Hungarian automotive industry: week 7

Manufacturers

Last week, we tested the new Audi TT Roadster in Majorca. The model is the car maker's latest addition to the Hungarian Audi plant in Győr.

The latest Audi from Győr, Hungary

Mass production of the new Suzuki Vitara will be launched in March. Magyar Suzuki also reported on changes in its product strategy.

Unconfirmed media reports said last week that three U.S.-based companies – two of them players in the auto industry – are planning to invest HUF 4.2 billion in Hungary. The two firms are suspected to be General Motors and automotive audio systems manufacturer Harman-Becker.

Suzuki Vitara to arrive in March

Audi announced last week to build a new logistics hall. The HUF 10 billion investment is expected to be handed over within six months. Thanks to the investment, the total area of Audi Hungaria Motor Kft. will grow from 4 million to 5 million square metres.

Suppliers

In H2 2015, Győr-based Qualitative Production Zrt. (QP) will finish a technological development project launched in 2013. The company's long-term goal is to become a Tier 1 supplier for Audi.

Japan-based airbag manufacturer Takata, the company responsible for the majority of recalls last year, is doubling production capacity to offset its disadvantage gained due to the global recall scandal. The company's Miskolc-based plant could benefit from this decision as it is expected to crank up production volume to 4 million airbag units in 2015.

GE announced plans to increase its headcount at the company's Budapest service centre by 1,000 people this year.

QP's long-term goal is to become a Tier 1 supplier

In two years, the Hungarian subsidiary of U.S.-based leather seat cover manufacturer Eagle Ottawa will double its production capacity in Szolnok and create 1,000 to 1,200 new jobs as a result of a HUF 9 billion investment, the company's CEO announced last week.

Service providers

Last week, we interviewed the Ministry of Foreign Affairs and Trade regarding the government's long-term plans and the Electronic Trade and Transport Control System (EKÁER).

A proposal is being drafted to exclude vehicle over 10 years old to be used in taxi services, including provincial areas. The new proposal does not specify a unified look for the vehicles.

Education

It seems that the number of applicants at the dual education programme of Kecskemét College significantly exceeds the number of places available.

It was reported last week that the number of applicants for professions in demand has doubled from last year thanks to a new scholarship scheme. Currently 24,000 vocational students are applicable for the subsidy.

Economy

In 2014, the volume of industrial production increased by 7.1% in December and by 7.6% over the whole year, reported the Central Statistical Office (KSH). Out of subsections with a significant weight, the output of transport equipment, representing more than one fourth of manufacturing, rose by 11.1%.

The growth rate of parts production increased, while the growth rate of motor vehicles decreased in December last year, reported KSH.

Eagle Ottawa to create over 1,000 jobs

On the basis of the first estimation of HCSO, the gross domestic product of Hungary increased by 3.4% in the fourth quarter of 2014 compared to the corresponding period of the previous year. Analysts say an increase of this size had not been seed since 2006.

László Parragh, President of the Hungarian Chamber of Industry and Commerce, said that Hungary's industry has successfully recovered to the state from before the crisis. The question is whether the country can maintain this growth.

Last week the forint reached lows of 311 against the euro only to return to 306 by Friday afternoon.