Schaeffler is bringing together all its products and system solutions for hybrid and pure battery electric vehicles under a new E-Mobility business division, within the company's Automotive - which officially launched last month.
The move raises the rank of electromobility inside the group, as Schaeffler expects that E-Mobility will account for 15% of revenues by 2020.
Electrification is currently one of the major focuses in Schaeffler's new strategy “Mobility for tomorrow”; which if we are being honest, slogans like these are getting a bit campy at this point.
The growing importance of the Chinese automotive market triggered also the decision to create a competency center for E-Mobility in China, as a supplement for those found in Germany.
Addressing analysts and investors present at the event, Klaus Rosenfeld said: “We are currently experiencing a very dynamic market und competitive environment which is closely associated with far-reaching changes both in the automotive and industrial businesses. If we want to actively shape the change around us, we need to accelerate our own transformation. As such, and as part of our ‘Mobility for tomorrow’ strategy, we regard E-Mobility, Industry 4.0, and Digitalization as key opportunities for the future.”
Klaus Rosenfeld went on to explain the key points of the equity story of Schaeffler as a technology group which is based on three essential drivers: (1) above market sales growth in the Automotive division, (2) continuous profitability improvement in the Industrial division, and (3) strong free cash flow generation to finance further organic growth. At the end of his presentation, he confirmed the outlook for the financial year 2017 released as part of the ad-hoc announcement of June 26 and reinforced the Financial Ambitions for 2020.
In the second part of the event, Matthias Zink, together with Prof. Dr. Peter Pleus, CEOs of the Automotive division, presented the current position regarding the expansion of E-Mobility and confirmed that the Schaeffler Group will address the impending change in new powertrain technologies proactively and with a great deal of confidence. In the Automotive division, the number of customer projects and series contracts for E-Mobility products is continuously increasing. Meanwhile, the Schaeffler Group has received eight series contracts for electric axles and hybrid modules from different customers worldwide. Matthias Zink said: “The sales potential of these contracts amounts to over one billion euros. The share of sales incorporating products and systems for hybrid vehicles and pure battery electric vehicles is expected to be at least 15 percent of the total sales of the Automotive OEM business in 2020."