Freudenberg Sealing Technologies CEO: Suppliers Must Transform to Survive in Era of New Mobility

New Organization, New Players

In 2017, Freudenberg Sealing Technologies cemented its growing commitment to alternate powertrain technologies by establishing a dedicated e-mobility sales and marketing organization, Moehlenkamp told his MBS audience. The organization is responsible for building product and service opportunities and trust with existing and new customers working in the electric powertrain arena.

By analyzing the quickly evolving technology requirements of e-mobility vehicle manufacturers, the company has already expanded its product portfolio to include unique sealing solutions that address thermal management, higher safety standards, electrical transfer, electromagnetic shielding and a longer service life, among other trends.

Company analysis also revealed that growing e-mobility and fuel cell opportunities existed outside of the traditional automotive applications. To capitalize on these opportunities, Freudenberg Sealing Technologies has taken bold steps, Moehlenkamp said, including the formation of a new division that is anchored by two recent acquisitions.

The company’s new Battery and Fuel Cell Division will pursue e-mobility and fuel cell opportunities in the commercial truck and bus, marine and energy industries, among others, Moehlenkamp revealed. In support of this work, Freudenberg Sealing Technologies has acquired the Munich, Germany-based fuel cell system manufacturer Elcore, and a significant interest in Midland, Mich., U.S.-based XALT Energy, a renowned developer and manufacturer of lithium-ion battery cells, power electronics and battery management systems.

“Elcore and XALT are crucial to our strategy of strengthening our current portfolio, investing in electrified technologies and building our business with strategic merger and acquisition opportunities,” Moehlenkamp said. “With the additions, we have grown our expertise and module capabilities in lithium-ion battery and fuel cell systems.

“We will continue to consider merger and acquisition opportunities that support this strategy and help our company grow and capture market share,” the CEO added.

The addition of Elcore and XALT bring new research and development and manufacturing facilities, as well as people, to Freudenberg Sealing Technologies. The companies also bring additional important industry partners like ABB in the marine and New Flyer in the electric bus and Bosch in the stationary energy industries to the relationship.

Technology Transfer: Tapping Freudenberg’s Strength

All of these strategic initiatives – reinvesting in core competencies, internal reorganization, new partnerships and new markets – will help Freudenberg Sealing Technologies weather current disruption in the automotive industry and grow even stronger in the future, Moehlenkamp said. A final element – tapping into the remarkable technology resources available across the entire Freudenberg organization – will play a crucial role in helping Freudenberg Sealing Technologies move new innovations in e-mobility and fuel cells to market faster, more efficiently and more effectively, he said.

Freudenberg Sealing Technologies is already leveraging research and material developments pioneered by other Freudenberg sister companies including Freudenberg Filtration, Freudenberg Performance Materials, Freudenberg Medical and Vibracoustic, Moehlenkamp said. With the automotive industry’s evolution to alternate powertrain systems, more opportunities to apply existing technologies to novel challenges will likely emerge.

“Our strength as a collective global industrial organization is instrumental to our future,” Moehlenkamp said. “Our founding business principles, our family legacy, our ability to tap the knowledge and expertise of 48,000 employees located in 60 countries, are remarkable strategic advantages that bode well for our long-term sustainability and success.”