E-bikes: Brose sells e-bike drive system division to Yamaha

The automotive parts supplier Brose is selling its business with electric motors for e-bikes to Yamaha. The Japanese company with its well-known motorcycle brand is taking over Brose's Berlin-based department, including its approximately 110 employees. E-bike drives for Yamaha will continue to be manufactured there for a transitional period of up to two years.

Founded in 1908 and based in Coburg, Franconia, the family-owned company with 32,000 employees worldwide and a turnover of 7.9 billion euros in 2023 is currently undergoing restructuring. The main aim of this restructuring is a strategic realignment due to the sluggish business with seat adjusters, window regulators, doors and tailgates as a result of the poor automotive economy.

Slow business after strong growth

Business with its drives, which are available exclusively as mid-mounted motors for more than 30 brands in the e-bike sector, was also slow in mid-2014: after the boom years during the Covid pandemic, in which Brose sold its two millionth e-bike drive, consolidation is underway in the bicycle business. Brose expects a total loss of 53  million euros for the 2024 financial year. The sale offers an opportunity to streamline in order to become more agile in a changed world, says Brose.

Competition authorities still have to approve the sale to Yamaha – the transaction is expected to be finalized by the middle of the year. Yamaha "eBike Systems", a pioneer of electric bicycle drives since 1993, will then expand into the European market based on Brose's expertise and experience from just over ten years of e-bike drives. Yamaha will have to compete with high-quality e-bike mid-motor drives from Bosch, Shimano, Fazua, Bafang, SR Suntour, Panasonic and others.

The sale has nothing to do with the Würzburg site. In connection with the restructuring considerations, the closure of this production facility was repeatedly mentioned.

(fpi)