May 13, 2015 / 4:30 PM / 4 years ago

UPDATE 1-VW has no plan to break up MAN -MAN labour boss

* VW’s truck units face major restructuring -MAN labour boss

* MAN’s non-truck units to play greater role -VW

* Power Engineering accounts for quarter of MAN group sales (Adds MAN works council, VW comments and background)

BERLIN, May 13 (Reuters) - Volkswagen has no plans to break up MAN SE or sell the group’s non-truckmaking units, MAN’s labour boss said, as VW forges a long-planned tie-up of its truck brands.

Europe’s largest automaker said last week it will create a new commercial vehicles group to foster the combination of MAN and Scania to reap cost savings and take on market leader Daimler.

Plans to set up the new Truck & Bus GmbH have led to fears the Wolfsburg-based parent will break up MAN and sell off its Power Engineering division which includes diesel engine, turbine and Renk transmission businesses.

“That’s wrong,” the works council said on Wednesday in a written response to staff to address those issues, seen by Reuters. “We’re on the verge of a major new” structure for VW-led truckmaking operations.

Power Engineering, accounting for about a quarter of 14.5 billion euros of MAN group sales in 2014, will in future be run “more effectively” under a new VW-based structure, MAN works council chief Juergen Dorn said, without providing more detail.

A spokesman for VW said the non-truck operations will in future play a greater role within the multi-brand group, declining to be more specific.

VW has spent billions of euros over the past decade on expanding stakes in MAN and Scania as the group has pushed long-standing ambitions to become a global force in trucks.

MAN and its workers have for months been in talks about realigning production plans and scaling back capacity, with the possibility of inflicting job losses, company sources said. (Reporting by Andreas Cremer; Writing by Georgina Prodhan; Editing by Elaine Hardcastle)

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