Schaeffler Dissolves Bearing Component Unit To Streamline Structures

The Board of Managing Directors of Schaeffler AG has decided to realign the Industrial division and add a third corporate division, Automotive Aftermarket. Building on these measures, the Executive Board has now decided that the Bearing Components & Technologies unit, which currently functions as an internal supplier, will be dissolved and that all Schaeffler plants without a divisional allocation will become part of either the Automotive OEM or Industrial division. At the present time it is anticipated that these changes will reduce headcount by 950 positions worldwide, including about 450 positions in Germany. The Automotive Aftermarket division will continue to be supplied by the Automotive OEM plants.

The purpose of this realignment is to integrate the plants more closely into Schaeffler's business processes. This step is also aimed at streamlining workflows and processes, eliminating duplicate structures and delivering further efficiencies.

"With this step we are integrating our plants more closely into the Group's business. This will help us to become more efficient and even better able in meeting the needs of our customers. Our technology umbrella enables us to harmonize the development of our production and manufacturing technologies and to realize synergies and standardization benefits across our divisions," commented Andreas Schick, Schaeffler's Chief Operating Officer.

Once fully implemented, the planned measures will boost the Schaeffler Group's earnings potential by approximately 60 million Euros annually - a potential which, the company anticipates, will be fully realized by 2021. Schaeffler aims to announce the new organizational and leadership structure on July 1 and complete the entire realignment by the end of 2018.

Klaus Rosenfeld, CEO of Schaeffler AG: "The realignment is the next important step in putting the Schaeffler Group and its business in an even stronger position for the future and in creating an organizational setup that better meets the rapidly evolving requirements of today's market and competitive landscape. These measures will bring us closer to our customers, give our managers more entrepreneurial responsibility and boost efficiency. And amid it all, we will remain one Schaeffer Group."