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Gov't to make decision on Audi, Opel investment subsidies soon

A decision on the size of the state subsidies car makers Audi and Opel are to receive to support recently announced investments in Hungary has not been taken, but the government will soon discuss the matter, prime minister's spokesman Péter Szijjárto told automotive industry portal on Friday.

Audi said in September that it would spend about €900m to expand capacity at its base in Győr (NW Hungary) by 2013, creating 1,800 jobs. Around the same time, Opel said it would spend €500m to expand its base in Szentgotthárd (W Hungary), creating about 1,000 jobs.

Prime Minister Viktor Orbán said at the time the investments were announced that the government would take a decision on the size of investment subsidies for the two companies in the middle of October.

Audi Hungaria Motor spokesman Péter Lőre told that the government encourages Audi to raise the percentage of Hungarian companies among its suppliers. He denied reports that Audi's Hungarian unit must raise the percentage of Hungarians among its suppliers to 6.5% in order to get a subsidy for its investment.

Opel can expect to get HUF 7.5 billion in support for its investment, while Audi is likely to get about HUF 20 billion, according to industry insiders. (MTI Econews)