Daimler’s plant in Hungary may help the country avoid the recession

Article by Christian Andrei, on March 19, 2012

Commercial production will start at the end of this month at Daimler’s factory in Kecskemet, a town that’s about an hour’s ride away from Budapest, Hungary. This plant, which was constructed for about 800 million euro, will have about 2,500 workers (most of which would be local). This factory will produce the Mercedes B class and a model of the new A class.

Daimler isn’t the first to put up a plant in Hungary. In the 1990s, Audi, Opel (a division of General Motors) and Suzuki were among those who had made Hungary a major fixture in the automotive industry. However, the Daimler project is the biggest new investment in Hungary within the past few years.

It also demonstrates the ambivalent relationship that the center-right government and investors have. Prime Minister Viktor Orban is supportive of huge manufacturing investments but he has expressed a resistance towards foreign capital.

Western companies and several business groups are hurting due to the imposition of several extra taxes. This makes it less likely that there will be future projects after the construction of Daimler’s plant in Kecskemet.

So far, the Germans have rented about 330 houses. They got all the available energy efficient homes and they mostly paid over 1,000 euros a month, much higher than the typical rate. He added that having the Germans around is “very positive” for Kecskemet.

Right before production starts, there would have to be recruitment and training. Takarekbank analyst Gergely Suppan said that as soon as full planned capacity of 120,000 cars a year is reached, the plant and its local suppliers may add up to 5% to Hungary's overall industrial output – an influential factor on whether the economy will suffer or prosper this year. [source: Autonews]

Topics: daimler, hungary

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 2017
Each time that Mini launches a new generation of the Countryman crossover, a John Cooper Works performance version is always expected to follow. When Mini unveiled the next-gen 2017 Mini...
by - January 18, 2017
Ford Mustang customers won’t be able to specify the V6 powerplant for the latest iteration of the carmaker’s pony car. This comes as the new 2018 Ford Mustang is saying...
by - January 18, 2017
The man sitting at the top of the performance division of Mercedes-Benz – Tobias Moers – cryptically indicated that the Mercedes-AMG GT4 could be really coming. Moers, chief executive of...
by - January 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries