Schaeffler Sells Chinese Turbocharger Business to Xiling as Part of Portfolio Streamlining Strategy

Schaeffler Headquarter Herzogenaurach (Photo: Schaeffler)

(IN BRIEF) Schaeffler AG has signed an agreement to sell its Chinese turbocharger business, operating under Vitesco Automotive Shanghai Co., Ltd., to Chengdu Xiling Power Science & Technology Incorporated Company. The move is part of Schaeffler’s broader portfolio streamlining initiative following its acquisition of Vitesco Technologies. Generating around 100 million euros in revenue in 2024 and employing 50 people, the business has been in decline amid market changes. The transaction will ensure continued supply for existing projects and is expected to close in the first half of 2026, pending regulatory approvals. Schaeffler CEO Klaus Rosenfeld confirmed that additional steps to refine the company’s portfolio will follow as it focuses on long-term strategic areas.

(PRESS RELEASE) HERZOGENAURACH, 4-Nov-2025 — /EuropaWire/ — Schaeffler AG has signed an agreement to sell its declining turbocharger business in China to Chengdu Xiling Power Science & Technology Incorporated Company (“Xiling”), a leading Chinese company specializing in turbocharger technology. The divestment, which involves the business consolidated under Vitesco Automotive Shanghai Co., Ltd., represents a key step in Schaeffler’s strategic portfolio streamlining announced following its acquisition of Vitesco Technologies.

The sale reflects Schaeffler’s ongoing efforts to concentrate resources on core business areas with long-term competitiveness and growth potential. “This transaction marks an important step in our efforts to streamline our business portfolio following the acquisition of Vitesco and to focus on the areas where we can remain competitive in the long term,” said Klaus Rosenfeld, CEO of Schaeffler AG. “As announced during our Capital Markets Day on September 16, 2025, further steps will follow.”

Schaeffler took over the Chinese turbocharger operation in 2024 through its acquisition of Vitesco Technologies. The business, which reported around 100 million euros in revenue in 2024 and employed approximately 50 people as of August 2025, has faced a steady decline amid shifting market conditions and the growing transition toward electrification.

Through the acquisition, Xiling aims to enhance its technological portfolio and strengthen its presence among global automakers. Both companies have agreed on measures to ensure uninterrupted project continuity and customer supply throughout the transition period, with safeguards in place to minimize operational disruptions and risks.

The purchase agreement was formally signed today, and the transaction is expected to close in the first half of 2026, subject to regulatory approvals and mutual consent. The divestment underscores Schaeffler’s disciplined approach to portfolio optimization and its commitment to focusing on areas that support sustainable growth, innovation, and competitiveness in the evolving mobility landscape.

SOURCE: Schaeffler AG