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Opel to start production of new petrol engine in Hungary

German car maker Opel, belonging to the French Groupe PSA, is making preparations to start production of a 1.2-liter, three-cylinder turbo petrol engine at its plant in Szentgotthárd (276 km west of Budapest) by yearend, the spokesman for the local unit announced, reported.

Zoltán Kaszás acknowledged a drop in production and a decline in revenue at the plant in recent years. He attributed part of the reason for the downturn to a fall in demand for diesel engines. The new engine to be produced in Szentgotthárd will be the most important petrol power unit made by Opel owner PSA, he added.

Opel Szentgotthard turned out 313,000 engines last year, down from 486,000 in 2017 and 629,000 in 2016. It employs about 1,000 people.