MAHLE champions technology diversity and unveils Efficiency³ innovations while urging EU CO₂ rule overhaul

MAHLE champions technology diversity and unveils Efficiency³ innovations while urging EU CO₂ rule overhaul

(IN BRIEF) MAHLE is doubling down on “technology diversity,” arguing hybrids, range extenders and renewable fuels must complement BEVs to slash transport emissions quickly. CEO Arnd Franz urged a fast revision of EU CO₂ rules to include sustainable ICEs and climate-neutral fuels, warning MAHLE could freeze European ICE investments otherwise. The company is simultaneously driving efficiency across products and processes—restructuring globally in 200 days, running its “Back on Track 2025” programme and scaling AI. At IAA Mobility, MAHLE debuts three “Efficiency³” innovations: an 85 kW range extender (>97% generator efficiency, >42% engine efficiency), a thermal management module with a heat pump that can extend EV range by up to 20%, and a bionic radial blower 60% quieter and ~15% more efficient. Ethanol-ready engine parts deliver up to 70% lifecycle CO₂ cuts and 1.5% fuel savings, underscoring MAHLE’s multi-path decarbonisation strategy.

(PRESS RELEASE) STUTTGART, 23-Jul-2025 — /EuropaWire/ — MAHLE is reaffirming technology diversity as its guiding strategy to cut greenhouse gases fast and effectively. With the e-mobility ramp-up lagging, the company insists hybrids and range extenders must complement pure battery-electric cars—and lawmakers must allow it. At MAHLE Tech Day in Stuttgart, CEO Arnd Franz called for a rapid overhaul of European CO₂ rules to recognise sustainable combustion engines and climate-neutral fuels. “As a supplier, we need technology neutrality in legislation. So that we can make rapid progress with climate protection. So that the expertise and innovative strength of the European automotive industry can continue to flourish in Europe. So that jobs remain in Europe and Europe’s economy can recover its old strength.”

At IAA Mobility in Munich, MAHLE is unveiling solutions that speed electrification and cut CO₂ in road transport. Internally, the supplier is pushing efficiency not only in products but also across business processes to sharpen competitiveness and resilience in a volatile market.

Technology neutrality to cut CO₂ and boost Europe’s economy
“We have a clear commitment to climate protection. And to e-mobility. We are ready,” Arnd Franz told international journalists. Alongside BEV products, MAHLE is investing in hybrids and advanced range extenders—segments booming in China—to ease driver transition and extend EV range. The company plans to tap the fast-growing global market for electrified vehicles with range extenders.

Franz also spotlighted the untapped decarbonisation potential of renewable fuels. “Any plan for rapid and effective climate protection in road traffic is incomplete without renewable fuels. In addition to hydrogen, especially in the transport sector, biofuels can make an effective contribution to individual mobility,” he said. MAHLE estimates renewable fuels (bio and synthetic) must reach about 30% of road traffic energy by decade’s end to meet climate goals—and says its technologies are already ready.

Warning that Europe faces a pivotal decision, Franz added: “The revision of CO2 legislation in Europe must not be delayed. Internal combustion engines operated using climate-neutral fuels must be recognized as part of the solution.“ Without change, MAHLE may halt European investment in sustainable ICE capacity expansion.

Through its MAHLE 2030+ strategy, the group backs every drivetrain that materially advances climate protection: electrification, sustainable ICEs and cutting-edge thermal management to maximise efficiency and performance for both.

Efficiency as the transformation engine
Amid fragile supply chains and shifting trade dynamics, MAHLE is hard-wiring efficiency into everything it does. A new global structure—rolled out in just 200 days—repositioned purchasing and strengthened regional responsibility to better serve local customer needs. The “Back on Track 2025” profitability programme is running at full speed; plants are slashing energy use via shut-off management and photovoltaic thermal systems.

AI adoption is scaling rapidly. Machine learning optimises production and indirect processes, while generative AI accelerates product development. One result: a bionic radial blower for vehicle AC systems—its blade geometry inspired by a penguin’s flippers—created via “superhuman engineering” that generated over 30 million virtual designs in record time.

IAA Mobility highlights: Efficiency³ on display
Under the banner “Efficiency³”, MAHLE is showcasing three flagship innovations:

• Range extender system – A compact, resource-saving 85 kW continuous-output solution that lets EVs use smaller batteries without sacrificing long-distance capability. An 800 V, permanently excited generator with direct rotor cooling delivers >97% peak efficiency and >50 kW/l continuous power density. The boosted ICE employs MAHLE Jet Ignition, direct injection, turbocharging and Miller timing for >42% efficiency and low noise. “It is small, lightweight, easy to integrate and conserves resources – MAHLE’s range extender is a convincingly compact, efficient power pack for drive systems,” said Warth. Depending on vehicle and battery size, WLTP ranges up to 1,350 km are achievable.
• Thermal management module – A compact unit with an integrated high-efficiency heat pump that can raise EV range by up to 20% versus electric heaters. Acting as the central interface for coolant and refrigerant circuits, it keeps components at optimal temperatures under any climate while ensuring cabin comfort. Designed for R1234yf, it can switch to R290 (propane) with minimal changes, future-proofing OEM platforms. Fewer pumps (three instead of four) and a modular design reduce space, cost and development time. “The advantage of MAHLE in our competitive environment is our comprehensive components and systems expertise developed through our in-house development and production activities. This way, we can offer holistic solutions which are perfectly harmonized with each other,” said Marco Warth.
• Bionic radial blower – A European premiere for an AC blower about 4 dB (60%) quieter and ~15% more efficient than conventional units, thanks to nature-inspired blades. Suitable for passenger cars and commercial vehicles, it sets new aeroacoustic and efficiency benchmarks. “At MAHLE, we not only define efficiency as the optimum relationship between effort and results – we also breathe life into this principle with innovative solutions that conserve resources, save energy and boost the transition to sustainable mobility,” said Dr. Marco Warth.

Ethanol-ready engine components
MAHLE also proves ICEs still have room to improve with ethanol-compatible components. Lifecycle analyses show up to 70% CO₂ reduction on pure ethanol (E100). The new “power cell unit” (pistons, pins, rings) and valve sets meet ethanol’s demanding wear, corrosion and thermal needs while minimising oil consumption—cutting greenhouse gases, conserving resources and delivering up to 1.5% fuel savings.

Media Contacts:

Manuela Hoehne
Director Corporate Communications & Marketing
Phone:  +49 173 3180217

Kerstin Lau
Head of Media Relations
Tel.: +49 173 6180956

SOURCE: MAHLE