MAN to Cut Output, Jobs Next Year

Tight credit and high fuel costs cutting into sales

German industrial group MAN will have to cut output of heavy trucks in 2009 and eliminate temporary jobs because of slumping sales, a spokesman said on Oct. 15.

"This year will set a record. But sales will be weaker next year," MAN boss Hakan Samuelsson had said earlier of a group that is celebrating 250 years of existence.

Clients have been hit by the international financial crisis and are finding it harder to obtain credit, which on top of high fuel prices has caused many to put off purchases of new vehicles, Samuelsson explained. As a result, MAN will reduce production next year, the company spokesman said.

MAN had already "begun to reduce the number" of temporary workers, currently at 2,200 in its heavy vehicle division, which produces trucks and busses.

On Sept. 14, Daimler, world leader in heavy truck manufacturing, said it would restructure North American activities and eliminate 3,500 jobs in Canada and the United States. Daimler also said it would discontinue one of three North American brands, Sterling Trucks.

Copyright Agence France-Presse, 2008

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