CEO, Auto News, ET Auto
BERLIN: German truck maker MAN, owned by Volkswagen’s Traton division, aims to significantly increase its profit margin by 2023 as it restructures to adapt to the electric age, its chief executive said.
Andreas Tostmann, in an interview with Reuters, did not quantify where the margins would be in two years from the 3.3% he reached in the first six months of 2021.
The division said in March it was aiming for an 8% margin over the entire business cycle, leaving open when that would be.
Seen as the problem child of Traton, in which Volkswagen owns an 89.72% stake, MAN lags far behind Traton’s Swedish subsidiary Scania, which had a profit margin of 12% in the first half of the year.
Traton unveiled a senior management reshuffle on Wednesday evening that resulted in the resignation of CEO Matthias Gruendler, who will be replaced by Scania boss Christian Levin.
Tostmann, which cut 350 jobs and closed two MAN factories as part of a restructuring, added that MAN strives to generate the same profit from electric vehicles as diesel vehicles, without specifying when it expects it happens.
Customers would expect cost parity between electric and diesel vehicles to be reached by the end of the decade, with two-fifths of all-electric trucks on the road – reaching 60% among smaller vehicles, a he declared.
“Our customers demand a product at the same cost as a diesel vehicle or less,” Tostmann said.
The company is also experimenting with autonomous driving, he said, and is testing a model truck in the port of Hamburg with the aim of developing a vehicle capable of traveling at the same speed as a human-driven truck on the road. .