Mahle Diversifies to Counter Small-Engine Trend

Switching to engines with fewer cylinders can help carmakers meet fuel economy goals. But it's not a welcome trend for a parts suppliers like Mahle Group, which controls 30% of the global market for automotive pistons.

That's why the Stuttgart, Germany-based company is pushing to diversify its components business. Mahle says it is increasingly focused on expanding its portfolio of high-tech solutions to boost fuel efficiency.

The company is developing a new ignition system for lean-burn combustion. The technology can be retrofitted to existing engine designs and has the potential to increase fuel efficiency by about 20%, according to Mahle.

The company is working with Robert Bosch GmbH to develop turbochargers for downsized engines. Separately, Mahle and Behr GmbH, in which it holds a 37% stake, have developed an innovative indirect charge-air cooler for turbocharged engines that integrates an intercooler into the intake manifold.

Mahle aims to acquire a majority stake in Behr next year under an agreement signed with the thermal systems supplier in 2010. The plan has been stalled since summer, when the European Commission launched an antitrust analysis.