Mahle before the crisis: Auto division fights - savings plans and job cuts!

Mahle before the crisis: Auto division fights - savings plans and job cuts!

Schwäbisch Hall, Deutschland - The Stuttgart automotive supplier Mahle is faced with considerable challenges due to a continuing economic and sunken demand for cars. As reported as FOCUS A decline of 12.8 billion euros in 2023. CEO Arnd Franz said that the automobile manufacturers have to make adjustments in view of the difficult conditions. Volkswagen in particular is planning extensive austerity measures and the closure of works in Germany. The outlook for 2024 is clouded by a weaker market development in Europe and North America, although positive developments are recorded in India and South America.

in 2024, Mahle remains profitable, including a sales of 300 million euros from a separate business. Two works in Gaildorf (Germany) and Mattighofen (Austria) have already been closed, and another production facility in Charleston (USA) is expected to close in the first quarter of 2025. Mahle operates a total of 18 works in Germany and employs around 9,990 people there and 69,529 worldwide. There is an employment guarantee for the German employees by the end of 2025. In addition, Mahle calls for a review of CO2 regulation in the EU and is in favor of a holistic life cycle view, while from 2035 a ban is planned for internal combustion engines.

simultaneous challenges for the industry

other suppliers and vehicle manufacturers are under pressure. As deloitte , the transformation within the industry includes shrinkage in the field of combustion technology and a simultaneous growth in the area of alternative. Electromobility. These developments require numerous companies to adapt their strategies. While some companies continue with the Harvest strategy, others combine them with the aim of a technology jump. Few companies pursue more radical approaches such as a quick market exit or consolidation.

The automotive industry is therefore on a critical course in which adjustments and strategic decisions become necessary to meet the shrinking demand for traditional vehicle drives and to master the challenge of electromobility.

-transmitted by West-Ost-Medien