Schaeffler just getting started on Japan growth

German supplier wants to double sales, tech center staff

Nearly a year after opening a new r&d center in Japan, German transmission and engine-parts supplier Schaeffler Technologies AG already is aiming to expand its footprint here and double sales to Japanese carmakers by 2025.

The plan targets sales of around 2.6 billion euros ($2.9 billion) to Japanese automakers worldwide in that time frame, said Shinzo Yotsumoto, CEO of its local unit Schaeffler Japan Co.

The company also wants to double the size of its tech center work force in Japan to around 500 people by 2020, Yotsumoto said.

The ramp-up will focus mostly on engineering, project management and testing. The company also is looking to hire more software engineers for electrified drivetrain work.

Big opportunities

Schaeffler opened a six-floor r&d center in Yokohama, just south of Tokyo, last May to support its sales push to Japanese automakers. The company's biggest customer for deliveries in Japan is Mazda Motor Corp., while its top Japanese customer on a global basis is Honda Motor Co.

Schaeffler makes valve lifters for Mazda's line of Skyactiv engines. It makes dual-clutch transmissions for the Honda Fit Hybrid and the Acura RLX sedan and NSX sports car.

It also makes chains for some continuously variable transmissions supplied to Nissan Motor Co. by Japanese parts maker Jatco.

Schaeffler sees sales growing as Japan's carmakers update drivetrains to meet increasingly stringent fuel economy rules.

Big opportunities will come in supplying more sophisticated engine valve technology to enable more precise fuel and air management, Yotsumoto said. Other promising areas include stop-start systems and new anti-vibration technologies.

Quicker analysis

As automakers move to more efficient, downsized engines, they need more shock-absorbent engine mounts because downsized engines typically generate more vibration, he said.

"More fuel-efficient, low-emissions engines are necessary," Yotsumoto said.

"Those are new business opportunities Schaeffler is pursuing with Japanese OEMs."

Schaeffler's new tech center improved the supplier's ability to manage parts projects for Japanese automakers.

For example, the company now can receive parts from automakers and modify them without having to send the components to Germany for testing. This can shave the time needed for parts analysis to a matter of weeks instead of months.