Hungarian automotive industry: week four

Forint hits low point

Last week, the Hungarian forint declined against the leading currencies. The domestic currency is showing a more significant decline than the rest of the currencies in the region, which might be a result of the continuous interest rate cuts by the National Bank of Hungary (MNB). The National Bank of Hungary decided to lower the benchmark policy rate by 15 basis points to a new record low of 2.85% on Tuesday. The rate of the forint was 307 against the euro, the lowest in the last ten months.

Conjuncture index

The dynamic growth of the GKI-Erste conjuncture index has been on the rise for almost a year. According to the empirical survey conducted by GKI with the support of the EU, consumer expectations increased considerably in the first month of 2014 as well, to a level not seen for eight years Although business expectations essentially stagnated, they remained at a level not recorded for 13 years. In January in the business sphere expectations became more upbeat in all sectors except industry, particularly in commercial and service companies. Intentions to employ became better in all sectors.

Körmend

The offices of Körmend és Vidéke Takarékszövetkezet (Körmend and its Region Savings Cooperative) were swarmed by clients after the National Bank of Hungary (MNB) withdrew its operation authority and ordered its final settlement as the institution's operation had become unsustainable. According to the National Deposit Insurance Fund's act on credit banks, MNB compensates the depositors up to 100,000 EUR within 20 days following the decision.

The National Deposit Insurance Fund will compensate every lawful claim. Despite the compensation, entrepreneurs and private individuals might have liquidity issues as the Savings Cooperative does not issue payments at the moment. Those who made use of investment services will not be compensated, but will receive information from the organisation carrying out the final settlement on the website of the Savings Cooperative. The Savings Cooperative had almost 13,000 clients. However, its market share in the crediting sector hardly reached 0.1 percent.

Changes in media

Vienna-based Vienna Capital Partners (VCP) signed an agreement with Ringier and Axel Springer, according to which VCP will purchase Világgazdaság, Népszabadság, Nemzeti Sport, eight county dailies (24 óra, Petőfi Népe, Dunántúli Napló, Békés Megyei Hírlap, Heves Megyei Hírlap, Új Néplap, Somogyi Hírlap, Tolnai Népújság) and several other weeklies and monthlies from the two publisher giants.

Super Bowl

On February 6 the Denver Broncos and the Seattle Seahawks will play in the 2014 Super Bowl. However strange it may sound, it is relevant to the Hungarian automotive industry. While in 2013 it was the Mercedes CLA from Kecskemét, this year the protagonist of one of the most anticipated car ads will be the Audi A3 sedan built in Győr.

Suzuki

Suzuki established its Hungarian subsidiary in 1991 and laid the foundation stone of the Esztergom plant in 1992. Upon our request, the history of the relationship between Hungarian Suzuki Plc. and the city of Esztergom was summarised by Éva Tétényi the Mayor of Esztergom. She pointed out that Suzuki never let Esztergom down.

"The presence and development of the Esztergom Industrial Park is defined by the Suzuki plant. Many suppliers have settled in the vicinity of the plant. One fifth of the companies in the Park are in the supplier chain of the Japanese car maker. In 2007, Plastimat and Kirchhoff Hungária Kft. opened their plants in the Park, but we can also find Diamond Electric, Rába and Magyar Toyo Seat Kft. here," said the Mayor.

In another interview, László Urbán, the Vice-CEO of Hungarian Suzuki, told our site that the preparations for the production of a new model due to arrive in 2015 is already under way. The SX4 S-Cross, the new model already produced at the Esztergom plant, has already been presented globally, emphasised László Urbán. The Hungarian subsidiary's plan for the future is to continue growth and existing investments.

Intelligent car

The Hungarian importer of Mercedes-Benz launched a research project with the help of Máté Petrekanits from the Physical Education and Sports Science Faculty of Semmelweis University, which examined physiological data from a driver driving a car without any driver-assist systems and a traffic-ready automated passenger car fitted with Mercedes-Benz intelligent drive. Petrekanits, who came up with the methodology of the research project, was the scientific director of the Fit4Race program, specialised in the physiological preparation of racing drivers.

Opel and Audi

Tamás Solt, Factory Director at the Szentgotthárd Opel plant, said that the introduction of the two bigger engine families last year will be followed by the production of small petrol engines in 2014. Test production has already begun. This year altogether 20 new engine variants, including 1.6-litre diesel and petrol power sources, will be manufactured at the Szentgotthárd Flex plant.

Audi is already preparing for the production of the new-generation TT Coupé and Roadster cars. The car maker has announced that Audi Hungaria closed the 2013 financial year with a new record. 1,925,636 engines were manufactured at the Győr plant (1,915,567 units in 2012). In addition, 42,851 cars rolled off the production line, up from the 33,553 units made in 2012. The company's headcount increased to 10,337. "We managed to keep the company on a growth course in 2013," said CEO Thomas Faustmann.

Suppliers

Dénes Klujber, the President of the Association of Hungarian Vehicle Component Manufacturers (MAJOSZ), said that from certain aspects the previous year was a year of opposites. From the aspect of the OEMs, it was clearly a year of positive tendencies, but it's slightly more complicated from the aspect of suppliers and the labour market.

The first month of the year saw positive developments.

AWF Autóalkatrészgyártó Kft. has started an investment of 1.8 billion HUF in Sárvár. The investment will create more than 30 new jobs. Epcos Kft., manufacturer of passive electronic parts, such as aluminium electrolyte capacitors, choke-coils and noise suppressors, has expanded its production capacity in Szombathely with an investment of 3.3 billion HUF.

According to a recent agreement with Germany-based Kirchhoff Group, the Vehicle Components Business of Rába will deliver 600,000 pressed body parts every year for Western European passenger cars.

Know-how and experience

We reported last week that Győr-based Széchenyi István University is developing a new electric vehicle. Although it is a lightweight four-wheeled motorcycle, the focus is on usability. The development can provide a real alternative in urban mobility. The small vehicle has zero emissions, it is capable of six hours of operation with one charge and its top speed is 80kph. It is perfectly comfortable for two persons for everyday urban tasks.

We interviewed the young professor of the Department of Automation and Applied Computer Science at the Budapest University of Technology and Economics, recently chosen as the "IT Lecturer of the Year", who spoke about the unity of know-how and experience.

We presented the activities of Suzuki-supplier Ajkai Elektronikai Kft. and Metálplaszt. The goal of the definitive employer of the Lowe-Jászság region is to expand its automotive activities. The company is headed the right direction: it is able to carry out everything from the idea to the finished product thanks to its 20 years of experience, modern moulding machines and tool shop.

The BBJ contributed to this article.