VW Unit

At MAN, a Trucking Turnaround

MAN truck repairs source Bloomberg Getty Images 61254897
MAN's reorganization is starting to pay off.
  • Why it matters

    Why it matters

    A restructuring of Volkswagen’s truck subsidiary MAN could serve as a blueprint to improve earnings at the carmaker’s core brand VW.

  • Facts

    Facts

    • MAN is VW’s second-largest subsidiary after luxury car unit Audi, accounting for 6.4 percent of 2015 revenues.
    • MAN’s trucks and bus operations made an operating loss of €100 million last year on sales of €9 billion.
    • Volkswagen has created a commercial vehicles group, comprising MAN, truck maker Scania and VW’s heavy trucks and vans.
  • Audio

    Audio

  • Pdf

A reorganization at truck maker MAN is starting to pay off, boosting earnings at the Volkswagen subsidiary this year, its chief executive Joachim Drees told Handelsblatt in an interview.

“We have significantly improved results in the first quarter,” Mr. Drees said. “We also expect a considerable improvement in results for the entire year. The goal is a medium-term profit margin on sales of 5 to 6 percent by 2017.”

Last year, MAN’s truck and bus division reported a loss of €100 million, or $111 million, but its power plant, gearbox and ship diesel engine operations generated earnings to help create a profit of €92 million at the whole MAN group.

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