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27th of January 2009 | 15:13 GMT | Daniel Patrascu

Audi Continues to Pause Production

STORY HIGHLIGHTS:

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  • Audi stops production at Gyor factory
  • No layoff planned as Gyor factory shuts down for a week
  • Production stop at Gyor is part of regular company policy

 
Click to enlarge [Audi closes Gyor factory for one week]
Audi closes Gyor factory for one week
Audi Hungaria Motor Kft. will suspend operations for one week, between Feb. 23 and 28, as most of the industry's players have done.

“Suspending production was regular at this time of year but due to the uncertain market conditions some segments of production were halted a week longer than usual," said Peter Lore, trying to adress concerns that the new economical environment could cause job cutbacks.

Audi Hungaria Motor Kft. in Györ is one of the most important suppliers of engines for Audi and the Volkswagen Group. The Hungarian subsidiary produces four-cylinder, V6 and V8 engines and, in cooperation with the Ingolstadt plant, assembles the TT Coupé and the TT Roadster.

The company was founded in Hungary in February 1993, after production locations had been compared all over Europe. In the meantime, the plant became Hungary's biggest exporter and one of the country's highest-revenue companies for years.

In 2005, factory doors opened to more than 1.69 million engines and incresead production to 1.9 million engines in 2007. The location is being continuously expanded and a new factory unit – the toolmaking shop, in which a total of 40 million euros were invested – was just officially opened in 2005.

Alongside the Audi models engines, the Gyor factory also produces the Lamborghini V10 engine block.
5,600 of people work in the Hungarian factory in Gyor and will be affected by Audi's move.

This decision comes after the recent production stops, in November and again in December-January, and only weeks after Suzuki did the same, this time due to the Russian gas crisis.

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