Hungarian automotive industry: week 12

Manufacturers

Mercedes will hire 500 new employees in Kecskemét, after adding a third shift to their production in the Hungarian plant. "Thanks to the increased demand for our cars, starting in May 2014, the Mercedes-Benz Kecskemét plant will manufacture cars 24 hours a day, in three shifts. In the past months, we've examined every single variation and finally, we decided that the best set-up for optimal producton is three shifts in forward rotation," said Frank Klein, the Director of the Kecskemét plant. Klein said that the company will hire an additional 500 workers as a result.

Suppliers

Japan-based Denso have been present in Hungary for 17 years. We interviewed Jiro Ebihara, the President of the parent company. Ebihara also informed us about the company's plans for the future.

"Besides introducing new products at the Székesfehérvár plant, we'll put a huge emphasis on the development of our current flagship product, the high-pressure common rail injection system. As a result, our company will invest an additional HUF 30 billion in Hungary, and in 2015, we will launch the production of our latest product, the i-Art common rail system, which will be fitted into Volvo vehicles. Thanks to this development, the Székesfehérvár plant's production output will exceed the volume we registered before the crisis in 2007," Jiro Ebihara told autopro.hu.

Alcoa invests HUF 3 billion in Székesfehérvár plant

Alcoa will double production capacity in Székesfehérvár with an investment of HUF 3 billion, creating 35 new jobs. The Hungarian subsidiary, manufacturer of forged aluminium wheels, will produce Alcoa's most innovative product yet. The company's management has high hopes regarding the wheel product, featuring Dura-Bright Evo surface treatment, and will double production capacity in Székesfehérvár by early-2015.

A plastic production technology centre will be opened soon by Continental in Vác, Hungary. Continental will continue their investment, started last year, which will implement new technologies at the plant.

ContiTech Flid Automotive Hungaria are also building a new competence centre at their other location in Makó, Hungary, which will help assist the production of seven plants of the global supplier engaged in the manufacture of cooler/heat pipes worldwide.

While Denso are developing in Hungary, Hungarian navigation systems developer NNG have plans to establish a subsidiary in Japan this year. The company's efforts are supported by their product specifically developed for the Japanese market, launched last year.

Service providers

The Association of the Hungarian Automotive Industry (AHAI) held an event for its members to inform them about the possible culprits of contracting in the light of the new Civil Code in effect.

The establishment of the Győr Business Park was to create a suitable location for local SMEs as well as international giants settling in the town and their investments. 60 percent of companies settled at the Business Park are Hungarian, a quarter of them subsidiaries of Austrian or German international companies.

Almost 25 percent of the companies at the Business Park are in connection with the machine and automotive industries, but the number of companies engaged in trade is also significant, Tibor Görög, the CEO of the company operating Győr Business Park, told autopro.hu in an interview.

Education

We interviewed the Rector of Óbuda University in his last weeks in his position. We asked Imre Rudas about the transformation of higher education in Székesfehérvár and the possible launch of engineer training in the town.

"The industrial players of the region have clearly indicated their demand for this kind of training, which means our efforts are well-grounded. In the first phase we'd invite professionals from Budapest. Just as in Szombathely, it's fairly easy to travel between Budapest and Székesfehérvár, basically as if commuting to a different part of the capital. We will already launch the Székesfehérvár-based engineering course of Óbuda University in September 2015," the Rector told us in an interview.

Rudas is certain that we need additional engineering training centres.

Last week also saw news about the development of buses in Hungary. The Department of Environmental Economics of the Budapest University of Technology and Economics and Volán Professional Association have formed a partnership aiming at the promotion of knowledge transfer between higher education and the industry.

Within the scope of the cooperation, the Association provides the University's students with the opportunity to carry out projects, internships, thesis works and scientific research at the member companies of the Association. Possible research areas include the issues of sustainability in public transport, environmental and cost/profit analysis of alternative fuel buses and the environmental protection of public transport sites.

Forint

Hungary's currency closed the week where it began it, fluctuating between 310 and 313 against the euro, reaching its relative low point on Wednesday.

Fuel prices

Fuel prices went down on the last day of the week. On March 21, Mol reduced the price of diesel by HUF 4 and the price of petrol by HUF 2.