MAN, the truck maker based in Germany who are owned by Volkswagen, have said that they predict that sales and profits will fall in 2012.

Stricter carbon emission rules in 2012

The Brazilian Government has slapped a tighter carbon emission regulation this year meaning sales will naturally decrease. It is expected that sales will dip overall by 15 per cent in 2012.

European sales not looking good

The European market is one that many automakers are expecting a poor performance due to the Euro Zone crisis.  With this region being MAN’s home area and their main source of income, it may prove to be tough year for the company.

Record profits last year

Sales last year were at a record high with profits of €16.5 billion. This equated to a 12 per cent rise in sales as 155,000 plus buses and trucks were sold. Sales in Latin America increased by 10 per cent with €3.6 billion made in revenue. MAN’s operating margin may fall by 0.5 per cent this year it has been predicted.

Total net income at MAN dropped from €722 million to €247 million in 2011. This was due to the company building great expenses when attempting to sell Ferrostaal industrial services to Abu Dhabi’s International Petroleum Investment Company.

 

The company, who are based in Munich have made it clear that they do not expect anything like last year’s performance in 2012. Commercial vehicles are also set for a dip in Brazil.

Other means of business

They not only develop and sell trucks and buses, they also sell power plant components, compressors, gear units and diesel engines.

Will Brazilian’s car market be affected?

At the moment MAN is the number one producer of trucks weighing more than 5 tonnes in Brazil. They currently have a market share of 30 per cent. News today seem like very contradicting reports from the those that were predicting that Brazil will become the world’s third largest car industry by 2015. With commercial vehicles and trucks sales falling, that may influence the car industry somewhat in a negative manner. Volvo and Scania have reduced their production of trucks in Brazil following a dramatic slowdown in demand.

Volkswagen’s interest in Scania

Volkswagen has recently upped their percentage in MAN to more than 50 per cent. There are plans to merge Scania to create an ultimate truck force, which Volkswagen owns a large stake in.