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Delphi to transfer production from western Europe to Hungary

US automotive-parts company Delphi Corporation will transfer production from two of the company’s factories in western Europe to its plant in Hungary, the business daily Világgazdaság reported on Wednesday.

Delphi’s Hungarian unit, Delphi Hungary, makes steering wheels and electronic systems for windows, seats and blinkers at its Electronics and Safety (E and S) division in Szombathely (west-Hungary), Világgazdaság wrote.

Delphi Hungary HR Director Zoltán Jámbor told the newspaper that the company will soon begin to hire former employees of a local shoe factory that closed down several years ago. Jámbor added that Delphi Hungary could hire up to 150 new workers at its E and S unit, which currently employs 800 people, by the end of the year.

Delphi Hungary will also rent a new production location to augment its currently 8,000-square-meter E and S facility, Világgazdaság reported. Delphi’s Hungarian unit will start supplying steering wheels to Volkswagen, Smart, SEAT, Audi and Mitsubishi, among others, at the beginning of 2009, the newspaper wrote. Világgazdaság reported that Delphi Hungary generated revenue of Ft 155.76 million (about €653,000) and after-tax profit of 6.52 million in 2006. (MTI-Econews)