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Várpalota bails from retro motorbike investment

The local government of Várpalota has terminated its involvement in the planned revival of Pannónia motorcycles in the town.

Várpalota deputy mayor Csaba Katona announced that the local government is no longer interested in taking part in the constructions of a factory in its territory and will also be looking to reclaim the HUF 15 million in development grants provided for the project along with interests. It will at the same time part with its 10% interest in the project company set up for the purpose.

Várpalota hammered out a deal with Magyar Motorkerékpár Kft in 2008 that stipulated the construction of a new production hall by May 31, 2010, where Pannónia motorcycles were to be manufactured.

Pannónia is a traditional Hungarian motorbike brand that was produced throughout most of the 20th century under various regimes, until production was discontinued in 1975. The investor at the Várpalota plant was hoping to take advantage of the brand’s nostalgic value as well as the ongoing retro trend.

However, despite the contracted deadline, not only is the factory not built, but Magyar Motorkerékpár has not yet even been able to finalize the terms of buying the plot.

Head of the company Imre Mázló told the Totalbike portal that he was disappointed by the municipality’s decision, which in his view was reached out of political motivations. At the same time he stressed that the HUF 15 million provided by the town has not been spent and that he sill aims to build the Pannónia plant in Várpalota. (BBJ)