Schaeffler boss warns: car market faces major challenges!

Schaeffler boss warns: car market faces major challenges!

The Häring Innovation Forum recently took place in Bubsheim, at which the CEO of Schaeffler AG, Klaus Rosenfeld, highlighted the economic situation in Germany. The meeting was well attended and attracted entrepreneurs as well as representatives from various business associations, banks, educational institutions and politics. Rosenfeld used the opportunity to draw attention to the challenges and opportunities facing the automotive industry. He is not only a defining figure in business, but also has an impressive career. After studying business administration and economics at the University of Münster, he began his career at Dresdner Bank and brings decades of experience in top positions before becoming CEO of Schaeffler in 2014; Schaeffler reports on this in detail.

A central topic for Rosenfeld was the connection between automobile sales and economic cycles. He highlighted that the current trend is towards more repairs and fewer new car purchases, which is very important considering the industry. Schaeffler, an international supplier with over 120,000 employees and locations in 55 countries, is therefore planning to further develop as a “motion company”. The company offers not only individual parts, but also complete components, which significantly influences the market strategy.

Global challenges

Rosenfeld also pointed out the global aspects of the auto market, which is vulnerable to complex supply chains. This is particularly clear in Germany, where the labor costs per car are $3,300, which is much more expensive than in Morocco ($106) or Romania ($273). These cost structures not only influence competitiveness, but also require a rethink in production. In his remarks, he called for better interaction between original equipment manufacturers (OEMs) and suppliers, as profit curves have changed significantly since 2014.

Another important point Rosenfeld brought up was evolving propulsion technology. It is predicted that in the next decade 50% of vehicles will be electric and 30% hybrid. Currently, 75% of Schaeffler's sales come from the passenger car sector, but the company's future is also anchored in other markets. This is happening against the background that global growth markets are already reaching their limits.

Market developments

Developments in global automobile production also give rise to discussion. Production in China, the most important automotive location, grew by 10 percent to a record 25.8 million cars, which accounts for almost a third of global production. Germany also recorded growth of 18 percent to 4.1 million units, but remains below the pre-crisis figures from 2019, as VDA reports. What is particularly noteworthy is that electric cars make up over 30 percent of German production, which clearly underlines the transformation of the industry.

Finally, Rosenfeld emphasized the need to reduce complexity in production and explore new applications of core competencies, for example in the area of ​​flying cars. This vision could not only open up new markets, but also help counteract the impending shortage of skilled workers in the industry.