Even here, there is some cooling in enthusiasm, doubtless not helped by Germany’s moribund economy and disappointing EV sales. That is, presumably, a temporary blip. The direction of travel for the automakers based here (Audi, Mercedes and Suzuki, to be joined this year by BMW and BYD) is clearly away from the conventional internal combustion engine toward electric powertrains. That is also true from the one name missing from that list, Stellantis, which announced in 2024 that it would invest a not-insubstantial EUR 103 million at its Szentgotthárd factory to add production of electric drive modules, targeted to begin in late 2026.
The plant once produced the Opel Astra car but has been involved with engine manufacturing for three decades and currently builds 1.2-liter turbocharged three-cylinder and 1.6-liter four-cylinder internal combustion engines. In a demonstration of how new technologies require lifelong learning in the workforce, Stellantis employees are undergoing upskilling to support the machining and assembly of EDMs.
There is a Hungarian expression that roughly translates as needing to stand on more than one leg. The Viktor Orbán-led governments have long talked publicly about the need to avoid over-concentration in one area. While there are legitimate questions to be asked about whether too many eggs are being placed in the automotive/e-mobility basket, the manufacturers listed above are at least a good example of creating growth centers away from Budapest. In Győr, Kecskemét, and Esztergom, the carmakers have been a magnet for Tier 1 and Tier 2 component suppliers, who in turn need industrial bases. The same process is happening in Debrecen, in the east of the country, and in Szeged, in the south, where the news of BYD’s arrival prompted home prices to rise and demand for yet more industrial and logistics space. You can read more about that in this week’s Special Report, which is dedicated to the sector.
*****
From my occasional perch up on the stage, concentrating furiously on whatever it is I am meant to be saying next, it’s quite hard to get a big picture overview of the CEO Gala, which we held for the 11th time on March 21. What I do get a better sense of is the flow of the evening, punctuated as it is by yet another course missed between trips to and from the podium, introducing someone here, hosting an audience participation quiz there. Anyway, this year’s event seemed to flow seamlessly. Certainly, the feedback I was picking up in the Grand Ballroom Lounge afterwards was that this was one of our better galas.
Congratulations, yet again, go to our two winners, Ana Maria Vargas of J&J Innovative Medicine (Expat CEO 2025) and Róbert Keszte of Continental (CEO Community Award), and their respective runners-up, any one of whom would have been a worthy winner. You will find a full two-page report and three pages of photos inside this issue.
Robin Marshall
Editor-in-chief
This editorial was first published in the Budapest Business Journal print issue of April 4, 2025.
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