BMW takes delivery of site for new production base in Hungary


German carmaker BMW Group has paid for and acquired ownership of the real estate in Debrecen (195 km east of Budapest) for its new plant, the Debrecen local council told state news wire MTI.

Debrecen city leaders delivered the close to 400-hectare plot to BMW with technical preparations necessary for the construction of the plant completed, although some contractual modifications were made affecting deadlines for infrastructure investments outside of the plant by mutual agreement, the local council said. These investments include ones affecting the telecommunications network, drinking water, and sewerage systems, gas supply, connecting roads, and an intermodal center, it added.

In a conference call after the release of BMWĘĽs first-quarter earnings on May 6, chairman Oliver Zipse said the carmaker would postpone the opening of its plant in Debrecen by a year because of the impact of the coronavirus pandemic.

"In the current situation, we are carefully reviewing all our projects as a matter of principle...As an example of this: since expected demand is always a relevant factor for us, we have decided to postpone the opening of the plant in Hungary by a year," Zipse said.

Construction of the EUR 1 billion plant in Debrecen was slated to start in the spring. The plant will employ about 1,000 people and have the capacity to turn out around 150,000 vehicles a year.


Hungary Inflation Rate at 21.5% in May Figures

Hungary Inflation Rate at 21.5% in May

Parl't Approves Amendments to Legislation on Judiciary Parliament

Parl't Approves Amendments to Legislation on Judiciary

Industrial Production Declines in April Manufacturing

Industrial Production Declines in April

Landmark Budapest Dept Store to Reopen After HUF 8 bln Renov... History

Landmark Budapest Dept Store to Reopen After HUF 8 bln Renov...


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.