Audi To Expand in Hungary

GYOR, Hungary — Audi is planning to invest some $1.2 billion in the expansion of its production facilities in Hungary. According to the company, by 2013 its Hungarian factory, located in the city of Gyor in northwest Hungary, will be able to produce up to 125,000 cars per year, including Audi A3 and Audi TT models.

The investment will help create 1,800 more jobs, bringing the total to more than 5,800. Audi is the largest foreign employer and investor in Hungary and has invested nearly $5.5 billion in the country since 1993.

Currently the Gyor plant produces Audi's TT coupe and roadster and A3 cabriolet models as well as engines. Last year its production volumes amounted to 32,603 cars and 1,383,909 engines.

The cash infusion will help create a complete production chain at the plant, including body manufacturing, paint shop and assembly, and should help the company achieve one of its strategic goals, to increase its sales by 50 percent in 2015 to 1.5 million vehicles a year.

Inside Line says: Audi is not the only big German automaker interested in Hungary. In 2008, Daimler announced plans to build a plant in the centrally located town of Kecskemét. Opel reportedly has major plans to expand its Hungarian plant in Szentgotthard, in the west of the country. — Evgeniy Vorotnikov, Correspondent