Mahle CEO threatens plant closures over combustion engine ban

Auto supplier Mahle reported slightly declining sales and earnings for 2025. CEO Arnd Franz highlighted progress in crisis management and a path to profitable growth. He warned of massive consequences if the combustion engine ban is not reversed.

In Düsseldorf, Mahle CEO Arnd Franz presented the company's figures for the past year. Sales fell from 11.68 billion euros to 11.26 billion euros, while group profit dropped nine percent to 22 million euros. Despite burdens from restructuring provisions, the firm posted black ink for the third consecutive year.

Operationally, Mahle improved: adjusted EBIT rose from 347 million to 442 million euros, and operating sales margin increased from three to 3.9 percent. "Crisis management remains the top priority," Franz said. The strategy focusing on electrification, thermal management, and combustion engines is working, with "Mahle on the way to profitable growth."

Franz sharply criticized the planned combustion engine ban. Without reversal, it threatens massive consequences including plant closures. The long-term target of a seven percent sales margin remains distant.

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Realistic illustration depicting a Porsche sports car in a rainy lot amid financial decline charts, symbolizing the company's 91% profit drop in 2025.
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Porsche reports sharp profit decline in 2025

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Sports car maker Porsche reported a 91.4 percent profit drop for 2025, reducing net profit to 310 million euros. Revenue fell by about ten percent to 36.3 billion euros, weighed down by strategic shifts, challenges in China, and US tariffs. New CEO Michael Leiters plans a company realignment.

The EU Commission has partially rolled back the planned 2035 combustion engine ban, which a study by the think tank Transport & Environment says could lead to higher CO₂ emissions and declining EV sales. The original 100 percent CO₂ reduction was softened to 90 percent, reducing the share of pure electric vehicles to 85 percent. Experts fear job losses in the German automotive industry.

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Automotive supplier Bosch posted its first loss since 2009 last fiscal year, with a net deficit of 400 million euros. Despite domestic losses, CEO Stefan Hartung looks ahead optimistically. For 2026, the company forecasts sales growth and a solid operating margin.

Sepp Müller, deputy leader of the Union parliamentary group, deems comprehensive subsidies against high fuel prices unrealistic. Eastern German CDU state premiers demand suspension of the CO₂ tax. Care associations warn of impacts on rural patient care.

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Mercedes is preparing to challenge any potential ban on its 2026 Formula 1 power unit, confident in its legality after early consultations with the FIA. Team principal Toto Wolff has dismissed rival complaints as distractions amid ongoing manufacturer meetings. The controversy centers on the team's innovative engine compression technique.

Porsche sold 60,991 vehicles worldwide in the first quarter of 2026, down 15 percent from the previous year. The company cites market weakness in China and North America, along with its own model policy errors. Hopes now rest on the fully electric Cayenne.

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A recent survey reveals that 75 percent of Germans are unlikely to buy a Tesla, despite strong interest in electric vehicles from domestic brands. Elon Musk's political positions are cited as a key factor in the brand's declining appeal. This comes amid Tesla's 27 percent sales drop in Europe last year.

 

 

 

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