Budapest  - Audi said Monday it would suspend production at its Hungarian plant for a month from mid-December, citing a seasonal drop in demand for convertible cars.

The German company said it has no immediate plans to lay off staff.

Meanwhile, another German car maker, Daimler AG, sought to reassure Hungary that it has no intention of cancelling its planned 800 million-euro Mercedes-Benz production facility in Hungary.

Daimler spokeswoman Nicole Rubba told the Hungarian state news agency MTI on Monday that despite a management call for "absolute budgetary discipline" the investment will go ahead.

Rubba said the new production plant was in line with the company's shift towards greener vehicles. The plant, to be built in central Hungary, will produce Mercedes A- and B-class compact cars.

Minister for Economy and Development Gordon Bajnai warned on Monday that the 1,400 jobs lost in Hungary last week were only the beginning, and said the country should brace itself for a spate a redundancies. (dpa)