Corporate News meets AI!
Content analysis and summary
EQS-News: Schaeffler AG
/ Key word(s): Miscellaneous
Herzogenaurach | November 8, 2022 | In view of the rapidly changing market environment and the accelerating transition taking place in the drive technologies segment, the Board of Managing Directors of Schaeffler AG has decided on additional restructuring measures aimed primarily at further boosting competitiveness in the Automotive Technologies division as well as reducing fixed costs and overcapacity. These measures are to be largely implemented by the end of 2026. Matthias Zink, CEO Automotive Technologies, commented as follows: “We are moving into an environment where being the technology leader is no longer enough. The critical factor now is to have in place the competitive cost structures needed to further accelerate the transformation process and ensure that Schaeffler is fully geared for powertrain electrification. And that in turn requires us to reduce our cost base and cut overcapacity.”
Potential savings of around EUR 100 million annually
Accordingly, the planned structural changes involve the cutting of a total of 1,300 positions, mainly in the Engine & Transmission Systems and Bearings business divisions within Automotive Technologies, and in the company’s central functions. Approximately three quarters of the capacity reduction will affect positions in administration and in central functions in the area of R&D for internal combustion engines, with the other one quarter in production. Positions will be cut both in Germany and abroad. Within Germany, the locations affected are mainly Herzogenaurach, Bühl, and Homburg. One in four of the positions lost will be at locations outside Germany. “The measures decided on by the Board of Managing Directors mark an important step towards ensuring future growth. Their purpose is to further sustainably strengthen Schaeffler’s competitiveness and future-readiness and to enable us to safeguard jobs in Germany over the long term,” said Sascha Zaps, Regional CEO Europe. The measures are expected to generate annual savings of up to EUR 100 million. The measures will generate transformation expenditures of about 130 million euros, most of which is expected to be recognized as a provision in the financial statements for Q4 2022.
Package of measures with a two-pronged approach
The Schaeffler locations of Ingolstadt and Morbach are engaged solely in the production of components for vehicles with internal combustion engines, which are impacted by falling demand. Over the next few months, strategies for these locations will be developed in consultation with the local employee representatives on the basis of newly designed dialog processes.
At the same time, Schaeffler intends to strengthen the German locations impacted by the capacity reduction measures by investing in new technologies. In Herzogenaurach, the company will step up its hydrogen activities and further expand the hydrogen center of excellence. This is in addition to the central laboratory facility already under construction there. Development operations at Herzogenaurach for electromobility components and systems will also be stepped up. Herzogenaurach will also be developed as the company’s lead plant for forming technology for bearings, and new digitalization and automation technologies will be implemented and deployed on an ongoing basis. At the Bühl location, Schaeffler is expanding its electromobility development and production, transforming the facility into its global lead plant for electric motor production. A center of competence for rolling elements will be set up in Homburg. Schaeffler will invest in digitalization and automation there for this purpose.
Gunzenhausen to become an Automotive Aftermarket plant
Social responsibility based on the Future Accord
Forward-looking statements and projections
Certain statements in this press release are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. No one undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You should not place any undue reliance on forward-looking statements which speak only as of the date of this press release. Statements contained in this press release regarding past trends or events should not be taken as representation that such trends or events will continue in the future. The cautionary statements set out above should be considered in connection with any subsequent written or oral forward-looking statements that Schaeffler, or persons acting on its behalf, may issue.
Schaeffler Group – We pioneer motion
As a leading global supplier to the automotive and industrial sectors, the Schaeffler Group has been driving forward groundbreaking developments in the fields of motion and mobility for more than 75 years. With innovative technologies, products, and services in the fields of CO₂-efficient drives, electric mobility, Industry 4.0, digitalization, and renewable energies, the company is a reliable partner for making motion and mobility more efficient, intelligent, and sustainable. The technology company manufactures high-precision components and systems for powertrain and chassis applications as well as rolling and plain bearing solutions for a large number of industrial applications. The Schaeffler Group generated sales of approximately EUR 13.9 billion in 2021. With around 83,000 employees, Schaeffler is one of the world’s largest family companies. With more than 1,800 patent applications in 2021, Schaeffler is Germany’s second most innovative company according to the DPMA (German Patent and Trademark Office).
08.11.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
|09132 - 82 0
|Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
|EQS News ID:
|End of News
|EQS News Service
1481269 08.11.2022 CET/CEST