Hungarian car manufacturers to take a break but not due to coronavirus

The coronavirus outbreak and rapid spread across the globe put the automotive industry in a difficult position. Leading manufacturers and their suppliers have temporarily suspended their operations globally, which had a painful impact on Europe, as well. The European Automobile Manufacturers Association (ACEA) reported in early June that EU-wide production losses due to factory shutdowns exceeded 2.44 million motor vehicles (includeing passenger cars, trucks, vans, buses and coaches), and that the average shutdown duration was 30 working days.

ACEA also published an interactive map on the matter, which also revealed that the average shutdown of vehicle manufacturers in Hungary was 22 days, leading to a production loss of over 51,000 motor vehicles. 

Despite the forced production stoppages and the maintenance works carried out during downtime, the pre-scheduled summer breaks in Hungary's automotive sector will be held. Audi Hungaria was the first on the 30th week (20-26 July), the company replied to Portfolio's inquiry, adding that reconstructions and maintenance works were carried out at the plant in Győr (northwest Hungary) in that period.

The company underlined that there is no comprehensive downtime in Audi Hungaria's engine production in the summer months. 

Most engine production areas planned two weeks of summer break or reduced production between the 28th and 33rd weeks.

When asked if additional downtime is planned for the remainder of the year, Audi Hungaria replied that in the currently unpredicatable environment it cannot make such prognosis at the moment, adding that it adjusts its production programme to current demand. 

László Urbán, Deputy CEO at the Hungarian operaton of Japanese carmaker Suzuki Corp., told Portfolio's Automotive Industry 2020 conference earlier that their production loss at Esztergom (northern Hungary) was about 10,000 cars due to the temporary suspension of manufacturing during the pandemic. He also noted that the plant made efforts to carry out maintenance work during the downtime, but the factory will still need its usual two-week summer break. 

Magyar Suzuki Zrt. will have its pre-scheduled two-week annual stoppage this summer too. It will take place between August 10 and 21. During these two weeks, the company will perform maintenance and development works

, the company replied to Portfolio.

As we reported earlier, production at the Kecskemét-based facility of Mercedes-Benz will be put on hold between 17 and 23 August, making use of the long weekend linked to the 20 August national holiday.

The decision was made in view of the previous holiday requests of employees. The production break will be used to carry out maintenance works. Employees will be on paid leave during this period, the company stressed. 

we have also learned that during the downtime, the plant will make preparations to start the production of the hybrid version of its class-a model.

German carmaker Daimler will be the first in Hungary to manufacture plug-in hybrids, the CLA 250 e Coupé and the CLA 250 e Shooting Brake models. Christian Wolff, head of the Mercedes-Benz plant in Kecskemét announced on Tuesday that the facility will switch back to a three-shift operation as of 1 August. He also said the plug-in hybrid version of Mercedes-Benz A-Class will begin this year.

Cover photo: Ákos Stiller /Bloomberg via Getty Images