The Hungarian government wants to reduce the economy’s exposure to fluctuations in the performance of the car industry and aims to boost other sectors, the economy minister said. More than 2 million diesel engines affected by the VW scandal were manufactured at Audi’s plant in the city of Győr, Mihály Varga told public radio.
Noting that the car industry accounts for 13% of Hungary’s exports and 22% of industrial production, Varga said that sectors such as pharmaceuticals, medical instrument and machine part manufacture should be boosted. Commenting on the emissions scandal surrounding the Volkswagen group, he said that around 2-2.5 million of the 11 million diesel engines affected by the scandal were manufactured at Audi’s plant in Győr. The apparent controversy is relieved by the tenses, namely that the affected Euro-5 engines were mass produced in Győr, but they are no longer are. The plant has been manufacturing Euro-6 engines since last year and these are theoretically not affected by the tampering of emission data.
Even if the scandal results in a drop in production, it will affect the Győr plant to a lesser extent than other plants of concern because it is among the VW group’s most modern units, Varga said. It is as yet uncertain to what extent car sales will drop as a result of the scandal, he added. According to the minister, diesel engines will continue to be used around the world because they are more efficient than petrol engines. The Hungarian government will monitor this issue due to the car industry’s workforce impact and its influence on the economy, he said. Varga told journalists on Monday that a drop in European car sales could have a 0.3%-0.6% impact on Hungary’s economy.
via hungarymatters.hu and portfolio.hu photo: fourtitude.com