German automotive giant Volkswagen has decided it will keep hold of one of the world’s largest ship engine manufacturers while trying to position it as a standalone company in the future.
The board of MAN Energy Solutions has given details of its restructuring, which will see some 2,600 people lose their jobs, around 40% less than had initially been suggested.
Parent Volkswagen has said that if all the intended EUR450m costs cutting measures are carried out as expected it will suspend its plans to sell the company at least until the end of 2024. Volkswagen has further agreed that the company will remain part of the group until at least the end of 2026 if it achieves a profitability target of 9% EBIT on a consistent basis by that date.
“Volkswagen has called on both the management and employees of MAN Energy Solutions to come up with a concept that will make it possible for the company to position itself for the future and achieve financial independence,” said Dr Uwe Lauber, CEO of MAN Energy Solutions.
Lauber said the restructuring was necessary to create the “necessary freedom to more effectively absorb external effects in the future”.