From the SMMT transport news brief: Europe's leading trailer maker, Schmitz Cargobull says the European trailer market has collapsed.
The firm says registrations are down "drastically" and trailer makers have seen orders drop 94% in the first quarter of the year. The firm goes on to say that it doesn't expect a quick recovery.
On the back of this gloomy outlook it plans more cuts to costs, output and jobs. It expects sales to be "between 70 and 90% down" for the year, saying this would be equal to an annual production of 10,000 units. The firm built 66,000 in its record financial year 2007,2008. It has stopped work at one of its two UK plants and at one in Lithuania, will not renew 350 temporary jobs and expects to cut 500 permanent jobs but will retain 180 trainees.
The firm's senior staff will contribute part of their pay to a fund to help colleagues hit by the cutbacks. Despite this "the financial position of the company is solid due to the permanent re-investment of profits," according to Ulrich Schümer, the firm's finance chief.
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