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German truck maker MAN has been forced to furlough around 11,000 employees after the war in Ukraine caused a “severe” shortage of wiring harnesses supplied by the country’s factories.
The group, which is owned by Volkswagen, revealed that factories in Munich and Krakow had been closed since March 14 and production had been cut at three other plants, including its engine plant in Nuremberg.
“The truck wiring harness supplier cannot produce at its Ukrainian plant, or only to a very limited extent,” MAN said on Wednesday. “This will lead to the threat of several weeks of truck shutdowns and a significant reduction in production in the second quarter.”
Workers will be placed on so-called short-term work schemes, and through support from the government and MAN itself, they will be compensated for 80% of their lost earnings due to shift cancellations.
Work stoppage in Ukraine wire harness factory Volkswagen and BMW have been forced to cancel shifts or close factories at short notice.
Most Ukrainian wiring harness factories in the western part of the country have reopened, with employees eager to return to work, despite being closed after the initial invasion, according to managers of several companies with factories in the country.
Leoni, which owns two factories in western Ukraine, said last week that both of its plants had resumed operations.
Aldo Kamper, CEO of Leoni, said: “It is both impressive and moving that our employees are determined not to let the situation work in their favour, but to stand up for their country and their way of life.”
Leoni, which has factories in Europe and North Africa, has also started duplicating equipment to keep production running smoothly. Other companies with operations in Ukraine, including Aptiv and Kromberg & Schubert, have also restarted production, according to industry sources.
An automaker that bought parts from Ukraine said its suppliers in the country were making more parts than before the invasion in an attempt to fill the production gap.
MAN’s woes stand in stark contrast to its main rival, Daimler Trucks, which said last week that it did not source wiring harnesses from Ukraine.
MAN owner Volkswagen – with dozens of people working at a football stadium in Wolfsburg as part of a task force to ease supply problems caused by the war – also said production curbs on its passenger car brand had begun. ease.
But the truck maker said it was underperforming in its efforts to secure supplies.
“As soon as the war broke out, we started to replicate the Ukrainian truck wiring harness supplier structure in other countries,” says MAN CEO Alexander Vlaskamp. “However, it will take a few months.”
He added that “as a sign of solidarity with the workforce”, he and his management board would “forgo a significant amount of pay over the next three months”.
Just a few months ago, Mann, like nearly every other automaker, was forced to furlough workers due to a persistent shortage of semiconductors.
But while some vehicles can be built without specific chips, or even delivered to customers without full functionality, it’s often impossible to start building a car or truck without a wiring harness.
MAN said it is offering customers the opportunity to cancel their orders.
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