In order to accelerate transformation and achieve long-term development, Schaeffler Group has formulated and released the "2025 Strategic Plan" to further strengthen the company's competitive advantages, brand awareness and market leadership.
New Enterprise Slogan: We pioneer motion
As a leading global supplier of automotive and industrial products, this Slogan fully reflects the Schaeffler Group's commitment to "innovation-driven, leading the future".
New corporate purpose: we are innovation-driven leaders
As the core of the 2025 strategic plan, this purpose not only reflects the great tradition of the Schaeffler Group, but also guides the company's business activities in various fields.
The 2025 strategic plan defines our development plan to lead the Schaeffler Group forward. As the world's leading supplier of automotive and industrial products, Schaeffler has always been committed to becoming the preferred technology partner of its customers. Guided by this strategic plan, we will work together to achieve this goal!
- Mr. Klaus Rosenfeld
CEO of Schaeffler Group
Schaeffler Group 2025 Strategic Plan
In the 2025 strategic plan, Schaeffler Group launched the new Slogan - We pioneer motion.
As a leading global supplier of automotive and industrial products, this Slogan fully reflects Schaeffler's commitment to shaping drive technology and leading the future.
To achieve this, it is necessary to further strengthen the business synergy between the various business units of the Group.
The future success of the Schaeffler Group will continue to depend on the company's core competencies in four areas - leading innovation, lean manufacturing, excellent quality and system competence.
At the same time, Schaeffler Group will continue to accelerate its transformation, focusing on the implementation of core capabilities and strategies.
In order to achieve this goal, the Schaeffler Group Automotive Technology Division will accelerate its business transformation to electric drive and chassis applications; the Automotive Aftermarket Division will seize the growth opportunities in the independent aftermarket while maintaining its profitability goal; the Industrial Division It will expand into new growth areas and continuously improve profitability.
In the 2025 strategic plan, Schaeffler Group has identified five major development trends in the future:
1) Sustainable development and climate change;
2) New transportation and powertrain electrification;
3) Intelligent manufacturing;
4) Data economy and digitization;
5) Demographic changes.
These trends will open up new opportunities for the future development of the Schaeffler Group.
Based on these trends, the Schaeffler Group has defined five core areas to further strengthen Schaeffler's market position. These areas cover the products and services of all three divisions, as well as the ten customer industries and industry categories across the divisions.
Schaeffler Group sees huge development opportunities in industries such as hydrogen energy, such as hydrogen energy technology, specific applications include fuel cells for mobile energy storage and electrolysis equipment for green hydrogen production.
In addition, the Schaeffler Group attaches great importance to sustainable development, and adopts a unified sustainable development strategy in all business divisions, functional departments and regions, with the goal of fully achieving carbon neutrality in production and operations by 2030.
Automotive Technology Division:
Committed to becoming a technology leader in the electric drive industry
Mr. Mathis Zink, CEO of Schaeffler Group Automotive Technology Division, pointed out that due to the huge impact of the new crown epidemic, coupled with the structural changes the industry itself is undergoing, the automotive industry is still facing greater challenges. certainty.
For powertrain technology, Schaeffler Group has formulated the "Vision Powertrain 2030" according to the global production of passenger cars and light commercial vehicles, and based on this, the development vision for 2035 is prospected. .
In the context of the accelerated development of vehicle electrification, Schaeffler expects that by 2035, pure battery and fuel cell-driven vehicles will account for 50% of all new car production, and hybrid vehicles and pure internal combustion engine-driven vehicles will account for 35% and 15% respectively. .
Schaeffler Group will fully consider this new development trend in product structure and capital allocation.
Mature business segments with little growth potential will focus more on profitability and efficiency improvement, and new investments will focus on future technologies and new business areas.
However, for the foreseeable future, products and technologies for combustion engine optimization and hybrid vehicles will remain critical to maintaining company profits and free cash flow, and the revenue from these businesses also provides funds to expand into new areas. support.
The Schaeffler Group's annual order growth target for the electric drive business is: 1.5-2 billion euros in 2020-2021, and 2-3 billion euros after 2022.
As the core technology field of autonomous driving, the Schaeffler Group also has many successful projects in chassis applications, such as the cooperation with Bosch in the rear wheel steering system and the Schaeffler Paravan, which focuses on the development of the drive-by-wire system solution. Joint venture.
The medium-term goal of the Automotive Technology Division is: by 2025, the sales revenue of the division will increase by an average of 2-5 percentage points higher than the growth rate of global passenger car and light commercial vehicle production, and the target EBIT margin before special items is 4 -6%.
