The automotive industry in Hungary

Engine of growth

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Europes assembly line

A new hub for the global automotive industry
Central and Eastern Europe has become an important centre for the worlds automotive industry. With 3.3 million passenger cars produced last year, the area is becoming an important production base for the EU market. In 2008, while Western European motor vehicle production fell by 9.1%, production in the CEE countries grew by 7.5%. Hungary could boast of an 18.5% growth, the second highest in Europe.

Hungarians who have changed the automotive industry

Few people know that the rst four-wheel spring carriage was crafted in Kcs, a small village in Komrom County, at the turn of the 14th century. Unlike the usual carts of that time, this carriage was suspended on vertical straps and later on springs. Kocsi, the Hungarian word for the carriage derived from the name of the village, has spread all over the world and been adopted by many languages, including English (coach), German (Kutsche) and French (coche). Dezs Korda designed an electric automobile in the 1860s when he worked with the Paris-based Societ de Fives-Lille as chief designer, and later as the companys managing director. He is also renowned as the inventor of the rotating condenser and received the Lgion dHonneur, the French Order of Honour for his scientic achievements. Dont Bnki (1859-1922) and Janos Csonka (18521939) were the joint pioneers of engine manufacturing in Hungary. They applied for a patent for the petrol engine in 1888 and the carburettor in 1893. In 1894, Bnki patented his high-pressure combustion engine and upgraded it with injected water cooling. Csonka constructed the rst Hungarian gas motor in 1879 with tools and equipment he devised himself. In 1882, he built a blended fuel gas and petroleum motor. Csonka has been credited with a host of original inventions, including various measuring devices, a motor tricycle and, in 1905, a transport vehicle for the Post Ofce. The latter marked the birth of the Hungarian car manufacturing industry.

One of the most talented technical forebears of the American automotive industry, Jzsef Galamb (1881- 1955) began work at Ford in December 1905. The Model T designed by Galamb was ready by 1908 and 19 thousand cars were sold the following year. Its most important part was the planetary gearbox, one of Galambs most brilliant inventions. Jzsef Galamb also designed the world-famous Fordson tractor and the ignition plug.

