Thousands working in the automotive industry to remain without work in Hungary?
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In May, the whole sector decreased significantly, and the huge producers are going to stop shortly. As a result, 10-15 thousand workplaces may be in danger, and the problem is not only with the big factories but the companies in their supply chains.
According to Nepszava, the problem is with the companies in the supply chain of the huge factories which already depleted their resources during the epidemic. Furthermore, their employees do not have any more paid holidays, so Zoltán László, deputy leader of the Vasas Trade Union Association, said that
thousands could remain without income in the automotive industry.
In the automotive industry, it is not surprising that production stops for a couple of weeks during the summer, allowing companies to do the necessary maintenance work, replace production lines and machines, and, of course, to send their employees on holiday. However, these are planned pauses. In spring, of course, nobody planned to stop, but they had to because of the coronavirus epidemic.
From March until May, production went on with decreased volume or nothing at all. However, in the meantime, they replaced the machines and did the necessary maintenance work so suppliers rightfully thought that there would be no stops during the summer. However, the emission scandal of 2015 ravaged the sector, so demand fell for traditional cars while it is not enough for the new technologies.