Akwel reports reversal in 2024, further challenges ahead

Champfromier, France – Automotive and heavy-vehicle parts manufacturer Akwel has reported a decline in revenues for 2024, citing economic pressures and a slowdown in the global automotive market.

The French group posted consolidated revenue for the year of €989.0 million, a 7.3% decline compared to 2023.

At constant scope and exchange rates, the decline was 7.0%, said the company in its annual report published last month.

Akwel noted a sharp downturn in the second half of the year, particularly in the fourth quarter, when revenue fell 13.5% year-on-year to €231.2 million.

Despite a positive foreign exchange impact of €2.2 million for the year, Akwel faced challenges, particularly in France, where revenues fell 19.1% to €247.6 million.

In Europe (excluding France) and Africa, sales declined 3.3% to €292.7 million while North America saw a 2.9% drop in revenue to €287.4 million.

Asia and the Middle East (including Turkey) reported a positive development, posting a growth of just under 1% in sales to €158.4 million.

South America remained weak with overall sale of €3.0 million, down 36.1% compared to 2023.

In terms of business activities, revenues from “Products and Functions” division dropped 8.4% to €945.6 million, with all product lines experiencing declines.

Sales across Akwel's “cooling” and ‘air intake’ product lines remained relatively stable, with declines of 1.3% and 2.6% respectively.

However, the “decontamination” product line suffered a 24.4% year-on-year decrease due to the planned phase-out of 'SCR tank' production in 2025.

On a more positve note, the Champfromier-based group’s tooling division reported an 18.5% increase in revenues to €31.6 million.

Looking ahead, Akwel said it expected a further decline in business activity during 2025, comparable to the downturn seen in 2024.

In particular, it said the automotive industry was “still weakened by the economic situation” and uncertainty surrounding the development of electric, hybrid, and internal combustion engines.