The gearbox
Why Hungary?
Whether you are a producer looking for a cost-effective manufacturing base, competitive component and part suppliers, or locations for logistics and R&D centres, Hungary has plenty to offer. Hungary lies along the Eastern border of the EU and is within the Schengen zone. The countrys strategic position, highly developed logistics and utilities infrastructure and traditional role as a trading post makes it important as a regional distribution centre and a service hub for the CEE region. Four trans-European motorways run through Hungary, more than in any of the neighbouring countries. Most countries in the Balkans can only be reached through Hungary. As a member of the European Union, Hungary has fully harmonised its legal system, adopting European safety and quality regulations related to automotive manufacturing. Hungary also compares favourably when it comes to data security and enforcement of intellectual property rights. Highly skilled and exible human capital at competitive cost: companies can expect a 3050% cost saving compared to Western Europe and the US. The average gross wage in Hungary is just EUR 740 per month while labour productivity is among the highest in the CEE region. The Hungarian labour force also rates highly in international comparisons for innovation and creativity, due to the countrys renowned standards of schooling and tertiary education. Fourteen of the worlds top 20 Tier 1 suppliers, including Robert Bosch, ThyssenKrupp, Denso, Michelin, Valeo, Bridgestone, Magna Steyr, BorgWarner, Visteon, Delphi, Continental, Lear, Siemens and Sumitomo are already present in Hungary. They have also surrounded themselves with clusters of home-grown small and medium-sized manufacturers and service suppliers. Renault-Nissan, General Motors, Porsche and DAF/PACCAR have chosen Hungary as a location for part centres supplying not only the Central and Eastern European markets but also Ukraine, Russia and the Balkans. Business processes have been simplied considerably in recent years. In addition, foreign companies willing to settle in Hungary are welcomed with supportive government policy. Hungary has a globally recognised academic and university infrastructure. Increasingly, automotive-related R&D activity is carried out in top universities, while leading global manufacturers, like Audi, Bosch, Knorr-Bremse, Magna-Steyr and ThyssenKrupp, have established R&D centres in Hungary. Hungary is the regional leader in the production of petrol engines.
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Central Europes role is particularly signicant in the production of small economical cars where cost minimisation is essential. Rapid growth in local vehicle production is also reected by an expanding supplier segment that accounts for more than half of the industry in many CEE countries. Rapid development of the automotive industry in Central and Eastern Europe would not be possible without substantial foreign investment, which has now exceeded EUR 20 billion. In recent years, the CEE region has attracted all the leading automakers of Europe, the US and Asia. The automotive sector is one of Hungarys core industries and contributes 20 per cent of total exports. In 2008, vehicle sales outside Hungary were worth EUR 8.3 billion and engines accounted for EUR 5.3 billion. Over 600 companies employing a total of 100,000 people are active in the sector. Of these enterprises, 240 operate according to the ISO and/or TS 16949 quality management standards. The export ratio of Hungarianmade cars is 94 per cent, a figure that stands at 88 per cent for engine and component production. The number of rst- and second-tier equipment manufacturers is continually rising. Since the early 1990s, several foreign car manufacturers, such as Suzuki, Audi and General Motors, as well as 14 of the top 20 Tier 1 suppliers, have set up production facilities in Hungary. Thanks to Hungarys EU membership, investors settling here nd themselves on the south-eastern borders of a market of 493 million people. As a result, many multinational companies have also relocated their manufacturing, service operations, European headquarters and R&D centres to Hungary, translating to nearly EUR 60 billion in foreign direct investment to date. More than 36 per cent of total FDI in Hungary has been directed towards the manufacturing industry, with the automotive and its supplier industries leading the way.
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Bla Barnyi (1907-1997), the father of passive safety in automobiles, was employed by AustriaFiat, Steyr and Adler (predecessor of Audi) before joining Daimler-Benz in 1939. Heading the pre-development department of Daimler-Benz from 1939 to 1972, he developed the concept of the crumple zone, the non-deformable passenger cell, the collapsible steering column and many other safety features of Mercedes-Benz automobiles. He is also credited with having conceived the basic design for the Volkswagen Beetle in 1925, ve years before Ferdinand Porsche claimed to have completed his version. Barnyi was nominated for the award of Car Engineer of the Century in 1999 and inducted into the Detroit Automotive Hall of Fame in 1994. Dr. Ferenc Anisits (1938- ) was one of the founders of the BMW Diesel Development Centre in Steyr, Austria. Anisits developed a new four-cylinder engine which debuted in 1998 at the 24-hour race in Nurburgring. The 3-Series BMW outperformed its petrol-driven rivals, making it the rst victory for a Diesel-powered car. At BMW, Anisits developed the V8, the worlds rst direct injection Diesel engine. This and a six-cylinder version were awarded the title of International Engine of the Year in 1999 and 2000. Anisits has developed three generations of Diesel engines at BMW. Ferenc Pavlics (1928- ) developed NASAs Moon Rover, the rst vehicle in history to travel on extraterrestrial terrain during the Apollo 15 expedition of 1971. Pavlicss engineering background included six years of machine design in Hungary. After the 1956 uprising, he left the country and was involved in research and development at General Motors from 1960. Twenty-seven years of service for GM included engineering and management positions in vehicle mobility research, advanced vehicle design, lunar surface vehicle projects, and electric propulsion systems. Pavlics designed and supervised the manufacture of mobility test equipment, instrumentation and experimental vehicles and, as Project Engineer for several NASA contracts, also designed manned and robotic surface vehicles. The rover, known as Newcomer, was improved by NASA under Pavlicss direction, and landed on Mars in 1997 with the Trailnder space probe.

