MAN Reports 6% Slip in Order Intake in 2015
Published On Mar 15, 2016
German auto-maker MAN disclosed a six percent year-on-year decline in sales last year. However, the company's commercial vehicles arm fared better than the overall business, having recorded a nine percent rise in sales.
The company saw positive sales in the Middle Eastern region, where most other brands such as Daimler were also capitalizing on a booming atmosphere. The company reported that its Middle Eastern wing saw “sustained growth in customer demand and customer satisfaction.”
“Despite the year 2015 being challenging for all the sectors of the economy due to the oil prices which are the barometer of growth and development, we performed at a steady level. We have maintained and improved our overall position in the Middle East region in 2015,” said Franz Freiherr von Redwitz, managing director of MAN Truck & Bus Middle East.
Like other major brands, the firm faced a tough market environment in South America, with markets such as Brazil sinking in demand. MAN Latin America faced an operating loss of 120 million euros, and its order intakes were almost halved. The company said in a statement that markets like Russia and Brazil “continue to be of great concern.”
MAN CEO Joachim Drees revealed that the company was going to revise its truck production process and bring in a more efficient administrative form. “We have initiated or stepped up measures to increase profitability in all divisions. Our goal is to deliver significant results from optimized products and components, as well as procurement,” said Mr Drees.
Based in Munich, MAN is one of the leading producers of commercial vehicles worldwide. With its origins traced all the way back to 1758, it is one of the oldest existing firms in the sector. It has a vast presence that spreads over more than 120 countries, with subsidiaries in numerous countries such as India and China. The firm commands a workforce of 50,000 employees, and brings an annual revenue of around 15 billion euros.