The German truck and bus manufacturer MAN was forced to send about 11,000 employees on unpaid leave due to the Russian military invasion of Ukraine.
The Volkswagen Group-owned company said on Wednesday that its facilities in Munich and Krakow, Poland, have been halted since March 14 due to the cessation of supplies of electrical wires produced at Ukrainian factories. At three other MAN sites, production volumes have been reduced, including at the engine plant in Nuremberg.
“Suppliers of electrical wiring for trucks cannot produce it at Ukrainian enterprises or can produce it in very limited quantities,” MAN said in a statement. “As a result, we could lose production for several weeks, which will sharply reduce output figures in the second quarter.”
The company said it has already started looking for additional sources of truck wiring harnesses in other countries.
“However, this will take several months,” said Alexander Vlaskamp, chief executive officer of MAN.
The company notes that its employees will be transferred to a reduced working hours scheme, in which MAN compensates them for 80% of lost income from both its own and state funds.
The problems of Ukrainian suppliers previously led to disruptions in the work of Volkswagen and BMW enterprises.
Most of the Ukrainian enterprises for the production of electrical wiring, located in the western part of the country, have resumed work, the Financial Times newspaper writes, citing representatives of several enterprises.
Thus, the German Leoni, which owns two factories in the west of Ukraine, has already reported that both of its enterprises have returned to work.
Other companies, including Aptiv and Kromberg & Schubert, have resumed production, FT sources say.
COMPONENTS, EUROPE, FACTORIES, MAN, MANUFACTURER, TRUCK, UKRAINE