A journalist, ofce clerk, sculptor, and painter in Budapest, Jzsef Lszl Br (1899-1985) is best known for inventing the ball-point pen. However, when he found his newly-bought Bugattis clutch mechanism too unweildy, he tinkered around for a year, before making and patenting his own automatic gearbox. General Motors offered him half a percent of the price of each unit sold and a monthly $200 advance for ve years. The advance secured him an easy life for a while, but the licence fee was never paid, as the American company suppressed the patent and sank it to the bottom of a ling cabinet. Jen Fejes (1877-1952), largely forgotten today, was the rst man in the world to submit patents for manufacturing automobile parts by cold-forming, pressing, torch- and spotwelding. From 1911, Fejes, a constructor at the Hungarian General Engineering Co., replaced all cast and heavy pressed iron parts with cold-formed parts and steel plates. Cold forming allowed the use of steel plates of vastly reduced thickness, slashing the dead-weight of vehicles designed by Fejes by 30 to 35 per cent.

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Catalysts for investment

Government incentives and subsidies
The Hungarian Investment and Trade Development Agency (ITD Hungary) provides a one-stop service to support investments establishing new manufacturing facilities worth at least EUR 10 million. As part of a tailor-made incentive package, ITD Hungary undertakes all-inclusive management of projects granted direct cash subsidies, and provides VIP treatment and comprehensive information about other subsidies available for high-value investment projects. I. Tenders co-nanced by the European Union. This is a non-refundable cash subsidy fully approved by the EU and issued by the Hungarian Government. (Available tenders can be found on the ITD Hungary website.) II. In cases where no EU co-nanced subsidy is available, the Hungarian Government offers a special incentive package for projects with eligible costs exceeding EUR 10 million.

Audi Facts & gures (2008)

1.9 million engines 60,359 (+6%) cars, Audi TT, Audi TT-Roadster and Audi A3 Cabriolet Turnover EUR 5,617 million Workforce 5,879 people Total investments of over EUR 3,600 million Hungarys largest exporter Hungary largest exporter Hungarys largest exporter Worlds third largest engine manufacturing plant

Leading the way

Automotive success
DAIMLER
Daimler started to invest EUR 800 million to manufacture 100 thousand Class A and B compact Mercedes cars yearly in the Central Hungarian city of Kecskemt. This will be the companys rst plant in Eastern Europe. The investment will create 2,500 jobs and production is to start in 2012. The Hungarian Government supports the investment of Daimler with a package of measures giving the project a clear prioritization. Daimler considered sites in Romania, Poland and Serbia, in addition to Hungary, but Kecskemt offered Daimler the best conditions in terms of infrastructure, logistics, work force and wages.

Maximum regional intensity rates of state subsidies sidies s

Cash subsidy + tax allowance + any other state subsidy (excluding training subsidy) combined cannot exceed the maximum regional subsidy intensity rate for the given location. These are between 25% and 50%, depending on the state of development of the region. A well trained labour force, a dense supplier network and favourable logistics conditions were the main arguments in favour of Kecskemt. Dieter Zetsche, CEO, Daimler AG

The Special Incentive Package may consist of the following elements:

1. Cash subsidy assessed by individual Government decision Non-refundable subsidy, dened as a percentage of eligible costs, based on the Governments decision At least 50 (or, in preferred regions, 25) new jobs must be created Decision factors: wage related costs, location of the project, number of jobs created, ratio of graduates, training costs On receipt of all necessary project data, ITD Hungary will send an ofcial incentive offer within 30 days 2. Development tax allowance Minimum HUF 3 billion investment with 150 new jobs in developed regions and HUF 1 billion with 75 new jobs in less developed regions 80% of corporate income tax (currently at 19%) can be deducted for a period of up to 10 years 3. Training subsidy From 25% to 90% of total training costs, depending on the type of training and location of the investment 4. Job creation subsidy Granted to projects located in less and least developed micro-regions and settlements, which create at least 500 jobs in less developed areas, or at least 200 in least developed micro-regions; the ratio of registered unemployed within the newly-recruited staff should exceed 50% and 30%, respectively. Subsidy per investment: HUF 260 million (EUR 1.04 million) if headcount increases by at least 500 HUF 160 million (EUR 640 thousand) if headcount increases by at least 300 HUF 80 million (EUR 320 thousand) if headcount increases by at least 200

