Germany’s automotive and industrial supplier, Schaeffler AG, is dramatically pivoting towards the defense industry, a move signaling a significant shift in strategy and raising questions about the ethical implications of leveraging civilian technology for military applications. In a statement to the “Süddeutsche Zeitung”, CEO Klaus Rosenfeld declared Schaeffler’s intention to become an “armaments company” alongside recent collaboration with drone manufacturer Helsing.
The announcement comes as Schaeffler grapples with a downturn in the automotive sector, recently announcing a significant workforce reduction of 4,700 positions. Rosenfeld framed the foray into defense as a “strategic imperative” emphasizing the potential to utilize existing technologies and production capacities initially developed for the automotive industry. While acknowledging synergies, he asserted that this was not the sole motivator. “Ultimately, it’s about defense capability” he stated, indicating a broader geopolitical rationale.
Schaeffler projects a considerable revenue stream from defense activities, estimating a potential €1 billion within five years, with existing defense-related revenues currently standing at around €100 million. The company is also reportedly exploring opportunities in the burgeoning field of humanoid robotics, perceiving it as a multi-billion euro market. The timeline and specific goals for this expansion remain undefined.
The shift has drawn scrutiny regarding the potential for job displacement and the implications of redirecting resources away from civilian sectors. When questioned by the “Süddeutsche Zeitung” about further workforce reductions, Rosenfeld offered only ambiguous reassurance, stating he couldn’t provide definitive answers at present. Schaeffler currently employs approximately 83,000 people worldwide.
Alongside the ambitious transition into arms production, Rosenfeld outlined a further objective to propel Schaeffler into the top three automotive suppliers globally, a goal he acknowledges is “strict” but necessary. This expansionist ambition, coupled with the strategic move into defense, raises concerns about corporate responsibility, the blurring lines between civilian and military technology and the potential contribution of private industry to escalating geopolitical tensions. Critics are likely to scrutinize how Schaeffler balances these competing demands and the consequences for its workforce and societal impact.