“Retaining every job will not be achievable”

The Munich-based truck and bus manufacturer MAN has been struggling with weak demand since before the start of Corona. At the same time, billions are needed for necessary investments. By the middle of the decade, MAN wants to be one of the leading manufacturers in the field of electric and hydrogen drives – a goal with consequences: “The transformation, e.g. to electromobility, means that about 30% less employees will be needed. In this respect, the goal of actually retaining every job will not be achievable”, says Prof. Dr. Thomas Hutzschenreuter, Vice Dean International Affairs and Alliances and Professor for Strategic and International Management at the TUM School of Management, in a recent interview with ZDF heute. “The transformation of the automotive and truck industry will require a much more consequent effort by OEMs and suppliers. Given that, for example, electrical vehicles compared to traditional combustion-engine vehicles need around 30% less value creation, a reduction of workforce in these sectors has to be expected. Thus, radical measures are necessary to compensate and prevent a death of wide parts of the German automotive and truck as well as supplier industry”, explains Hutzschenreuter further. Meanwhile, the IG Metall union accuses MAN of mismanagement and insists on an agreement that excludes dismissals for operational reasons. Negotiations will be held in the upcoming weeks.  

The post “Retaining every job will not be achievable” appeared first on Technical University of Munich – School of Management.

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