One week shutdown at the Suzuki factory in Esztergom -UPDATE

Suzuki has announced a temporary halt regarding the production of the Vitara and S-Cross models at its Esztergom plant for a week due to the recent events at the Red Sea, as stated in a company press release on Monday.

Therefore, these two models will not be produced for a week, starting from 15th January to 22nd January. This decision was made due to delays in the arrival of Japanese-made engines, Reuters wrote.

Magyar Suzuki Ltd., with a share capital of HUF 5.5 billion (EUR 14,503,447), was established in 1991, involving Suzuki of Japan, the Hungarian government, Itochu and the World Bank. The production of the popular Suzuki Swift commenced in 1992.

The Japanese car manufacturer has gained significant trust within the Hungarian market and has maintained its position as the market leader for seven consecutive years (2015-2022), currently holding the second place as of 2023.

In the latest announcement, Suzuki revealed plans to invest HUF 9.3 billion (EUR 24,524,011)  in Hungary, allowing them to expand production capacity and establish a more sustainable, carbon-neutral Esztergom plant.

Red Sea and the Houthis

The Houthis, an Iran-backed rebel group, regard Israel as their enemy and are known for targeting ships passing through the Red Sea. Notably, they avoid attacking Russian and Chinese vessels. Although Iran denies involvement, there is clear evidence of Tehran’s support for the Houthis. Recent reports indicate that the rebels are employing Iranian drones to target not only merchant ships but also British and US military vessels.

Last week, Tesla and Volvo also announced temporary suspensions of production at their European factories.

As we wrote earlier, Hungary provides significant support for automotive promoters, details HERE.

In other news, a Chinese electric car brand is to be available in Hungary first in the region, find more information HERE.

UPDATE

Nearly two thousand workers will be directly affected by the production line shutdown, but the company stressed that this will not affect workers’ wages, according to VG.

Suzuki produces around 650 cars a day in Esztergom, so

the one-week shutdown will mean that around 4,550 vehicles will not be finished.

According to the factory, this shortfall will be made up later and in the future parts will be delivered via an alternative route.

The ships are being rerouted, and production is expected to resume on Jan 22, the company’s communications head said.