Magyar Suzuki to Pay Resigning Employees

The Hungarian subsidiary of Suzuki is now offering a two month payment to all employees who voluntarily leave the company by December 18, in order to stick to the initial plan to shut down one of the three shifts. According to Just-auto which cited local media sources, the Magyar Suzuki will switch to a two-shift production on December 19, a move which means that one-fifth of 5,523 employees must leave the company.

The Hungarian plant builds a wide range of models, including Suzuki Swift, Suzuki Splash, Fiat Sedici and Opel/Vauxhal Agila, so production of all these vehicles will be reduced starting December 19.

The Japanese company is not the only important name which counteracts the global recession with cost-cutting measures, with Volvo, GM and Chrysler announcing job cuts in various regions of the world. Moreover, some of them, and include here the Detroit 3 (General Motors, Chrysler and Ford) are experiencing even tougher times than previously expected, so government aid seem to be their only hope to remain in business.

Earlier this day, Volvo announced a similar move, admitting that approximately 4,000 employees, from both Sweden and overseas, will be let go as part of a cost-cutting plan which also includes job cuts and reduced production. But even so, Volvo's future is still doubtful, analysts explain, with Ford currently considering options and likely to sell the Swedish carmaker anytime in the near future.

Getting back to Suzuki, it was one of the first companies that reacted to the global recession, way before its apogee. In case you didn't hear the news, three motorcycle giants, including the aforementioned Suzuki, announced reduced production for the North American markets due to the obvious decreasing demand brought by the financial crisis.