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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