The MAHLE Annual Press Conference was held in Stuttgart, Germany, on April 15, 2025.
During the conference, Arnd Franz, chairman of the MAHLE Management Board and CEO, addressed the packed room to talk about the company's progress in 2024 and the challenges they worked to overcome. Franz cited both geopolitical tensions and economic obstacles as roadblocks in the company's sales for the year, something they had expected but not to the scale at which they were affected.
Despite these hits, MAHLE still closed out the year with a "positive result," Franz said.
"I would like to thank the entire MAHLE team most sincerely for their high level of dedication
and these achievements, which were due to intensive, concentrated work in all areas of the
company," Franz said. "May I also thank our Supervisory Board and our shareholders, the MAHLE Foundation and MABEG, for their support."
Key financial insights
CFO and member of the MAHLE Management Board Markus Kapaun presented key insights into MAHLE's 2024 financial year. MAHLE Group closed 2024 at around $13 billion, a fall in sales by 5.6 percent compared to 2023. Kapaun attributes this decline to weak markets, namely thermal management, electronics and mechanics business unit, and engine systems and components business units. Only the aftermarket business unit recorded growth at a 6.2 percent increase from 2023.
To counteract the effects of a significant fall in sales and the increase in personnel expenses due to pay increases and inflation, MAHLE implemented their "Back on Track 2025" program. MAHLE was successful in increasing its earnings before interest and tax (EBIT) compared to 2023. Its EBIT margin rose from 2.4 percent in 2023 to 3.6 percent in 2024.
Another positive insight came in the form of reduced net debt, a goal for MAHLE. Its debt ratio improved from 1.5 to 1.2. MAHLE was approved for an extension for their syndicated loan agreement. Kapaun believes the extension will offer MAHLE security and stability for the coming years.
"This positive response in a troubled economic and geopolitical environment is a clear signal that we are doing the right thing," said Kapaun. "We are on track to regain our old strength."
New innovations
In 2024, MAHLE recorded 536 inventions and filed 427 new patent applications, figures that were higher than in 2023. Around 70 percent of patent applications concerned electrification.
The focus for MAHLE in 2024 was on the development of technologies in "future-oriented" areas of electrification, thermal management, and sustainable internal combustion engines.
"We are firmly convinced that the use of renewable fuels such as hydrogen,
synthetic fuels or biofuels will ensure that the internal combustion engine must and will make
a key contribution to climate protection," Franz explained. "This potential should not be underestimated and should not be ignored in view of the fact that internal combustion engines will remain relevant for decades to come in a global context."
One new innovation Franz highlighted in his speech was the Power Cell Unite, which "ensures robust, reliable operation of internal combustion engines using hydrogen or methanol fuel."
For the passenger car sector, MAHLE launched a developmental partnership with Valeo to develop a magnet-free electric axle. In the spare parts and service area, MAHLE added products for diagnostic and maintenance services for EVs.
MAHLE was successful with electrication in electric motors for passenger cars and e-bikes and on-board charging systems. However, OEMs postponed many projects, Franz admitted.
Hydrogen engines are being trialed by MAHLE, with DEUTZ set to be a manufacturer for the production of hydrogen engines with MAHLE components.
Impact of tariffs
With the threat of U.S. import tariffs looming large, MAHLE expects to see a burden on vehicle products in Europe, Japan, and South Korea. MAHLE does not expect the commercial vehicle market to be more dynamic than in 2024.
"For us, as a globally active company committed to free and fair trade, this trade policy is difficult to understand," Franz said. "Tariffs are fatal to automotive supply chains and will result in additional cost and, in the final resort, to higher consumer prices in the USA. I appeal to politicians to negotiate sustainable solutions with a view to avoiding these burdens."
Planning for the future
MAHLE is working to position itself as a supplier of spare parts and services, no longer just filters and piston rings.
"An established product range, diagnostic solutions for passenger cars and commercial
vehicles and workshop equipment as well as electrification and digitalization competence make us a partner and service provider for workshops and dealers on the route to the future
of mobility," Franz said.
Franz pointed to fleets, connectivity, urbanization, highly-assisted vehicles, and diversified powertrain solutions as the mobility of the future. The company plans on developing digital offerings for direct links between drivers and fleet owners to their service partners.
MAHLE is planning on focusing more on its potential in non-automotive business and has already begun work in the e-bike market.
"Last year, our total sales outside the automotive sector reached $790 million," said Franz. "Over the next five years, the figure will rise to more than $1 billion."
MAHLE will be reevaluating the future viability of the company's plants, with closures possible if they are unable to achieve objectives.
"We continue to work in a focused way on our costs and our productivity and will expand our business with competitive and attractive products," said Franz. "MAHLE is committed to technological diversity and is prepared to use all the levers available for the successful orientation of the company towards the future."