AUDI
Audi manufactures high-end vehicles equipped with powerful, state-of-theart engines supplied by Audi Hungaria. When Audi AG was looking for a new production site to manufacture a new series of engines in 1992, the northern Hungarian town of Gyr was selected from 180 potential venues. AUDI HUNGARIA MOTOR Kft. was established with founding capital of EUR 1 million in 1993 as a wholly owned subsidiary of AUDI AG and is now one of the countrys key industrial players and largest exporters. The Hungarian company has produced more than 15 million engines in the past 15 years and its four-, ve-, six-, eight-, ten- and twelve-cylinder engines are used not only in Audi branded vehicles but also in a variety of Volkswagen, Seat and Skoda models. Audi Hungaria is also the only company in the world assembling Audi TT sports cars and Audi A3 Cabriolets as part of a cooperative manufacturing process with Audis Ingolstadt plant.
The management of the AUDI Hungaria Motor Ltd. is proud of the company having become one of the greatest investors in Hungary. Our output level amounts over 1.91 million engines a year, and owing to our engine development centre, machine tool factory as well as production designing and product construction we are the determining force in the Hungarian and European automobile industry. The good working culture, efciency and exibility of Hungarian workers have made rapid growth possible. Within 15 years, Audi in Gyr has become the worlds third largest engine manufacturer and logistics had to keep pace with this expansion. // Thomas Faustmann Managing Director, AUDI Hungria Motor Ltd.

Suzuki Facts & gures (2008)

281,681 (+21,3%) cars (Swift, SX4, Ignis; Splash) Turnover EUR 2.4 billion Workforce 4,300 people Total investment in excess of EUR 1.3 billion

SUZUKI
Im convinced that Suzuki made the right decision in choosing Hungary for its European general headquarters: the move has proved to be hugely benecial for us, as sales gures have been demonstrating for the last 15 years. The strategic rationale for this decision was to achieve maximum synergy by combining two great assets: the reliable and economical product range designed by Japanese engineers to meet continuously evolving market demands, and the creativity, excellent problem-solving abilities and discipline of the Hungarian work force. The plans success is evident in the unsurpassed quality of the Suzuki automobiles and auto parts manufactured here in Hungary. // Kazuhisa Toda, former General Director, Magyar Suzuki Corporation 5

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The company was established by its major shareholder Suzuki Motor Corporation in 1991. The kick-off model, Swift rolled off the production line in 1992, followed in 2000 by Wagon R+, Ignis in 2003, the new Swift in 2005, SX4 in 2006 and Splash in 2008. By now over a million and a half Suzuki vehicles assembled in the Esztergom factory are used on domestic and European roads. Since the factory was set up, the company has spent more than HUF 280 billion on development. The company provides jobs for thousands of people in Hungary at its factory and through its circle of suppliers. Apart from the emphasis it places on quality, Magyar Suzuki aspires to an environmentally conscious mode of operation. The technology in use at the Esztergom factory is in line with ISO 14 001 environmental and ISO 9001 quality assurance standards. All models currently assembled at Esztergom are built with engines complying with Euro 4 environmental standards. MSC also acquired the Authorized Economic Operator AEO certication, an internationally acknowledged certicate, which proves the excellence of a company within international trading.
12% 10% 8% 6% 4%

FDI stock in EUR millions in transport equipment manufacturing in Hungary by volume and as a percentage
6000 5000 4000 3000 2000 1000

F.SEGURA
Spanish die-manufacturing and stamping company Grupo F.Segura has chosen the city of Szolnok to establish a new facility to design and manufacture metal components for the automotive industry for its customers FORD, VW, SEAT, AUDI and VOLVO. Initially the factory will be 11,000 sqm large, over a total area of 10 hectares. The overall cost of investment will reach EUR 11 million and it will create 150 new jobs.

