BERLIN, September 30 (Businesshala) – German truck maker MAN, which is owned by Volkswagen’s (VOWG_p.DE) Trautan (8TRA.DE) division, aims to significantly increase its profit margin by 2023 as it enters the electric age. restructuring to be friendly, its chief executive officer said.
Andreas Tostmann in an interview with Businesshala did not determine where margins would stand in two years, compared to the 3.3% achieved in the first six months of 2021.
In March the division said it aims for an 8% margin over the full business cycle, which will remain open when that happens.
Trauton is seen as the problem child, in which Volkswagen holds an 89.72% stake, far behind Man Trautan’s Swedish subsidiary Scania, which had a profit margin of 12%.
Tratten revealed a top management reshuffle late Wednesday that saw the resignation of CEO Mathias Gründler, who will be replaced by Scania boss Christian Levin.
Tostmann, which has cut 350 jobs and closed two MAN factories as part of a restructuring, said MAN was working towards generating the same benefits from electric vehicles as diesel vehicles, without it Specify when it expects this to happen.
Customers will expect cost parity between electric and diesel vehicles by the end of the decade, with two-fifths of trucks on the road being fully electric — rising to 60% among smaller vehicles, he said.
“Our customers demand a diesel vehicle or a product that costs less,” Tostman said.
The company is also experimenting with autonomous driving, he said, and is testing a truck model in the port of Hamburg with the aim of developing a vehicle that can drive at the same speed as a human-powered truck on the road.