Audi converting Hungary factory into a full assembly plant

Article by Christian Andrei, on September 27, 2010

Audi’s factory in Gyor, Hungary, will be converted into a full assembly plant to produce A3 and TT cars. Audi will invest 900 million euros ($1.2 billion) for this plant to be able to produce 125,000 cars a year. This conversion is expected to create 1,800 new jobs. How the Gyor plant operates now is to assemble the TT coupe and roadster and A3 Cabriolet using locally built engines.

The other parts are shipped in from Audi's home plant in Ingolstadt in Bavaria, Germany. Audi said that from 2013, Gyor will accomplish the complete manufacturing process on its own, from chassis production to assembly.

In addition, Gyor will be producing another version of the A3 model. CEO Rupert Stadler said that the expansion is a boost to the company's growth plans. Audi’s goal for this year is to achieve new-car sales of over 1.08 million this year, a 14% increase from a year earlier. Audi, the premium brand owned by Volkswagen AG, aims to take over BMW’s position as the world's biggest luxury-car maker by 2015.

At a news conference on Thursday, Stadler said that Hungary offers an “excellent foundation” when it comes to its labor force, its flexible working hours, and the wage structure. In fact, other automakers will be expanding in Hungary.

Last Tuesday, General Motors Co. said it would invest $655 million to expand capacity at its Opel factory in Hungary, to create a new family of Euro 6-compliant, fuel efficient engines.

In 2012, Daimler will open its first Mercedes-Benz factory in Eastern Europe in Kecskemet, about 80 kilometers southeast of Budapest. The factory is expected to have a production capacity of 100,000 units annually of the next-generation A- and B- class compact cars. [via autonews - sub. required]

Topics: audi, hungary, factory

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