In 2007, the MAN Nutzfahrzeuge Group sold more than one lakh trucks and buses in 2007 for the first time in the company history. This was the third year in a row that the international provider of vehicles and services for the efficient road transport of goods and people achieved record results. Operating results rose by 341 million euros to 1.039 billion euros, an increase of 49 per cent. The return on sales rose from eight per cent to 10 per cent. The Truck Division alone was up 11.3 per cent.
The turnover rose by 20 per cent to 10.4 billion euros (2006: 8.7 billion euros), the fifth record increase in a row. The Truck Division sold 93,260 vehicles (2006: 79,822), with sales of 9 billion euros (+25%). Because of a drop in sales of finished buses, sales in the Bus Division fell to 1.4 billion euros. Overall, 7,349 finished buses and chassis were delivered (2006: 7,338 units). The Bus Division recorded an operating loss of 13 million euros (+38 million euros in 2006).
In Europe, the largest market for MAN Nutzfahrzeuge, demand for trucks continued to increase significantly. Registrations of trucks of over 6 tonnes climbed 6.8 per cent from 2006 to 424,000 units.
MAN benefited strongly from this and increased its market share in Europe by another 0.2 percentage points to 16.1 per cent. This brings MAN another step closer to its medium-term goal – an 18 per cent market share in Europe.
MAN Nutzfahrzeuge is the truck brand that has seen the most sustained growth in market position in Europe. Since 1975, MAN has seen its market share rise by 9.1 per cent from 7 per cent to its current level of 16.1 per cent, far outpacing its competitors.
MAN Nutzfahrzeuge’s strategy for international growth has received a boost from expansion in Eastern Europe and the CIS region, Russia in particular. The Russian economy is experiencing sustained growth, with the construction sector in particular seeing a boom not least because of the 2014 Olympic Games.
In the Bus Division, significant contracts were signed with major European cities in 2007. From 2008, traditional customer Berlin (BVG) will take delivery of 200 double-deckers and Paris (RATP) will receive 186 articulated buses from MAN. And this year the company begins the delivery of the largest order for city buses in recent years – 500 vehicles to the Arab Emirate of Dubai.
Capacity expansion
To meet the surging demand for trucks in these focus markets, MAN Nutzfahrzeuge has made timely investments in the construction and expansion of production facilities. Last summer, after 12 months of construction, one of the world’s most modern truck assembly plants went on line in Cracow (Poland). MAN Nutzfahrzeuge is investing large amounts of money in both short and medium-term modernisation and expansion with the goals of increasing production capacity for trucks to over 110,000 units this year and 130,000 units by the end of 2009 and of ensuring a flexible and optimally coordinated production network.
With its joint venture with Force Motors under the name MAN Force Trucks Private Ltd. at Pithampur (India), MAN Nutzfahrzeuge is now represented in another growth market. Last year, 500 heavy trucks in the CLA series were produced for target markets in Asia and Africa. The first vehicle for export (South Africa) was delivered in October 2007. Around 7,000 trucks will be produced there this year, and by 2010 a production capacity of about 24,000 vehicles is planned.
Bus Division restructuring
MAN Nutzfahrzeuge began the necessary restructuring of its Bus Division in order to strengthen its earning power in the medium- and long-term. An important milestone was the agreement reached with employees in January last regarding the development of the Salzgitter facility. The agreement includes the modernisation of the facility with the investment of around 60 million euros up to 2012 as well as contributions to reducing costs on the part of employees in the areas of remuneration and working hours.
In order to quickly take full advantage of synergies with the Truck Division, the complete integration of the Bus Division into the organisational structure of MAN Nutzfahrzeuge took place on February 1 last. This means that the Bus Division, like the other divisions, will be led by the Board of MAN Nutzfahrzeuge with the goal of fully and vigorously implementing the restructuring measures taken.
For long-distance buses and trucks, there are concrete plans in the areas of aerodynamics, lightweight construction, the use of high-efficiency tyres and oils, tyre pressure monitoring, the use of auxiliaries as needed, internal engine optimisation and driver assistance systems.
For city buses and distribution trucks, MAN Nutzfahrzeuge is developing reliable hybrid drives. City buses in particular offer the ideal conditions to win energy from braking power. Driving from stop to stop, they accelerate countless times, only to have to come to a stop again shortly thereafter. MAN Lion’s low-floor city bus has a deployment-optimised diesel engine that does not drive the axles directly, but instead powers a high-output generator that delivers power to the two electric motors.
MAN Nutzfahrzeuge is off to a very good start this year. The excellent order book situation of the last year has continued into 2008. The company expects a positive trend in business with continued sales growth. The consolidating European market will be increasingly complemented by very good sales in Eastern Europe and in the CIS countries, including Russia, as well as in Asia.
Technical innovation and the solid positioning of the MAN product programme ensure continued and sustainable growth. A representative survey of 400 vehicle fleet decision-makers at transport companies, freight companies, industry and trade shows that MAN enjoys the best reputation among all truck manufacturers and is the undisputed No.1 in Germany in terms of recognition and image.
With its effective sales departments both in and outside Europe and the continued expansion of its service network, MAN Nutzfahrzeuge will continue to vigorously pursue its international strategy for growth. Growth in sales will likely be driven by Eastern Europe and Asia, but at the same time the company’s market share of the truck sector in its core market of Europe is expected to rise to 18 per cent from its current level of 16.1 per cent.
MAN's annual sales of buses and trucks cross one-lakh mark
In its Munich location, MAN is investing a total of 190 million euros through 2012 in new buildings and machinery, in structural improvements in truck production and logistics as well as in expanding R&D capacity. In Nuremberg (Germany), the MAN competence centre for engines, 170 million euros is being invested in R&D, production and logistics through 2012, and in Steyr (Austria), during the same period, around 100 million euros is being channelled into truck assembly, cab construction and the paintshop. Investments worth 60 million euros are planned through 2012 for Salzgitter (Germany).
A significant component of the international growth strategy of MAN is the concentration on core competencies and optimisation of vertical integration. As part of this strategy, it spun off its components plant in Penzberg (Germany) in a joint venture in 2005. Another logical step was last year’s spin-off of the Gustavsburg (Germany) pressing unit in a joint venture with the Hörmann Group. Both companies are developing very well.
