Hungarian prime minister Viktor Orbán and Opel/Vauxhall management board deputy chairman, Thomas Sedran, on Thursday inaugurated General Motors Europe’s new engine plant in Szentgotthárd, Hungary, exactly two years after the project was announced.
Orbán acknowledged the importance of the new facility for the Hungarian economy, while Sedran emphasized that the investment is an important part of Opel/Vauxhall’s product offensive.
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“We are investing billions of euros in 23 new models and 13 new engines by 2016,” said Sedran. “Many of these engines will be built right here in Szentgotthárd.”
The EUR500m flex-plant is flexibile and efficient and will produce petrol and diesel engines. It will have the ability to swiftly adapt production in response to changing market demand. The plant will have more than 800 employees and manufacture 500,000 engines a year at full capacity.
The first 1.6-litre petrol engines off the line will power the facelifted Opel/Vauxhall Astra range including a new four-door saloon which made its world debut last month at the Moscow show.
The engines provide high maximum torque along with significantly reduced fuel consumption and CO2 emissions. All new generation engines built in Szentgotthárd will meet the strict future EURO 6 emissions standard.
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By GlobalDataThe Szentgotthárd factory will also deepen Opel’s business relationship with Hungarian suppliers and enhance the role of the brand in the local economy and job market.
The new investment has almost doubled the amount that Opel invested over the past 20 years in Hungary.
In the early 1990s, Opel became the first international automotive company to invest there and the first automaker to build passenger cars in the country. The start of engine production at Szentgotthárd coincides with the 20th anniversary of production of the first Astra in Hungary.
Over the past 20 years, over 7m engines and 5.5m cylinder heads have been produced in Szentgotthárd. Last year the Hungarian suppliers to Opel/Vauxhall operations in Europe had a turnover of around EUR400m.
Opel is the top passenger car brand in the country with nearly 11% market share.
