Employees of Major German Auto Supplier Receive Full Bonuses Despite Revenue Decline

Mahle, a prominent German auto supplier, has recently announced that its employees will receive their full bonuses, even as the company faces a significant revenue decline. This decision follows a positive financial turnaround after four years of losses, with the firm reporting a profit in the 2023 fiscal year.

Despite the ongoing challenges within the automotive industry, Mahle managed to increase its overall results, as revealed during the balance press conference held in Stuttgart on April 15, 2025. However, the company also acknowledged the necessity for further personnel reductions amidst these economic difficulties.

With approximately 70,000 employees globally, Mahle is one of the largest automotive suppliers in Germany. The company, which historically specialized in piston manufacturing, is currently navigating the transition to electric mobility, which presents unique challenges.

CEO Arnd Franz emphasized the importance of maintaining a technology-neutral approach and advocated against a strict end to combustion engines. The firm's positive financial results have allowed it to honor the agreed-upon success-sharing scheme for its collective bargaining employees in Germany.

The bonus, which will be disbursed with the May salary, is expected to be around 1,000 euros per employee, similar to the previous year. Mahle employs around 10,000 workers in Germany.

In 2024, the company underwent significant restructuring as part of its "Mahle 2030+" strategy, reducing its board from seven to four members and consolidating its business divisions from five to three. Additionally, Mahle has divested several units, including its U.S. development services subsidiary, Mahle Powertrain, signaling its commitment to adapt to market demands.

Franz noted that Mahle has made necessary adjustments to remain profitable in a challenging market environment. However, the CEO expressed caution regarding the remainder of the year, highlighting the global economic challenges that persist.

He pointed out that the automotive sector's transformation is complicated by the lack of a commitment to technology openness in Europe, compounded by significant burdens imposed by newly enacted U.S. tariffs on imports. He criticized these trade policies, stating they do not align with the values of free and fair trade.

In the context of the evolving economic landscape, Franz is optimistic about receiving support from the new German government to stimulate the struggling economy. He acknowledged the potential in the coalition agreement for economic relief and reiterated the urgency of restoring Germany's position as a leader in industrial innovation.

As Mahle continues to navigate these complexities, its decision to reward employees amid adversity exemplifies its commitment to workforce morale and corporate responsibility.