A big surprise in the ebike industry. Brose is ending its business as a manufacturer of ebike drives. The parent company Brose SE wants to sell the ebike division of Brose Antriebstechnik GmbH und Co. Kommanditgesellschaft, based in Berlin, to Yamaha Motor Co., Ltd. There, the Yamaha subsidiary Motor eBike Systems is to take over this segment.
Slow sales in Brose’s core business
As early as the weekend, the media in the region around Brose’s headquarters in the Franconian town of Coburg reported on the impending takeover. Both Brose and Yamaha have since confirmed the plans in their own communications. In line with large parts of the automotive industry, Brose is currently under considerable economic pressure. The company is suffering from the weak economy, with production sites not working at full capacity. In October 2024, Brose’s Chairman of the Board of Directors Michael Stoschek announced that almost 1,000 employees would be laid off – mainly in administration.
At the same time, the ebike business has also seen better days. Stefan Krug, Chief Executive Officer (CEO) at Brose SE, told the German newspaper Süddeutsche Zeitung that the company wants to use the sale to correct past homemade mistakes and to work more efficiently and effectively again. He said it is about a strategic realignment that clearly focuses on the core business areas in automobiles and motorised two-wheelers.
Yamaha with a confident forecast for ebikes
While Brose wants to get rid of the production of ebike systems that it started in 2014, Yamaha considers the sector to be a long-term growth market. As a strategically important building block, it is part of a medium-term management plan that will run until 2027. The market giant wants to implement the project with its subsidiary Yamaha Motor eBike Systems (YMESG), which was only founded in March 2025. According to Yamaha, the company is scheduled to start operations in Berlin in June. Brose and Yamaha have agreed that YMESG can use Brose’s existing development resources to plan and design its own new products.
Yamaha also announced its intention to establish its own development base in Europe. This would enable the company ‘to recognise market requirements more quickly, respond flexibly to local customer requests and win new customers’. The Japanese company is also interested in Brose’s service network. With more than 600 locations, it offers excellent conditions for providing comprehensive support to ebike riders even after they have purchased their ebike.
Presumably large parts of the Brose team can stay in Berlin
According to the Süddeutsche Zeitung, Yamaha intends to take over all employees of Brose Antriebstechnik GmbH und Co. Kommanditgesellschaft involved in development. The employees involved in the production of the ebike motors are not affected by the sale. In addition, an agreement continues to apply under which Brose will continue to produce drives for Yamaha on a transitional basis for a maximum of two years. The industry magazine Velobiz also reports that Yamaha wants to actively involve Brose’s existing management team in Berlin in the further development and operational management. In view of such commitments, Raymond Mutz, CEO Drives Brose Group, considers the future of the site there to be quite positive. ‘We are convinced that Yamaha offers the best conditions to successfully develop the business further.’
No information is available as to what price Yamaha and Brose have agreed on for the purchase. The Süddeutsche Zeitung has apparently at least learned that the necessary papers were signed on 27 March. The employees at Brose would then have been informed on 28 March. The takeover is not yet legally binding. The supervisory authorities still have to give their approval in the coming weeks. Yamaha hopes that this could be done by the middle of the year. YMESG is then scheduled to start operations in June 2025.
As things stand at present, the company could start in Berlin with a workforce of around 120 employees. It will cover the development, production and sale of ebike systems.
Pictures: Brose SE; Yamaha Motor Co., Ltd