Germany's MAN SE is mulling to cut production capacity at its core truck and bus division as demand for heavy-duty commercial vehicles keeps falling, company sources said. Volkswagen-owned MAN is in talks with labour representatives about realigning capacity at German plants in Munich and Salzgitter and a plant in Steyr, Austria, three sources told Reuters on Monday on condition they not be named because the negotiations are confidential. The restructuring could lead to job losses at the three factories which together employ about 13,000 workers, they said. But there are no plans for outright dismissals, they added. Besides trucks, MAN builds axles at Munich and Salzgitter and driver's cabs at Munich and Steyr. Munich-based MAN and the company's works council declined to comment. A VW spokesman referred to MAN. MAN, grappling with weakening demand for trucks, last October downgraded its business outlook for the third time in as many months while stepping up efforts to cut costs. Sales at MAN, which also makes diesel engines and turbines, plunged 29 percent in January to 5,600 trucks, according to VW. VW, Europe's largest automotive group, is pushing plans to integrate its truck divisions MAN and Sweden-based Scania under new trucks chief Andreas Renschler, a former Daimler executive who took office at the Wolfsburg-based manufacturer on Feb. Revamping structures at MAN is part of an effort by VW to forge an alliance of its heavy truck brands to take on Daimler , the world's largest truck maker. (Reuters)