Hungarian automotive industry: week 19
In the 19th week this year, Mercedes boosted production in Kecskemét, Michelin announced a restructuring in their Hungarian production, National Instruments handed over an open laboratory and Epcos was selected as investor of the month. Siemens was also in the spotlight last week.
Let's see what the 19th week this year brought in Hungary's economy and automotive industry.
Manufacturers
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On Monday last week, the third shift was introduced at the Kecskemét plant of Mercedes-Benz Manufacturing Hungary. Frank Klein, former CEO of Mercedes-Benz Manufacturing Hungary Kft. announced on March 18 that due to high demand on Mercedes cars, starting in May, the plant will manufacture vehicles 24 hours a day in three shifts.
In the first four months this year, 21,002 new passenger cars were registered in Hungary, up 22.3 percent from the same period last year. 8.12 percent of these cars were made at Hungary-based OEMs.
We also reported on which were the best-selling cars in Hungary in Q1 2014.
Despite several of their models are reaching the end of their cycle, Audi reported on a double-digit growth. It seems so far, Audi have managed to keep behind Mercedes. BMW will publish their sales results later this week.
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We published an other road test on our website. Those who are looking for a Ford MPV are offered a wide range of choices. The Tourneo Courier is the smallest in the family, but that could also be its selling point.
Suppliers
National Instruments opened a scientific centre called Science Park for SMEs and engineering students at their Debrecen-based subsidiary with an investment supported by the EU and the Hungarian Government. We interviewed National Instruments Hungary CEO László Ábrahám.
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| László Ábrahám, CEO of National Instruments Hungary |
Michelin announced to their workers last Tuesday that they will be restructuring their Hungarian production by shutting down tyre production for commercial vehicles in Budapest and keeping their Nyíregyháza factory, where the manufacture of high-performance Michelin tyres will continue.
We also wrote where commercial vehicle tyre production will be relocated to.
We visited a Sopron-based plant, successfully led by Judit Hirschler for years, engaged in the production of rear-view mirrors for commercial vehicles. And as we were there, we made an interview with the factory director.
Siemens CEO Joe Kaeser is planning significant changes in order to increase the company's efficiency. According to the trade unions, the restructuring could involve significant layoffs.
Last week the Government handed over the "Investor of the Month" and "SME of the Month" awards. Minister for National Economy Mihály Varga presented the “Investor of the Month” award to EPCOS Ltd.
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| EPCOS Ltd., winner of "Investor of the Month" award in April |
EPCOS Ltd., the winner of the “Investor of the Month” award, is one of the leading enterprises within the car industry of Western Hungary which has recently announced the largest investment project of its twenty-year history. Mihály Varga emphasised he considers it very important that the number of investments in this sector is growing.
The Gustav Wolf group opened a new machine production unit in Miskolc, Hungary. The HUF 140 million investment, the company's second plant in Miskolc, was handed over on Wednesday at the town's business park. This is the company's second production unit at the Miskolc Business Park.
Service providers
No week can pass without news from the bus industry. Pécs-based public transport company Tüke Busz Zrt. established a new service centre for the servicing of its own vehicle fleet.
According to the Mayor of Pécs, the government-owned company's almost HUF 200 million investment can be repaid in less then three years. Before the investment, the company relied on a partner in the maintenance of its bus fleet, but by servicing their own vehicles the company can cut its costs, added Zsolt Páva, Mayor of Pécs.
The reputation and influence of chambers have significantly increased in the last few years. It's not a question anymore who is representing the interest of the economy, said László Parragh, President of the Hungarian Chamber of Commerce and Industry, last Friday in Szeged.
Since the 2008 economic crisis, the average age of passenger cars in Hungary increased from 10.4 years to 13 years, reported Genertel.
We talked to Mobilis head Péter Tamás Szilasi about the VoltTimer project, the validity of electric motoring and the shift towards electric drive in the automotive industry.
Mol Nyrt. reported on a weak first quarter, which corresponded to analyst expectations. In Q1 2014, the oil company's net revenue amounted to HUF 1,120.9 billion, down 13 percent from the same period last year.
Kecskemét College held an event for the younger generation called "Roncsolj velünk" ("Smash with us"), where teams of students had to disassemble car wrecks.
The development at the Jászfényszaru Business Park is an excellent example of cooperation between a town's municipality, an industrial centre and the Hungarian Investment and Trade Agency (HITA), said the President of HITA at the foundation-stone laying ceremony of a HUF 1 billion investment project at Jászfényszaru Business Park.
Railway company GYSEV are expanding their container fleet with an investment of HUF 700 million.
Education
From July 1, University of West Hungary's Faculty of Geoinformatics will operate under Óbuda University's Alba Regia Faculty. Thanks to the restructuring, several new courses will be launched.
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| Siemens and BME signed another five-year strategic partnership agreement |
Siemens Zrt. and the Budapest University of Technology and Econonomics (BME) signed another five-year strategic agreement. One of the most important aims of the collaboration is to popularize the engineering profession.
Economy
In March 2014 – according to preliminary data – industrial gross output rose by 10.6 percent compared to the same month of 2013. The driver of the economy is still vehicle manufacturing.
Entrepreneurship has increased in Hungary. By March 31, 9,689 partnerships started operation in Hungary in 2014, up 16 percent from the same period last year.
Exports and imports in EUR terms grew by 5.1 percent and 4.0 percent, respectively. The surplus on the trade balance was EUR 286 million more than in the period of January–March 2013, reported Hungary's Central Statistical Office (KSH) based on preliminary data.
Several factors suggest that an increase in demand on machine production can be expected worldwide.
