Part shortage results in ‘massive supply gaps’ at MAN Truck & Bus
30 March 2022
MAN Truck & Bus has reported that the war in Ukraine is leading to ‘massive supply gaps’ related to truck wiring harnesses. As a result, the plants in Munich, Germany and Krakow, Poland have been at a standstill, while those in Nuremberg, Salzgitter and Wittlich have suffered significant downtimes.
The slowdown in part supply threatens to slow truck production by several weeks, resulting in a ‘massive’ reduction in overall output for Q2.
According to the report bus production is not significantly affected.
Alexander Vlaskamp, CEO of MAN Truck & Bus, said: “Due to the dramatic situation, the Executive Board of MAN Truck & Bus SE immediately took measures to deal with the situation. Immediately after the outbreak of war, among other things we began to duplicate Ukrainian supply structures for truck wiring harnesses in other countries.
“However, this takes several months. In addition, we have decided to comprehensively stop spending on non-business-critical activities and, until further notice, a hiring freeze. Short-time work was prolonged for the Munich, Nuremberg, Salzgitter and Wittlich sites and also extended to include administration. This means that up to 11,000 MAN employees in Germany will go on short-time work at the peak. Country-specific regulations apply to employees abroad. As a sign of solidarity with the workforce, the Executive Board will also significantly waive salary in the next three months due to the dramatic development.”
As the company is unable to meet its agreed delivery deadlines due to current developments, MAN has offered customers the opportunity to cancel orders. At the same time, they will have the opportunity to place orders under new conditions.