Type
Internal restructuring
Country
Spain
Region
Centro (ES); Castilla-La Mancha; Cuenca
Location of affected unit(s)
Motilla del Palancar (Cuenca, Castile-La Mancha) and Paterna (Valencia, Community of Valencia)
Sector
(10 - 33) Manufacturing
(29 - 30) Manufacture for transport equipment
29.3 - Manufacture of motor vehicle parts and accessories
29.32 - Manufacture of other parts and accessories for motor vehicles

740 jobs
Number of planned job losses
Job loss
Announcement Date
18 September 2025
Employment effect (start)
18 January 2026
Foreseen end date

Description

The German multinational Mahle, specialised in the manufacturing of car parts, has announced an employment redundancy file (ERE) that will affect 740 employees in Spain, namely 550 at its Motilla del Palancar plant in Cuenca and 190 at its Paterna facility in Valencia. The company justifies the measure on "productive and organisational grounds," citing a sharp reduction in orders from a major client that is expected to end its business relationship with Mahle by early 2026.

Trade unions have firmly rejected the move, describing it as a “disproportionate and unacceptable blow” to regional industry. It has demanded full access to documentation and announced its intention to take all necessary actions to prevent what it considers a serious industrial and social setback.

The announcement comes less than a year after Mahle was showcased as a model beneficiary of EU recovery funds to expand its workforce by 2026. CCOO has called for the intervention of public authorities to preserve employment and protect the automotive ecosystem in the region.

The company already experienced a previous restructuring process in 2022Mahle España 2022-ES, affecting 343 empleoyees


Sources

Citation

Eurofound (2025), Mahle España, Internal restructuring in Spain, factsheet number 203340, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/203340.