Hungarian automotive industry: week ten

Geneva

Not only do they present the car of the year at the Geneva Motor Show, the most prestigious automotive exhibition in Europe, but the event also showcases future trends we can expect in the European auto market. Although this year's modest line-up offered less splendour, it's not because of the lingering effects of the European economic crisis, but rather it illustrates the trend that car makers are nowadays characterised by rationality.

Nearly every car maker's stand featured a near production-ready EV, hybrid or fuel-cell vehicle. Luxury was not left out either, but due to strict environmental standards, soon we'll have to get accustomed to the notion of four-cylinder Bentleys, less powerful Lamborghinis and Rolls-Royces without a V12.

The new Audi TT was unveiled in Geneva

Domestic OEMs also showcased their new models, the highlight of the Audi stand was the third-generation TT, to be manufactured in Győr, Hungary. The most powerful variant, a 420bhp concept car, was also unveiled in Geneva. Audi unveiled the S3 cabriolet too, also to be produced in Hungary, the new, more powerful A1 and the three- and five-door variants of the S1. Autopro tested Audi's people's car, the A3 sedan, in Hungary.

Suzuki unveiled the Indian-made Celerio, Mercedes-Benz presented the new S-Class Coupé and the V-Class, while Opel showcased the new 1.6-litre diesel engine family and the 1-litre three-cylinder turbo engine from Szentgotthárd.

Best employers

Audi, Mercedes and the Bosch group are the most attractive employers in Hungary in 2014, reported Aon Hewitt based on a survey by the HR firm and AIESEC. According to the survey, Hungarians prefer multinational companies as their employers.

Kecskemét as promoted automotive centre

A declaration of intent for the Ministry for National Economy to make the region of Tatabánya, Tata and Esztergom a promoted automotive centre was signed by five representatives in the Komárom-Esztergom County Government Office. Governmental Commissioner Judit Czunyi, János Bencsik, member of the Parliament's Economy Committee, Csaba Schmidt, the Mayor of Tatabánya, György Popovics, the President of the County General Assembly, and Csilla Jandalla, the Rector of Edutus College announced the aim of the initiative at a press conference.

The promotion of economic, higher educational and infrastructural development, employment, knowledge-based activities and the export ability of Hungary's economy could be facilitated to a great extent in a promoted automotive centre.

Change in leadership at Mercedes Kecskemét

Effective from May 1, Thomas Geier will replace Frank Klein as CEO at the Mercedes-Benz Kecskemét plant. Frank Klein will return to Germany to take over the position of leader of global transporter manufacturing at Daimler. In 2013, the Kecskemét plant produced over 109,000 cars.

Thomas Geier, the new factory director at Mercedes-Benz Hungary

Suppliers

Audi-supplier Distinction Kft. received the award for the best startup in February by Economy Minister Mihály Varga.

Simon Plastic Processing developed with HUF 500 mln. The Kőszárhely-based automotive company tripled its storage capacity with the investment. The investment was handed over by PM Viktor Orbán.

HUF 670 million development at Veszprém-based Balluff. The company has developed new automotive sensors used in industrial automation and improved its production technology.

Electric buses

2013 brought an increased interest in domestic bus manufacturing. The new, full-electric Coulumb EV became roadworthy at the end of last year. We interviewed Gábor Tenk and Mihály Nagypál, the two leaders of the manufacturing company, ITK Holding Zrt.

Industrial production

In January 2014 – according to preliminary data – industrial gross output rose by 6.1% compared to the same month of 2013. Analysts had previously predicted a 5 percent increase. The data published by the Central Statistical Office show significant increases both month-on-month and year-on-year, which is an important development as industrial output had decreased in each of the previous three months.

2014 can be a promising year as both external and domestic demand could increase, driven by the growth of automotive production output. Domestic car manufacture could grow by 40 percent compared to the previous year, analysts say.

Improving GDP

The gross domestic product of Hungary increased by 2.7% in the 4th quarter of 2013 compared to the corresponding period of the previous year, following a 1.8 percent growth in Q3, reported Hungary's Central Statistical Office in a detailed report. According to seasonally and calendar adjusted data, the economic performance was 2.7 percent higher in the 4th quarter of 2013 compared to the corresponding quarter of the previous year and 0.5 percent higher compared to the previous quarter.

The performance of the Hungarian economy grew by 1.1 percent in 2013, following a 1.7 percent drop in the previous year. The Central Statistical Office reported on a 2.7 percent y/y and 0.6 percent m/m growth in Q4 last year. The value of gross domestic product was HUF 29,114 billion at current prices.

External trade

In 2013, the value of exports was EUR 81.7 billion (HUF 24,244 billion), while that of imports was EUR 74.7 billion (HUF 22,154 billion). The surplus on the trade balance amounted to EUR 7.0 billion (HUF 2,090 billion), which was EUR 354 million (HUF 168 billion) more than in the same period of the previous year, reported the Central Statistical Office.

These figures are somewhat different from the preliminary data published earlier in February. The surplus on external trade was EUR 617 million more than in 2012.

The Central Statistical Office contributed to this article