Hungarian automotive industry: week 49

Manufacturers and suppliers

Last week, we tested the new Audi A3 Cabriolet, manufactured at the German car maker's Győr plant. The car is definitely a looker: everywhere we went, people turned around.

The Audi A3 is also available in "green"

We also tested a completely different A3 variant. The A3 Sportback e-tron is a plug-in hybrid with a range of 50 kilometres with one charge.

We also presented the new Opel Karl, named after the company's founder, which is outfitted with an engine manufactured in Hungary.

Last week, we visited the Budapest-based plant of Continental Automotive Hungary, where the production of steering assist control units for small and compact cars is now underway as a result of a HUF 1.4 billion investment.

The new Opel Karl features engines manufactured in Szentgotthárd, Hungary

Prospects and trends

Last week, we interviewed István Lepsényi, the CEO of Knorr-Bremse Fékrendszerek Kft. (Knorr-Bremse Brake Systems Ltd.) about the effects of the Russian-Ukrainian conflict on the automotive industry, the performance of Knorr-Bremse in 2014 and the prospects of Hungarian bus manufacturing.

BME Formula Racing Team won TechTogether led by engineering student Csilla Agócs

We also presented how quickly tyre manufacturing is set to develop in Hungary in the future. It is possible that Europe's largest car tyre plant will be built in Hungary. By 2018, Hungary's tyre output could reach 32 million units a year – or even higher.

Ford was the highest-selling brand in Hungary in November. Read our report on Hungary's car registrations in November.

Last week, we reported on a trend according which more and more women are choosing automotive professions. The most popular positions range from operators to top management.

We listed some examples and also the advantages of the trend. On an international level, however, women are still paid less then men.

Economy

In October 2014 – according to preliminary data –, industrial output rose by 1.7 percent compared to the same month of 2013, which represents a significant drop compared to the 7.6 percent increase registered in September, reported Hungary's Central Statistical Office.

The volume of industrial production in October – according to seasonally and working-day adjusted indices – was below the level of the previous month by 2.6 percent, while year-on-year, output grew by 7.8 percent in the first ten months in 2014.

According to a monthly report by economic analyst GKI Gazdaságkutató, Hungary's GDP growth will amount to 3.2 percent this year and 2 percent in 2015. A lower rate of growth next year is a result of increasing national political and economical uncertainty, while an anti-market, potentially corrupt economic policy could further deteriorate Hungary's international evaluation.

We visited Continental's Budapest-based plant

We have some bad news for those conducting business with Russia. The rouble hit a historic low last week, while RTS saw its lowest performance for five years on December 1. One of the key reasons behind the decline is decreasing oil prices.

The forint was relatively balanced against the euro all week, showing a slight decrease. Hungary's currency declined to 307.4 against the euro by Friday afternoon from 306.4 registered on Monday. The forint decreased from 246 to over 250 against the US dollar last week. The US currency is likely to further strengthen in the coming weeks.