EXCLUSIVE Schaeffler from Brașov sent workers to technical unemployment

Schaeffler Romania, part of the German group that is one of the largest manufacturers of car parts in the world, put the workers in Cristian, near Brașov, on technical unemployment last week and this week, according to information obtained exclusively by Economy. The company confirmed the situation for Economedia, without detailing the number of employees and the implementation period of the measure. Schaeffler is one of the largest employers in Romania, with almost 5,000 employees.

“In the context of global market challenges affecting various sectors, Schaeffler Romania was forced to implement temporary measures, including technical unemployment. Although these decisions are difficult, they aim to ensure the competitiveness of our operations in the long term and to protect as many jobs as possible during this time. It is vital for us to work closely with staff and stakeholders to manage the best outcomes, especially at these times. We are optimistic about the future and look forward to completing the proposed merger with Vitesco Technologies, which will make us “stronger together”, including in Romania”, representatives of Schaeffler Romania contacted, at the request of Economedia.

German car and auto parts group Schaeffler reported a nearly 30% drop in underlying profit in the second quarter of this year due to a fall in revenue in its bearings and business solutions division, particularly in the Europe and China.

Schaeffler Group has been hit by a global production slowdown and said it saw weaker demand from European business in the second quarter and increased competition in China for wind turbine bearings, Reuters reported recently. Europe is Schaeffler’s largest market, accounting for around 45% of sales last year. The group’s indicators are in line with weak second-quarter GDP figures in China, weak business orders in Germany and signs of a US recession, an analyst told Reuters.

Schaeffler is currently merging with Bavarian transmission systems manufacturer Vitesco Technologies, which also has business in Romania.

Both groups warned of weak demand from automakers. During this period, the market is affected by weaker car sales in Europe and strong competition from Chinese manufacturers. At the same time, traditional European manufacturers are finding it increasingly difficult to enter the Chinese market as well, and could also risk countermeasures in this market if the EU adopts tariffs on Chinese electric cars.

The German car industry is particularly affected during this period. Companies are threatening historic job cuts. German car giant Volkswagen could close factories. EU environmental regulations are strict. And income is falling in other sectors of the industry as well.

Schaeffler also has production facilities in Romania. Since 2002, the company has been producing in Romania, in Brașov, components for the automotive industry and heavy bearings for industrial applications, with approximately 5,000 employees.

Last year, Schaeffler Romania had a business of 3.9 billion lei (up 11%), a profit of 36.3 million lei (down 61%) and, although the number of employees decreased by around 200 people, the company remains among the largest (around 61%). ) 30 employers in Romania, with 4,905 employees. Vitesco Technologies Romania, a company that will also be integrated into the Schaeffler group, recorded a turnover of 2.1 billion lei in 2023 (19% increase compared to 2022), with an average number of 1,457 employees and double net profit, of 6.1 million. with her

Recently, the management of Schaeffler Romania, based in Brașov, was taken over by Marius Pricop, plant director of Industrie 2. Group.

The German Schaeffler Group had a global business of 16.3 billion euros and more than 84,000 employees in 2023. The Schaeffler Group is owned by a wealthy family of the same name whose main representatives are Maria-Elisabeth Schaeffler-Thumann and her son Georg FW Schaeffler.