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
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
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.
MAHLE 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.