Volkswagen truck halts production temporarily

Volkswagen truck halts production temporarily

BERLIN - Agence France-Presse
Volkswagen truck halts production temporarily

Volkswagen CEO Martin Winterkorn (R) stands beside a MAN truck. REUTERS photo

MAN, the truck-making arm of German auto giant Volkswagen, said on Oc. 28 that it was halting production at two sites and sending 15,000 staff home next week as it battles falling profits.

A spokesman confirmed to AFP that two German plants, one in the southern city of Munich and another in the northern town of Salzgitter, would shut their doors and the staff would be forced to take leave from Monday to Friday.

The firm was due to release third-quarter results today where more details would be revealed, the spokesman said.

Media reports have speculated on a second halt in production from December 24 to January 11.

MAN has seen profits skid amid an uncertain global outlook. In July, it reported that profits tumbled to 40 million euros ($52 million) in the first half of the year compared with 854 million euros in the same period last year as revenue dropped by three percent to 7.7 billion euros.

The group’s earnings before tax came to 70 million euros in the first six months, compared to 1.2 billion euros in the first half of 2011.

MAN employs approximately 52,500 people worldwide.