Hungarian automotive industry: week 39
Let´s look at what happened in Hungary´s automotive industry shadowed by VW´s global-scale diesel emissions scam. There was plenty to report on in addition to the scandal, including a number of important automotive-related announcements from Hungary.
Manufacturers
Last week, Audi announced the possibility of entering Formula 1 as early as in 2018.
In other news, Audi AG donated €1 million to support refugees, including a €50 million allocation for Audi Hungaria.
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| Audi announces plans to expand training centre in Győr |
The manufacturer also expanded its training centre in Győr, where 453 apprentices began their studies in the new academic year. By 2017, the company will build a modern training complex with a capacity for 650 trainees.
Last week, the Kecskemét-based Mercedes-Benz plant handed over a new nursery school for the children of the company's employees.
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| Mercedes opens nursery in Kecskemét |
VW scandal
Although one third of the engines affected in the scandal were manufactured in Audi's Hungarian plant – at the world's largest engine factory –, the Győr-based operation was not involved in the manipulation of emissions data.
Suppliers
Pápa-based Hirtenberger Automotive Safety, a manufacturer of car safety systems, has purchased new equipment and significantly increased its production capacity with a HUF 840 million investment.
U.S.-based General Electric's Aviation business built a 4,600 m2 production hall in Hungary with a HUF 2.8 billion investment.
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| Hirtenberger expands in Hungary |
This year's MAJOSZ-HIPA supplier forum will be held in late-October. Local automotive executives and businessmen will once again have the opportunity to meet on the first day of Automotive Hungary, 28th of October, at 10 am.
Service providers
India-based Tata Consultancy Services (TCS) announced last week to create 300 new jobs at the company's global service centre in Budapest.
Economy
As opposed to the government's communication, Hungarian automotive firms believe that Hungary's well-trained labour force is literally fleeing the country. The employment of refugees is becoming an increasingly viable option for automotive manufacturers.
In addition, the number of unfilled engineering positions is growing in Hungary with the number of open positions amounting to 4,000.
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| HUF vs. EUR - week 39 (source: portfolio.hu) |
Last week, the forint signalled important economic changes. A more significant weakening could signal the effect of the VW scandal, analysts say. In the second half of the week, Hungary's currency saw a substantial decline against the European common currency.
