Webasto is in advanced negotiations with two strategic investors over the sale of its global high-voltage battery systems business, with a transaction potentially concluding before the end of 2026. The divestment would provide additional financial flexibility for the German automotive supplier as it continues efforts to reduce debt and stabilise its operations.
According to reports by Handelsblatt and Automobilwoche, citing senior company representatives at Webasto’s 125th anniversary celebrations, CEO Jörg Buchheim said both prospective buyers are interested in acquiring the entire division. The company had previously considered several options, including partnerships and a partial sale, but the discussions have now focused on a complete takeover.
Battery Business Attracts Strategic Buyers
Webasto entered the battery systems and charging technology markets nearly a decade ago, investing substantially in these areas as part of its expansion beyond its traditional automotive roof systems business.
Webasto Introduces Cool Top 120-e Electric Rooftop Air Conditioning System
The company began producing battery packs in Germany in 2019 at its Schierling facility. It subsequently established another battery assembly plant in Dangjin, South Korea, which opened around 2022 and was expanded in 2024.
The expansion was supported by orders from Hyundai-Kia for battery systems used in several high-volume electric passenger car models. The South Korean automotive group remains Webasto’s main customer in the battery business.
The division generated approximately €300 million in revenue in 2025. According to Webasto, it has recorded average annual growth of around 25%, while demand currently exceeds available production capacity.
However, expanding output requires substantial capital. Automobilwoche reported that additional production capacity can require investments of up to €100 million, highlighting the financial challenge facing Webasto as it seeks to grow the business.
Potential Sale Could Reduce Financing Pressure
Buchheim described the battery business as commercially attractive but acknowledged its considerable investment requirements. Both prospective buyers reportedly have sufficient financial resources, industrialisation expertise and access to applications beyond the automotive sector.
The division is currently loss-making, although its business plan anticipates a return to profitability in 2027. Selling the operation would mean giving up a growing business area, but it would also transfer future capacity investments to a new owner and potentially generate funds for debt repayment.
Webasto has not disclosed a potential transaction value.
Speaking to Automobilwoche, Buchheim said:
“We do not need to make distress sales.”
He added that the company’s restructuring remains fully financed even without asset disposals, describing potential transactions as an additional benefit. Webasto also said its available liquidity is above the assumptions set out in the restructuring expert report published in October 2025.
Debt Reduction Remains a Priority
Webasto’s financial difficulties stem partly from an expansion strategy pursued after the turn of the millennium, when the company invested in several new business areas. However, revenue growth did not develop sufficiently to recover those investments, leaving the supplier with approximately €1.5 billion in debt.
The financial pressure led Webasto to reach an agreement with its banks last year, involving an extension of existing loans and additional borrowing.
Handelsblatt reported:
“The owner families Baier and Mey had to temporarily relinquish control over the majority of shares. 2,000 jobs were cut.”
According to Chief Restructuring Officer Johann Stohner, no additional job cuts are currently planned. Nevertheless, the company intends to continue reducing its workforce over the longer term as part of its restructuring programme.
Stohner said the objective is to bring Webasto’s debt below €1 billion through a combination of measures.
Electric Heating Business Also Under Review
Alongside the battery division, Webasto is seeking new ownership or partnership arrangements for selected activities in its electric high-voltage heating business.
The operation generates approximately €50 million in revenue, according to Automobilwoche. The publication reported that Webasto is looking for a strategic partner capable of integrating the technology into a broader system and expanding its industrial scale.
The move reflects growing cost pressure in the electric vehicle market. Webasto has invested in high-performance heating technology, but manufacturers are increasingly looking for more affordable solutions.
Further development of the technology would require additional industrialisation investment, potentially placing another demand on the supplier’s limited financial resources.
The potential sale of the battery systems division and the search for partners in electric heating form part of Webasto’s wider effort to streamline its business portfolio, reduce capital requirements and restore financial stability.