MUNICH (dpa-AFX) - MAN SE(MAGOF.PK), the German truck-making division of Volkswagen AG, plans to cut 1,400 jobs at its diesel-engine division.
MAN Diesel & Turbo said that its program, titled 'Basecamp 3000+', will tackle development of the company's strategy and portfolio, as well as optimizations to internal processes and improvements to cost structure, with the aim of achieving an improvement in results of over 450 million euros.
Under the proposed plan, each MAN site will specialize in a more clearly defined area, overlap will be reduced and structures simplified. The intention is for Hamburg site to focus exclusively on Service and After Sales in future, and for our sites at Oberhausen and Bengaluru to focus on the production of steam turbines. The Berlin site, which has been producing compressors to date, will become a components facility for turbomachinery.
Further improvements in results of around 350 million euros are to be made through efficiency measures and optimizations across development, sales, quality, product costs and Human Resources.
MAN Diesel & Turbo noted that its board and the Works Council have started negotiations on the proposed restructuring measures.
'The efforts made in previous years to assert ourselves in a consistently demanding market environment have been successful. Nevertheless, there is still a way to go before we reach 'Basecamp 3000+'. 'Basecamp 3000+' means securing sustainable profitability for the company on a turnover level of three billion euros, making us fit for the journey to the top,' the company said.
The company intends to make around 100 million euros of savings through restructuring its group functions and three strategic business units: Engine & Marine Systems, Power Plants and Turbomachinery.
Copyright RTT News/dpa-AFX