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From this privileged position in the centre of Europe and bordering on seven countries, F.Segura Hungaria Kft. wants to obtain a major presence in the current and future European context. With this strategic decision F.Segura establishes itself in a multi-customer environment where privileged logistics
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

GENERAL MOTORS
General Motors Powertrain Hungary Ltd. was founded as a subsidiary of General Motors Powertrain Europe in Szentgotthrd in 1991. The company is the sole manufacturer of all Ecotec Family 1 gasoline engines (1.6-1.8 litre) and an exclusive producer of Allison automatic transmission for trucks and buses outside America.
A creative and exible workforce is one of the strengths that helps General Motors Powertrain Hungary to successfully meet the challenges facing todays rapidly changing automotive industry. // Rudolf Hamp, former General Director, General Motors Powertrain Hungary Ltd.

General Motors Powertrain Facts & gures (2008)

392,378 engines 605,643 cylinder heads 20,437 Allison transmissions Workforce 640 people Total investment reached EUR 700 million by 2008

2% 0

conditions and additional benets take prot of the new emergence markets in the region.

Source: Central Statistical Ofce

KNORR-BREMSE
The Knorr-Bremse Group is the worlds leading manufacturer of braking systems for rail and commercial vehicles.Knorr-Bremse Fkrendszerek Kft. is a manufacturing base of prime importance for the group and serves as its sales centre for Central and Eastern Europe. The Hungarian commercial vehicle subsidiarys high standing within the KnorrBremse Group can also be attributed to its cutting-edge research and development work. The organisation not only plays a key strategic role in the Groups global development, it is also heavily involved in Hungarian higher education. Knorr-Bremse established a development centre in Budapest in 1999 with new capacity and competencies added in the years since. The company has also invested almost EUR 5 million on research and development projects in Hungary.

ROBERT BOSCH
Bosch has been present in Hungary for 110 years. The company is the second largest foreign employer in Hungary with 12 local subsidiaries and a total headcount of more than 7,000.Bosch in Hungary is increasing its efforts to adapt the domestic technical higher education system to the needs of the market by supporting numerous training programmes in Budapest, Hatvan and Miskolc. Last year the company has spent EUR 36 million on R&D. By now already 430 engineers work in the Bosch Budapest Development Centre.
The Bosch Group has been committed to supporting and motivating a new generation of engineers for many years. This long-term strategy has paid off as demand for highly trained, multi-lingual engineers appears to have increased in the current nancial crisis. // Dr. Jan-Peter Stadler, Director, Bosch Development Centre, Budapest

THE GEDIA GROUP

GEDIA Gebrder Dingerkus GmbH develops and manufactures pressings and welded assemblies for the automotive industry, technical products and fastening systems for the household goods industry. The company announced that in addition to its already existing facility in Hungary, it would create 103 new jobs and an investment of EUR 21 million in the town of Tata to manufacture body parts for the vehicle industry.

HARMAN INTERNATIONAL
Harman International, the worlds biggest producer of car sound-systems, is intending to expand production at its unit in Hungary. The company intends to convert its unit in Szkesfehervar into a European production base, increasing its workforce at the unit from the current 400 to 700 in the initial phase of the planned expansion, to 1,400 in the following phase and to 2,000 in the next two or three years. The company plans to invest EUR 15 million at its unit in Hungary over the next year and a half.

BOSAL
Dutch company Bosal expands its operations in Hungary by building a new production hall and creating additional 250 jobs at its site in Kecskemt. Bosal which already has 200 employees, has been operating in Kecskemt since 2004 and produces towbars, jacks and toolkits.
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Driving innovation
R&D in the heart of Europe
Since the 1990s, Hungary has become a new hub for automotive manufacturing. Satised with their results, several leading global manufacturers such as AUDI, GM, ZF, Knorr Bremse and Bosch have established R&D centres in Hungary. Increasingly, automotive-related applied R&D is carried out in top universities. A large number of SME-s conduct contract research in Gyr, Veszprm, Szkesfehrvr and Budapest. Advanced Vehicles and Vehicle Control Knowledge Centre, Budapest University of Economics and Technology. Research extends to new areas of automotive technology-related research such as the control of vehicle eets, vehicle-environment contact-based control, and control on the vehicle level. Cooperating partners are Knorr Bremse, Thyssen Krupp and TV Nord. Regional University Knowledge Centre for the Vehicle Industry, University of Gyr. The Knowledge Centre serves the research and development needs of the automotive industry in the area of Gyr, such as Rba Undercarriage Ltd, Borsodi Workshop Ltd. and the SAPU Partnership. Research focuses on key pre-manufacturing technologies and nishing processing; primarily shaping processes, such as casting and mould-shaping of metals and manufacturing technologies for plastic parts.

