Europe: truck maker MAN SE cuts work hours for 4,000 employees image

Europe’s third largest heavy truck maker announced it would begin scaling back truck production output by decreasing work hours for as many as 4, 000 workers as the region’s demand in key markets has been dropping.

Anders Nielsen, head of MAN’s commercial-vehicle unit, commented during a press conference in Hanover, Germany that industrywide sales across Europe are forecasted to slump no less than 15% this year. Man was also hit by a “difficult” period in Brazil and the heavy trucks maker has decided to scale back production at assembly facilities in Germany and Austria from October.

“We’re fighting for our business and are keeping market share” in Europe, Nielsen said.

“The Russian market has always been heavily volatile,” says Roman Mathyssek, a Munich-based analyst at consulting company Strategy Engineers GmbH. “Once the situation calms down, the market will probably recover quickly.”

Earlier this month MAN announced it was discussing with labor representatives the strategy to cut down work hours for about 2,000 workers at the plant it owns in Steyr, Austria, also because of the situation in Russia. The plant the truck maker has in St. Petersburg is now in “low speed,” Nielsen said. Now, the Man executive also revealed the company intends to do the same with its factory in Salzgitter, Germany.

Via Bloomberg