BMW takes delivery of site for new production base in Hungary

Recycling

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 BMWʼs 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.

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