pre-interest, and pre-special-items loss of €268 million.

Revenues Slide, Still Profitable (Barely)

Overall, Schaeffler's Q1 sales slid by 3.5% year-on-year, stopping at €5.9 billion. Pre-tax, pre-interest, and pre-special-items profit shrank from €287 million in the previous year's quarter to €276 million. Rosenfeld, ever the pragmatist, acknowledged the volatile market conditions, stating, "The waters we navigate remain stormy and uncertain."

Slashing Dependence on China, Wringing Hands Over USA

Vitesco's acquisition helped Schaeffler kick its reliance on the Chinese market down a notch, Rosenfeld emphasized. However, the ongoing impasse with US authorities still looms large: "We've got to shield ourselves from the tariffs, but we'll do so without throwing caution to the wind."

Schaeffler by the Numbers

Schaeffler is among the world's biggest automotive suppliers, boasting a workforce of over 113,000 employees scattered across the globe. In addition to its headquarters in Herzogenaurach, the company includes INA Holding Schaeffler and Vitesco Technologies under its umbrella.

Enrichment Data:

• Growth and Gross Margin: The ev sector saw a significant sales growth of nearly 10% compared to the previous year, according to statistics from Q1 2025[4]. Additionally, the gross margin for the ev division improved considerably, expanding by 6.5 percentage points[4].
• Order Intake: The ev division showcased an impressive order intake of €3 billion, achieving a book-to-bill ratio of 2.6 times during Q1 2025[4].
• Future Investments: Schaeffler remains committed to investing in ev technology, expecting these investments to drive growth and improve profitability over time[2][5]. The burgeoning demand for electric vehicles and favorable market conditions contribute to an attractive environment for the company's ev business[3][5].
• EBIT Margin: Despite the positive growth, the exact EBIT margin for the ev division in Q1 2025 could not be found in the available reports[2][5]. Nonetheless, it is evident that the division faces current challenges associated with profitability.

1. In Q1 2025, Schaeffler, an EC countries-based automotive titan, secured €3 billion in EV-related orders, signifying progress in the electric vehicle sector, even though the ev business still reported a pre-tax, pre-interest, and pre-special-items loss.
2. Despite the growth in the electric vehicle sector, with sales increasing nearly 10% compared to the previous year, Schaeffler's overall Q1 sales decreased by 3.5% year-on-year, amounting to €5.9 billion.
3. Schaeffler, with subsidiaries including INA Holding Schaeffler and Vitesco Technologies, is aiming to reduce its dependence on the Chinese market and tackle tariff issues with US authorities, as it navigates the volatile and uncertain market conditions.
4. Vitesco's acquisition has helped Schaeffler improve its global workforce, stretching across numerous countries, to exceed 113,000 employees.
5. Sectors like renewable-energy and the renewable-energy industry could be significant for Schaeffler's future business as the company continues to invest in electric vehicle technology in response to a burgeoning demand for electric vehicles and favorable market conditions.

Read also: