The transfer of production to Poland by successive global corporations is becoming a reality that is increasingly shaping the European industrial map. The latest example is Germany’s MAN Truck & Bus, which is considering locating part of its truck body production in Krakow – a decision that could significantly strengthen the Polish automotive sector. At the same time, however, it is a sign of a deeper trend: the shift of industry from Germany to more competitive locations. Why is Poland becoming one of the most important alternatives?
MAN considers moving production to Poland – the company’s strategic analysis
According to information disclosed by Austrian and German media, MAN has conducted a detailed assessment of the future of its production. It shows that locating part of its processes in Krakow could become one of the key elements of its cost-cutting plan in place until 2028.
The estimated financial benefits of the reorganisation are impressive – up to €935 million in improved results thanks to cost reductions and more efficient operating models.
MAN currently operates in three locations in Germany: Munich, Nuremberg and Salzgitter. All of them are feeling the effects of:
- rapidly rising labour costs,
- high energy and logistics prices,
- the economic slowdown,
- competition from China (especially in the area of electric trucks),
- increasingly stringent environmental standards.
The German press – from the Sueddeutsche Zeitung to the Handelsblatt – reports on growing tensions between management and trade unions. It is the unions that fear that the company’s strategic decisions will exacerbate the trend of deindustrialisation in Germany.
Factors that attract production to Poland
Poland has been building a strong industrial ecosystem for years, but today it is beginning to be seen not only as an attractive cost location, but above all as a stable and competent partner for global companies. In the case of MAN, both economic and operational factors are decisive.
Firstly, labour, energy and logistics costs remain more competitive in Poland than in Germany. Importantly, even IG Metall trade unionists admit that the key magnet is not wages, but much more favourable investment support packages and the predictability of the regulatory environment.
Secondly, Poland has a large and well-educated labour market, especially in the technical industries that form the foundation of the automotive sector. Krakow, a potential relocation site for car body production, has been building its reputation as an engineering and technology centre for years, drawing on the academic resources of the AGH University of Science and Technology and the Krakow University of Technology.
Thirdly, Poland remains strongly integrated into European supply chains, which allows companies such as MAN to relocate production without dramatic logistical changes. The proximity of Munich and Bavaria, the company’s main decision-making centre, further increases the attractiveness of Małopolska.
A growing trend – German companies are moving production abroad
MAN’s decision, if made, will be part of a broader dynamic in the European economy. Between 2021 and 2023, German companies moved more than 50,000 jobs abroad. The largest outflow is in the manufacturing industry, which is feeling the effects of rising costs and a shortage of skilled specialists.
Many companies are choosing EU countries to avoid the risks associated with moving to Asia, while benefiting from cheaper, more flexible operating models. In this context, Poland becomes a natural choice – geographically close and strategically safe.
Krakow at the centre of MAN’s strategic plans
The choice of Krakow as a potential location for truck body production is based on the specific advantages of the region. The city offers:
- access to highly qualified technical and engineering staff,
- cooperation with leading universities (AGH University of Science and Technology, Krakow University of Technology),
- a developed sector of modern business services and R&D,
- favourable investment conditions.
MAN’s potential decision could mean hundreds of new jobs and further strengthen Małopolska’s position as an industrial and technological region.
What does this decision mean for European industry?
If MAN ultimately confirms the relocation of part of its production, it will be further proof that the balance of power in the European economy is changing before our very eyes. Germany, long considered the ‘factory of Europe’, is gradually losing its competitive advantages, while Poland is strengthening its position as both a manufacturing and technology hub. For European industry, such a move means more than just a single change of location. It is a sign of a structural transformation in which companies are beginning to look not only for lower costs, but above all for greater flexibility, access to talent and operational stability. Poland offers these elements in a way that allows global corporations to rebuild profitability without the risk of losing quality or innovation.
