Volkswagen Group owned MAN Trucks exits Indian market

[kscarbel2]

The Economic Times  /  August 8, 2018

Volkswagen Group-owned MAN Truck & Bus has pulled the plug on the growing Indian market as part of its global plans of focusing on the premium segment of the global market.

The company has put its Pithampur plant up for sale and the employees will continue to work till the orderbook is executed by October, say people in the know.

While the employees of the Pune Corporate office and regional offices have been given the option of Voluntary Separation Scheme, the decision on the plant workers will depend on whether the company is able to execute the sale by October.

Approximately 250-300 people are likely to opt for VSS, whereas the fate of the plant workers will depend on the sale of the plant. The decision was taken by the company on Monday and the same was intimated to the dealers and vendors in the local market by the Indian managing director on Tuesday.

"Going forward, MAN Trucks India the legal entity will convert itself into an R&D Centre that supports global projects. The manufacturing, sales and exports of the CLA range will be stopped after the existing customer orders are completed," said the offical spokesperson for Man Trucks to the query from ET.

The spokesperson added that MAN trucks will have aftersales as an active function for the next five years to provide support to its customers.

[RoadwayR]

Interesting.  Start of a trend?

[kscarbel2]

The truck MAN has been building in India is a nice unit. It is older technology to realize a lower selling point, the demand of the Indian market. However, it's not a cheap truck. The cab is the proven last generation L2000, and the drivetrain and chassis are all first class (CNHTC aka. SinoTruk has produced this cab under license as well).

.

.

 

[kscarbel2]

Here's the latest domestic market competition. They've come a long ways. It's cheap where it doesn't matter, and rugged where it counts.

.

 

[kscarbel2]

Force Motors to acquire Man Trucks' Pithampur facility

The Economic Times  /  August 23, 2018

Pune-based Force Motors today said it has agreed to acquire Pithampur-based manufacturing plant of German commercial vehicle maker MAN Trucks for an undisclosed amount.

In a regulatory filing, Force said its board has accepted a proposal from MAN Trucks India to sell and transfer certain assets including immovable and movable properties as also other intangible assets at its plant at Pithampur (Madhya Pradesh).

The arrangement is being recorded by binding agreements, it added.

The arrangement would be subject to receipt of necessary approvals and it is expected that the actual transfer of the facility may happen by October end, Force Motors said.

When contacted a MAN Trucks India spokesperson said: "MAN Trucks India and Force Motors Ltd. have entered into an agreement wherein Force Motors will acquire the Pithampur manufacturing facility of MAN. The agreement also entails continued employment for all MAN members at Pithampur."

This development follows the announcement from MAN Trucks earlier in August to restructure its India operations, he added.

The company however declined to divulge any details of the agreement, including commercials, with Force Motors.

Earlier this month, the board of MAN Truck & Bus AG (MTB) had decided to restructure its India organisation as part of its global strategy to focus on premium segment markets.

As a result, MAN Trucks India would now become an R&D Centre for Excellence supporting global projects. The manufacturing, sales and exports of the CLA range of heavy commercial vehicles will be stopped after the existing customer orders are completed.

In July, the German company had announced putting on hold its ongoing projects, including new product launches and upgradation of models in the country to comply with the BS VI emission norms which come into effect from April 1, 2020.

Man Trucks manufactured various products at the Pithampur plant including tippers for off-road and construction, haulage for regular and over dimensional cargo, and special application trucks such as fire tenders, garbage compactors, concrete mixers, boom pumps, tip trailers and bulkers.

The company has sold over 25,000 trucks since it started India operations in 2006.

.

[kscarbel2]

MAN Truck & Bus preparing for the future of the commercial vehicle industry

MAN Truck & Bus Release  /  August 23, 2018

Efficiency measures rolled out across the entire company // Review of product portfolio results in discontinuation of the MAN CLA

Electromobility, automated driving, digitization – the commercial vehicle industry is changing at a tremendous speed. Highlights from these sectors will be presented by MAN Truck & Bus at the IAA Commercial Vehicles 2018 taking place in September. In order to realize the high investments associated with this technology, MAN Truck & Bus is continuing to systematically implement its efficiency efforts.

Joachim Drees, Chief Executive Officer of MAN SE and MAN Truck & Bus, says: "Our corporate strategy Future Lion is intended to provide MAN with a clear focus on markets and products. This means that we will be subjecting both our product portfolio and our international market presence to close scrutiny with a view to highlighting customer needs, cutting costs and prioritizing our investments. The path is clear - MAN Truck & Bus must become more profitable in order to continue investing in future topics. Or to put it more simply, we will be concentrating on things that are essential for the future of the company and will also have the courage not to continue certain other things."

Against this background, the Executive Board of MAN Truck & Bus AG has decided to streamline the product portfolio by stopping the production and sales of the MAN CLA. This vehicle was a model geared specifically to the market needs of emerging economies, being positioned significantly lower than the TG series and accounted for only a very small share of the company´s truck sales. MAN will discontinue production in Pithampur, India following the completion of existing customer orders. There will be no successor model. MAN is able to meet customer requirements in existing MAN CLA markets with its wide range of modern TG vehicles.

MAN Truck & Bus has reached agreement with Force Motors Ltd. regarding sale of the plant in Pithampur. The latter will be acquiring the site and submitting an offer for ongoing employment to the entire workforce. "I am pleased that we have succeeded in finding such a positive solution for all those involved, which guarantees continued employment for our employees," says Jörg Mommertz, Head of MAN Trucks India. The restructuring measures also envisage MAN Trucks India becoming an R&D Centre for Excellence supporting global projects.

Further initiatives to enhance efficiency have already been launched by the management at MAN Truck & Bus. These are aimed at providing for higher efficiency across the entire company, prioritizing investments and focusing on marked cost reductions - apart from the production network, this will also apply in the case of sales and development operations, as well as to indirect costs and funds commitment.

In this connection, Joachim Drees comments: "We are making MAN fit for the future. The foundation was laid with our PACE2017 program for the future during which many processes were more efficiently structured. We are now building on this by stabilizing what we have already achieved and directing special attention to firmly anchoring the concept of efficiency throughout the company on a long-term basis."