Automotive Giant Schaeffler Shifts Focus to Arms Manufacturing Amidst Economic Downturn
In a significant strategic pivot, German automotive and industrial supplier Schaeffler AG is poised to enter the arms manufacturing sector, a move driven by flagging performance in the auto industry and a burgeoning belief in the potential of defense technologies. Klaus Rosenfeld, CEO of Schaeffler AG, confirmed the shift in an interview with the Süddeutsche Zeitung, signaling a substantial expansion into military applications.
The move follows a recently announced collaboration with drone manufacturer Helsing, a partnership that substantially broadens Schaeffler’s reach into defense capabilities. Rosenfeld ambitiously projected that the company’s defense business could potentially generate a billion euros in revenue within five years, although he stressed that no concrete targets have been established. Currently, without Helsing, the company already generates approximately 100 million euros annually in the defense sector.
The decision to enter the arms industry comes at a challenging time for Schaeffler, which recently announced cuts of 4,700 positions amidst a downturn in the automotive market. Rosenfeld downplayed the direct connection between job losses and the planned defense expansion, stating that while existing automotive technology and infrastructure can be leveraged, the core motivation lies in strengthening defensive capabilities. He further expressed optimism regarding the potential of humanoid robotics, highlighting its projection as a multi-billion euro market.
Schaeffler’s foray into arms manufacturing raises critical questions about the corporate responsibility of automotive suppliers and the potential for blurring the lines between civilian and military technology. While Rosenfeld acknowledges the strategic importance of the move and the opportunity to capitalize on existing infrastructure, critics are likely to scrutinize the ethical implications of diverting resources and expertise from the automotive sector – an industry facing its own transition to electric vehicles and sustainable mobility – into weapons systems.
Furthermore, Rosenfeld’s assertion that the move is “strategically important” raises concerns about the prioritization of profit over the long-term health of the automotive sector and the potential for further workforce reductions. While he refrained from commenting on further job cuts, the ambitious goal of becoming a top-three global automotive supplier, currently positioning the company “perhaps under the first ten” suggests an ongoing period of restructuring and potential downsizing. This rapid shift raises broader systemic questions about the increasing entanglement of civilian industries in the global arms trade and the potential for state-supported incentivization of this transition.
