MAN invests in future technologies - despite job cuts

The Executive Board of MAN Truck & Bus SE has reached an agreement with the General Works Council and IG Metall on a framework paper for the restructuring of the company. As part of the company's restructuring, around 3,500 jobs in Germany are to be cut. This is slightly less than the figure discussed at the end of September 2020, when 9,500 positions were under consideration - which also included the foreign locations of the MAN Group, which employs 36,000 people worldwide to date.

The current number includes not only the core workforce but also temporary workers and employees with fixed-term contracts. The socially responsible job cuts are to be achieved through increased use of early retirement schemes, the expiration of fixed-term contracts, the reduction of temporary workers, and voluntary redundancy offers. Additionally, the company is offering employees opportunities to transfer within the Volkswagen Group. 

Future of the Plauen and Steyr locations remains uncertain

Plauen and Steyr remain under consideration as MAN locations. Here, the Executive Board is exploring all options, including a sale or closure. All employees at the Plauen location have been offered continued employment at the Volkswagen plant in Zwickau. This suggests that the local Bus Modification Center (BMC) will likely not continue to exist.

The other plants

But what about the other MAN locations in Germany?

• Munich remains the global headquarters of MAN Truck & Bus. The most important location also remains the main truck production plant with the areas of cab equipment and assembly and the center of MAN development. Here is the competence center for the overall vehicle development of trucks, for software and electrical/electronics as well as for electromobility. By the end of 2022, 7,500 permanent core employees will be employed at the site. 
• Nuremberg will be the MAN competence center for the development of new drive technologies (e.g., e-mobility, hydrogen drive). It will also remain responsible for the further development of conventional drives. By the end of 2022, 3,100 permanent core employees will be working here. 
• Salzgitter remains the assembly plant for non-driven axles of the Traton Group in Europe. It is also the MAN location for global logistics activities. The number of employees here is expected to include around 1,900 permanent core workers by the end of 2022. 
• Wittlich will be downsized but will remain for truck modification. By the end of 2022, 60 permanent core employees will be employed at the site.

Strategic Planning

In order to invest in key future technologies in the medium term, a significant improvement in the profitability of MAN Truck & Bus is first necessary, according to the company. Specifically, additional sales efforts are expected to generate around EUR 450 million annually. By cooperating with suppliers, which already begins at the concept phase of products, savings of around EUR 700 million are to be achieved in material costs. In addition, an improvement in general expenses and personnel costs of up to EUR 550 million is planned. 

"MAN is facing a major transformation. In just five years, half of our new buses will be running on alternative drives. By 2030, at least 60 percent of distribution trucks will be emission-free. In long-haul trucks, it will already be 40 percent. Automation and digitalization will turn our industry upside down. All of this costs a lot of money, which we first need to have in order to invest it in the future of the company," explained MAN CEO Andreas Tostmann.