Key statistics
Production: EUR 16.7 billion, Export: EUR 15.0 billion Export ratio: 90% Skilled workers average gross wage: 384 EUR/month Share of foreign capital: 75% Distribution of companies by ownership: Domestic: 54% Foreign: 25% Joint venture: 21% Share of total national exports by Audi, Suzuki and GM Powertrain combined: 11% Number of automotive manufacturing rms (OEM, Tier 1Tier 2): 620 Number of automotive manufacturing rms with audited quality-assurance systems: 240 Number of employees: 100,000 Proportion of employees involved in main-unit manufacturing: 12% Proportion of employees involved in part-unit manufacturing: 88%

Technical universities and institutions Total number of students taking technical courses: 57,000

Up to speed
Education in the automotive sector
Education in all areas of engineering is built on strong foundations: Hungary boasts great scientic traditions and experience in production and planning, excellent primary and secondary education (including vocational high schools with focused technical curricula), and a superb network of technical colleges and universities renowned for training highly specialised engineers.

Source: Ministry of Education

Technical universities:
Budapest Technical University, Zrnyi Mikls National Defence University Budapest, Szchenyi Istvn University Gyr, University of Miskolc, Pannonia University Veszprm, University of Debrecen, Szent Istvn University Gdl, University of Pcs, University of West Hungary, Sopron Technical institutions: Budapest Technical College, Gbor Dnes College Budapest, College of Dunajvros, Kecskemt College, Etvs Jzsef College, Baja, College of Nyregyhza

The automotive industry provides work for 100,000 people in Hungary today, of which 3,500 are university- or college-educated engineers.

Solar-powered vehicle F1 from Budapest

The formula racing team of the University of Technology and Economics, formed by MSc and PhD students, participated in the German Formula Student Race for the rst time on 6-8 August, 2008. With the CUBE (named after the Rubik Cube, another world-famous Hungarian intellectual achievement) they nished evement) 49th out of 78 competing teams - but achieved a respectable ut ac chieved second place among tournament newcomers. come ers. The cube, weighing in at 298 kg, has a 600 cm3, 80 hp engine. The innovation of the engineers is highlighted in the geometry etry of the steering, the suspension kinematics atics and the roll-centre movement. These achievehievements have been acknowledged by leading industry players of the automotive sector. ding By the fall of 2008, the project had cost Huf 8 5 million in planning construction and t f 8.5 planning, tests. Advisors to the project have included Formula-1 engineers and team leaders. Many of the team members are already employed by major vehicle manufacturers. Students of the Faculty of Engineering Sciences at the Szchenyi Istvn University in Gyr have constructed the rst Hungarian vehicle that runs exclusively on solar energy. It is called SZEnergy, and although it is as large as an everyday vehicle (3.5 x 1.3 meters), it has an ultralight structure (150 kg). Its bodywork is covered with solar cells, supplying the engine with enough power to run at speeds of 10 kph, even in patchy sunlight. Each cell transmits 17% of the incoming electromagnetic energy - 3% more than average cells. Considering the energy efciency ratio between the transmitted energy and the power transferred to the running gear, overall efciency reaches an exceptional 99%.

World-class training and education of engineers in ve major cities Nearly 20 per cent of working engineers are engaged in product development, while the rest are active in technical development, production, quality assurance and sales Hungary has nearly 22,500 students in vocational education Over 52,000 Hungarians are enrolled in science courses at university level (in 2008, 13,235 in IT, 34,622 in engineering and 3,851 in manufacturing and processing).

