MAN eyes 2,000 job cuts in VW-led trucks revamp: sources

Wed Jun 17, 2015 12:33pm EDT
 
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By Irene Preisinger, Andreas Cremer and Alexandra Schwarz-Goerlich

MUNICH/BERLIN/VIENNA (Reuters) - Germany's MAN SE (MANG.DE: Quote) could cut as many as 2,000 jobs at its main trucks division as the Volkswagen-owned (VOWG_p.DE: Quote) company slims operations under a wider reorganization of production, company and union sources said.

Management and union officials at MAN have been in talks for months on how to reshuffle truck production to achieve planned savings of more than 600 million euros ($676 million) by 2017 to make it more efficient as parent VW pushes to become a global force in trucks.

VW, Europe's largest vehicle manufacturer, has spent billions of euros over the past decade on expanding stakes in MAN and Scania to fulfill a long-standing ambition to compete with truck market leaders Daimler (DAIGn.DE: Quote) and Volvo VOLVbST.

But it has yet to reap significant cost savings from the combination and last month aligned MAN and Swedish peer Scania in a new truck holding company.

The new strategy foresees abandoning truck production at MAN's plant in Salzgitter in northern Germany, where about 2,500 people are employed, and converting the site into a component factory, the sources said.

Assembly of heavy trucks would be concentrated at the main factory in Munich, and light and medium-sized trucks would be built in Styria, Austria, they said.

The reshuffle will entail heavy investment in MAN's truck-making facilities, company sources said, without being specific.

MAN employs 15,000 workers in Germany, almost half its 34,000-strong global labor force.   Continued...

 
Volkswagen Chief Executive Martin Winterkorn stands at the Volkswagen booth at the world's largest industrial technology fair, the Hannover Messe, in Hanover April 13, 2015.  REUTERS/Wolfgang Rattay