By Christina Amann
BERLIN (Reuters) – German truckmaker MAN, owned by Volkswagen (DE:)’s Traton division, aims to significantly raise its profit margin by 2023 as it restructures to adapt to the electric age, its chief executive said.
Andreas Tostmann spoke with Reuters and did not provide any details on where its margins would be after two years as a comparison to the 3.3% in the first six month of 2021.
According to the March division, it stated its goal for a margin in excess of 8% throughout the whole business cycle. However, this was not clear when.
MAN is seen as Traton’s problem child, where Volkswagen holds a 89.72% share. This division is far behind Traton’s Swedish subsidiary Scania which posted a first-half profit margin in excess of 12%.
Traton announced a restructuring of its top management on Wednesday, which saw Matthias Gruendler assimilate to the ranks. Christian Levin will replace him.
Tostmann who cut 350 jobs, and shut down two MAN plants as part of a restructuring said that MAN is working to generate the same profits from electric vehicles than diesel vehicles. He did not specify when he expects this to happen.
With two fifths (or more) of trucks being fully electric by 2020, customers can expect price parity between the electric and diesel cars. However, the figure for smaller vehicles would be 60%.
Tostmann explained that “our customers require a product at the same cost as a diesel vehicle, or less.”
Tostmann said the company has also been testing autonomous driving. One truck model is being tested in Hamburg port with the goal of creating a vehicle that can drive as fast as human-driven trucks on the roads.
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