German premium carmaker Audi’s Hungarian unit plans to lay off 20% of its temporary workforce from November due to a decline in orders amid the global financial crisis, it said on Tuesday.
Audi, Hungary’s second-biggest exporter, employs 5,899 staff according to figures on its website, but plans to terminate the contracts of 40 of its 200-strong temporary workforce next month, Audi Hungária spokesman Peter Lore said. “Naturally we react to the situation brought on by the financial crisis,” Lore said. “This means we react flexibly to the expected decline in orders ... and will not extend the contract of 40 of the 200 (temporary) workers we employ.” He declined to give guidance for next year or specify what extent of decline the factory projected.
Lore said, however, that Audi still expected to exceed last year’s results and to make over 1.9 million engines as well as more than 60,000 new cars this year. Earlier this month, a Hungarian unit of US car maker General Motors, GM Powertrain, said it would suspend engine production. The measure will affect 150 out of 700 workers at the Hungarian car parts producer in the western town of Szentgotthard. (Reuters)