Automotive research
Audi Gyr: engine development AVL Budapest: engine and powertrain development Bosch Miskolc: electronic hand-tools designing Bosch Budapest: electronic developments Continental Teves Veszprm: development of electronics instruments for cars Denso Szkesfehrvr: fuel supplying system development DHS Draexlmaier rd: vehicle compartment designing EDAG Gyr: vehicle subunit development GE Lightings Budapest: car lighting Knorr-Bremse Budapest: electronic development Kecskemt: pneumatic and electro pneumatic development Magna-Steyr Gyr: engineering centre Continental Temic Budapest: car electronics development Semcon Budapest: automotive design, informatics ThyssenKrupp Budapest: electronic steering development Visteon Szkesfehrvr: vehicle part and subunit development WET Pilisszentivn: electronic subunit development

College of Dunajvros, Department of Mechanics and Mechatronics. The College offers a range of automotive technology-related testing and research services, including the determination of force characteristics of control devices and sensors (ABS), dimensional and fatigue tests of instrument boards. The College co-operates with some of the largest automotive manufacturers in Hungary, such as Bosch, Hankook and Audi. A new, complex car mechatronics test laboratory is being set up for suppliers in the metals (Musashi and DENSO) and the electronics (Bosch) industries.
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SZEnergy achieved the best results in the Shell Maratons Urban solar category with the lowest energy use. The car had no technical problems during the three runs and could return 89% of the energy it used. Based on its average energy use, the car could have run more than 2000 kilometres on one litre of gas.

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Success by association
Automotive organisations
The Association of the Hungarian Automotive Industry (MGSZ) www. gepjarmuipar.hu has 24 members and represents the international interests of Hungarian producers in the Association of European Motor Vehicle Manufacturers (ACEA) and the International Organisation of Motor Vehicle Manufacturers (OICA). Association of Hungarian Vehicle Component Manufacturers (MAJOSZ) www.majosz.hu was established in 1993 by 22 founding members. It currently has more than 290 members, of which 80 are supporting members. The Associations goal is to assist its members in climbing as high up the supplier hierarchy as possible, and to help them advance from simpler to more sophisticated products, from contract manufacturing to product development projects. The Association is an ofcial member of the European Association of Automotive Suppliers (CLEPA).

Ideal logistics hub in Europe

The sum of the parts

Slovakia Poland Ukraine CIS
Hungarys network of automotive manufacturers

Western Europe ARA ports Slovakia Hamburg Bremerhaven Czech Republic

Northern Hungary

Central Hungary Central Transdanubia

Northern Great-Plain

10 1 4 7

Western Transdanubia S outhern Great-Plain S outhern Transdanubia

Constanta
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Western Transdanubia Arcelor Audi Autoliv B.O.S. BPW Dana Delphi Packard Edag EMT Erbslh Euro Exedy Euro-Elzett Eybl Federal Mogul GM Powertrain Gyri Plast Hirschler-Glas Kravtex Magna Steyr Nemak Rba Rekard Produkt Rudolph Logistik Schaefer AG Sempeform Veritas Visiocorp Vogel und Noot

Central Transdanubia AFL Ajkai Elektronika Albert Weber Alcoa Asahi Glass Benteler Borg Warner Bourns Bridgestone Continental Teves Denso Diamond Electric Euro Exedy Gedia Gestamp Hammerstein Hankook ITW Siewer Karsai Plast Kirchhof Le Blier Lear Magyarmet Michels Musashi Plasticor Plastimat Rba SCI Sanmina SEWS Suoftec Suzuki Toyo Seat U-Shin Valeo Videoton Visteon Wescast

Southern Transdanubia BHG CabTec Ratipur

Northern Hungary Csabacast Akzo-Nobel Coating ARRK Bosch Delphi-Calsonic Delta-Tech Exir Firth Rixson Ganz Foundry Gibbs Hi-Lex Knaus-Tabbert Kovcs Lear Leoni Mitsuba Modine Prec-Cast Remy Saia-Burgess Salgglas Shinwa Stanley Electric Starter Battery Technoplast ZF Hungria

