29 Oct 2012

Truck plants to stop production for week

9:01 am on 29 October 2012

Volkswagen's truck-making unit MAN will halt production at two sites in Germany this week because of falling profits. Some 15,000 employees will be sent home.

The plants, one in Munich and another in the northern town of Salzgitter, will be shut from Monday to Friday.

AAP reports the company is due to release third-quarter results on Tuesday, when more details will be revealed.

In July, Man reported that profits fell to 40 million euros in the first half of the year compared with 854 million euros in the same period last year as revenue dropped by 3% to 7.7 billion euros.

Group earnings before tax came to 70 million euros in the first six months, compared to 1.2 billion euros in the first half of 2011.

MAN employs about 52,500 people worldwide.