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Truckmaker MAN restarts production after Ukraine crisis supply gap

tradingfxdaily by tradingfxdaily
April 25, 2022
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Zurich Insurance removes Z symbol after letter used to show support for Ukraine war By Reuters
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© Reuters. FILE PHOTO: Visitors stand at the booth of Volkswagen’s truck unit Traton Group, former Volkswagen Truck & Bus AG, in Hanover, Germany September 19, 2018. REUTERS/Fabian Bimmer

BERLIN (Reuters) – German commercial vehicle maker Traton’s MAN unit will restart production again from Monday after supply gaps due to the war in Ukraine, according to the Handelsblatt newspaper.

In mid-March, the Volkswagen (ETR:) subsidiary shortened the hours of as many as 11,000 workers in Germany and production came to a standstill at its truck plants in Munich and Krakow.

Russia’s invasion of Ukraine has led to a shortage of wire harnesses, which bundle up to 5 km (3.1 miles) of cables in a car and are unique to each model, hitting the automotive sector.

The supply of harnesses has improved and a small part of the workforce can now gradually return from short-time work, said Chief Executive Alexander Vlaskamp according to Handelsblatt.

Supplies will remain limited for the time being, Handelsblatt reported, citing Vlaskamp as telling the German Press Agency dpa that the majority of the workforce will remain on short-time work in the second quarter.

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