Automotive Aftermarket Division:
Adjust business models to seize market opportunities
Mr. Michael Zeidin, CEO of Schaeffler Group Automotive Aftermarket Division, shared the current and future development trends of the aftermarket.
According to forecasts, the current global car ownership of 1.4 billion will increase to 1.55 billion by 2025, mainly from China.
With the continuous increase of car ownership, the car after-sales business will usher in new development opportunities, mainly due to the continuous increase in the average service life of vehicles and the continuous improvement of the complexity of the vehicles themselves.
However, due to industry consolidation and new entrants, margins in the automotive aftermarket are under pressure. In addition, digital platforms and e-commerce are also changing consumer behavior.
Schaeffler will respond to the complex and ever-changing market environment from different angles, while making adjustments to its business model. The new response includes the continuous expansion of the company's range of solutions and services.
For example, Schaeffler has added data-based services and plug-and-play repair solutions to its product portfolio as part of the company's transformation from a component supplier to a system and integration solutions provider. In addition, the company also builds overall solutions by establishing industry partnerships, including the acquisition of vehicle data.
In addition, Schaeffler is also strengthening the construction of digital sales channels, such as the One System (ETC) project launched in China.
The project provides a "one-stop" procurement platform for complex automotive technical parts in a multi-tiered market, with huge development potential.
In addition, Schaeffler's Lepis online service platform also uses digital channels. To further improve efficiency, Schaeffler has established an "Aftermarket Parts Operations Center" (AKO) in Europe, as well as assembly and packaging centers. By 2023, AKO will cover 60% of the total global warehouse inventory.
The project uses a combination of digital and non-digital solutions to help continue to improve the efficiency and responsiveness of automotive aftermarket parts supply. In addition, 20% of carbon emissions can be reduced through the project due to shortened transportation distances.
The medium-term goal of the Automotive Aftermarket segment is that by 2025, the segment's sales revenue will increase on average higher than global GDP growth, with an EBIT margin of 13-15% excluding special items.
Industrial Division:
Improve margins through new business and operational initiatives
Dr. Stefan Spindler, CEO of the Schaeffler Group Industrial Division, pointed out that in 2020, global industrial production is expected to decline by at least 8%, with a downward trend in all regions except China. In the long run, the prospects of various industries in the Industrial Division are basically optimistic, among which the wind power and railway industries have the greatest growth potential.
In addition, the Industrial Division will take advantage of development trends such as sustainable development and demographic change to continuously accelerate growth in its core business areas.
However, the company will continue to value the contribution of innovative systems and services to business growth. With product development and production capabilities built over decades, Schaeffler has a leading market position in the component sector and continues to grow.
In addition, the company will balance the investment between high value-added products and cost-effective products according to customer needs. Based on market demand, the Industrial Division will continue to introduce innovative system solutions, mechatronics products and service solutions.
In terms of components and systems, Schaeffler offers innovative products and solutions for many application areas, such as components for wind turbines and rails, rolling bearings and sensor technology for agricultural machinery, robotic systems, OPTIME condition monitoring systems and parts for hydrogen production.
Overall, the Industrial Division aims to maintain its technological leadership in the market, further enhance customer service through digital solutions, continue to improve efficiency and continue to implement structural adjustment measures.
The medium-term goal of the Industrial Division is that by 2025, the division's sales revenue will increase on average higher than the overall growth rate of global industrial production, with an EBIT margin of 12-14% excluding special items.
Focus on free cash flow and value creation
Dr. Klaus Patchack, Chief Financial Officer of Schaeffler Group, shared a general overview of Schaeffler Group's medium-term goals. Key to the achievement of these medium-term goals, as part of the new financial framework, lies in the execution of individual divisional plans.
The plans of each division help the Schaeffler Group to choose the right investment fields, establish a market leadership, focus on profitability and free cash flow for mature business segments, and actively adjust the layout and reduce expenses.
Be well prepared for future success
With the 2025 strategic plan, the Schaeffler Group is fully prepared to embrace the future. Klaus Rosenfeld, CEO of the Schaeffler Group, said: "With the forward-looking strategic plan Roadmap 2025, we hope to make the Schaeffler Group more competitive and future-proof. We will use the New opportunities for faster growth, greater synergies within the group, and sustainable value creation. We pioneer motion, this new Slogan helps us integrate all our businesses. In this way, we Will deliver on our promise to be the technology partner of choice for our customers.”
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