Mechanical engineering: austerity course at tank engine manufacturers? Works council alerted

After a change at the top of the British parent company, the works councils of the engine manufacturer Rolls-Royce Power Systems expect savings and a hiring freeze.

Mechanical engineering: austerity course at tank engine manufacturers? Works council alerted

After a change at the top of the British parent company, the works councils of the engine manufacturer Rolls-Royce Power Systems expect savings and a hiring freeze. Among other things, the company based on Lake Constance manufactures the engines for the Leopard and Puma tanks. The employee representatives called for an open-air works meeting on Monday morning.

In a video address to the workforce last week, the new Rolls-Royce boss in London, Tufan Erginbilgic, called the group a "burning platform" that is heading towards a possible end without taking any action, said works council chief Thomas Bittelmeyer of the Deutsche Presse- Agency. With these words, Erginbilgic clearly indicated an upcoming savings and efficiency course.

The past year was record-breaking, Bittelmeyer said. He warned there should be no budget cuts. The company intends to present concrete figures for the 2022 financial year on February 23.

In the red even before Corona

A few years ago, Rolls-Royce specialized entirely in engines for wide-bodied aircraft. The slump in air traffic and the plight of many airlines in the Corona crisis had hit the group even harder than other companies in the industry. But the group was already in the red in 2018 and 2019. Erginbilgic took over the post at the ailing engine manufacturer at the beginning of the year.

The German subsidiary, on the other hand, is growing. Last year, Power Systems turned over around 2.75 billion pounds (almost 3.2 billion euros). The so-called government business, which also includes tank engine production, accounted for 9 percent of total sales in 2021.

In addition to tank engines, Rolls-Royce Power Systems also sells high-speed propulsion systems for ships and heavy land and rail vehicles under the MTU brand. Power plants are also part of the business.

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