The economic strain on Germany’s automotive industry continues to grow, and now Mahle — one of the country’s most established car parts suppliers — is responding with a significant workforce reduction. According to company leadership, around 1,000 administrative and development positions will be eliminated worldwide in 2024 and beyond, with Stuttgart set to feel the strongest impact.
Cost-cutting targets research and administration roles
CEO Arnd Franz said the company must adapt its internal capacity to match market conditions. In an interview with local media in Stuttgart, he explained that restructuring in “indirect areas” such as administration and research & development is necessary to secure the company’s financial stability.
Mahle is pursuing €150 million in additional annual savings, beginning next year. Roughly two-thirds of those savings are expected to come from staffing costs — equivalent to around 1,000 jobs globally.
Germany accounts for roughly half of the planned reductions, with Stuttgart carrying the largest share. The group intends to rely primarily on voluntary severance and early retirement programmes — a common tool in German industrial restructuring.
Why Mahle is restructuring — global pressure and technology change
Mahle’s core expertise lies in components for internal combustion engines, including pistons and cylinder systems. While the company has expanded into electric mobility and alternative drives, engine-related business remains a fundamental revenue pillar — one now under heavy pressure.
Several challenges are converging:
- Declining global demand for combustion vehicles
- Increased competition from Chinese suppliers
- Costs rising due to US and EU trade policies
Slower-than-expected recovery in the European car market
Mahle already cut around 600 jobs in Germany earlier this year following a drop in revenue. The company employed approximately 10,000 people in Germany at the end of last year and over 67,000 worldwide.
A sign of the wider crisis in Germany’s auto supply chain
Germany’s automotive ecosystem — long a backbone of the country’s economy — is undergoing a profound transformation. Suppliers who historically relied on combustion technology must now invest heavily in electrification, software and new systems. Yet those investments coincide with tighter budgets, geopolitical uncertainties and unpredictable consumer demand.
The adjustments at Mahle reinforce a trend already seen at multiple suppliers: restructuring will likely continue as long as the shift toward electric mobility disrupts existing business models.
Outlook: adaptation remains crucial
Despite the job cuts, Mahle emphasises that it will pursue innovation and remain an essential partner to global vehicle manufacturers. However, analysts warn that such restructuring highlights the magnitude of the automotive transition — and the risks for employees in regions heavily dependent on the industry, particularly in Baden-Württemberg.
As Mahle reshapes its workforce and portfolio, the success of its transformation may become a barometer for how well Germany’s traditional automotive supply sector can maintain its global leadership in a changing market.
