EMCC European Monitoring Centre on Change

Eckerle Automotive Zala

Company/Organisation:
Eckerle Automotive Zala

Geographic Location

Country: Hungary
Region: Zala; Nyugat-Dunantul; Dunantul
Location of affected unit(s): Zalaegerszeg

Company

Sector: Manufacturing
Manufacture of transport equipment
29.31 - Manufacture of electrical and electronic equipment for motor vehicles
Number Employed: 224
Group: Eckerle Gruppe

Employment Effects

Announcement Date: 17-12-2019
Planned Job Reductions min: 201
Planned Job Reductions max: 224
Type of Restructuring: Closure
Employment Effect Start: 01-01-2020
Foreseen End Date: 30-04-2020
Direct Dismissals: 225

Additional Information

The Hungarian subsidiary of German auto parts manufacturer Eckerle announced that it would dismiss more than 200 employees at its Zalaegerszeg plant. This means that nearly all (currently 225 workers) personnel at the plant will lose their jobs, a few could be relocated to other plants. The plant will entirely stop producing in early 2020.

The Eckerle group is a supplier of a variety of auto parts. The Zalaegerszeg production site is specialised on producing carbon brush systems for several parts, for example seat adjustment motors, safety belts, windscreen wiper motors. The decision about the dismissal came from the parent company, due to the steady decline of demand. The dismantling of the production lines has already began. Some of the production equipment will be shipped in two other Eckerle production sites: the Bóly plant in Hungary and the Cluj-Napoca plant in Romania.

The Ministry of Finance says that it will help the dismissed workers to find new jobs immediately, by organising job fairs, group consultations, and exploring job opportunities at nearby firms. The job search may prove relatively easy, since there are nearly 2,000 vacant jobs in the Zalaegerszeg district and some 3,500 vacant jobs in Zala county.

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