Arnd Franz, CEO of Mahle, the German car parts manufacturer, has criticized Europe’s recent shift away from the internal combustion engine, calling it a “mistake.” Despite this stance, he emphasized the urgent need to accelerate the reduction of CO2 emissions.

Speaking at a recent roundtable event, Mr Franz pointed out that Europe’s regulatory changes have had significant repercussions on development and engineering education. Proposed European regulations are set to effectively phase out internal combustion engines by 2035, marking an end to the sale of new cars powered by ICE.

Mahle, known for manufacturing critical engine components such as pistons, cylinders, and camshafts, intends to continue meeting existing customer demand for internal combustion engine parts. “We have numerous customers committed to using combustion-engine technology for the foreseeable future,” Mr Franz affirmed.

However, the CEO also acknowledged the significant potential of battery-electric vehicles, describing them as “a great opportunity.”

Mr Franz predicts that by the middle of the next decade, electrification will become the dominant technology in certain regions, including North America and Asia, despite challenges such as the availability of green power and the residual costs after several years of use.

Mr Franz suggested that plug-in hybrids will be reevaluated in the future as a viable method for reducing CO2 emissions. However, he emphasized that these new models will differ significantly from those of the past.

In 2023, over 60 percent of Mahle’s sales came from products not directly related to internal combustion engines.

Mahle has restructured itself into three primary divisions: electrification, thermal management, and sustainable combustion engines, aligning with its strategic plan for 2030.