Hungarian Suzuki Plant to Cut Second Shift Temporarily

VIENNA – Magyar Suzuki will suspend operation of a second shift at its plant in Esztergom, Hungary, in November and December.

The auto maker expects to reintroduce the shift in January.

Magyar Suzuki employs 3,400 workers. There currently are no plans to eliminate jobs, the company says.

The Esztergom plant builds five models: the Suzuki Swift, Splash and SX4, as well as the Splash-based Opel Agila and SX4-derived Fiat Sedici.

Volume production of the new-generation SX4 is to start in summer 2013.

Last year, the factory built 171,700 cars, up 1% from 2010.

In March, Magyar Suzuki CEO Hisashi Takeuchi said he expected production of 175,000 to 180,000 cars this year. However, the auto maker currently is forecasting output at only 155,000 units in 2012, according to a company spokeswoman quoted by Hungarian media.

Theoretically, the facility in Esztergom could produce almost double that volume. Prior to the global economic crisis in 2008-2009, Magyar Suzuki raised its total annual capacity to 300,000 units, extending production days from five to six and operating hours from 16 to 20 a day.

However, the auto maker had to make drastic job cuts in the winter of 2008-2009. As a result, the plant’s current capacity is 200,000 vehicles annually with two 8-hour shifts operating five days a week.