High output at Mercedes-Benz and Audi is boosting Hungarian economy

Article by Christian Andrei, on August 19, 2014

Higher vehicle production at Mercedes-Benz and Audi is providing a needed boost to the economy of Hungary. According to the Hungarian Central Statistics Office, Gross Domestic Product surged 3.9 percent in the second quarter of 2014 -- the biggest quarterly hike since the first three months of 2006.

The Hungarian Central Statistics Office, expecting continued buoyancy, told Automotive News Europe in an e-mailed statement that economic growth will exceed 3 percent in 2014. One of the main reasons for the growth was a significant increase in industrial output (11 percent) in June, boosted by heightened outputs by carmakers.

Mercedes’s production facility in Kecskemet, Hungary has over 3,000 workers and built more than 100,000 vehicles in 2013. In May, Mercedes added a third shift at its site to better cater to strong global demand for the B class and CLA models.

Likewise, Audi added a third shift in July at its Gyor facility, which builds the TT Coupe and Roadster, A3 sedan and A3 convertible. The Gyor site could produce 160,000 vehicles annually.

In 2013, the site built 42,851 cars and 1.93 million engines. Audi has already spent over EUR900 million ($1.23 billion) in expanding the site to cover all aspects of auto production.

The European Commission, however, announced last month that it had commenced a probe into whether EUR133 million in state aid to Audi met EU rules on competition and regional development. [source: automotive news europe - sub. required]

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