Northern Great-Plain Caroex Carrier Transicold Eagle Ottawa Eismann EMCON Technologies Euroszol F.Segura Hajdu Aut Hbner Isringhausen Le Blier Michelin Nief Phoenix Schaefer AG

Koper, Triest

Constanta

Central Hungary AVL Cascade Clarion Continental Catalyst Continental Temic ContiTech Draexlmaier EMT Excel Csepel FESTO GE Lighting Hokushin Ibiden Lear MGM Michelin Mono-Ipolyfabric NABI PEM Schwarzmller Siemens VDO Tauril ThyssenKrupp Toyo Seat Vogel-Sitze W.E.T. Automotive Webasto Zollner

The Pannon Automotive Cluster (PANAC) www.panac.hu was established in 2000 and now boasts 96 members. The organisations mission is to facilitate national and international networking by providing opportunities for communication and partnerships. It also assists in company development, including surveys of supplier capacity, company benchmarking, organisation of specic automotive teaching/training programmes and technology exchanges.

Logistics centers Airport with public, international, commercial permanent border crossing Airport with public, international, commercial temporary border crossing Airport development opportunities Ports Railway connection Container terminal
Motorway network in Hungary

Southern Great-Plain Continental Phoenix Csaba Metal Eckerle Emika Hirschmann Kaloplasztik Knorr-Bremse Kunplast-Karsai Linamar PATA ThyssenKrupp

The North Hungarian Automotive Cluster (NOHAC) - www.nohac.hu was established with the participation of three TIER 1 suppliers the regional chamber of commerce (BOKIK) and the Innovation Management Cooperation Research Centre, University of Miskolc (ImKKK). By bringing together North Hungarian suppliers, business professionals and academic experts, the cluster members hope to boost the innovative spirit, thus competitiveness and protability in the region. Hungarian Vehicle Development Cluster (MAJK) - www.engineeringcluster.com - was founded in January 2009 by six Hungarian engineering SMEs, all with wide experience in international projects. HVEC implements joint innovation projects, supports individual inventors and assists the establishmen of new companies and spin-offs. HVEC, co-operating with a wide network of research centres, universities and business intermediaries, offers competitive knowledge, innovation platforms and complex project management.
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Your co-driver: ITD Hungary

ITD Hungary is the Hungarian governments Investment and Trade Development Agency, established by the Ministry of Economy and Transport to promote inward investment and bilateral trade. With representative ofces in the eight regional centres of Hungary and a foreign network operating under Hungarys diplomatic services at 55 locations in 43 countries, ITD Hungary is a single point of contact for executives exploring investment and trade opportunities in Hungary. The Agency provides foreign investors with high-quality support for key decision-making processes and a wealth of supplementary services, including:

Project preparation
In-depth, tailored information on the local economy and business climate, corporate taxation and the legal environment, as well as sector specic overviews Site visits, meetings with local, regional and government bodies and introductions to local suppliers, service providers and experts Information on available incentives

Implementation
Site selection assistance, coordination of licensing procedures Finalisation of incentives agreements Assistance with recruitment and visa application

After care
Intermediary role for future developments between government bodies and foreign companies operating in Hungary Support and generation of reinvestments

Trade development
Through a diverse set of marketing tools and support programmes, ITD Hungary offers substantial logistical, nancial and professional assistance to both start-up and established Hungarian exporters. ITD Hungary also co-ordinates the Hungarian activities of the Enterprise Europe Network, supported by the European Commission. The network offers support and advice to businesses across Europe and helps them make the most of opportunities in the European Union. ITD Hungary develops and distributes printed and electronic business guides, trade directories and information booklets in a variety of languages. The Agency arranges business programmes for individual visitors and delegations, organises conferences, exhibitions, product showcases and other business events. ITD Hungary Zrt., H-1061 Budapest, Andrssy t 12. Phone: +36 1 472 8178 E-mail: investment@itd.hu, info@itd.hu www.itdh.com Mrs. gnes Henter, Deputy Investment Director Mr. Andrs Hajdu, Business Development Director