Audi Hungaria employs 11,663 people as of December 2023, making it the largest employer in the region.Continue reading
It was mainly the site-specific challenges that Audi Hungaria identified as a difficulty when presenting its 2023 results, reports Világgazdaság. The company cannot be dissatisfied, however, as it overcame the challenges to end last year with a turnover of EUR 9.1 billion, representing a 7.9% increase in revenue compared to 2022.
Although site-specific challenges affected Audi Hungaria in the 2023 financial year, it still achieved sales of EUR 9.102 billion and investments totaling EUR 343 million. As the largest employer in the region, the Győr-based (northwestern Hungary) company employed 11,663 people at the end of last year.
Presenting its annual report, Audi said it produced 1,660,425 engines last year, including 114,058 electric drives.
A total of 177,775 vehicles rolled off the production lines in Győr.
The economic challenges have placed a heavy burden on the 2023 financial year, but Audi Hungaria remains a key player in the Hungarian economy, making a significant contribution to GDP, exports, and employment in Hungary, said Michael Breme, who has taken over from Alfons Dintner as CEO of Audi Hungaria. Breme added: “The foundation for our continued success is our people, the continuous development of competencies, and our forward-looking Next Level strategy.”
The company’s 2023 year has been so successful that it could pay a record bonus worth 1.8 times salary.
It has invested in a number of new projects, including the new PPE (Premium Platform Electric) electric powertrain and series production of the EA888 R4 Otto engine. Since the company was founded in 1993, total investment has reached EUR 12.5 billion, making Audi Hungaria the largest investor in the Hungarian automotive industry.
“Maintaining our competitiveness in a fiercely competitive market and cost situation presents us with new challenges. We are continuously working to improve our economic and financial performance to be prepared for the challenges of the future,” noted Dr. Patrick Heinecke, Member of the Board of Management of Audi Hungaria responsible for Finance, Procurement, IT, and Compliance, who also added that Audi Hungaria’s performance in 2023, was largely influenced by individual factors. He underlined that including suppliers, the company employs around 50,000 people. Audi Hungaria’s wholly owned subsidiary Audi Hungaria Ahead, founded last year, employs nearly 500 people and provides IT services at around 200 sites worldwide. Győr-based Audi Hungaria is a member of the Audi Group and the central engine supplier to the Audi and Volkswagen Group.
Meanwhile, Gernot Döllner, CEO of Audi, stressed that
the company remains committed to its plan to launch its last internal combustion engine vehicle in 2026.
Elaborating on the challenges of the past year, Dr. Heinecke highlighted four main items:
With all these factors in mind, the company continues to pursue a strict cost planning policy, despite the excellent results.
Photo via Facebook/Audi Hungaria Győr
Globally, Audi ended 2023 with revenues of EUR 69.9 billion, and cash flow stood at EUR 4.7 billion at the end of the year. However, CFO Jürgen Rittersberger said that
the group’s cash flow is expected to be between EUR 2.5 billion and EUR 3.5 billion, mainly due to investments.
In any case, the company is looking forward to a challenging 2024: commenting on global plans, Audi CEO Gernot Döllner said that while the dates are flexible, the transition to electric drive is unquestionable. The most optimistic projections are that by the end of the decade, the company will be generating at least as much revenue from this as it does from internal combustion engine vehicles.
Via Világgazdaság, MTI; Featured image via Audi Hungaria Győr