On April 15, 2026, automotive supplier Mahle warned of the severe consequences of the EU’s ban on combustion engines when presenting its annual figures. The trigger is the political mandate to phase out new combustion engine vehicles, while the supplier, despite operational progress, continues to operate in a challenging industry environment. CEO Arnd Franz sees the company on track for profitable growth, but warned of potential plant closures if the ban on combustion engines is not reversed. The decisive risk factor, therefore, lies in the regulatory-driven acceleration of the business transformation, while restructuring efforts are already impacting earnings. This would affect locations, employees, and the industrial base of the group. (handelsblatt: 15.04.26)
Mahle sees politics as a crucial lever
The company points to several challenges simultaneously, while management continues to declare crisis management its top priority. Franz said: “Crisis management remains the highest priority.” At the same time, he emphasized that the current strategy with electrification, thermal management, and combustion engines is working.
Nevertheless, Mahle directly links its warning to the political stance on phasing out combustion engines. Franz explained that the company is “on the path to profitable growth.” However, he also made it clear that without a change of course regarding the combustion engine ban, massive consequences are imminent.
Business figures show progress, but no all-clear
Operationally, the supplier increased its output last year, while revenue declined. Adjusted earnings before interest and taxes rose from €347 million to €442 million. The operating return on sales improved from three to 3.9 percent. However, the long-term target of seven percent remains further out of reach.
For 2025, the group reported a decline in revenue from €11.68 billion to approximately €11.26 billion. Net income also fell by nine percent to €22 million. Nevertheless, Mahle posted a profit for the third consecutive year, although provisions for restructuring further impacted the result.
Plant closures would signal a tougher phase
The statements from Düsseldorf therefore reveal two things. First, operations are stabilizing in some areas. Second, the restructuring remains so profound that political directives could determine investments, plants, and employment.
This is a warning sign for the industry because profitable improvements and acute threats to plant locations now exist side by side. This very contradiction makes the situation volatile, especially as the sector grapples with structural change and restructuring. Should the phase-out of combustion engines remain unchanged, Mahle’s current warning could quickly escalate into a concrete debate about plant closures.