In the new setup going forward, the Schaeffler Group will divide its business activities into four focused divisions with leading positions in each of their respective markets: E-Mobility, Powertrain & Chassis, Vehicle Lifetime Solutions and Bearings & Industrial Solutions.
04 Oct 2024 | 335 Views | By Autocar Pro News Desk
Schaeffler has successfully completed the merger with Vitesco Technologies Group that was announced almost a year ago.
Klaus Rosenfeld, CEO of Schaeffler AG, said: “With the completion of the merger with Vitesco, Schaeffler is entering a new chapter in its corporate history. Despite the challenging environment, the ...
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Schaeffler has successfully completed the merger with Vitesco Technologies Group that was announced almost a year ago.
Klaus Rosenfeld, CEO of Schaeffler AG, said: “With the completion of the merger with Vitesco, Schaeffler is entering a new chapter in its corporate history. Despite the challenging environment, the complex transaction was successfully completed according to plan in less than a year. This proves that the two companies are not just a technological but also a cultural match. We look forward to our continued cooperation. Together, we will create a leading Motion Technology Company.”
Georg F. W. Schaeffler, family shareholder and Chairman of the Supervisory Board of Schaeffler AG: “Schaeffler and Vitesco are stronger together. The merger lays the foundation for Schaeffler AG to continue its profitable growth trajectory in the future."
On a pro-forma basis for 2023, the combined company will have consolidated annual sales of around 25 billion euros, will employ around 120,000 people at over 250 locations and will have more than 100 production facilities worldwide.
In the new setup going forward, the Schaeffler Group will divide its business activities into four focused divisions with leading positions in each of their respective markets: E-Mobility, Powertrain & Chassis, Vehicle Lifetime Solutions and Bearings & Industrial Solutions. In addition, the Schaeffler Group divides its business into four regions – Europe, Americas, Greater China and Asia/Pacific – which will continue to be managed as before.
As a combined company, Schaeffler has a strong balance sheet, significant economies of scale and a comprehensive product portfolio with eight product families that offers integrated solutions for a wide range of diverse customer needs.
Schaeffler expects – as initially announced – that the merger with Vitesco will lead to revenue and cost synergies with an envisaged EBIT impact of 600 million euros annually. The synergies will be implemented gradually. The full synergy potential is expected to be reached for the first time in 2029.
Integration process commences
Following the completion of the merger, the integration of Vitesco and Schaeffler has begun.
Besides realizing revenue and cost synergies, the integration process includes combining processes and IT applications, establishing a new sales and customer support model for key customers for whom products and services are developed and delivered by several divisions, and all activities to integrate, streamline and consolidate existing legal structures in the countries where Schaeffler and Vitesco previously operated with separate legal entities. In addition to Europe, this includes countries such as China, Mexico, Korea and India.
From now on, the Schaeffler Group will operate under the uniform corporate brand ‘Schaeffler’. Based oinren the corporate colours white and green and the proven claim ‘We pioneer motion’, the product brands that currently exist alongside the Schaeffler brand will gradually be transferred to the corporate brand.
The Schaeffler Group will continue to be registered in Herzogenaurach after the merger, which will also be the location of the Group’s headquarters.
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