German machine and car parts manufacturer Schaeffler has agreed to sell its Chinese turbocharger unit to Chengdu Xiling Power Science & Technology.
The deal with the Chinese company is part of the portfolio rationalisation Schaeffler outlined at its capital markets day in September.
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The turbocharger business, which is currently organised under Vitesco Automotive Shanghai, became part of Schaeffler in 2024 with the purchase of Vitesco Technologies.
Schaeffler said Vitesco Automotive Shanghai is “in decline”, with revenue of up to €100m in 2024 and a workforce of around 50.
With the deal, Xiling aims to strengthen its standing with international vehicle manufacturers market.
To reduce customer impact, the companies have agreed measures intended to maintain supply for existing projects through the end of their production runs, lessen customer risk and operational disruption when feasible.
Schaeffler CEO Klaus Rosenfeld said: “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.
“As announced during our Capital Markets Day on September 16, 2025, further steps will follow.”
The deal is projected to finalise in the first half of 2026, pending regulatory clearance and the parties reaching a mutual accord.
The move follows other restructuring actions at Schaeffler announced last November, when the group confirmed the shutdown of two production sites in Austria and the UK.
A shift in the automotive sector toward automatic transmissions led to the closure of its clutch plant in Sheffield.
At the time, it said the production of clutches will be transferred to Schaeffler’s plants in India and Hungary, following the closure of the Sheffield facility.
