Truck manufacturer MAN is relocating key production steps from Germany to Krakow, Poland. The commercial vehicle group is restructuring its production processes to remain competitive in the long term. In addition to body construction for the new Traton modular system, painting and interior fitting will also be carried out in Poland in the future. The manufacturer is responding to increasing cost pressures, fierce competition, and the need for investment in alternative drive systems. Although the board of directors has pledged investments at German locations such as Munich and Salzgitter, the domestic market is losing importance. (kurier: 18.11.25)
MAN Focuses on Relocation to Eastern Europe
At the heart of the restructuring is the plant in Krakow, which will play a key role within the Traton Group in the future. The production relocation includes, among other things, the manufacturing of driver’s cabs, their interior fittings, and a new paint line. MAN aims to significantly reduce production costs with this measure in order to compete with aggressive competitors – especially from the Far East. At the same time, millions of euros are being invested in existing locations, which should prevent layoffs.
The law firm Linklaters supports the planned steps with a detailed expert opinion. It emphasizes that without countermeasures, a positive return on sales cannot be expected from 2028 onward. Efficiency gains are necessary to survive economically and to advance innovations such as hydrogen propulsion.
Competitive pressure forces restructuring
Chinese manufacturers are increasingly pushing into the European market, putting established producers like MAN under pressure. The tense market situation affects not only car manufacturers but also bus and truck producers. Especially in the commercial vehicle sector, the focus is on unit costs, delivery times, and modular platform strategies. The company is therefore aiming for an improvement in earnings of nearly one billion euros by 2028. Supplier contracts, warehousing, and plant structures are also under review.
Management emphasizes that no German plants will be closed. However, the restructuring clearly demonstrates how much the balance between origin and production is shifting. With the new production logic, the manufacturer gains some breathing room in international competition, but for many employees, a bitter aftertaste remains.
Investments alone are not enough
Investments of €700 million have been announced for Munich, and around €25 million for Salzgitter. While this signals a commitment to German industry, it does not fully compensate for the structural weakness. At the same time, the plan involves eliminating salary components that exceed collectively agreed standards. The board expects savings in the hundreds of millions of euros from this.
The affected workforce is under pressure. Even though the board is offering job guarantees, many employees are likely to perceive this development as a devaluation of their locations. However, the company sees the new distribution of production steps as an essential prerequisite for future growth.
Strategic Restructuring in the Company’s Interests
According to Linklaters, the supervisory board must approve the program out of corporate responsibility. The analysis states: “The members of a public limited company’s supervisory board must act solely in the company’s best interests.” This means that economic viability has top priority – even if unpopular decisions are necessary.
The legal advisors assume that the restructuring leaves no alternative. Companies investing in low-emission powertrains need capital. And those who want to grow internationally must demonstrate competitive production costs. This also applies to established brands like MAN.