Georg Schaeffler: A Billionaire's Journey from Bearings to
Automotive Empire
Biography of Georg Schaeffler:
Georg Friedrich Wilhelm Schaeffler, born on October 19,
1964, is a German billionaire businessman. He holds 80% ownership of the
holding company INA Holding Schaeffler GmbH & Co. KG, which encompasses
Schaeffler AG. The remaining 20% is owned by his mother, Maria-Elisabeth
Schaeffler. Their wealth originated from Georg Schaeffler, Schaeffler's father,
who passed away in 1996. Schaeffler serves as the chairman of the supervisory
board of Schaeffler Group and also holds a position on the supervisory board of
Continental AG. As of May 2023, Forbes ranked Schaeffler as the 171st richest
person globally, with a net worth of $10.2 billion and his net worth slightly
declined to of $ 9.9 billion till April, 2024.
Georg Schaeffler's Background
Georg Schaeffler was born in Erlangen, Germany. He studied
business and economics at the University of St. Gallen in Switzerland from 1986
to 1990. Following his studies, he joined the Schaeffler Group and worked there
until 1996.
Further Education and Career Expansion
After his initial stint with the Schaeffler Group,
Schaeffler pursued further education. He earned a law degree and a master's
degree from Duke University. Following his education, he practiced
international business law in Dallas, Texas.
Georg Schaeffler's Role in Schaeffler Group
Georg Schaeffler, along with his mother Maria-Elisabeth,
holds ownership of Schaeffler Group, a prominent global producer of ball
bearings and machine components. Following the passing of his father Wilhelm,
who co-founded the firm in 1946, Maria-Elisabeth took over its leadership. In
2009, Georg joined his mother in managing the company's affairs.
Military Service
In addition to his educational and professional pursuits,
Schaeffler also served in the German armed forces. He spent two years in the
air force reserves, attaining the rank of lieutenant.
Professional Journey:
Following his graduation, Georg gained valuable experience
by working for his father's company both in Germany and the United States for
six years. He later pursued further education and obtained degrees in
international and comparative law from Duke University in 2000. Subsequently,
Georg transitioned to a career in corporate law, working as a lawyer for the
Dallas-based firm Haynes & Boone. However, his familial ties eventually
drew him back to the family business in 2006.
Schaeffler's Company Expansion
Georg Schaeffler has led significant expansions of the company over the years. In 1999, he acquired the German automotive manufacturer LuK GmbH, followed by the acquisition of the German ball bearings producer FAG Kugelfischer in 2002. These strategic moves expanded the company's presence and capabilities in the automotive and industrial sectors
Acquisition of Continental AG
In 2008, Schaeffler made a substantial investment of $15
billion to acquire Continental AG, a global auto parts giant and one of the
largest tire manufacturers worldwide. This acquisition marked a significant
milestone for the newly founded Schaeffler Group, further solidifying its position
in the automotive industry.
Global Presence and Workforce
The Schaeffler Group, under Georg Schaeffler's leadership,
has established a formidable global presence. With operations spanning 170
locations in 49 countries, the company employs over 80,000 people worldwide.
This expansive network enables the Schaeffler Group to serve customers across
diverse markets and regions, driving continued growth and success.
Georg Schaeffler: A Billionaire's Journey from Bearings to Automotive Empire / Biography of Georg Schaeffler:
IRS Audit and Resolution
In 2012, the US Internal Revenue Service (IRS) initiated a
contentious audit of Schaeffler, ultimately claiming that he owed approximately
$1.2 billion in unpaid taxes and penalties. However, after seven years of
rigorous bureaucratic proceedings, the IRS abandoned its pursuit and accepted a
settlement of "tens of millions." This resolution marked the end of a
prolonged legal battle between Schaeffler and the IRS.
Georg Schaeffler's Wealth and Ranking
Georg Schaeffler's Financial Standing: According to Forbes,
Georg Schaeffler possesses a significant net worth of US$20.1 billion. In March
2020, he secured the #96 spot on Forbes' list of global billionaires and ranked
#4 among Germany's wealthiest individuals. When combined with his mother,
Maria-Elisabeth Schaeffler, their total wealth amounts to an estimated US$34
billion.
Wealth Contribution from Continental AG
The combined 46% stake owned by Georg and Maria-Elisabeth
Schaeffler in Continental AG serves as the primary source of their wealth. This
substantial investment in Continental AG accounts for the majority of their
financial holdings.
Georg Schaeffler's Leadership and Holdings
Georg Schaeffler holds the position of chairman and serves
as the majority owner of Schaeffler AG, a renowned manufacturer specializing in
ball bearings and automotive supplies. Headquartered in Herzogenaurach,
Germany, the company boasted a workforce exceeding 85,000 employees and
achieved a revenue of 16.3 billion euros (approximately $17.6 billion) in 2023.
In addition to his role at Schaeffler AG, Georg Schaeffler
exercises control over nearly 37% of Continental, a prominent auto parts
manufacturer. This significant ownership stake underscores his influence and
presence within the automotive industry.
Georg Schaeffler, in addition to his extensive business
ventures, serves as a member of the Central Advisory Board of Commerzbank, a
prominent financial institution in Germany. His involvement in the banking
sector reflects his diversified interests and contributions to various facets
of the economy.
Additional Involvements
Beyond his role in the business realm, Georg Schaeffler is
also engaged in other activities. He serves as a member of the Central Advisory
Board at Commerzbank, further extending his influence and involvement beyond
his primary business ventures.
Personal Life
Georg Schaeffler's personal life reveals a divorced status
and four children. He resides in Herzogenaurach and maintains regular visits to
the United States throughout the year, indicating his global presence and
interests beyond his home country. He was previously married to Bernadette
Muehlen but is now divorced. His personal and professional journey reflects a
blend of strategic leadership, entrepreneurial vision, and resilience in the
face of adversity.
Georg Schaeffler's Key Milestones
- 1964: Born in Erlangen, Germany, to Maria-Elisabeth and Georg Schaeffler Sr., laying the foundation for his future endeavors.
- 1985: After completing high school, Georg serves as a lieutenant in Germany's Air Force reserves, gaining valuable experience and skills.
- 1990: Georg graduates from the University of St. Gallen in Switzerland, marking a significant educational achievement.
- 1996: Following the passing of his father, Georg inherits 80 percent ownership of the family company, assuming a leadership role in its management and operations.
- 1999: Georg graduates from Duke University's School of Law, further expanding his knowledge and expertise in legal matters.
- 2006: Georg joins the law firm Haynes and Boone, where he works as an economic attorney, utilizing his legal background to contribute to the firm's success.
- 2008: Georg orchestrates a successful hostile takeover of Continental, a pivotal move that reshapes the landscape of the automotive industry.
- 2015: Georg engineers the initial public offering (IPO) of Schaeffler AG, a strategic decision aimed at reducing debt and further strengthening the company's financial position.
