Mahle expects further job cuts
Stuttgart-based auto supplier Mahle is struggling against the background of the weak automotive market. But with new products, the company aims to stay competitive. „We believe that with new thermal products and charging solutions, we can achieve significantly higher revenue per vehicle,“ CEO Arnd Franz said in an interview with Börsen-Zeitung at IAA Mobility in Munich. Vehicle components are intended to substantially increase the range of electric cars – Mahle expects this to reach up to 1,350 kilometres.
Like the entire industry, Mahle is currently facing strong headwinds. Franz does not expect conditions to improve in the foreseeable future. „We see no signs of a recovery in the European automotive market. We are forced to continue adjusting capacity,“ the CEO stated. Mahle is suffering from „lower volumes, particularly in e-mobility.“
Trend continues
From mid-2024 to mid-2025, Mahle cut around 600 jobs in Germany. The company employs roughly 10,000 people in its home market, and 68,000 worldwide. The trend of staff reductions continues, although Franz did not provide details in the interview.
The CEO cited, alongside the weak economic environment, the fact that electric vehicles contain fewer components than combustion-engine cars as a key reason for the employee trends. This naturally reduces staffing requirements in production.
For this reason, Franz considers it a mistake for the European Commission to stick to the combustion-engine ban until 2035. Like BMW CEO Oliver Zipse, he advocates greater technological openness. Franz insists on a coexistence of battery powered vehicles and cars with petrol or diesel engines. The Mahle CEO sees policymakers as responsible for sending clear signals on this at the upcoming automotive summit.
Turnover shrinks
Despite declining revenues, Franz remains optimistic about keeping the non-listed company in the black after taxes this year. „We are working to achieve net profits in 2025 as well,“ he said. Savings measures are among the steps planned to reach this goal. In 2024, the surplus shrank by 4 million euros to 22 million euros. In 2022, Mahle posted a loss of 332 million euros.
Last year, revenues fell 9% to 11.7 billion euros. In the first three months of this year, Mahle generated 2.9 billion euros – a decline of 6%. The company reduced its net loss at the start of the year by 11% to 35 million euros.
