TNI || New Delhi || 1st Oct 2021
German truckmaker MAN Trucks, which is owned by Volkswagen’s Traton division, is aiming to raise its profit margin by adapting to the electric age by 2023.
Andreas Tostmann, the top boss at MAN, in an interview, said that there is no quantification as to where the margins would stand in the next two years compared with the present 3.3% achieved in the first six months of 2021.
The division in March this year had already aimed for a margin of 8%. MAN is regarded problem child at Traton, in which the automobile giant Volkswagen owns 89.72%.
The truck maker lags far behind Traton’s Swedish subsidiary Scania which already has a first-half profit margin pegged at 12%.
Traton has also unveiled a reshuffle recently in the top management as CEO Matthias Gruendler would be replaced by Christian Levin, Scania’s boss.
Tostmann, who is already involved in cutting 350 jobs and closing 2 factories of MAN due to restructuring, said that MAN was working towards generating the same profit from EV’s as it is used to be doing in the case of diesel vehicles.
Customers can expect to witness a significant cost parity between diesel and electric vehicles by end of this decade with two-fifths of the trucks plying on the road being fully electric.
The company is also experimenting with autonomous vehicles and is in the process of testing one truck model at Hamburg that can be driven at regular speed without any human intervention.