Core Viewpoint - Schaeffler has agreed to sell its Chinese turbocharger unit to Chengdu Xiling Power Science & Technology as part of its portfolio rationalization strategy outlined during its capital markets day in September 2025 [1][3]. Group 1: Transaction Details - The turbocharger business, currently under Vitesco Automotive Shanghai, generated revenue of up to €100 million in 2024 and has a workforce of around 50 employees [2]. - The deal aims to strengthen Chengdu Xiling's position with international vehicle manufacturers while ensuring minimal disruption to existing projects and customer operations [2][3]. Group 2: Strategic Implications - Schaeffler's CEO, Klaus Rosenfeld, emphasized that this transaction is a significant step in streamlining the business portfolio post-Vitesco acquisition, with further actions expected to follow [3]. - The transaction is anticipated to finalize in the first half of 2026, subject to regulatory approval and mutual agreement between the parties [3]. Group 3: Restructuring Context - This divestment follows previous restructuring actions by Schaeffler, including the closure of two production sites in Austria and the UK, driven by a shift towards automatic transmissions in the automotive sector [4]. - The closure of the Sheffield clutch plant will result in production being transferred to Schaeffler's facilities in India and Hungary [4].