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Mahle to Shut Bavarian Climate-Systems Plant, Putting 350 Jobs at Risk

The company cites cost pressure, lost orders, weaker demand.

Overview

  • Mahle, which announced the decision Tuesday, will wind down production in Neustadt an der Donau from late 2026 and close the site in the first half of 2027.
  • About 350 people face job losses at the plant, which has built climate systems for premium cars since 1987.
  • The supplier says expiring customer contracts, a softer market, and price pressure from Asian rivals in Europe make continued operation uneconomic.
  • IG Metall staged a 24-hour warning strike with roughly 300 workers and warned of an open-ended strike if management sticks to the closure plan.
  • Management says it is negotiating social measures for affected staff, as the move follows 2025 results that slipped slightly and earlier cuts to administrative roles worldwide.