Mahle is closing two factories in Germany and is to consult with unions

Mahle is closing two factories in Germany and is to consult with unions

Mahle is to close two German factories in Gaildorf (Baden-Württemberg) and Freiberg (Saxony), while adding there will be "adjustments to staffing levels" at other locations in the country and elsewhere in Europe.

Last week the supplier said it saw no return to pre-crisis levels "for several years," noting it had "excess global capacities of 7,600 jobs."

No jobs cut numbers have yet been unveiled, but Mahle said it will shortly be talking to unions.

"The Group sees no prospect of the two German locations in Gaildorf (Baden-Württemberg) and Freiberg (Saxony) establishing an economically viable and sustainable position in the competitive environment and their closure is therefore unavoidable," noted a Mahle statement.

"In addition, there will be adjustments to staffing levels at other locations in Germany and elsewhere in Europe. Mahle has today informed the Economic Committee of its Central Works Council as well as the European Works Council and will soon enter into consultations with the relevant local employee representatives to discuss the details of the measures.

"In addition to the Group headquarters in Stuttgart, the planned adjustments will affect the German production locations in Mühlacker/Vaihingen, Neustadt, and Rottweil as well as St. Michael in Austria, among others. With these measures, Mahle is expanding its cost reduction and restructuring programmes, which have now become even more urgent due to the economic pressures brought about by the coronavirus crisis.

"In view of the industry's sustainable transformation and the weaker development of the global markets anticipated for the coming years, the measures are aimed at repositioning Mahle structurally and technologically to secure the group's long-term competitiveness."

Europe accounts for around 3,700 jobs, of which roughly 2,000 are in Germany.