Hungarian automotive industry: week 35
Last week was shadowed by an increasing migrant crisis and panicking global markets induced by China. In Hungary, the central bank kept its benchmark deposit rate unchanged at 1.35%, while Foreign Affairs and Trade Minister Péter Szijjártó announced new automotive investments in the country.
Suppliers
Continental group member ContiTech Fluid Automotive Kft. will expand its production capacity at its Makó and Nyíregyháza locations with a HUF 5 billion investment, subsidized by the Hungarian government with a HUF 1.05 billion cash support.
The investment will create 216 new jobs in Makó and Nyíregyháza, and the company will also expand its production area by 4,000 m2 and build a 5,000 m2 logistics hall at the Makó location.
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| ContiTech expands in Hungary |
Békéscsaba-based Csaba Metál Zrt. completed a HUF 5.7 billion investment to increase production capacity, supported by the Hungarian government with a HUF 1.3 billion non-refundable subsidy. As a result, the Hungarian automotive supplier will create 155 new jobs in Békéscsaba and Szeghalom.
The negotiations for a €300 million financing deal for an investment by Apollo Tyres in Hungary has successfully ended. According to an agreement reached this week, the total costs of the investment will amount to €475 million.
The company has announced that the loan necessary for the investment will be provided by an international consortium consisting of ABN AMRO Bank N.V., Magyar Export-Import Bank Zrt., Raiffeisen Bank Zrt., Standard Chartered Bank and UniCredit Bank Hungary Zrt.
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| Csaba Metál to create 155 new jobs |
Nemak is hindered in development due to a housing shortage for its workers. CEO David Toth talked about an emerging problem to autopro.hu that will affect other local corporations and developing towns in the long run.
Interview
Last week, we interviewed Thomas Geier, plant director at Mercedes-Benz Kecskemét, at the debut of the latest-gen solar-powered vehicle built by the Megalux Team regarding the company's plans in connection with alternative drivetrains.
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| Thomas Geier: Mercedes to launch production for a new plug-in hybrid in every quarter in Kecskemét |
Geier said the company has plans to launch ten new plug-in hybrid cars by 2017, introducing a new plug-in model in every quarter at the Kecskemét-based manufacturing site.
Retail
Test operation for the new trolley buses built by the Solaris-Skoda joint venture will soon start in Budapest. Balázs Szeneczey, vice mayor responsible for town planning, said at a press conference that 36 new trolley buses, including 20 articulated vehicles, are ready to enter operation.
Education
Formula Student Hungary 2015 ended last Sunday. The best Hungarian team was Arrabona Racing Team from Széchenyi István University, who finished in 11th place out of the 43 competitors.
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| German teams dominated in Formula Student Hungary |
In line with the institute's strategic targets, the University of Debrecen will carry out HUF multibillion, state- and EU-subsidized projects, the rector of the university announced last week. Zoltán Szilvássy said in 2015, the university sourced nearly 10 percent of its annual budget of HUF 90 billion through tendering.
Economy
The National Bank of Hungary (MNB) kept its benchmark two-week deposit rate unchanged at 1.35% on Tuesday.
Analysts had been expecting the move after an announcement by MNB president Gyölgy Matolcsy announced after a five-month period of continued cuts that the Monetary Council intends to maintain the base rate on hold for an extended period and is preparing for a prolonged, relaxed monetary policy.
According to economic daily Világgazdaság, the growth rate of the Hungarian economy has slowed down. In its Thursday issue the newspaper reported on a 2.74 percent annual base rate increase and a monthly rise of 0.25 percent, indicating a gradually slowing growth course.
Three tender invitations with a total allocation of HUF 71 billion are set to promote research, development and innovation activities in Hungary, it was announced by the Ministry for National Economy last Wednesday.
