Headlines
Schaeffler sees no 2025 rebound for automotive market, losses in EV unit
Published by Global Banking and Finance Review
Posted on March 5, 2025
2 min readLast updated: January 25, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on March 5, 2025
2 min readLast updated: January 25, 2026
Schaeffler predicts no automotive market rebound by 2025, citing challenges in the European EV sector and restructuring efforts.
(Reuters) -German machine and car parts maker Schaeffler on Wednesday joined other auto suppliers in giving a gloomy outlook for 2025, as it sees no rebound for the automotive market during the year.
Europe's auto sector is being tested by multiple hurdles ranging from high production costs and managing the shift to electric vehicles (EV) to falling demand and rising competition from China.
In particular, Schaeffler sees a negative 2025 operating (EBIT) margin for its e-mobility unit, at -14% to -17%, reflecting the scale of the challenges in the European EV market.
It recently acquired electric powertrain specialist Vitesco as part of a push to increase its electric mobility market share.
"Of course, 2025 will continue to be characterized by volatility. Our cautiously optimistic outlook reflects that," said CEO Klaus Rosenfeld said in a statement.
The German ball-bearings specialist expects global automobile production to contract by 0.5% in 2025.
Schaeffler is carrying out a major restructuring effort that includes cutting thousands of jobs and closing plants across Europe, after its operating margin, a key profitability metric, melted from 7.3% to 4.5% in just one year.
It slashed its dividend by almost a half to 25 euro cents per common share, and forecast an EBIT margin of 3% to 5% for 2025.
(Reporting by Andrey Sychev in Gdansk; editing by Milla Nissi)
Schaeffler has a gloomy outlook for the automotive market in 2025, predicting no rebound due to various challenges.
Schaeffler expects a negative EBIT margin of -14% to -17% for its e-mobility unit in 2025.
Schaeffler is undergoing a major restructuring that includes cutting thousands of jobs and closing plants across Europe.
Schaeffler slashed its dividend by almost half to 25 euro cents per common share.
Schaeffler predicts that global automobile production will contract by 0.5% in 2025.
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