Hungarian automotive industry: week 12
A Hungarian bus entered test operation in Buda Castle, the Investors of the Year 2014 were announced and there is more and more speculation about a new Jaguar Land Rover plant in the region.
Manufacturers
An electric bus designed and built in Hungary has now entered test operation and can be used for free through all March in Budapest. Evopro's Modulo is on a test run in the Buda Castle. The CEO of Evopro said the bus could be a potential candidate for future procurement projects.
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| Evopro's electric bus enters test operation in Budapest (gallery) |
Jaguar Land Rover's plans to build a new plant in the region is a hot topic. Szombathely and Debrecen are both potential candidates, although Slovakia is also competing for the British OEM.
Although Szombathely is very optimistic regarding the decision, we believe the west Hungarian town's chances are rather low. A land purchase in the region last week was announced with commentary suggesting the involvement of the British car manufacturer Jaguar Land Rover.
Suppliers
Last week, Debrecen-based rolling bearing manufacturer FAG announced a HUF 12 billion (EUR 38 million) investment project. The development project will create 72 new jobs in Debrecen.
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| FAG invests in Debrecen |
Last week the Investor of the Year awards were handed over. Automotive suppliers were also awarded, including Apollo, Denso, Hajdu Autótechnika and Autoliv.
Service providers
Swiss-owned Fraisa Hungária Kft. has carried out a HUF 1.5 billion (EUR 4 million) investment project in Sárospatak, allowing the company to manufacture tools with more diverse specifications and a longer life-cycle.
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| More and more speculation regarding the Jaguar investment |
Last week, previously purchased used Austrial railway coaches were delivered in Hungary. The coaches are expected to enter operation on railway lines between Miskolc and Budapest.
It was unveiled at a job fair held at the Budapest University of Technology and Economics last week that there is an significant demand for electrical engineers at Hungarian firms.
Education
The MobilKids programme, launched in 2001 by Daimler, has now reached schools in Kecskemét. Via local schools, the manufacturer will teach kids about traffic safety.
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| Inaugural meeting of the Dual Education Committee |
Last week, the Dual Education Committee was established. The founding members emphasised the need of a stronger collaboration between higher education and the labour market.
Last week saw another inaugural meeting in Hungary's education: The Duna Region Vocational Training Cluster was established last week, providing support in vocational training and adult training in Hungarian-populated areas across the border.
Economy
The National Bank of Hungary (NHB) launched the Funding for Growth Scheme Plus credit programme with a total allocated funds of HUF 500 billion (EUR 1.6 billion). NBH's aim with the new scheme is to provide loans for micro, small and mid-sized enterprises (SMEs) that were previously left out from the Funding for Growth Scheme.
Earnst&Young reported last week that M&A dealings in Hungary increased by 12 percent in 2014 from the previous year, while the size of its market grew by 18 percent. The most popular areas for investors are still IT and technology firms.
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| Source: portfolio.hu |
Last week saw a surprisingly strong forint. The forint showed a significant improvment against the euro and for a short period almost reached the 300 barrier against the European currency. The forint's good performance was a result of a higher confidence in the currency.
