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German supplier MAHLE lays off 7,600 employees worldwide

    On September 16, German automotive supplier Mahle stated that it is seeking to lay off 7,600 people worldwide, with the aim of accelerating restructuring actions in response to the industry recession brought about by the epidemic.
    Due to technological changes in the automotive industry and challenges facing the market environment, MAHLE started a comprehensive cost reduction and restructuring project last year. Now affected by the epidemic, the international auto market is sluggish and consumer demand continues to fall, which once again greatly increases the urgency of taking action.
    Therefore, MAHLE has comprehensively evaluated its business units and regions and identified 7,600 redundant jobs worldwide, of which approximately 3,700 jobs have been laid off in Europe and approximately 2,000 are located in Germany. According to data from the Automotive News Data Center, the North American market contributes about 28% of the company’s annual operating income. It is not clear how many positions will be abolished in the region. The board of directors will soon negotiate with labor representatives on these “redundant” positions and seek feasible adjustment measures.
    Joerg Stratmann, Chairman of the MAHLE Board of Directors, said: “At present, we are facing an unprecedented crisis. Despite the economic recession, as part of the transformation, we must continue to promote and invest in the main areas of the future, with the right technology and product series. In order to maintain market competitiveness. Therefore, it is very important to continue to reduce costs and strive to further achieve strategic goals. The current production capacity adjustments made by the company are not enough.” He added that the auto market will not return to pre-epidemic levels in recent years .
    MAHLE produces various components such as piston systems, cylinders, valves, air and liquid management systems, as well as starters, alternators and power electronics. In 2019, the company’s global automotive business sales were US$12 billion, ranking 20th in the Automotive News Global Top 100 Parts Suppliers list. The company employs 77,000 people in more than 30 countries.