Mahle to sell engineering services business

Automotive supplier Mahle plans to sell its Mahle Powertrain (MPT) US engineering services business to the Dumarey Group. Both parties signed a contract to this effect at the end of 2024. The transaction includes the MPT facilities in Plymouth, Mich., that provides testing and engineering services to U.S. customers. Closing is expected in Q1 of 2025. Terms were not disclosed.

Mahle has sold its Plymouth, Mich.-based engineering firm. (Photo: Mahle)

With around 70 employees at the present time, Mahle Powertrain is the engineering services subsidiary of the Mahle Group that provides engineering and consultancy services for the design, testing, development, calibration and integration of electrified powertrain systems and hybridized internal combustion engines.

The decision to sell the U.S. branch is a result of an ongoing review of the long-term strategic positioning of Mahle. The engineering services market in the U.S. is highly competitive with consolidation of the business to be expected, said the company, and eue to the small size and small market share of MPT USA, it said it sees bigger opportunities for the future growth of this business outside the group.

“With the Dumarey Group we have found a buyer with a strong U.S. focus and corresponding dedicated growth strategy for this market that will be able to lead the business outside the Mahle Group into a successful future,” said Dr. Marco Warth, vice president of Mahle Corporate Research and Advanced Engineering.

The Dumarey Group (formerly known as Punch Group) is a Belgium-based supplier for the development, integration and manufacture of powertrain solutions for a range of mobile equipment.

“Acquiring Mahle Powertrain USA marks a significant milestone in our strategy and reaffirms our long-standing connection with the United States,” said Pierpaolo Antonioli, Chief Technology Officer (CTO) of Dumarey Group. “This step strengthens our commitment to growth, innovation, and delivering exceptional value to our customers, while honoring the deep heritage and shared cooperation with U.S. companies over the years.”

Dumarey Group said strategy post-acquisition will focus on establishing a footprint for engineering and testing in the U.S. Additionally, it said it plans to expand its customer base there by focusing on medium- and heavy-duty segments, leveraging MPT’s complementary customer portfolio in the U.S. to drive growth.

Mahle generated sales of almost EUR 13 billion in 2023. With more than 72,000 people at 148 production locations and 11 technology centers, the company is represented in 29 countries.

The Mahle Powertrain branches and their locations outside the U.S. are not part of the sale and will continue their business from five dedicated facilities in the United Kingdom, Germany and China, fully integrated in the Mahle Group’s R&D network.