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At the end of last year, MAN, the largest manufacturer of commercial vehicles in Germany, announced a 30% reduction in production in the first half of 2009. Due to the apparent deterioration of sales in the past few weeks, the planned reduction in output has been increased to 45%.
The company's German plant will have a total production suspension of 70 days in the first half of this year, of which 40 days will be achieved by shortening the working hours, while the other 30 days will be realized by arranging vacations and compensating for overtime. In the Eastern European market, which has experienced double-digit growth for several consecutive years, the company's business has stagnated. In the fall of 2007, the factory established in Krakow, Poland, plans to lay off 150 people during the year.
According to the European Association of Automobile Manufacturers, ACEA, the European commercial vehicle market will shrink by 8% in 2009, the largest decline since 1993.