Auto supplier: Auto supplier Mahle will see a significant decline in sales in 2024

The economic downturn, the reduced demand for vehicles and the slow ramp-up of electromobility have taken a toll on the automotive supplier Mahle. According to a preliminary calculation, sales fell to 11.7 billion euros in 2024, as CEO Arnd Franz told the German Press Agency in Stuttgart. In 2023, the foundation company’s revenue was a good 12.8 billion euros. “All automobile manufacturers tried to adapt their capacities to the difficult conditions. This of course then has an impact on the suppliers.”

2024 was a very challenging year. Franz said that some of the markets had developed weaker than expected, especially in Europe and North America. Asia was not as badly affected by the decline in sales. China did not provide any growth impulses for Mahle. India and South America, on the other hand, have developed positively.

Mahle will remain profitable in 2024

According to Franz, the preliminary sales of 11.7 billion euros include around 300 million euros from business that was parted with. He did not provide any specific information about the result, but emphasized: “From today’s perspective, we will remain profitable in 2024.”

The outlook for the current year has deteriorated significantly again in the last few weeks. It is very difficult to make predictions. Demand from car manufacturers will continue to be very subdued, and the overall political climate is not making it any easier.

The supplier currently generates over 60 percent of its sales independently of the car combustion engine, as Franz reported. Like other suppliers, Mahle is also in the process of restructuring – away from combustion engines and towards electromobility. Against this background, as already known, the plants in Gaildorf (Schwäbisch Hall district) and in Mattighofen, Austria, were closed at the end of 2024. In the USA, a production facility in Charleston is scheduled to close in the first quarter of 2025. There are currently 18 plants in Germany. At the end of June, 9,990 people were employed domestically and 69,529 people worldwide.

Franz calls for a review of the ban on combustion engines in the EU

Franz said Mahle has made great progress in making its German locations more competitive. An employment guarantee applies to employees there until the end of 2025.

Regarding the strict CO2 targets in the European Union, the head of the automotive supplier said: “We need a fundamental revision of the CO2 regulation that not only takes tailpipe emissions into account, but also provides a holistic life cycle view and leaves room for hybrid drives and advanced sustainable fuels.” All technologies are necessary to reduce CO2 this decade. “Europe has to decide whether it wants to take a special path.” A ban on combustion engines will apply in the EU from 2035.