German car manufacturers move to Hungary: a huge change!
German car manufacturers move to Hungary: a huge change!
In the context of a strategic changeover, German automobile manufacturers such as Mercedes, BMW and Audi have decided to move part of their production to Hungary. This decision is made to escape the high German regulations and the tax burden. The Mercedes plant in Kecskemét will be expanded by 2026 with an investment volume of over one billion euros to integrate new assembly halls and digital, flexible production lines. This information comes from Our Central Europe . At BMW, the fully electric model IX3 is produced under climate -neutral conditions at BMW, while Audi has been working in Győr for over 30 years and has manufactured 180,000 vehicles and over 1.5 million drive trains last year. The trust of the German automobile manufacturers in the Hungarian economy is also supported by the location, which is viewed as stable and well integrated into the German supply chains. However, politicians like Anton Hofreiter from the Greens criticize the relocation and warn of the repression of the Hungarian government and the high tax load on site.
criticism of the relocation
The decision to shift production and jobs does not happen without a headwind. Hofreiter expresses concerns about the influence of China and describes Hungary as the "bridgehead for the drainage of technical knowledge". The reactions show that the German manufacturers are unimpressed by these allegations. Mercedes emphasizes that the Kecskeméter plant has had a constant economic success since its foundation in 2012 and currently employs more than 4,500 employees. However, the high tax load and special taxes in Hungary are seen as a burden for German companies, which the critical voices also fueled within Germany, as reported on Auto Motor und Sport is.
In view of the trend for relocating production facilities to Central and Eastern Europe, it is not surprising that Hungary, together with countries such as Poland and the Czech Republic, is more and more a strategic goal for the automotive industry. Between 2010 and 2018, German companies made 14 % of their foreign investments in this region. In 2019, 79 % more car parts from Central and Eastern Europe were imported to Germany than in 2010. This development is also made by Consulting analyzed.
economic framework in Hungary
The Hungarian car supply industry contributes half of the automotive production in the country, with the export share even reaching 81.5 %. Against this background, the decision of the German automobile manufacturers is also perceived as part of a larger trend that is motivated by cost -efficient production conditions. The heights of wages and operational costs in Germany as well as the uncertainty in the political framework have meant that Germany appears less attractive as a location.
In view of these factors,the relocation according to Hungary could be both risk and chance. The German automotive industry is in a transition phase in which the need to adapt to global market conditions is inevitable. The trend towards relocating production in Central and Eastern Europe speaks for a permanent change in the automotive industry and shows how the economic landscape changes through innovative approaches and regional synergies.
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| Ort | Kecskemét, Ungarn |
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