Audi halts Hungary production line

Audi, one of Hungary's largest exporters, is suspending production at its Győr-based plant for a month in mid-December, as there is no demand for convertibles in the winter. No one will be made redundant at the factory, the company stressed. According to news portal index.hu more than 5,000 people lost their jobs to the crisis in Hungary so far and the meter is ticking.

Audi Hungaria will also halt engine production for two but possibly for four weeks around Christmas, company officials told the evening news programme of commercial TV channel TV2 on Saturday. Audi produces TT and TT Roadster sports cars and the A3 model in Hungary.

The plant suspends production briefly every Christmas, they company stressed, adding that this would not entail layoffs this year either. Local news agency MTI said Audi would still produce more than 60,000 cars this year at its Győr (northwest Hungary) unit, up from 56,000 last year, while engine output would be flat at 1.9 million units.

Economy Minister Gordon Bajnai said thousands of people would lose their jobs in the coming weeks, but the cabinet would grant specific support for small and medium-sized enterprises to retain positions and create new ones. Bajnai estimates that 1,760 employees will be axed in the immediate future, following 1,400 layoffs announced last week. He sees this process gather pace and forecasts no change in this respect in the near future.

The financial crisis left a scar on the car industry. Sales are going sharply down and an increasing number of producers make announcements of cutting back or suspending production, simply because there is no demand for their produce.

Source:Portfolio Hu