The automotive supplier Mahle is warning of potentially significant job losses across Europe if the transition away from internal combustion engines (ICE) proceeds at its current pace. Arnd Franz, Chairman of the Management Board, indicated that a potential demise of the ICE could reduce the company’s workforce in Europe and Germany by two-thirds, impacting approximately 30,000 employees in Europe, with 9,300 based in Germany.
Franz is advocating for a substantial revision of European CO2 fleet regulations. He proposes a model similar to that employed in China, where a wider range of vehicle technologies are recognized as emissions-free beyond purely battery-electric vehicles. These include plug-in hybrids, range extenders and internal combustion engines running entirely on sustainable fuels.
The Mahle executive is pressing for a united approach from the German government in its discussions with the European Commission. He cautioned against Germany’s inaction, emphasizing the need for clear strategic direction.
Mahle is facing a critical juncture, requiring immediate decisions regarding the future development of its global production network. Franz stressed the urgency of regulatory clarity, stating that without it, Europe risks repeating its current situation in just three to four years – a scenario he deemed “too late” to reverse. The company needs to determine whether to continue investing in internal combustion engine technology within Europe.
