By expanding our site in Gyor, we are further developing our international competitiveness

By expanding our site in Gyor, we are further developing our international competitiveness

Audi is to invest almost EUR900m in its Hungarian operations during the next three years, as it expands its production plant in Gyor.

The company's board of management and general works council also agreed to extend existing employment guarantees for both German locations in Ingolstadt and Neckarsulm until the end of 2014.

"By expanding our site in Gyor, we are further developing our international competitiveness and are thereby forming the right conditions to achieve our ambitious goals," said Rupert Stadler, chairman of the board of management of Audi AG.

Audi, a subsidiary of Volkswagen, said that its goal is to sell 1.5m cars per year by 2015.

In order to create the production capacity to achieve this, Audi Hungaria Motor has purchased nearly 200 hectares next to its existing factory in Gyor. The land was purchased from the Hungarian government for EUR23m this summer.

Audi will also invest around EUR900m by the end of 2013 to expand the automotive production plant. At present body shells for the Audi models assembled in Gyor are produced in Ingolstadt and transported to Hungary by rail. In the future, the plant will have its own complete production chain including body manufacturing, paint shop and assembly.

Beginning in 2013 about 125,000 cars per year will roll off the line in Gyor, including the Audi TT Coupé and TT Roadster sports cars, the A3 Cabriolet and another A3 derivative. In addition, the car manufacturer will create 1,800 new jobs at its Hungarian site.

After the plant is upgraded, Audi will support more than 15,000 jobs in the region through its permanent workforce at Audi Hungaria as well as through its service providers and suppliers.

"This expansion to create a complete automotive plant is a clear commitment to the Gyor production site," said Frank Dreves, member of the board of management at Audi for production and chairman of the supervisory commission of Audi Hungaria.

"At the same time, this decision provides important advantages for the entire company. The hub concept allows us to compensate for temporary over- and under-capacities across locations."

Peter Mosch, chairman of the general works council of Audi said that jobs in Germany were not threatened by the expansion.

"This has been ensured until 2014 by the employment guarantee agreed by employee representatives and the board of management," he said

For the first time, a production hub is also being arranged at Gyor that will work in conjunction with the site at Ingolstadt. This means that a new A3 derivative could be built in either Hungary or Germany.

"In Ingolstadt and Neckarsulm, stable employment will be ensured through measures including the development of additional fields of competence - such as advanced development in lightweight construction and electromobility," Mosch said.