BUDAPEST — Daimler will idle its Mercedes-Benz plant in Hungary for a month beginning on Monday, extending a daily end-of-year upkeep interval as a result of a worldwide part scarcity.

“Adjusting to the repeatedly altering part provide scenario, the Mercedes-Benz plant in Kecskemet will modify its manufacturing plans from calendar week 50,” Daimler mentioned on Saturday.

The corporate will use the stoppage for upkeep and reconstruction works on the plant in central Hungary, which employed about 4,400 individuals final yr and launched manufacturing of the EQB full-electric mannequin in late October.

Staff can be paid base wage and advantages in the course of the manufacturing halt which is able to run till Jan. 12, Daimler mentioned.

The Kecskemet manufacturing unit, which constructed greater than 160,000 vehicles final yr, has confronted disruptions this yr as a result of a provide crunch which has weighed on the automotive business, a mainstay of Hungary’s progress.

German rival Audi and Japanese carmaker Suzuki, which even have factories in Hungary, have confronted disruptions this yr.

A worldwide scarcity of semiconductors, as a result of provide issues and a surge in demand for client electricals in the course of the pandemic, has hit the auto business arduous, with hundreds of thousands of autos worldwide not being produced as a result of necessary elements are lacking.

Disruptions to automotive manufacturing have a major affect on Hungary’s industrial output, which fell by an annual 3.4 p.c in October and a couple of.3 p.c in September as automotive sector output fell amid the chip scarcity.

BMW plans to open a brand new manufacturing unit in Debrecen, Hungary, in 2025 to construct vehicles underpinned by its electric-focused New Class structure.