Daimler AG to idle Mercedes-Benz plant in Hungary for a month

BUDAPEST: Daimler AG will idle its Mercedes-Benz plant in Hungary for a month from Monday, the German carmaker said on Saturday, extending a regular end-of-year maintenance period due to a global component shortage.
The factory, which manufactured over 160,000 cars last year, has faced disruptions this year due to a supply crunch which has weighed on the car industry, a mainstay of Hungary's growth.
German rival Audi and Japanese carmaker Suzuki Motor Corp, which also have factories in Hungary, have faced disruptions this year.
A global shortage of semiconductors, due to supply problems and a surge in demand for consumer electricals during the pandemic, has hit the auto industry hard, with millions of vehicles worldwide not being produced because important parts are missing.
"Adjusting to the continuously changing component supply situation, the Mercedes-Benz plant in Kecskemet will modify its production plans from calendar week 50," Daimler said.
It will use the stoppage for maintenance and reconstruction works at the plant in central Hungary, which employed about 4,400 people last year and launched production of the electric EQB model in late October.
Workers would be paid base salary and benefits during the production halt which will run until January 12, Mercedes said.
Disruptions to car manufacturing have a significant impact on Hungary's industrial output, which fell by an annual 3.4% in October and 2.3% in September as car sector output fell amid the global chip shortage.