Schaeffler sees no 2025 rebound for automotive market, losses in EV unit
Published by Global Banking and Finance Review
Posted on March 5, 2025
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on March 5, 2025
(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)