VW Group owned MAN Trucks exits

MAN
MAN

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

Mumbai: MAN Trucks India, the fully owned subsidiary of the Volkswagen Group-owned has pulled the plug off the growing Indian market as part of its global plans of focussing on the premium end of the market.

The company has put its Pithampur plant on the block for sale and the employees at the plant 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 office have been Voluntary Seperation 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.

As a responsible employer, MAN is extending support to all employees impacted due to this development. The India Management has taken appropriate measures to support the affected team members during the transition. We are also engaging with our dealer partners, suppliers and other business associates to support them during this transition,” assured the spokesperon on the possible impact on its ecosystem.

MAN Trucks, which has been in India for about 15 years now, produces less than 2,000 units per annum. Having carved out a niche for itself in the tipper segment in the country, the truck maker had launched haulage trucks last year to get higher volumes. The move did not pay any dividends. The company’s production plan for the rest of year was very low and off take in the market is also falling, which had raised doubts of Man Trucks leaving over the last few months.

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