Dometic, a global leader in mobile living solutions, has announced a comprehensive restructuring program aimed at enhancing profitability and reallocating resources toward strategic growth areas. This initiative reflects the Swedish company’s response to shifting market dynamics and macroeconomic challenges, including high interest rates and changing consumer behaviors.
As part of the program, Dometic plans to discontinue or divest low-margin and non-strategic product lines. These include large compressor refrigerators for recreational vehicles, certain hot & cooking and window products in the Land Vehicles Americas segment, and selected camping equipment in the Land Vehicles EMEA segment. Additionally, the generator category in the Global Ventures segment is slated for discontinuation. Initial discussions with potential buyers for certain assets are already underway. The Land Vehicles segments (split into Americas, EMEA and APAC) include product solutions for the RV (recreational vehicles) and CPV (commercial & passenger vehicles) industries – both OEM and service & aftermarket business – as well as other outdoor standalone products, like tents and cooking products for land-based outdoor activities.
The restructuring involves significant cost-cutting measures, including closing two manufacturing sites and five distribution centers and streamlining resources in manufacturing, supply, and support functions. Approximately 500 employees will be affected. These changes are projected to deliver an annual Ebita improvement of SEK 750 million (€65.1m) by 2027, with full implementation expected within 24 months. “This initiative strengthens our capacity to innovate and invest in high-growth areas while addressing current market conditions,” commented Dometic’s CEO, Juan Vargues, highlighting the program’s role in securing long-term profitability.
Despite the challenges, Dometic remains optimistic about long-term trends in mobile living, citing increasing consumer interest in outdoor experiences. The company aims for a 14-percent Ebita margin by 2027, supported by operational excellence and strategic investments.
