Hungary is one of the winners of the electric car transition and thus of the new European economic era, also thanks to the best possible cooperation between the government and market players, Minister of Foreign Affairs and Trade Péter Szijjártó said at the announcement of the investment by the U.S. company BorgWarner.
The foreign minister stressed that the company, already employing more than 1,000 people in Hungary, will manufacture products suitable for hybrid and electric vehicles in Oroszlány (Central Transdanubia region) as a result of the planned HUF 25 billion (EUR 65.7 million) development. The project will be supported by the state with HUF 5 billion (EUR 13 million),
contributing to the creation of 60 new jobs,
In his speech, he recalled that political decisions have already been made in the European Union on the electrification of the automotive industry, without which it will be impossible to achieve carbon neutrality targets, as this sector accounts for 20% of total emissions. This also marks the dawning of a new economic era, with fierce competition to identify the winners of these changes, he said. “The winners will be those who attract the most investments and where the centers and factories of the new European green industry are established and where the jobs of the new industry are created,” he underlined.
Alongside China and Germany, Hungary is the only country in the world where all three premium German car brands will have production capacity, while five of the world’s ten largest battery manufacturers have committed to Hungary,
Péter Szijjártó pointed out.
He underlined that the production value of the sector reached a record of HUF 12,000 billion (EUR 31.5 billion) last year, and a further 18% growth was recorded in the first nine months of this year.
The minister also noted that U.S. investment plays an important role in sustaining Hungarian economic growth, and the companies concerned continue to be the second largest investor community in Hungary, with fourteen of them having signed strategic cooperation agreements with the government. Accordingly, bilateral trade turnover hit a record high last year and has expanded by 11% in the first nine months of this year, meaning that another record is expected in 2023, he concluded.
Via MTI, Featured image: Facebook/BorgWarner, Oroszlány