MAHLE Group steers steady despite Covid 19 crisis

MAHLE recorded its largest volume of orders in the history of the Group. These orders ran into billions in the field of new technologies.
MAHLE Group steers steady despite Covid 19 crisis

Stuttgart

In the current coronavirus crisis, the MAHLE Group, the automobile component supplier, can rely on a sound financial position and liquidity. The company is confident to remain on track despite the global crisis due to the record-breaking orders it received.

In the 2019 financial year, the automobile component supplier intensified its strategic and technological realignment despite challenging conditions. MAHLE recorded the largest volume of orders received in the history of the Group, with orders running into the billions in the field of new technologies alone. The technology group has broad-based portfolio for the various types of drive system. Dependence on the internal combustion engine for motor vehicles has now fallen almost to the 40 per cent mark. Despite the current crisis, the company remains on track for the future and is consistently forging ahead with its efficiency improvement programs. Intensive preparations are now underway for the resumption of production at the Group’s European plants.

Dr Jörg Stratmann, CEO and Chairman, MAHLE Group, stated, “The Group has a sound financial position. This is why we can survive a crisis for a certain time. It is our entrepreneurial responsibility to consistently continue our efficiency improvement programs and to maintain our strict cost discipline. This way, we will master the crisis.”

“The coronavirus crisis is having a massive impact on our business. There was a drastic fall in sales in March and April and 2020 will be an extremely difficult year for MAHLE,” said Stratmann at the Annual Press Conference held in Stuttgart.

Following the almost complete closure of its plants throughout the world, MAHLE is now preparing intensively for the resumption of production in Europe. “We have delivery capabilities and are in a position to meet our customers’ demand. We remain a partner that is known and appreciated for its reliability,” added Stratmann.

The year 2019 of the company was characterised by a decline in markets throughout the world. The MAHLE Group was not immune to this development. However, with an adjusted fall of 3 per cent in sales to €12.0 billion, it performed better than the market as a whole, which suffered an overall decline of about 5 per cent.

Despite the economic headwind and other challenging effects such as the fundamental transformation of the automotive industry, negative geopolitical impacts, the Brexit debate and a political environment with ambitious targets, the company continued to pursue its strategy consistently last year.

In 2019, the fall in sales, the continued high investments in research and development, operational issues and high accruals for restructuring led to a consolidated net loss of about €212 million. “Despite this temporary development, we continue to forge ahead with the realignment of MAHLE,” said Stratmann.

“We are doing our homework to position our Group successfully for the future. We intend to play an active role in shaping change in our sector and to remain a successful market player and an attractive employer,” added Stratmann.

The company has clearly defined its goals for safeguarding its competitiveness; the further development of future-oriented technological fields, the improvement of productivity and profitability and the adaptation of the Group structure to the changed business environment.

MAHLE also launched IPM motors for small electric vehicles in India in January 2020. This launch was part of MAHLE's diversification in its business to cater to all segments in the industry – 2-wheelers, 3-wheelers, light vehicles, medium or heavy duty commercial vehicles and off-road vehicles. MAHLE has started increasing its footprints in the segment of e-mobility aggressively during the last years by localising mechatronics products as well as power electronics. 

(Source: MAHLE)

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