The truck manufacturer MAN had announced a “significant” job reduction. Now the company is putting numbers on the table.
Volkswagen wants to cut up to 9,500 jobs at its truck and bus subsidiary MAN in Germany and Austria, thereby saving billions. The Munich subsidiary from the commercial vehicle holding Traton announced on Friday that earnings will improve by 1.8 billion euros by 2023. Jobs are to be cut in all areas, and the managers want to relocate production and development to other locations. The production site in Steyr, Austria, and the plants in Plauen (Saxony) and Wittlich (Rhineland-Palatinate) could be closed completely.
Major job cuts have been under discussion at MAN for a long time because the group’s costs were too high even before the Corona crisis. Most recently, up to 6000 jobs were mentioned in media reports. There had been a violent dispute between the former VW commercial vehicle board member and Traton boss Andreas Renschler and the employee side about the procedure. Renschler had to vacate his positions at VW at the beginning of July, Traton and MAN got new bosses.
For the conversion, MAN estimates costs in the mid to upper three-digit million range. Negotiations with the employee representatives are now to be started as soon as possible. “The intended realignment will require a fundamental restructuring of the Man Truck & Bus business in all areas, including a realignment of the development and production network as well as significant job cuts,” the press release said. “In this context, some development and production processes are planned to be relocated to other locations.”
Together with the Swedish truck manufacturer Scania, MAN is part of the Volkswagen Group. The industry is also under pressure due to the sharp drop in demand for trucks around the world. In Europe, MAN was expecting a decline of 10 to 20 percent this year even before the corona pandemic.