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Market Insights Automobile Industry Developments

Editor: Daniel Richter

During the last weeks, two important announcements were made regarding the Hungarian automobile industry. One, the vehicle factory of Audi Hungaria Zrt. located in Győr has started the serial production of electric engines, and the other, it was revealed to no surprise that BMW is building a factory in Debrecen.

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BMW is constructing a factory in Debrecen for over one billion euros.
BMW is constructing a factory in Debrecen for over one billion euros.
(Source: Pixabay / CC0 )

BMW to Build a €1-Billion Car Factory in Hungary

BMW will be investing over one billion euros, that is HUF 320 billion, in Debrecen at the seat of Hajdú-Bihar county, creating more than a thousand new jobs from the beginning of the investment. According to the company corporate communication, Debrecen was chosen partly because of its infrastructure, logistical connections and the location of BMW’s existing supplier network. The skilled workforce available in the area was also a significant reason for choosing the site. Traditional and electric automobiles are to be produced using a single production line with cutting edge automobile industry production technologies in an area of 400 hectares near the city. Up to 150 thousand automobiles a year can be produced in the factory.

Hungarian Audi Factory Starts Serial Production of Electric Engines

Achim Heinfling, chairman of the board at Audi Hungaria Zrt. announced in July that the serial production of electric engines has been launched at the Győr vehicle factory. He said that the Győr plant had been launched 25 years ago as a small engine factory with 700 workers, producing two thousand units per day on an area of 60 thousand square metres. Today, following investments amounting to over eight billion euros, it has a staff of over 12,500 on five million square metres, producing nine thousand engines and five hundred vehicles per day. This development surpasses all visions and expectations from a quarter of a century ago. Audi purposefully builds on the technology and skills available on site and when preparing for the important role it is to play in electro-mobility. The company manager emphasised that this aim is to ensure the competitiveness of the company in a sustainable manner on the long term. He reminded all that it is not only their products but also their manufacturing processes that are innovative. For example, work in the new units is performed in a modular island-type system as opposed to an assembly line.

Peter Kössler, director of Audi AG responsible for production and logistics, said that the Győr vehicle factory, which has produced over 33 million units and over 1.1 million automobiles during the past quarter of a century, sets an example for the Audi group. The Győr plant is an important part of the group, being the “heart” of the completely electric SUVs that are to be mass-produced in the Brussels factory, which are also to be created in Győr. By 2025, all their base models will also be available in an electric version, creating a presence for the group in all segments of non-traditional drives. The senior leader of Audi announced that the Győr factory is prepared for the challenges of the present and the future.

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