2023 Author: Eric Donovan | [email protected]. Last modified: 2023-05-21 15:44
As a result of weak sales, the truck manufacturer Iveco plans to close five locations in Europe. This also includes the plants in Ulm, Weisweil and Görlitz. A total of 1075 employees are affected by the plans.
The Italian truck manufacturer Iveco plans to close five European plants by the end of the year due to weak sales, including three in Germany. The factories in Ulm, Weisweil and Görlitz are to stop production, as Iveco boss Alfredo Altavilla announced on Sunday at a presentation in Turin, according to the Italian news agency Ansa. In addition, the plants in Graz, Austria and Chambery in France would also be closed.
1075 Ivevo employees affected
According to Altavilla, a total of 1,075 employees in the five plants are affected by the closings. The plans are currently being negotiated with unions. Due to the economic downturn in Europe, Iveco expects sales of its heavy trucks to decline by ten percent in Western Europe this year. According to industry experts, Iveco is too focused on Europe and is therefore feeling the effects of the economic weakness triggered by the debt crisis particularly hard. More international commercial vehicle manufacturers such as Daimler and MAN can cushion the weak European business with their commitment on other continents.
Iveco had already announced at the beginning of May that it would stop truck production in Ulm and relocate it to Madrid. Short-time work had been in place at the Ulm site for more than three years. After the plant closes, however, a location for fire engines will be created there.
As a spokesman for Iveco Germany said on Monday, a competence center for fire protection vehicles should be built in Ulm, as announced. In connection with this, the other two German Iveco locations would be closed. There around 200 (Weisweil) and 20 locations (Görlitz) are affected. According to earlier works council information, around 670 of the around 1100 jobs are at risk in Ulm. Iveco spokesman Manfred Kuchlmayr did not want to confirm this. "That is still being negotiated," he said. The truck production from Ulm is to be relocated to Madrid.
Iveco is part of the Fiat Industrial group. In the first quarter, Fiat Industrial had increased profits and sales significantly compared to the previous year. Sales had grown by a good nine percent to 5.8 billion euros. The US-built agricultural vehicles more than offset the weakness at Iveco. In the current year, Fiat Industrial currently expects sales of 25 billion euros and a profit of around 900 million euros. (dpa)