Hungarian automotive industry: week 35
While Europe’s being threatened by the conflict between Ukraine and Russia, Hungary’s economy has been hit by a weak forint. In addition, a number of positive announcements were made last week: Suzuki will unveil the new Vitara, the new B-Class will make its debut in Paris, Audi has plans to expand in Győr, RAFI develops in Mezőtúr and Bridgestone’s new production hall is under construction.
Manufacturers
The world premier of the new Suzuki Vitara, to be manufactured at the Japanese car maker´s Hungarian plant in Esztergom, will be at the 2014 Paris Motor Show.
 |
| The new Suzuki Vitara from Esztergom - to be unveiled at this year's Paris Motor Show |
The latest Mercedes model manufactured at the German car maker´s Hungarian plant is currently being tested on the streets of Kecskemét. Sales of the new CLA Shooting Brake will begin on 1 March 2015.
The German car manufacturer confirmed earlier that a new front-wheel drive compact built on the platform of the A-Class (A-Class, B-Class, CLA, GLA) is due to arrive next year.
The testing of the new CLA Shooting Brake has already begun, the car, manufactured exclusively at the Kecsekemét plant, will be unveiled by Mercedes at the Detroit Motor Show in January.
 |
| New Kecskemét-built CLS Shooting Brake to debut in January in Detroit |
Last week, Audi Hungaria announced plans to expand its HUF 10 billion logistics park handed over last year. Mónika Czechmeister, the company’s spokesperson, said that the expansion was made necessary by increasing demand in logistics.
She added that the company would like to build the second logistics site in Győr, but the negotiations are still under way.
 |
| Audi to expand its production site in Győr |
Suppliers
Bridgestone Tatabánya Termelő Kft. announced last week that the construction of the new 110,000-square-metre plant is going according to plan.
Future plant director Fernando del Cerro told our site that test production will launch in Q4, currently various machines are being installed at the new plant.
 |
| The new Bridgestone plant in Tatabánya |
RAFI Hungária Kft. has built a new production hall to manufacture electronics components with an investment of HUF 800 million and created 40 new jobs.
In a few days we will see whether Lear Corporation’s USD 800 million purchase offer has been accapted by Szolnok-based leather seat manufacturer Eagle Ottawa.
NNG Kft., developer of the well-known iGO navigation system, has started recruiting programmers to the company´s R&D centre located in Szeged, Hungary. In the first phase, 50 new employees will be hired, while over the next year, 200 positions will be open at the company.
The new team will be working on navigation and infotainment systems for cars of noted car manufacturers. Although the trend in this sector is usually that programming tasks are outsourced to cheaper countries, NNG's management is striving to keep R&D and the company's main activities in Hungary.
Last week it was announced that Hungary’s government would sign a strategic partnership agreement with Takata. Takata, a multinational supplier of automotive safety products, has production sites in 20 different countries. The company has 55 plant locations across the globe, employing over 36,000 people.
 |
| Airbag manufacturing at Takata |
Education
Formula Student Hungary, the local leg of one of the world’s most prestigious automotive student competition, was held last weekeend. We reported on why the event is much more than just competition between engineering students from different universities. Read our report on FSH 2014.
Service providers
GYSEV Cargo Zrt. has expanded its Sopron-based intermodal centre with a nearly HUF 1 billion investment. The company purchased a portal crane capable of lifting cargo up to 41 ton for HUF 890 million. The project was supported with a HUF 388 million non-refundable grant from EU funds.
Forint
The forint was negatively affected by the more and more severe crisis in Ukraine. While Hungary’s currency was 313.35 against the euro on Monday, by Friday it slumped to 315.24. The lowest point during the week was 316.41 against the euro.
Economy
The base interest rate has been left at 2.1 percent by the Monetary Council of the National Bank of Hungary. The decision conforms to expectations and is in harmony with the Bank’s previous projections.
Investments in the national economy in the 2nd quarter of 2014 increased by 21.2% compared to the 2nd quarter of the previous year, reported Hungary’s Central Statistical Office last week. Within the 21.2% increase of investment activities in the 2nd quarter, investments in machinery and equipment rose by 32.8% and those in construction by 12.2%.
The 33.3% increase in manufacturing, accounting for nearly one-third of investments, was primarily the result of developments in supplier branches – manufacture of rubber, plastics and non-metallic mineral products, textiles, leather and related products, as well as computer, electronic and optical products – related to the manufacture of transport equipment.
