Defense industry expansion efforts by Schaeffler underway - German auto parts manufacturer Schaeffler is pursuing investments in the weapons sector
Schaeffler AG, a German company based in Herzogenaurach, is actively exploring expansion into the defense industry, according to CEO Klaus Rosenfeld. This move reflects the company’s intent to leverage its core capabilities in motion technology and industrial bearings into defense-related applications.
The current status indicates that Schaeffler is "working intensively" to understand the defense sector’s specific requirements and identify potential opportunities. While detailed products or contracts in defense have not yet been publicly disclosed, this suggests an early to mid-phase exploratory stage rather than a fully launched defense business line.
The focus areas likely leverage Schaeffler’s expertise in advanced bearings, components, and industrial technologies that are relevant for defense manufacturing and systems. Potential applications could include heavy-duty bearings for military vehicles or specialized components for defense machinery. While not explicitly detailed in the sources, such technology domains align logically with their recent expansions in industrial bearings in sectors like steel and mining.
Schaeffler’s revenue for the first half of 2025 was €11.845 billion, a decrease of 4.6% year-over-year. Earnings before interest, taxes, and special effects (EBIT) for Schaeffler AG fell by €49 million to €482 million in the same period. Despite these figures, business with electric vehicle drives at Schaeffler AG saw an increase of 6.7% year-over-year, with losses narrowing from €584 million to €461 million. On the other hand, business with conventional powertrains and chassis decreased, with revenue down nearly 11% year-over-year.
Rosenfeld expressed satisfaction with Schaeffler AG’s e-mobility progress, but acknowledged there’s still work to be done. He previously hinted that Schaeffler could supply components for the defense industry, and Chinese manufacturers continue to show interest in German technology, according to Rosenfeld.
The defense sector expansion is conceived as an additional growth area rather than a replacement, possibly providing more stable revenue streams amid automotive sector fluctuations. The German automotive industry can compete against Chinese competition in the long run, believes Rosenfeld.
In summary, Schaeffler AG is actively exploring expansion into the defense industry, currently in the process of developing this new growth area as part of its strategic diversification efforts. The focus areas likely include leveraging industrial bearings and motion technology expertise for defense sector requirements. This defense push aims to complement, not replace, Schaeffler’s automotive business, potentially mitigating cyclical automotive risks. No concrete details on timelines or specific defense products have been disclosed, but the move reflects Schaeffler’s strategic intent to diversify into growing, stable sectors beyond automotive.
- The defense industry expansion of Schaeffler AG might include vocational training programs for their employees to understand the specific requirements of this sector, as they do in other industrial settings.
- To fully capitalize on their defense sector exploration, Schaeffler AG could potentially seek partnerships with aerospace and finance industries, given their expertise in motion technology and the need for stable financing in this high-tech field.
