MAHLE accelerates restructuring – thousands of jobs lost
The current crisis related to the spread of the coronavirus intensifies urgency to act as the company does not expect the vehicle markets to return to pre-crisis levels for several years.
MAHLE is therefore accelerating the restructuring of the group. Last year, the company had already initiated cost-saving and restructuring programs against the background of technological shift in the automotive industry and a challenging market environment. The major slowdown in the international markets and low customer demand because of the coronavirus pandemic have yet again significantly increased the urgency to take action. The company says it does not expect the vehicle markets to return to pre-crisis levels for several years. At the same time, it remains essential to drive forward the technological transformation. MAHLE has therefore evaluated its business units, regions, and locations and says it has identified global excess capacities of 7’600 jobs. The group will now initiate discussions with relevant employee representatives. “We’re currently facing a crisis, the like of which we’ve never experienced before,” says Dr. Jörg Stratmann, Chairman of the MAHLE Management Board and CEO, in the press release. “Despite the economic challenges that this entails, we must continue to drive forward and invest in our future topics as part of the transformation so that we remain competitive with the right know-how and product range. So it’s now particularly important that we maintain our efforts to reduce costs consistently and focus even further on our strategic goals. The capacity adjustments already implemented are not sufficient,” Stratmann continues. Of the globally identified excess capacities, Europe accounts for around 3’700 jobs, of which roughly 2’000 are in Germany.