Audi’s Hungarian unit plans to stop production for three weeks in August to save jobs in the face of falling demand.

A report in daily newspaper Nepszabadsag said Audi would cut engine production but retain its core workforce this year at its factory in Gyor, in Hungary.

It said the company, which suspended production for a week at the end of last month, decided to convert this year’s planned pay rises into extra days off, allowing it greater flexibility to adjust to fluctuations in demand.

Audi in Hungary made 1.9m engines last year and car manufacturing was up by 6% to 60,359 vehicles.