Production sites of Munich-based truck and bus manufacturer MAN Truck & Bus are reportedly facing potential cuts.

The IG Metall union sounded the alarm on Tuesday: "MAN Truck & Bus SE is set to make decisions this week that will have significant consequences for the future of its German sites, particularly for the main plant in Munich," according to a press invitation sent out on Tuesday for a Thursday press conference featuring works council representatives from Munich and Nuremberg, as well as IG Metall district manager Horst Ott. Two individuals familiar with the plans told Reuters news agency that the decisions concern investments in new models, and there could be a risk of relocating production abroad.

MAN operates production facilities in Munich, Nuremberg, and Salzgitter, Germany. "Both management and employee representatives have (...) begun discussions at a very early stage about a future-oriented restructuring of MAN, with the goal of remaining competitive and a reliable employer," a MAN spokesperson said on Tuesday. However, MAN "faces significant competitive disadvantages in Germany due to high factor and electricity costs, given its strong domestic presence." Additional pressures include the weak economic climate, new competition from China entering the European electric truck market, and stricter CO 2 targets in the EU. MAN is under double pressure: its Swedish group rival Scania is significantly more profitable.

"We also do not expect any substantial market recovery in the medium term," admitted MAN Chief Financial Officer Inka Koljonen when presenting quarterly results at the end of October. "That's why we continue to work consistently on strengthening our resilience." Rival Daimler Truck has announced, for similar reasons, plans to cut 5,000 jobs, primarily in Germany.

(Reporting by Alexander Hübner. Edited by Olaf Brenner. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)