Schaeffler boss Klaus Rosenfeld
“Our core competence is precision mechanics.”
(Photo: Bloomberg)
Frankfurt The auto industry is facing serious problems. Klaus Rosenfeld, however, refuses to poke his head in the sand. “I and our shareholders see this change and transformation in the automotive industry as an opportunity rather than a risk,” said the head of the family business Schaeffler on Tuesday evening in front of the International Club of Frankfurt Business Journalists.
As other car suppliers feels Schaeffler the crisis of the industry. Rosenfeld would have liked to avoid short-time work, but recently she had to do it for special-purpose engineering at the Frauenaurach location, Less work has been done there since September, for the time being until further notice.
Not a big deal for Rosenfeld, which should not be over-interpreted. “Short-time work is a completely tried and tested way to compensate for underutilization. It’s about securing the cash flow. If I do not use the opportunities of short-time working, that would be stupid, “said the Schaeffler boss
The group is a precision engineering specialist and still depends more than half on the internal combustion engine. But especially in the orientation sees Rosenfeld the great opportunity for the future. “Our core competence is precision mechanics. That is a competence that is not going through Waymo replaced, “the Schaeffler boss is sure. The Chinese, too, could not do that. Waymo is the Sister specializing in autonomous driving from the Internet company Google,
In addition, Schaeffler operates in all drive sectors: in the combustion engine, in pure electric cars and also in hybrid technology. “We’re thinking today that it’s our job to deliver parts and components,” Rosenfeld pointed out.
Rosenfeld emphasized that Schaeffler is not just an automotive supplier. “We have never really succeeded in presenting. But Schaeffler is an automotive supplier and an industrial supplier. “In fact, the industrial business – which has been a problem child for a long time, but successfully put on course by Rosenfeld – now contributes margins of almost twelve percent and is an important pillar for the Group.
Stronger portfolio management
However, it is also true that an operating return on sales of seven to eight percent, which is now the target for the current year, should not satisfy Rosenfeld or the owner family in the long run. In earlier times, the Herzogenauracher Group managed consistently double-digit margins.
For Rosenfeld, therefore, the topic of forecast reliability is a high priority. After several profit warnings, a significant loss of confidence is reflected on the capital market and in the share price. Predictability is also a cultural issue, explained the CEO. “If you only grow for ten to fifteen years, then the costs will have to grow too. The growth is changing fast, the costs are more on the cheek. “
There have been too optimistic assessments in some areas in the past, admitted Rosenfeld. Remuneration also plays a role when departments formulate their expectations. “And maybe I was too demanding.” But you’ll get better.
A message that is not least addressed to the capital market day of Schaeffler this Wednesday, where, according to Rosenfeld, there will be no new forecast. Another message to investors is that Schaeffler will in the future operate a stronger portfolio management than before.
So far, one has mainly bought, in the future you will also look, where you might not be the right person for a particular area, announced Rosenfeld.
Rosenfeld Schaeffler sees financially on the safe side. “Our leverage ratios are acceptable today.” That a rating agency looked at the situation and warned for the future, he took as an ex-credit guy athletic. Also, there are no plans to change the capital structure. He feels very comfortable with the Schaeffler family as a stable family shareholder. Even a delisting from the stock market is not an issue.
“You can no longer afford fat deposits”
At the same time, Rosenfeld confirmed that Schaeffler was facing great challenges. In his opinion, two things are crucial to mastering change: innovation and efficiency. “They can no longer afford fat deposits in the situation,” he said.
The biggest challenge is that those who are needed for innovation are often the wrong ones for efficiency. It’s also about the corporate culture. “If you are not prepared to make mistakes in the situation, you end up complacent.”
Rosenfeld did not want to comment on the development Continentalwhere he is a member of the supervisory board. The Schaeffler holding company of the family owns 46 percent of the Hanoverian supplier, Conti is therefore a sister company of Schaeffler.
The second largest automotive supplier behind Bosch, had recently announced, in addition to a sub-listing of its powertrain powertrain too their complete spin-off and a potential IPO to consider. As justification, the company referred to the insecure car market. At the same time, a sub-listing of the division renamed “Vitesco Technologies” will continue to be examined.
The renewed plan change had caused irritations. Unlike in the case of the originally planned sub-listing, Continental does not receive any of the proceeds from the issue in the event of a spin-off. With this design, every Continental shareholder would receive a Vitesco share and can then decide whether to retain or sell it.
But because the Schaeffler family owns 46 percent of the shares, the major shareholder would also become a large shareholder of Vitesco. This had fueled speculation that behind the idea of a complete spin-off is ultimately the family Schaeffer.